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Trader's DiaryHello everyone Today we will talk about what most traders avoid and underestimate - Trader's Diary. Traders believe that the Trader's Diary is a waste of time, but in fact the Trader's Diary directly affects the trader's income. Why keep a trader's diary? If you keep a diary honestly and impartially, over time you will gain a lot of statistics of inputs, outputs and emotions experienced when trading. This is a useful database that will help identify weaknesses and recurring errors, helping to fix and not repeat them again. What should I write in diary? Date and time of the signal occurrence. The chart at the moment of entering the market , for clarity, you can make notes justifying the actions of the trader. If the work is done on graphical analysis, then markup is needed. The result of trading. Regardless of whether the trade is closed by take profit, stop or ahead of schedule manually, it is advisable to attach a chart. Comment. The trader's thoughts on entering/exiting the market are briefly indicated here. It is advisable to record emotions, for example, "the signal complies with the rules, but there is a feeling that it is not worth entering" or "the graph has not reached the Fibo level a little, the volume has been reduced". This is the necessary minimum. You can also add the following items to the report: Maximum drawdown as a percentage and in the deposit currency. Volume. The state of capital after the position is closed. The duration of keeping the transaction open. Losses due to swap, spread. How not to keep a journal The key violation of the rules when keeping a diary is a frivolous attitude towards it. If you keep a journal only to comply with a formality, then it will not be of any use. With this attitude, important information concerning psychology and emotions is guaranteed to be missed. If a trader is lazy, does not accompany transactions with illustrations of the state of the market, forgets to make part of the transactions, the value of the report decreases. Analysis of trade and your emotions at the entrance When analyzing trading, the most difficult thing is to give your actions a sober assessment. If, for example, you put out a limit order in violation of the strategy rules, and this caused a loss, you do not need to explain your blunder by external factors. That is why it is extremely important at the time of entry to indicate not only the technical characteristics of the transaction, but also emotions. Nobody will control the correctness of keeping a diary, you need to learn this yourself. As for the analysis, after accumulating an array of statistics, first of all look for emotional losing trades. This is one of the most common mistakes of traders. I recommend starting the optimization of trading with this. Resume A trader's diary is a tool that indirectly affects the results of trading. It teaches you to work in a measured manner with a clear assessment of each entry point. Keeping a diary allows you to eliminate the emotional component from trading over time, and thereby improve results. I recommend getting used to keeping a journal from the very beginning, entering information on all transactions into it. Regular analysis will show weaknesses in trading, it remains only to eliminate them and continue trading. To facilitate the task, you can use auxiliary services that collect an array of statistics in automatic mode.
Education
by DeGRAM
4
TOP 5 CURRENCIESHello! Today we will discuss the five most popular currencies. Currently, there are 180 currencies in active circulation in the world. Most of the transactions made in the foreign exchange market are made using only about half a dozen of these currencies. If you are familiar with the Pareto principle, then it applies very well in the real world. This article will provide you with an overview of the currencies currently dominating the foreign exchange market. The five most traded currencies in Forex are listed below, with reasons for their popularity: * US dollar: The dominance of the US dollar as a currency is undeniable. In truth, this currency has no serious competition. Such popularity is due to the long-term stability of the government and the economic dynamism of the United States. It has a very stable value due to the fact that it is not greatly affected by inflation over a long period of time. Many foreign governments literally hold on to dollars as a reserve currency, mainly because that currency is used for international transactions. Needless to say, the US dollar is on a pedestal and its status as a currency is unparalleled – or rather, not yet. * Euro: The US dollar as the main currency definitely needs a second currency. Surprisingly, this currency is one of the youngest, and it is considered the official currency from Finland to Portugal and from Slovakia to Slovenia. The Euro is the next most traded currency among all currencies in the world. Currently, there are about 500 million people in Africa and Europe who use this currency for trade. The value of the euro is likely to increase over time. *Japanese yen: The Japanese yen has become so important nowadays because its value has tripled. Because of this, Japanese firms have taken advantage to acquire several procurement-related positions from many institutions in the United States. Through these developments, the yen has gradually become one of the most important currencies used in the foreign exchange market. * British pound: The pound sterling has lost some of its glory. Decades ago, it was the second most widely used currency, but with the decline of the British Empire and the rise of the euro, the pound fell by the wayside. Today, the pound is used in only 6% of all foreign exchange transactions. If you're