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Know When to Stop Trading⛔️ ✅Today we will talk about one of the most important things in trading, about what most traders around the world cannot do, even though they are well aware of the need for these actions. It will be about suspending and completely stopping their trading activities. ✅What to do if the trading system has failed, the market has changed, emotions fail or something has gone wrong. It is in this situation that the rules of action in extreme trading situations come to our aid. 1️⃣Three shots and you're dead — the rule of stopping trading within a day 🟢The main essence of this rule is contained in the title. And its essence is to stop trading if 3 consecutive losing trades were made during the trading session. No more deals are opened on this trading day. The trader has received a clear signal that something has gone wrong and the problem is either with the strategy or with the market or with the trader. 🟢Especially psychologically strong people who are sure that they will not be drawn to recoup, can continue to monitor the market, but it would be better to just close the trading platform and do something else, and after the trading session to analyze and find out what the problem was. 2️⃣Three volleys and you're dead — the rule of stopping trading for 2 days 🟢This rule is quite simple in formulation and just as complex in execution, in fact, as all the rules of risk management and capital management. 🟢If the three-shot rule has worked for three days in a row, then trading stops for 2 days. The principle is the same as in the previous rule, but in this case, the trader receives a signal that the problem is more serious than originally thought and it will not be possible to simply wait it out, serious measures need to be taken to analyze and correct the situation. 3️⃣The 30% trading capital rule 🟢If 30% of the trading capital was lost during trading, then trading stops completely until the moment when this loss is made up in any other way (of course legal). This rule will help to save your main working tool — trading capital and will allow you to relieve psychological stress because the trader will come out of a stressful state and realize that he has other ways of earning income, i.e. trading is not conducted with the last money. ❗️Observing these 3 simplest rules of stopping trading, you can be sure that you will never lose your deposit and even in the worst case scenario you will always be able to stop and beat the excitement that pushes many traders to return to the market again and again until zero remains on the account.However, all of the above is true only under one small condition — all three rules are strictly observed ❤️ Please, support our work with like & comment! ❤️
OANDA:XAUUSDEducation
by UnitedSignals
7
Why Do You Need a Trading Plan?📝 If you want to become a consistently profitable trader you have two choices: 1️⃣strictly follow your trading plan or 2️⃣fail. Trading plan is essential for achieving your financial goals. It is a set of actions to follow for making trading decisions guiding you on how to react to certain events. It reflects your personality and characteristics. Moreover, its entire structure and content are primarily based on them. Your way to success will be full of obstacles. A lot of things will come in your way: losses, drawdowns, and losing streaks; mistakes, scams, and emotional decisions. Only your trading plan will show you a correct path, it ensures you will stay on track on your journey to your desired destination. When you make a wrong turn, it knows to make adjustments, and it points you back in the right direction. It is your guard from making any hurried decisions you could later regret. Trading without a trading plan wouldn’t be a smart idea. You wouldn’t know how to get to your destination and it’s highly likely that you get lost. Most importantly, if you suck at trading (and you certainly will in the beginning), you will know it is down to one of only two reasons: either there’s a problem in your trading plan or you are not sticking to your trading plan. Stick to your plan traders. "If you fail to plan, you plan to fail". ❤️Please, support this idea with like and comment!❤️
BITSTAMP:BTCUSDEducation
by VasilyTrader
23
What are Moving Averages & how to make money on them?📚 🟢The main rule of using Moving Average is to track the general direction of the moving average: it indicates the dominant trend in the market. It is worth making deals only in the direction of this movement. Such a simple rule makes the moving average method a convenient tool for short-term forecasting. 🟢A universal tool in almost all markets is a simple moving average (SMA) with a 200-day averaging period. A longer-term moving average will allow you to see the global rise or fall of the asset, avoid short-term fluctuations or minor consolidation of the exchange rate. As a rule, short moving averages allow you to react more actively to price movements and are designed to search for short-term trends. When analyzing the price chart on a daily or even shorter interval, many traders use "fast" EMAS with different averaging periods (5, 7, 13, 21, 50). ✅To date, there are many recommendations for the period of the moving average (3, 5, 7, 13, 21, ...), as well as methods of its calculation (SMA, WMA, EMA). The general postulates are as follows: ✅The "faster" the MA (EMA) and the shorter the calculation period (3, 5, 13, ...), the more likely it is to receive false or ambiguous signals; ✅The "slower" the MA (SMA) and the longer the calculation period (50, 100, ...), the more likely the moving average is to lag behind the real state of affairs in the market. ❗️The moving average method is still a universal way to determine the trend in the asset market. Ease of use and unambiguous interpretation of the result allow the investor to determine the prevailing trend with a high degree of probability. This minimizes the risk of making unprofitable deals. The use of the method as an independent tool when deciding on a transaction is controversial, since all possible successful combinations of the intersection of moving averages or the average and the asset price are subject to cyclicity and sometimes give false or ambiguous signals. ❤️ Please, support our work with like & comment! ❤️
