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Learntotrade

Risk Management Basics | Retest Trading 💡 Hey traders, Being breakout traders we have two options for trade entries: when the breakout is confirmed we can either open a trading position aggressively once the candle closes above/below the structure or we can be conservative and wait for a retest of the broken structure first. What is peculiar about the second option is the fact that the majority of pro traders prefer the retest entries. In this article, we will discuss the pros and cons of retest trading. ✔️First, let's discuss whether the retest is guaranteed. NO. How often do we see that? Around 50-55% of the time. Does it mean that 45-50% of breakout trades will be missed? YES. The main disadvantage of retest trading is that a lot of trading opportunities will be missed. Occasionally the breakout triggers a strong market rally not letting the price return back to the broken structure. So what is the point to wait for a retest then? Why let the market go without us in case if there is no retest? ✔️Most of the time the breakout candle closes quite far from a broken level. Opening the trading position once the candle closes and setting a stop loss below/above the broken structure, one can get a very big stop loss. Such a big stop that its pip value exceeds or equals the potential return. 🖼️In the picture, I drew a classic channel breakout trade. The aggressive trader opened a long position as the candle closed above the channel's resistance. His stop loss is lying below the lower low of the channel. Analyzing his risk to reward ratio, we can see that his reward equals his risk. On the right side is the position of the conservative trader. His stop loss in lying on the same level. However, instead of opening a trading position on a breakout candle, he decided to wait for a retest of the broken resistance of the channel. Just a slight adjustment of his entry-level gives him a completely different risk to reward ratio. ❗️Patience pays in trading. Missing some trades a retest trader will outperform the aggressive trader in the long run. Trading is about weighting your potential gains & losses. Paying commissions and swaps for every trade, it is much better for us to trade less but pick the setups that give us a decent potential reward. What type of trading do you prefer? ❤️Please, support this idea with like and comment!❤️
Education
by VasilyTrader
30
Learn to trade Price Action with Blind Spot CBO setupAre you learning price action to trade bitcoin, gold? In this post, we will learn about Blind Spot CBO setup Blind Spot CBO includes: - Clean Breakout (CBO) with candle like Mazubozu - Strong Momentum - Decision Point like Doji kink, Bearish/Bullish Engulf, ... It's better when price comback after it made a clean breakout. The downside of Blind Spot CBO is hard to find where we put our stop-loss (around 20-30 pips). Do you want to see more post about trading Bitcoin, Gold ?
Education
by UnknownUnicorn31399052
Trading And InvestingTrading isn’t the same thing as investing.Investors buys stocks and hold them for a long time - often for a too long riding a stock all the way down and possibly even buying more along the way. Traders, on the other hand, hold stocks for as little as a few minutes or as long as several months, and sometimes possibly even a year or more. The specific amount of time depends the type of trader that you are. Investors Investors want to carefully balance an investment portfolio among growth stocks, value stocks, domestic stocks, and foreign stocks, along with long‐, short‐, and intermediate‐term bonds. A well‐balanced portfolio generally offers the investor a steady return of between 5 percent and 12 percent, depending on the type of investments and amount of risk he or she is willing to take. Trader As a trader, you look for the best position for your money and then set a goal of exceeding what an investor can otherwise expect from an aggressive portfolio. During certain times within the market cycle, your best option may be to sit on the sidelines and not even be active in the market.