wondering why the pound suddenly dropped to number four, the best answer is that it's in a relative vacuum. The United Kingdom government has fixed its price against the dollar, and this is not good, because it no longer reflects the real value of the currency. * Australian dollar: This currency was created in 1966 as a replacement for the now obsolete Australian pound. Since then, it has become one of the most popular reserve currencies circulating throughout Oceania and the Asia-Pacific region. Gradually, it has become one of the most preferred currencies for trading. conclusions In the 21st century, foreign exchange is moving towards diversity. Investors pay attention to the stability and volatility of the currency. In addition, the reputation of the economy and the security of the state matter in the selection process. Finally, another factor that is taken into account is the extent to which the currency is used. Due to the high volatility, trading these pairs is faster, which can help you quickly win big or lose everything quickly. Good luck! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
41
US Oil Spot - Head and Shoulder PatternThis is an example of a head a shoulder pattern that worked to perfection. The two shoulders and the head can be distinguished very easily. We can also see a negative divergence with the RSI at the top of the head, which shows declining momentum. After the break of the neckline, we can see a throwback towards it before the resumption of the down move. Finally, the minimum target after the break of the neckline was hit. Indeed, to find the price target, we take the distance from the top of the head to the neckline and subtract it from the break of the neckline. Here, the target was 99.31.
FX:USOILSPOT
by tchamoun
What is Flag pattern and how to trade with that?Flag Pattern (Bullish) * One of the most common patterns of price trend continuation is the FLAG pattern. How to identify this pattern? How to use it in trading most effectively?I will cover it all through this post. * The Flag pattern is a type of price pattern in bullish trends. This pattern consists of a strong increase (called a flagpole), followed by a countertrend with two levels of Resistance and Support (called flags). The price forms this pattern after a strong increase. It then breaks out of the Resistance and continues rising, marking the end of the pattern. This is a very common behavior of prices during an uptrend. * After breaking out of the Resistance, the price can retest this new Support. How to open an order : Entry Point : Right after the candlestick breaks out of the Resistance. Stop-Loss : At the bottom of the price channel (the lowest point of the support). Target : At the price whose, from the entry point, the length is equal to the length of the flagpole. * In the future, we will publish other patterns such as Triangle, head and shoulders, wedge and other educational materials 📚 . Please follow our page to be informed as soon as the materials are published. Thank you all for supporting our activity with Likes 👍 and Comments ❤️
Education
by NamchaTa
The analysis of the behavior of major player Part 1I would very much like to share with you my knowledge about the behavior of large players in the market, how to notice them and how to use it. It's very interesting and in fact you can talk about it for a very long time, people have been studying these strategies for years. I will try to explain the simplest first, this will be the first part. If you look at the chart that I have shown, you will see the level underlined with a blue line, this is it, the stops of a major player, in the event of a breakdown of this level, a major player will exit by stops, which means a sale, since closing by stops for the exchange is tantamount to sale. Thus, at this moment, the price is guaranteed to go further down.😉 It was a first part. Best wishes. I will happy to see you in next parts😊
Education
by MiriamRapoport
Forex Trader Career: Pros and consForex trading, which is often perceived as an easy career for making money, is actually quite difficult, although very exciting. Due to high liquidity, round-the-clock schedule and easy accessibility, Forex trading has become a popular profession, especially for people with financial education. Being your own boss and comfortably earning money using a laptop/mobile phone when it's convenient for you is sufficient motivation for both young graduates and experienced professionals to consider Forex trading as a career. Advantages of a Forex trader's career There are several advantages that a career as a forex trader, also known as a currency trader, gives. They include: Low costs Forex trading can have very low costs (brokerage services and commissions). In reality, there are no commissions – most forex brokers profit from trading stocks or other securities, where the brokerage structure varies greatly, and the trader must take into account such commissions. Suitable for different trading styles In the foreign exchange market, work all day, which allows transactions in its convenience, which is very beneficial for short-term traders who, as a rule, take positions for a shorter period of time (say, a few minutes to several hours). Few traders make trades outside of business hours. For example, daylight time in Australia is night time for the east coast of the USA. A trader from the United States can trade Australian dollars during business hours in the United States, since no significant developments are expected and prices for the Australian dollar are in a stable range during such non-business hours. Such traders use trading strategies with large volumes and low profits. They are trying to make a profit on a relatively stable duration of low volatility and compensate for this