OANDA:XAUUSDEducation
by UnitedSignals
10
ELON MUSK QUOTES. For powerful thinking👨‍🎓 1️⃣"When it is important enough, you do it even if the odds are not in your favor." 2️⃣"No, I don't ever give up. I'd have to be dead or completely incapacitated." 3️⃣"Persistance is very important. You should not give up unless you're forced to give up." 4️⃣"I think it is possible for ordinary people to choose to be extraordinary." 5️⃣"Don't confuse schooling with education, I didn't go to Harvard, but people who work for me did." 6️⃣"Constantly think about how you could be doing better and keep questioning yourself." ❤️ Please, support our work with like & comment! ❤️
Education
by UnitedSignals
12
5 Possible Outcomes Of Your Trades | Trading Basics 👶 Hey traders, Depending on your actions, you can get 5 completely different results taking just one single trade. 1️⃣The first outcome is a small win. By a small win, I mean a winning trade producing up to 2.5% account growth. 2️⃣The opposite situation leads to a small loss. To me, a small loss is a losing trade producing up to -1% account decline. 3️⃣Occasionally once the price starts moving in the predicted direction, one can protect his trading position moving his stop to entry and making a position risk-free. Being stopped out such a trade produces 0% profit. The level where the position is closed is called a breakeven point. 4️⃣If one perfectly predicts a future direction of the market and opens a trading position accordingly, occasionally, a huge profit can be made. A winning trade producing more than 2.5% net account growth is called a big win. 5️⃣Being wrong in the predictions, however, one can adjust and trail a stop loss not letting himself be stopped out. Such behavior may lead to a substantial loss or even a margin call. A losing trade that produces more than -1% net loss is called a big loss. ❗️Learning how to trade, I strongly recommend you eliminate the 5th outcome. Managing not to lose more than 1% of your account will substantially improve your trading. ❤️Please, support this idea with like and comment!❤️
COINBASE:BTCUSDEducation
by VasilyTrader
19
Understanding OptionsTo gain a grasp on options it is essential to understand profit/loss diagrams for the various options whilst also understanding why they display such diagrams. Understanding profit/loss diagrams can help you gain insight into arbitrage trading(which is beyond the scope of this post) and will help you hedge various types of positions. We will first discuss the difference between being long from short, and will conclude why the diagrams are the way they are. LONG OPTIONS When you are long an option, you are paying a specified amount of money upfront. What does this mean? This means you can only lose the amount of money that you used to initiate the trade. This is known as having limited loss. Upon paying this premium you have the opportunity to gain infinite profits and will reap such profits if the underlying asset goes in your desired direction, hence you are paying a premium to acquire greater opportunity. SHORT OPTIONS Being short options is quite different than being long options. Instead of paying money upfront for the opportunity of large profits, you actually receive money upfront. This is also known as having limited profits. Once you place a short position you already have your max profits set in place. If I receive money upfront then how do I make a profit? Your endeavor as an option seller is for the person on the other side of the trade to be at a loss. Options are a zero-sum game. There are those that profit off of a trader's loss and there are those that acquire that loss. When you are selling an option there is someone on the other side of the trade that is long the option. This is important because as we have learned earlier, long options have infinite profit potential. This means that as an option seller you technically face the probability of having unlimited losses. For example, if you are selling a call there is someone that has purchased the call that you sold. If their call becomes unprofitable then you can buy back the call to offset the call that you have sold, acquiring a net profit. But if their call becomes profitable then you will have to offset the call that you sold, hence buying back the call at a larger price for a net loss. APPLYING KNOWLEDGE Lets now take a look at the option's profit/loss diagrams above. The Long Call displays a diagram in which the underlying asset must rise for you to make a profit, with the benefit of having limited losses. The Long Put displays the need for an asset to go down to reap a profit with the added benefit of only having a limited amount that can be lost. The Short Call displays the acquiring of a limited amount of profit with the desire for the underlying to not rise or else an infinite amount of loss will be faced. The Short Put displays the acquiring of a limited amount of profit with the desire for the underlying asset to not go down or else unlimited losses can be faced. p.s A great way to remember these diagrams is to picture them forming a diamond shape. The image above depicts that of a diamond formation which can help you form new profit/loss diagrams for advanced strategies. It is also very helpful to understand the rights and obligations that the various type of options have.