by NewYeezus
First become a good trader then focus on the chartsFor day traders, traders who focus on technical analysis it is very important to first master the mental aspect of trading before they move to actual charting. This blog post and video will help you understand the path you need to take if you are a new or struggling trader. The biggest challenge we see in new traders is that the new traders want to learn as quickly as possible to earn, they rush into trading live and that "rush" doesn't actually allow them to actually learn how to trade, successful trading comes in two parts, the first is mental skills and the second is a complete trading system, without having both of these traders fail. I'll quote Richard Dennis, a legendary trader, to explain the importance of mindset, I always say you could publish rules in a newspaper and no one would follow them. The key is consistency and discipline. Discipline and consistency are mental skills, nothing to do with the system everything to do with the mindset. Meaning that you could have at your disposal the best trading system in the world, but if you don't follow it (with consistency and discipline) you are doomed to failure. - Since you simply won't follow the system. Most of the great traders that I know or follow, who trade based on charts like us, were great traders first, now once they became great traders (mentally) then, after they because great traders they learned how to read charts and built or learnt trading systems. Trading is the hardest easy job in the world, easy because you choose everything, from exposure, to when and where you work and all the way to how much you make or lose. You are in control and always will be, but you're only in control when you manage your mindset throughout the day with discipline and consistency. The main reason we are sharing this is because we have gotten a lot of new members in our community and followers on tradingview, and we just want to help everyone new to us to master their emotions first and then focus on the profits! Now, while I mention profits above I want to explain the correlation profits have to deeds, I firmly believe in cause and effect, and I believe it works in this way: poor or average causes = poor or average results (losses, failure, stress) Good causes = good results Great or extraordinary causes = great or extraordinary results Like I mention above, you get to choose everything you do in trading, this is the main difference between actual trading and gambling. Who are you going to be today? A gambler or a trader? - The choice is always yours! WHAT WE RECOMMEND TO NEW OR STRUGGLING TRADERS: Our first recommendation is that you fully focus on yourself, find and accept your weaknesses or limitations. Weaknesses are overtrading, no patience or discipline. Find them and create plans to remove them, if you're not challenging yourself you cannot be a good or great trader. Limitations are not having much time, not having capital, not having knowledge, all of which you can work on if you're serious about trading success. Next is the system, you must find or create a complete trading system... that is the easy part, all you need is a system that governs every aspect of your trading and we have one, not to make this promotional, but you can get our day trade for a living course here and replicate our system. Now charts are important, very important so you must learn how to read charts, that will only come from practice, lots of practice! Think about it like this, if all the great businessmen/women, sports people and everyone in between practice (read, train etc) don't you think as a trader you need to do the same? In a nutshell, first develop your mental trading skills, then you can use charts to supplement your trading skills. Just know this, without trading skills your charting knowledge will not be valuable. - You need them both!
BITSTAMP:BTCUSDEducation
by PrimedGroup
Breakout Trading | 7 Steps to Follow 📝 Hey traders, Breakout trading is one of the most popular trading strategies. Being quite simple in theory, it remains quite complex and complicated in practice. In this post, we will discuss 7 steps every breakout trader must follow. 💬And just in brief about a breakout trading itself: this method aims to spot a key level (it might be horizontal support/resistance or a trend line) and then to trade its occasional breakout assuming that it will trigger an impulsive move. 1️⃣No surprise, the first task of a breakout trader is the identification of key levels. Preferably these levels should be spotted on weekly/daily time frames. 2️⃣Once key levels are spotted, a breakout trader should patiently wait for the test of one of those. His goal is to wait for a breakout. In that step, many traders fail. The problem is that in order to confirm the breakout, one should have strict & reliable rules to follow. The rules that describe a confirmed breakout. *I apply the following rule: the breakout of a level will be considered to be confirmed once the candle closes above/below the structure on the highest time frame where the structure is recognizable. 3️⃣Once the breakout is confirmed, the next step is to wait for a retest of a broken level. Why retest? Simply because a retest gives a better risk to reward ratio for the trade. And even though there is no guarantee that the price will retest the broken level and because of that some trading opportunities will be missed, in the long run, retest trading produces higher gains. 4️⃣Opening a trade on a retest one should know the exact target levels. The levels where the profits will be taken. Again, newbies traders make a lot of mistakes on that step. Remember that your targets must be realistic, they must be based on closest strong structure levels, not on your desired returns. 5️⃣Also, a breakout trader should set a stop loss. And again, a stop-loss level must be safe, it must be set at least below/above a previous minor structure to protect you from stop-hunting. Stop-loss reflects the point where the trader becomes wrong in his predictions and where the trading setup becomes invalid. 