with large volumes of transactions. Traders can also open long-term positions, which can last from several days to several weeks. Thus, Forex trading is very convenient. High liquidity Compared to any other financial markets, the forex market has the greatest amount of price manipulation and price anomalies, thereby providing narrower spreads, which leads to more efficient pricing. There is no need to worry about high volatility during the opening and closing hours or about stagnant price ranges in the afternoon, which are typical for stock markets. If no major events are expected, similar price patterns (high, medium or low volatility) can be observed throughout continuous trading. There is no central exchange or regulator Since it is an over-the-counter market operating worldwide, there is no central exchange or regulator for the forex market. Central banks of various countries from time to time intervene as necessary, but these are rare events that occur in extreme conditions. Most of these developments are already perceived and evaluated by the market. Such a decentralized and deregulated market helps to avoid sudden surprises. Compare this to stock markets, where a company can suddenly declare dividends or report huge losses, which will lead to huge price changes. Such deregulation also helps to reduce costs. Orders are placed directly with the broker, who executes them independently. Another advantage of deregulated markets is the ability to open short positions, which is prohibited for some security classes in other markets. Volatility is a trader's friend Major currencies often exhibit strong price fluctuations. If trades are placed wisely, high volatility opens up huge opportunities for profit. Variety of pairs for trading There are 28 major currency pairs involving eight major currencies. The criteria for choosing a pair can be a convenient time, the structure of volatility or economic development. A forex trader who loves volatility can easily switch from one currency pair to another. Low capital requirements Due to the narrow spreads in points, it is easy to start trading on the foreign exchange market with a small initial capital. Without additional capital, it may be impossible to trade in other markets (for example, in the stock, futures or options markets). The availability of margin trading with a high leverage ratio (up to 50 to 1) is the cherry on the cake for Forex transactions. Although trading with such a high margin comes with its own risks, it also makes it easier to get more potential profits with limited capital. Ease of entry There are hundreds of fundamental analysis for long-term forex trading, which gives traders with different levels of experience a huge choice for quick entry into forex trading. Disadvantages of a Forex trader's career Lack of transparency Due to the deregulated nature of the forex market, which is dominated by brokers, they actually trade against professionals. Working with brokers means that the forex market may not be completely transparent. A trader may not have any control over how his trading order is executed, may not get the best price, or may have limited views of trading quotes provided only by his chosen broker. A simple solution is to deal only with regulated brokers that fall under the competence of broker regulators. The market may not be under the control of regulators, but the activity of brokers is under control. Comprehensive pricing process Forex rates depend on many factors, primarily global politics or economics, which can be difficult to analyze information and obtain reliable conclusions for trading. Most of the trading in the foreign exchange market takes place using technical indicators, which is the main reason for the high volatility in the foreign exchange markets. Incorrect technical assessment will lead to a loss. High risk, high leverage Forex trading is available with a high leverage, which means that it is possible to make a profit/loss many times exceeding the trading capital. Forex markets allow a leverage of 50:1, so you need to have only $ 1 to open a currency position worth $ 50. While a trader can benefit from leverage, the loss increases. Forex trading can easily turn into a nightmare with losses if a person does not have a clear knowledge of leverage, an effective capital allocation scheme and strong control over emotions (for example, willingness to reduce losses). Independent learning In the stock market, a trader can seek professional help from portfolio managers, trading consultants and account managers. Forex traders are completely on their own, with almost no help. Disciplined and continuous self-study is a prerequisite throughout your trading career. Most beginners leave at the initial stage, primarily due to losses incurred due to limited knowledge about Forex trading and improper trading. High volatility Having no control over macroeconomic and geopolitical events, it is easy to incur huge losses in an extremely volatile foreign exchange market. If something goes wrong with a certain stock, shareholders can put pressure on management to initiate the necessary changes, or they can turn to regulatory authorities. Forex traders have nowhere to go. For example, when Iceland went bankrupt, traders owning the Icelandic crown could only watch. Round-the-clock markets make it difficult to regularly monitor prices and volatility. The best approach is to set strict stop losses for all Forex trades and trade systematically using a well-planned approach. conclusion Forex trading has many pros and cons. You can easily earn large sums and just as easily lose them. The market has a great history, and you can learn how to make a profit on forex. The main question is whether everything that the market is ready to give is suitable for you?