AMEX:SPYEducation
by ddcakez
BID AND ASK BASICS📚 🔴In all markets, there is a price at which a market participant is willing to buy an asset and a price that suits the seller. At the same time, traders intend to carry out a purchase and sale transaction only within the amount that is profitable for them. ⚠️In the foreign exchange market, the ask line is the cost of buying an asset or the price that is set by the broker in the Buy order. ⚠️Bid - accordingly, the cost at which the broker opens a sell order when accepting an application for the sale of currency from a trader. ❗️The spread is the difference between ask and bid prices. To be more precise, the spread is the difference between the best bid and ask offers for a specific asset over a certain period. Thus, the spread is dynamic, changing over time. The spread value is formed by the initial value set by the broker, as well as due to the volatility of the currency. The spread can vary from 0.1 to 100 points. ✅In the market of physical goods, a similar example can be given: a seller and a buyer, haggling, narrow the difference between prices that satisfy them, bringing them to one at which they make a deal. ✅In the foreign exchange market, the spread between prices is the commission charged by the broker. It should be borne in mind that the broker takes a commission regardless of the volume of the transaction and its result.
OANDA:XAUUSDEducation
by TopTradingSignals
7
TRADING BASICS | What is a Pip? 📚 📏Pip is a measurement of the price change in a currency pair trading on the forex market. In most cases, pip is the equivalent to 1/100th of 1%. That rule is applicable to all the currency pairs quoted to the 4th decimal place like EURUSD. ➡️Current EURUSD price is 1.1696 6 is the 4th decimal place representing a pip. If the pair moves from 1.1696 to 1.1697, that 0.0001 USD rise in value is ONE PIP. ❌That rule is not applicable, for example, to USDJPY which is only quoted to 2 decimal places. ➡️Current USDJPY price is 109.62 2 is the 2nd decimal place representing a pip. If the pair moves from 109.62 to 109.63, that 0.01 JPY rise in value is ONE PIP. 🦉The word pip stands for "price interest point" or "percentage in point". Even though a pip might appear as an extremely small unit of measurement, in leverage trading even the one pip price change of the instrument may lead to a sufficient gain or loss. ➗How to calculate the value of a pip? Each and every currency has its own relative value. In the following example, I will show you how to calculate the value of a pip for a particular currency pair. USD/CAD = 1.2753 Reading that as 1 USD to 1.2753 CAD or 1 USD / 1.2753 CAD 1 Pip = * 1 USD = 0.00007841 per unit traded. Following this example, if we trade 10.000 units of USD/CAD, then a one pip change to the exchange rate would be approximately 0.78 USD change in the position value. Alternatively, pip value can be calculated with various calculators & apps. I hope that with these examples and my explanation you will understand the concept of a pip easily. Let me know what do you want to learn in the next posts! ❤️Please, support this idea with a like!❤️
BITSTAMP:BTCUSDEducation
by VasilyTrader
15
📚EDUCATION: THE BASICS OF TRADING EXPLAINED📚 Hello, Traders! The basics of what it takes to be a successful trader are simple and obvious Yet daily, I see traders who fail at one or multiple KEY points that sink their performance and they keep losing accounts even though these people do have the understanding of the market that would have been sufficient enough for them to be profitable if they followed the basic rules. Trading is as much about pattern recognition and capacity for abstract thinking as it is about the personality type, self-discipline, and specific mindset. The lucky few are born fit for trading, but others might train themselves. Below, is the breakdown of the basics behind the day trading! ✅TRADING IS A BUSINESS NOT GAMBLING 99% of the new traders have unrealistic expectations of the kind of returns trading might deliver. To make matters worse, they do not realize that it will take years of trial and error before they can make trading Their only source of income. These delusions make the newbies treat trading like gambling. To AVOID this, please follow these 4 easy steps: 🔥SET AND KEEP YOUR RISK-REWARD. I recommend risking no more than 1% of the deposit per each trade, which also implies using a variable lot size for every trade, so that no matter the SL size in pips, or the pair you are trading, the dollar value of the RIKS remains the same with each trade. That way, you are in full control of the risks you are taking. 