6️⃣Once the trading position is opened and stop-loss & take-profit are set, one should patiently wait. There is no guarantee that the price will start falling/growing sharply after the breakout. The market may start coiling for a quite long period of time before it starts acting. Breakout trader must be patient not allowing his emotions to intervene. 7️⃣Lastly, one should remember that his exit points are stop-loss/take-profit levels. Stop-loss adjustment in case of a position drawdown, preliminary profit-taking, and target extension are your worst enemies. Be disciplined, don't be greedy, and keep your emotions in check. Of course, this 7-steps trading plan is not sufficient enough for profitable breakout trading. There are so many nuances on each step of the plan to consider. However, let this plan be your initial guideline: learn & follow that and with time, keep elaborating its rules until you become a consistently profitable trader. Are you a breakout trader? ❤️Please, support this idea with like and comment!❤️
COINBASE:BTCUSDEducation
by VasilyTrader
19
ENGULFING CANDLE. Powerful reversal candlestick pattern🕯 ✅Candlestick patterns trading is one of the oldest but most effective ways to analyze the foreign exchange market. The trader needs to find certain patterns, and based on them, decide where the price will go. Today we will talk about one of these candlesticks, which is called the "engulfing candle". There are two types of it: bullish and bearish. The appearance of such a model on the chart with a high probability indicates a possible reversal of the trend and is a signal to enter the market. Types of engulfing and their features ⚠️So, we realized that there are two types of this candle: 🟢Bullish. It indicates that the trend is turning towards an increase in the value of an asset or currency pair. The candle must engulf the range of the previous bearish candle to be valid. 🟢Bearish. The same as with bullish, only the opposite. It indicates that the trend is turning towards a decrease in the value of the asset. In this case, the candle must engulf the range of the previous bullish candle. ✅The formation of the "Bullish engulfing" candle says that buyers have sat on the throne, and "Bearish" - sellers. Let's discuss the theoretical foundations of the pattern. In the case of the "bullish engulfing" pattern, everything will be the same, just the opposite. Rules for the formation of the "bearish engulfing" pattern: There should be a bullish trend in the market, and the price should be on a key level. ❗️A long-bodied bullish candle appears (that is, directed towards the trend). The opening of the second candle should be carried out with a gap relative to the closing of the first, and its body should be larger than that of the previous one. It seems to engulf the trend with its dimensions, and therefore it is necessary to sell (a bearish candle indicates the beginning of a downward trend). ❤️ Please, support our work with like & comment! ❤️
Education
by UnitedSignals
6
SOLANAUSDTHI EVERYONE!!! im here again .. im doing this everyday one trade at a time.. its because im a beginner still learning day by day.. watching my trade if valid or not.. but still continuing my trade set ups and technical chart reading.. this is SOLUSDT CHART i have already a a first trade and my wrong here is early taking up a TPA (taking profit area) i put stop loss on a same level of previous resistance but i will go up and more up.. then waiting again for the 2nd area of entry i used to find by using trend fib ret. to find more .618 with confirmation candle as my indicator and MACD/RSI hope you understand my concept.. if you have any comments and suggestion please feel free to comment here!!! THANK YOU!!!
Long
by rainiereballes2820
AVAXUSDT BOUNCE PLAYHI EVERYONE!!! after the market get down...waiting a small long position for bounce play i used to play the COACH MIRANDA MINER STRAT using of ccc / fib retracement / .618 bounce i used 15mins TF the strategy was amazing and very applicable to any combination i used before in my trading system. BTW im just only a beginner still continuing the learning to be a good trader someday.. this TECHNICAL ANALYSIS AND CHART READING is based only in my self learning if you have a good suggestion and ideas please feel free to comment here!!! THANKS!!!!
Long
by rainiereballes2820
Learn Top-Down Analysis | The Best Trading Strategy 🏆 Hey traders, 🔝Top-Down analysis is one of the most efficient ways to analyze & trade different financial markets. In this post, we will discuss the time frames to watch and the main steps to go through to execute a Top-Down trading strategy properly. Being a Top-Down trader your task is to assess the global market perspective and identify the zones, the areas from where it will be relatively safe for you to trade it following the trend or catching the reversals. ➖Weekly time frame shows you the price action during the last couple of years. It unveils the major zones of supply and demand and indicates the long-term direction of the market. Your task is to spot these zones and underline them. The strongest market moves most of the time initiate from these zones. At the same time, you must remember that on a weekly time frame the market is extremely slow. Being beyond the key zones 90% of the time, it takes many weeks, even months for the market to reach them. ➖Once you completed a weekly time frame analysis, the next on your radar is a daily time frame. Daily time frame shows you 1-year-long price action. It indicates a mid-term sentiment. And again, here your task is to simply identify the market trend and underline major key levels. *It is highly recommendable to apply different colors for highlighting weekly/daily levels. Completing weekly/daily time frame analysis, your task is to set the alerts on at least two closest support/resistance clusters. You must patiently wait for the moment when the price reaches one of them. Once the underlined key level is reached, you start the analysis of intraday time frames. ➖The intraday time frames on focus are 4H/1H. Your task here is to spot the price action/candlestick patterns. With such formations, the market unveils its reaction to the key level that it is approaching. You are looking for a pattern that confirms the strength of the level. Spotting the pattern you are looking for a trigger to open a trading position. Most of the time it is a breakout of a trend line or a horizontal neckline. The breakout confirms the willingness of buyers/sellers to buy/sell from the underlined support/resistance. Only then a trading position is opened. Of course, in practice, Top-Down analysis is very complex and many things and concepts must be learned in order to apply that strategy properly. Follow the steps described in this post, learn to identify key levels and recognize the price action patterns and you will see how efficient this strategy is. Do you apply a Top-Down trading strategy? ❤️Please, support this idea with like and comment!❤️