Education
by DeGRAM
5
AUDNZD Building the trade idea.Hey Traders, Today I wanted to run through Australian dollar and New Zealand dollar trade idea. My whole thought process and how it's currently planning out. Then, what opportunity I can see forming to potentially give us around a 70 Pip profit trade, if not further, heading up for the 200 pip mark. Keep an eye on it and let me know what you think. First thing we noticed when building this trade idea was the trendline break, which we can see happened with a fair bit of force on AUDNZD as we broke that at number one on the chart, you can see we push through quite strong, which indicates we may have a turn in trend or at least a push back up to the local supply in which created the downtrend in the first place. Part 2 we were looking for confirmation that we did have the bullish power that managed to break that trend and be able to continue and turn the price action, which is what we witnessed when we had that local break of structure on the four hour at number 2 on the chart. As you can see, it was very near the tops of the move that created the breakthrough the trendline, however, it was strong enough to push through, regroup a little there in that area of supply and then push higher, setting a higher high for the first time in fair few days. Part 3 we are looking to identify some new demand where the price has come back, sit for a little bit and then gave us an indication that that is where we're going to start pushing from, a fair price where buyers come into the market. You can see at #3 this is where we dipped in, although we broke a lower low technically on the chart there, I was looking and expecting a bigger pull back than what we saw at #2 solely because of the gratitude of the move of #1. As we pulled back, regrouped and then went higher, we can see that we have formed a nice demand area there which could be a great turning point for the price in the future. Part 4 is arguably the most important one because it verifies the new localized demand area, which was just formed, and that's breaking a higher high set by Part 2. Once we broke the structure. As you can see, it's happened quite recently. It's indicating that there is enough demand and orders in that area to be able to push prices higher now and potentially into the future. Now as the trading plan is coming together and we've seen many areas of price action which we want to see, there's still a little bit more that we need to observe. First thing is we want to see a pull back into the area of demand. We want a nice steady downtrend pull back on the lower time frames into our demand area, so we can start looking for entry triggers and confirmations that we can head higher. Part 6 is still a while away yet, we need part 5 to confirm everything so we can build a plan. But if we do get to part 6, it's going to start looking for an entry signal with a break of trend, very similar to what we're looking at right now on a lower time frame. I will keep you up to date to see if this price can come back down and give us what we want to see. I hope you enjoyed this analysis. If you trade like this or you have any questions about it, please comment below or if you just like the whole run through like the idea, it helps a lot with future content. Good luck traders.