🔥DO NOT GO ALL IN. Sounds obvious, but I’ve seen it so many times. New traders, who lost 70% of the account, GO ALL IN on one trade that they think might help them recover the balance. That is NEITHER a way to trade, nor a way to learn. Slowly losing your account while learning how to trade, is simply a fee that you are paying the market for your education. Accept it or fail. 🔥PROTECT CAPITAL=USE SL I can’t stress this enough and I BEG YOU to use SL. Do NOT enter the trade thinking that if the SL level that you had in mind is hit you will close manually. You will NOT close the position, and the longer you hold it the more is the temptation to wait a bit more because it seems that the reversal is coming soon. 🔥CUT LOSSES Set a daily loss limit. For example, you can Ban yourself from trading for the rest of the day if you lost more than 3 trades in a row. You will enter what is called a tilt most likely, and you will NOT be productive that day. The same goes for a week. Lost more than 10% of the account in a week? Next week NO TRADING for you. Watch the market passively, or trade on the demo! By the way, That can be helpful even for professional traders too! ✅KEEPING A COOL HEAD IS KEY The ideal trader is the one who can set all emotions aside as a robot would, while simultaneously keeping the versatility of the human mind and the intuition, that the machines lack(yet). It is of utmost importance for the new traders to understand that being right about the direction but entering too early or too late is the same as being WRONG because the result will be a LOSS. Here is how to keep cool: 🔥CONTROL YOUR EMOTIONS. Both euphoria and a panic attack are your enemies so the more detached you are, the better. Emotions are for the casino, and we are doing business here, remember? 🔥AVOID FOMO( FEAR OF MISSING OUT) That one applies mostly to the trades that you are not so sure about, but still want to take them, in fear of not making money. And the early entries are determined by FOMO too( what if the price does not reach my limit order, and the trade plays out well, but without ME?) FOMO is Incredibly counterproductive, don't let it control you! 🔥DON’T FOLLOW OTHERS Avoid herd mentality! 99% of traders lose money, so doing what everyone does inevitably lands you in the 99% category. 🔥BUILD A WATCH LIST A LOT of the beginners try to PREDICT behavior of the particular instrument that they decided to trade for some reason, instead of going through the pairs looking for a ready setup that you KNOW works. The former approach leads to finding patterns, key levels, and setups that just aren’t there. Naturally, the result of trading these is an inevitable LOSS.You should Build a watchlist big enough for your to have a choice, and go through it at regular intervals, looking for opportunities but NOT INVENTING them. ✅ CONSISTENCY OVER BOOM-BUST STYLE Consistent trading is the only way to make trading a reliable source of income. Slow but steady gains always beat leap-like boom-bust performance. The psychological pressure of the latter will most likely break you sooner or later, and who needs gray hair in their 30es anyway? That is how you achieve consistency: 🔥FIND A STRATEGY Do the research on multiple trading strategies and pick those that you understand and that are compatible with your personality. 🔥USE PAPER TRADING AND BACKTESTING To select which strategy is right for you, use backtesting to see how the strategy performed in the past. And use paper trading to see how the strategy works in real-time.Once you chose the strategy, go back to paper trading and backtesting to polish it. 🔥TRACK YOUR TRADES Keeping track of your trading! Working with that data is an invaluable tule for the trader, that helps identify your strengths and weaknesses, while also helping you notice patterns in your trading that would have been left unrecognized otherwise. 🔥FORMALIZE YOUR RULES Objectivity is KEY for consistent trading because during the rough patches of the market, being sure of your rules helps you stay in the market, waiting for the tailwind, instead of questioning your strategy or your implementation of it. Create a strict ALGORITHM and follow it step by step. In order to do that, you need to define every element of your strategy as precisely as possible. For example, a level for you is a daily horizontal level with at least 3 touchpoints, a breakout is valid only if the 4H candle closed above the level, etc... The less vague the terms, the fewer emotions will be involved in deciding whether to enter the trade or not. ❗️IN CONCLUSION: If you want to become a trader, remember: 1- It will take YEARS to learn how to trade. 2- You will lose a TON of money in the process 3- You will FAIL with 95% probability. 4-Realistic returns from trading are WAY lower than you think 5-BUT when you succeed, you will set yourself free! Please SUPPORT This Idea By A LIKE and COMMENT!