Education
by VasilyTrader
33
NEARUSDT 15MINS TF TRADEHI EVERY ONE!!! this is my paper trade practice and also small ideas using the bounce of .618 of fib and a combination of TP AREA OF EXETENDED MOVE OF FIB... plus the bounce play clear breakouts with the confirmation of bearish cross of macd and also the volume is a plus.. im just a beginner still learning and also sharing my ideas to help others developing to be a good trader someday... hope you like it.. and please feel free to comment im humbly ask to my development in this industry to learn more...
Long
by rainiereballes2820
BTCUSDT BEARISH PREDICTIONI'm bearish for bitcoin and this is my opinion only My technical analysis is from 69K ath - the downtrend is composing of lower highs and lower lows so we can draw a clear downtrend line connecting those wycks and also the price is under 52k-59k horizontal support i think this is a strong resistance... this coming more days and weeks and next ups down of bitcoin is still on BEARISH TREND... My target still remains on 40k zone SUPPORT AND MY SAFEST AREA TO PLACE is around 28k again this is only my idea as a beginner analysis for BITCOIN CHART IF YOU HAVE A COMMENT AND IDEA PLEASE FEEL FREE TO SEND IT HERE!!! (it really help out to grow as a good trader someday) THANKS!!!
Short
by rainiereballes2820
3
Rules By Warren Buffett (Educational)Hello everybody, today, we are going to talk about Warren Buffett and his rules and advice. Who is Warren Buffett? In an abbreviation, he is an american businessman and investor with an property of over 100 billion dollars. He is an old-school, but in some way, his rules are really impressive and are working. He also wrote an preface for the best book ever written on investing, The Intelligent Investor by Benjamin Graham. 1. Reinvest Your Profits When you first make money, you may be tempted to spend it. Don’t. Instead, reinvest the profits. 2. Be Willing to Be Different Don’t base your decisions upon what everyone is saying or doing. Have your own reason to buy the stock. 3. Limit What You Borrow Buffett has never borrowed a significant amount — not to invest, not for a mortgage. In other words, if you can´t buy it twice, you can´t afford it. 4. Be Persistent A young boy who sold Coca-Cola for a nickel ended up being a majority shareholder of Coca-Cola. This transition does require persistence. Warren is an Realistic Optimist. He believed they will succeed but with planning, effort, and persistence even when times are tough. You don´t have to make deals every day, just watch markets and paper trade. 5. Know When to Quit Once, when Buffett was a teen, he went to the racetrack. He bet on a race and lost. To recoup his funds, he bet on another race. He lost again, leaving him with close to nothing. Buffett never repeated that mistake. 6. Know What Success Really Means Despite his wealth, Buffett does not measure success by dollars. In 2006, he pledged to give away almost his entire fortune to charities. 7. Stay In Your Circle Of Competence Imagine Circle with 3 layers. In the smallest layer, inside the circle, are things that you really know. In middle of circle are things that you think you know, but you don´t. And in an outer layer, the biggest one, are things that you don´t know. Warren recommends to stay in the smallest layer and just buy what you really understand. Otherwise it doesn´t mean that you have to be closed to every opportunities, but first of all, learn something about it. And this leads us into another topic: 8. Always Learn This is really important to understand, because you have to learn new things, that´s no rule, it´s an habit that you need to make. Learn about market every day, read articles, books, papertrade, watch youtube. In these days is super easy to learn something, all you need to have is good wifi connection and phone or notebook. Warren reads up to 500 pages every day. Try to beat him :) (good luck) 9. Two Legendary Rules These 2 rules are good to know, it seems really clear, but someone had to tell you: 1. Never Lose Money 2. Never Forget Rule Number One And that´s serious guys! Never lose money, that´s not your style. 10. Diversify When you are buying penny stocks, you have to buy one large-cap stock, because penny stocks are volatile and can drop to 0. It can make you big profits or big losses. With a large-cap stock, you will protect your portfolio from total crash, because large-cap stocks are not as volatile and as risky as penny stocks. You should diversify in sectors too. If in your portfolio are only oil companies and price of oil will go rapidly down, well, good luck. When you have money in oil companies, you should buy some stock from another sector, for example real estate or healthcare. Quotes By Warren Buffett „Cash was never a good investment." „I´d rather buy a wonderful business at a fair price, than a fair business with a wonderful price." „Big oppportunities in life have to be seen." „No matter how great the talent or efforts, some things just take time. You can´t produce baby in one month by getting nice women pregnant." End So, seems like we are at the end. Thanks for your effort to read it all, because my view is that it is really educational and you should know it. If you agree with me and Warren Buffett, please make sure you liked and i´ll see you again at another post. Have a nice day.