Long
by the5erstrading
6
GBPCHF 2-3 (Continued)Hi Traders, Firstly, here on the four hour chart as our previous drawing indicated we wanted to see a break of that recent high and then they push back into the zone and all the way down to the local demand. Now we had this quite quickly, as you can see, we just taped up above the most recent high. It printed some orders there and then was followed by a very steep turn to the downside and a quick rush down to where the demand zone is. Usually this would indicate that there's a lot of selling power, which is true indicate. However, having that really powerful pull back into such a strong demand zone is giving me confidence that it can bounce in a way that we want it to bounce. Secondly, once we've established that we do have the pullback were looking for on the four hour, we're going to dive into the one hour and start identifying a trend. As you can see, we've got a very steep trendline there, which doesn't give me an abundance of confidence. I prefer to see a steady trend line on the move down (looking at the 15 minute, you can see it is a very nice steady trend on the way down but on the one hour it is quite steep). We've already seen a dip inside to the demand area. We're going to look for a break in this trendline and hopefully a convincing break. Unfortunately, a convincing break is going to be hard to identify given how steep the trendline is. Then finally, once we have seen a break in trendline and that dip into the demand zone (we can still come further into the demand zone), we're going to move over to the 15 minute chart and look for a break in structure. So, we're going to look at the recent highs on the 15 minute and see if we can get above them to confirm that there is bullish power and we can start moving this chart back up to the top side with a target around the 1.24. we can go further but I think I'll be happy taking at around 1.24 maybe less. If you enjoyed this analytical run through and have any questions, please use the comment sections and leave a like! Lets see how this one plays out.
Long
by the5erstrading
4
TRAILING STOPWhat is trailing stop? A trailing stop is a modification of a typical stop order that can be set to a specific percentage or dollar amount of the current market price. A trailing stop is designed to protect profits by allowing the trade to remain open and continue to make a profit as long as the price moves in the investor's favor. The order closes the trade if the price changes direction by the specified percentage or dollar amount. Understanding the trailing stop Trailing stops only move in one direction because they are designed to lock in profits or limit losses. If a trailing stop loss of 10% is added to a long position, a sell trade will be placed if the price drops 10% from its post-buy peak price. The trailing stop moves up only after a new high has been established. Once a trailing stop has moved up, it cannot go back down. A trailing stop is more flexible than a fixed stop loss because it automatically tracks the direction of a stock's price and does not require manual reset like a fixed stop loss. Trailing Stop Trading The key to successfully using a trailing stop is to set it at a level that is neither too narrow nor too wide. Setting a trailing stop loss that is too tight can mean that the trailing stop is triggered by normal daily market movement, and thus there is no room for the trade to move in the trader's direction. A stop loss that is too short will usually result in a losing trade, albeit a small one. A trailing stop that is too large does not work in normal market movements, but it means that the trader is taking on the risk of unnecessarily large losses or forgoing more profit than he needs. Although trailing stops lock in profits and limit losses, setting the ideal trailing stop distance is difficult. There is no perfect distance because markets and the way stocks move are constantly changing. Despite this, trailing stops are effective tools and, like every other method, there are pros and cons here. Real world example Let's say you bought Alphabet Inc. (historically pulls back 5-8% before moving up again). These previous moves can help set the percentage level that will be used for the trailing stop. Choosing 3% or even 5% can be too difficult. Even minor retracements tend to move more, meaning the trade is likely to be stopped out by a trailing stop before the price can move higher. Choosing a trailing stop of 20% is overkill. Based on recent trends, the average pullback is around 6%, with larger ones around 8%. A trailing stop loss of 10% to 12% is better. This gives the trading space room to move, but also quickly takes the trader out if the price drops more than 12%. A 10% to 12% drop is larger than a typical retracement, which means something more significant could be happening – basically, it could be a trend reversal, not just a pullback. Using a trailing stop of 10%, your broker will execute a sell order if the price drops 10% below your buy price. It's 900 dollars. If the price never rises above $1,000 after buying, your stop loss will remain at $900. If the price hits $1,010, your stop loss will move to $909, 10% below $1,010. If the share price rises to $1,250, your broker will execute a sell order if the price drops to $1,125. If the price starts to fall from $1250 and doesn't come back up, your trailing stop order remains at $1125 and if the price drops to that price the broker will place a sell order on your behalf. The ideal trailing stop loss will change