Education
by TopTradingSignals
2
📚EDUCATION: THE BASICS OF TRADING EXPLAINED📚 Hello, Traders! The basics of what it takes to be a successful trader are simple and obvious Yet daily, I see traders who fail at one or multiple KEY points that sink their performance and they keep losing accounts even though these people do have the understanding of the market that would have been sufficient enough for them to be profitable if they followed the basic rules. Trading is as much about pattern recognition and capacity for abstract thinking as it is about the personality type, self-discipline, and specific mindset. The lucky few are born fit for trading, but others might train themselves. Below, is the breakdown of the basics behind the day trading! ✅ TRADING IS A BUSINESS NOT GAMBLING 99% of the new traders have unrealistic expectations of the kind of returns trading might deliver. To make matters worse, they do not realize that it will take years of trial and error before they can make trading Their only source of income. These delusions make the newbies treat trading like gambling. To AVOID this, please follow these 4 easy steps: 🔥SET AND KEEP YOUR RISK-REWARD. I recommend risking no more than 1% of the deposit per each trade, which also implies using a variable lot size for every trade, so that no matter the SL size in pips, or the pair you are trading, the dollar value of the RIKS remains the same with each trade. That way, you are in full control of the risks you are taking. 🔥DO NOT GO ALL IN. Sounds obvious, but I’ve seen it so many times. New traders, who lost 70% of the account, GO ALL IN on one trade that they think might help them recover the balance. That is NEITHER a way to trade, nor a way to learn. Slowly losing your account while learning how to trade, is simply a fee that you are paying the market for your education. Accept it or fail. 🔥PROTECT CAPITAL=USE SL I can’t stress this enough and I BEG YOU to use SL. Do NOT enter the trade thinking that if the SL level that you had in mind is hit you will close manually. You will NOT close the position, and the longer you hold it the more is the temptation to wait a bit more because it seems that the reversal is coming soon. 🔥CUT LOSSES Set a daily loss limit. For example, you can Ban yourself from trading for the rest of the day if you lost more than 3 trades in a row. You will enter what is called a tilt most likely, and you will NOT be productive that day. The same goes for a week. Lost more than 10% of the account in a week? Next week NO TRADING for you. Watch the market passively, or trade on the demo! By the way, That can be helpful even for professional traders too! ✅KEEPING A COOL HEAD IS KEY The ideal trader is the one who can set all emotions aside as a robot would, while simultaneously keeping the versatility of the human mind and the intuition, that the machines lack(yet). It is of utmost importance for the new traders to understand that being right about the direction but entering too early or too late is the same as being WRONG because the result will be a LOSS. Here is how to keep cool: 🔥CONTROL YOUR EMOTIONS. Both euphoria and a panic attack are your enemies so the more detached you are, the better. Emotions are for the casino, and we are doing business here, remember? 🔥AVOID FOMO( FEAR OF MISSING OUT) That one applies mostly to the trades that you are not so sure about, but still want to take them, in fear of not making money. And the early entries are determined by FOMO too( what if the price does not reach my limit order, and the trade plays out well, but without ME?) FOMO is Incredibly counterproductive, don't let it control you! 🔥DON’T FOLLOW OTHERS Avoid herd mentality! 99% of traders lose money, so doing what everyone does inevitably lands you in the 99% category. 🔥BUILD A WATCH LIST A LOT of the beginners try to PREDICT behavior of the particular instrument that they decided to trade for some reason, instead of going through the pairs looking for a ready setup that you KNOW works. The former approach leads to finding patterns, key levels, and setups that just aren’t there. Naturally, the result of trading these is an inevitable LOSS.You should Build a watchlist big enough for your to have a choice, and go through it at regular intervals, looking for opportunities but NOT INVENTING them. ✅ CONSISTENCY OVER BOOM-BUST STYLE Consistent trading is the only way to make trading a reliable source of income. Slow but steady gains always beat leap-like boom-bust performance. The psychological pressure of the latter will most likely break you sooner or later, and who needs gray hair in their 30es anyway? That is how you achieve consistency: 🔥FIND A STRATEGY Do the research on multiple trading strategies and pick those that you understand and that are compatible with your personality. 