SP:SPXEducation
by TommyTK247
2
What Type of Trader Are You? 🤔 Hey traders, In this post, I decided to make a comparative analysis of three main trading styles: scalping, day trading, and swing trading. We will go throw the main pros and cons of each approach and discuss common misconceptions. 🏃‍♀️🏃 Let's start with scalping. I guess many of us were impressed by videos on youtube showing how a guy makes thousands of dollars applying a simple scalping strategy. Some of these videos get millions of views and excitement from the audience. No surprise the majority of newbies start their trading journey with scalping strategies. Practicing some of them and trading on a real account, these traders suddenly realize that the youtube videos barely reflect the reality of scalping. Scalping requires being extremely reactive, making trading decisions quickly, and constantly staying focused. Moreover, it turns out that this trading style is extremely risky, and occasional losing streaks become an essential part of the process. A pro scalper usually opens dozens of trading positions per day and manages many of them simultaneously. Even though it is a fact that a solid scalping strategy is a true cash machine, the constant pressure and high level of stress make many traders leave that game blowing their trading account. A true scalper is a guy with iron nerves and a sharp mind. It takes many many years to become a person like that. 🚶‍♀️🚶Intraday trading is a bit simpler. While quite often scalping gives a trader just a couple of minutes to react and make a trading decision, intraday trading gives the hours. Such a trading style is slower, the intraday perspective is not that chaotic and irrational. It takes many hours for the trading setup to play out making the trade management process not that time-consuming. Moreover, intraday trader tends to open much fewer trading positions than a scalper. Analyzing primarily 4h/1h time frames less trading setups meet the entry conditions. That primarily affects the potential gains though. Lesser you trade, the less money you make. I consider myself to be an intraday trader. Trading full-time of course I was trying different scalping strategies, but I must admit that I can’t make the decisions that quickly, I can’t constantly hold so many active trading positions in my mind, I need some time to think, I need some time to do other things, I want more freedom. For that reason, intraday trading is my choice. And let me be frank right here: I am not trying to say that intraday trading is simple, it is SIMPLER than scalping still remaining extremely complicated to master. 🕴🕴 If you want trading to become your side income if you have a full-time job and just a couple of hours per day for charting, I believe that intraday trading/scalping are not appropriate for you. In your situation, I would consider swing trading. Swing trading is extremely slow. Being primarily focused on weekly/daily time frames a swing trader tends to hold trading positions for weeks, sometimes even months. Moreover, it takes many days for a swing trading setup to form and the market gives a trader much time for reflection. Of course, that primarily affects the potential gains: I believe that among the 3 trading styles that we discussed, swing trading generates the lowest returns. Swing trader is the best starter for newbie traders. Analyzing higher time frames they can constantly follow the market and don’t miss the major moves. Just 1-2 hours per day are enough to follow dozens of financial instruments. Only by becoming a consistently profitable swing trader, one can try himself in intraday trading. Working with hundreds of struggling traders from different parts of the world I realized that the majority has the inverted perception of scalping/intraday/swing trading. I hope that this article will shed a light on that topic. What trading style do you prefer? ❤️Please, support this idea with like and comment!❤️
OANDA:XAUUSDEducation
by VasilyTrader
38