over time. In more volatile periods, it is better to use a wider trailing stop. During quieter times or when the stock is very stable, a tighter trailing stop loss may be effective. However, once a trailing stop loss is set for an individual trade, it should be left as is. A common trading mistake is to increase the risk of a trade one time to avoid losses. This is called loss aversion and can quickly take a trading account down. Results Trailing stop is a very useful tool if you know how to use it. The tool can help you keep your profits on days when you can't follow the price and move the normal stop yourself. Adding such a useful tool will help improve your strategy and increase your profits. But do not forget about the correct setting of the trailing stop, the values ​​of which will be different for each instrument. To more accurately determine the values ​​for the trailing stop, it is worth knowing the average daily movement of the instrument, as in the example above. Good luck! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
5
FOREX TIMEFRAMESMost technical traders have come across the concept of multiple time frame analysis in their market education. However, it is a well established chart reader. Many market participants miss the larger trend, miss clear support and resistance levels, and miss entry and stop levels because they don't analyze the higher timeframes. Multiple Time Frame Analysis Multiple time frame analysis involves monitoring the same currency pair on different time frames. As a general rule, using three different periods gives a fairly broad view of the market, while using fewer can result in significant loss of data, and using more often provides overanalysis. When choosing three time frames, a simple strategy might be to follow the "rule of four". This means that you should first determine the medium-term period in which the trader is going to trade. From here, a shorter time frame should be chosen, which should be at least one-fourth of the interim period. Using the same calculation, the long-term timeframe must be at least four times larger than the intermediate one. In the long term, the current trend will be determined, in the short term, the ideal entry point, and the medium term will indicate how long you can hold the position and where the targets are. When choosing a range of three periods, be sure to select the correct timeframe. A long-term trader does not need to follow a minute chart, and a short-term trader does not need to follow a monthly one. Long term time frames With this method of studying charts, it is generally best to start with long-term time frames and move on to more detailed frequencies. Looking at the long term time frame, a dominant trend is established. Long-term price movement is influenced by fundamental data that a long-term trader should take into account in the analysis. It is important to consider interest rates, which are a major component in the pricing of exchange rates. Medium term time frames This is the most versatile of the three because at this level one can gain insight into both short and long term time frames. In fact, this level should be the most commonly used chart when planning a trade when a trade is active and when a position is approaching either its target profit or stop loss. Short term time frame As the smaller price action swings become clearer, the trader can better choose an attractive entry for a position whose direction is already determined by the higher frequency charts. Another consideration for this period is that the fundamentals again have a strong influence on the price movement on these charts, although in a very different way than for the higher time frames. Fundamental trends are no longer visible when the charts are below the four hour frequency. Instead, short-term time frames will react with increased volatility to the news. Often these jerky movements last for a very short time and as such are sometimes described as noise. Putting it all together When all three timeframes are combined to evaluate a currency pair, a trader will easily increase the chances of success for a trade, regardless of other rules applied to the strategy. Performing a downward analysis helps to trade with the trend. This alone reduces risk as there is a higher chance that the price action will eventually continue in the direction of the longer trend. Applying this theory, the level of confidence in a trade should be measured by how the time frames match up. For example, if the larger trend is up and the medium and short-term trends are moving down, cautious shorts should be entered with reasonable profit targets and stops. Alternatively, a trader can wait until the bearish wave ends on the smaller charts and try to go long at a good level when the three timeframes realign. Another obvious benefit of including multiple timeframes in trade analysis is the ability to identify support and resistance values, as well as strong entry and exit levels. The chances of a trade being successful are increased when it is tracked on a short-term chart due to the trader's ability to avoid bad entry prices, misplaced stops, and/or unreasonable targets. essence Using multiple timeframe analysis can greatly increase the chances of a successful trade. Unfortunately, many traders ignore the usefulness of this method when they start trading. As we have shown in this article, it may be time for many novice traders to return to this method, because it is the easiest way to know the direction of the trend and not go against it.