🔥USE PAPER TRADING AND BACKTESTING To select which strategy is right for you, use backtesting to see how the strategy performed in the past. And use paper trading to see how the strategy works in real-time.Once you chose the strategy, go back to paper trading and backtesting to polish it. 🔥TRACK YOUR TRADES Keeping track of your trading! Working with that data is an invaluable tule for the trader, that helps identify your strengths and weaknesses, while also helping you notice patterns in your trading that would have been left unrecognized otherwise. 🔥FORMALIZE YOUR RULES Objectivity is KEY for consistent trading because during the rough patches of the market, being sure of your rules helps you stay in the market, waiting for the tailwind, instead of questioning your strategy or your implementation of it. Create a strict ALGORITHM and follow it step by step. In order to do that, you need to define every element of your strategy as precisely as possible. For example, a level for you is a daily horizontal level with at least 3 touchpoints, a breakout is valid only if the 4H candle closed above the level, etc... The less vague the terms, the fewer emotions will be involved in deciding whether to enter the trade or not. ❗️ IN CONCLUSION: If you want to become a trader, remember: 1- It will take YEARS to learn how to trade. 2- You will lose a TON of money in the process 3- You will FAIL with 95% probability. 4-Realistic returns from trading are WAY lower than you think 5-BUT when you succeed, you will set yourself free! Please SUPPORT This Idea By A LIKE and COMMENT!
Education
by TopTradingSignals
110
10 TIPS TO BECOME A PROFITABLE TRADERThe tips that I am about to give you can completely change your results as a trader and it can help you to start becoming a PROFITABLE TRADER or if you already is a profitable trader it can help you to increase your "win rate". 1 - Never blindly trust in the Moving Averages or any other indicator that you have set in your chart, it only takes a big spike on Bitcoin's price, or a lack of attention of your part to a bigger trend for you to be stoped in your trade. 2 - Always check your Moving Averages and other indicators in different time frames (1H, 4H, 1D, 1W), different time frames tell different stories. 3 - Identify the trend (Up, Down, Consolidation). Always look for the bigger picture. 4 - When all the MA in different time frames are giving you the same direction it's a positive sign for you to trade in the direction of that trend (but that's not the only way to use it and you need to take other indicators in consideration). 5 - DON'T EVER get in a trade just because the price went up or down 10% - 100%, first see the bigger picture (1M, 1W, 1D, 4H), then check your other indicators. Not doing it will make you lose a lot of money (constantly). 6 - Don't "FOMO" is your trades, that will make you lose a lot of money, patience is one of the most important attributes to become a profitable trader. 7 - ALWAYS check the Bitcoin chart before getting in a trade, if Bitcoin is close to a strong support and end up not holding on it and the price goes down it's very likely that other pairs of coins will go down as well. 8 - Don't get in trades that you are not sure about it, it's not worth it, sometimes you maybe right, but in the long term you will not be a profitable trader. 9 - You need to know the "Why" you are getting in that trade, and the "When" (exact moment that you will get in or out of the trade). 10 - You don't need to get into every single trade opportunity that you see, it's better to trade less with more quality trades than to trade a lot but making poor trading decisions. The tips above are simple to understand and to apply and for some can sound really easy and common but unfortunately a lot of Traders are not practicing it or are not aware of it and not following this simple tips can lead you to failure really fast. You will not necessarily become a profitable trader just by following this tips, but learnings and applying this tips is the beginning to a glorious path! I'm using ADA/USDT as an example, the intent is not to predict if the price will go up or not, if the price goes 100% up or down tomorrow it doesn't make any difference. The purpose of the post is to open your eyes to see the big picture of things, to see that sometimes some indicators if not used correctly are not very helpful to our trades, to identify a trend despite the spikes of price, to understand that there are several thinks to be taken in consideration before getting in a trade, is for you to understand that patience is a key aspect to our success. My desire is that you understand that you need to be meticulous in all your analysis, trade less, win more.
Education
by ClubCryptoTraders
1
Trading Basics Part 1:How Candlesticks Work! Hello,Traders! Japanese Candlesticks are thought to have been invented by the Japanese rice traders And then made their way into the West where they were used for stocks, forex and commodity trading. Reading candlesticks is quite easy: the body represents an area that indicates the price distance between the open and close of the candle, while wick’s ends indicate the full magnitude of the movement in-between open and close. Thus, when picking the timeframe for your chart, you are deciding on how much time will be contained between open and close of each candle. If open is below the close, the candle is bullish, and if open is above the close, the candle is bearish, which is usually represented by different colors of the bodies and wicks on the chart, typically, green and red. Some of you might ask me, why am I explaining things that seems to be obvious and self evident, yet my experience of Coaching, paints a different picture, with the candlesticks being undervalued and misunderstood by many, despite them being the staple of technical analysis. In my trading strategy, which is based on multi timeframe top-down technical analysis, we examine multiple timeframes, from 1 week to 1 hour, going from higher to the lower timeframes. Looking for strong levels on weekly and daily and for patterns and confirmations on 4 hour and 1 hour charts. Which means that we are opening 1 week/1 day candle like a Russian doll, finding multiple candles inside the other. We enter the trade only if we are getting the same bias on all timeframes that were of our interest! If you found my post helpful and interesting, please, like comment and subscribe! Thank you!
Education
by TopTradingSignals
26
How NOT to Invest Lets me discuss basic human psychology. Most investors only want to invest when stocks are BOOMing and reaching an all time high! Does this sound like you? While most investors avoid stocks when they first begin or when they reach their lows. Some Rules of investing: 1) Buy when the stocks dips at appropriate levels & better yet at early stages - do your due diligence 2) Never buy ATH wait for a pull back or another opportunity (There is always another opportunity) 3) Check RSI Levels (Oversold) & MACD (Cross over downtrend) :: (BASIC TA) 4) Only invest in sound companies that you believe in the long-term 5) Buy the hype sell the news (To an extent) 6) When everybody is talking about it - its time to plan your exit 7) Be an early adopter on the technology bell curve not a late adopter or WORSE a LAGGARD. (Bitcoin @ $1 = Innovator - Bitcoin @ $100 Early Adopter... ect) Example: Chinese EV stocks Here is an example of LI Auto the time to buy was when nobody was talking about EV (Electronic Vehicle stocks) if you perhaps could see the future in these companies & foreign country opportunities. That was the time. Most people rushed in at $50 when the stock was HOT. As you can see the RSI was very overbought & MACD cross over. Now you can buy in at a much more FAIR cost @ 30 & on a 3 point trend line. If you believe in a stock this is the proper way to DCA. There was also a negative news event (big surprise) but I doubt much traction will come of it. Many Americans invest in Chinese stocks. Happy Trading!
NASDAQ:LIEducation
by GlobalHealthWealth
1