Education
by DeGRAM
8
movement of the price (educational) 📖💡The price is based on the tendency of the market participant the price changes are based on the supply and demand power when the tendency of the groups changes, the supply and demand will Chang too the gaining and dumping of the price are based on the group tendency in fact, the price is the decision of the participant in the market to buy and sell the one concept so the movement of the price is based on the direct decision of the every participant of the market too some traders are use technical analysis for their decision some of them using the fundamental and some use the stars or their luck, but the most important point is that this is the people who make the decision even in bot trading this is the human decision for making this program and gaining profit or loss in simple word, every single trader open position based on their beliefs and their point of view about the market trend When the every single participant have a tendency and believe in rasing and gaining trend and market and open their positions, it makes others to believe on this scenario and open the long position and when the proper amount of these participants take part in the long position the whole market tendency become bullish and bullish candlesticks appear. Please, feel free to ask your question, write it in the comments below, and I will answer.🐋
Education
by MadWhale
6
Forex scalpingHi all! Today I want to talk about scalping. What is scalping? Scalping is the style of buying or selling currency pairs over a short period of time in an attempt to make a series of quick profits. A forex scalper aims to make a large number of trades using the small price movements that are common throughout the day. Understanding Forex scalping Forex scalpers usually use leverage, which allows them to open larger positions, so that a small price change equals a solid profit. Forex scalping risks Like all trading styles, Forex scalping comes with risks. Even if you risk a small amount on a trade, taking many trades can mean a significant drawdown if many of those trades end up losing money. This is a viable system, but sometimes a trader cannot exit due to a five pip loss. The market can drop through the stop loss point and they end up with a loss of 20 pips. Thus, they lose four times more than they expected. Some of these slippage scenarios can quickly deplete an account. Special Considerations Forex scalpers require a trading account with tight spreads, low commissions and the ability to place orders at any price. If the spread or commissions are too high, or the price at which a trader can trade is too limited, the chances of a forex scalper being successful are greatly reduced. Who is scalping for? Scalping may not be suitable for all traders. The profitability of each position opened by the scalper is usually small, and the profit is achieved by adding up the profit from each closed small position. The scalper must be able to wait until his labor brings profit. To become a successful Forex scalper, you need endurance, attentiveness and discipline. Scalping requires a lot more time and attention from the trader compared to other trading styles such as swing trading or trend following. A typical scalper opens and closes dozens of positions during a typical trading day. For some, this may be an overwhelming task, creating too much psychological stress. Advantages and disadvantages of scalping The main advantages of scalping The potential profitability of the strategy, both within one trading day and in the long term. There is no need to wait for the next trend to form in the market. You can scalp in any situation: with the trend, against the trend, in the sideways (Flat). More simplified market analysis. With the help of technical analysis and indicators, a short-term trend is assessed, fundamental factors are taken into account selectively. Suitable for trading on small deposits. Thanks to leverage, even on a small account, you can open significant positions and make a profit. The disadvantages of scalping are Difficulty in choosing the right broker. Scalping requires favorable trading conditions – minimum spreads and commissions, no critical slippage. Not every broker will be able to provide such conditions. Increased risk associated with the use of high leverage. When using leverage, even a small movement of the market against a trader can bring serious losses, so in order not to drain the deposit, it is necessary to apply risk control rules. Large expenditures of time and constant psycho-emotional stress during the trading day. The scalper makes a large number of transactions and this requires constant monitoring of the market. Such active trading consumes a lot of energy and is fraught with possible "burnout" of the trader. Limitation on the number of used trading instruments. Not all trading tools are suitable for scalping. To reduce costs with a large number of transactions, assets with minimal spreads are selected. conclusions Scalping is perhaps the most difficult type of trading that requires maximum concentration and self-control. This is because it is difficult to predict the future movement of the market, especially the Forex market. It is worth spending a lot of time to gain enough experience and trade steadily in the plus. Learn, try and you will succeed! Good luck! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩
Education
by Lingrid
11
The Short Education about Forex and the Players here Part 1Today i want to text some words about the main players in the Forex. Who is the main traders? Look.... We could categorize the major players in the market in some groups, but the main that is: 1. Commercial and invesment banks. It is very important part of all market and all players have to work with the investment banks to work on Forex, so Investment banks and commercial bank is the foundation of the Forex market. 2. Central banks. It is also the major participants but they are separated from commercials and investments, becouse of different goal they are after the exchanging. Their main goal is to influence the money supply within the country and control the imbalance associated with various situations within countries or geopolitical problems. 3. High-net-worth individuals It is a persons with hight net-worth. Al of them working with investment and commercial banks. In the American private banking business, such a person is defined as having investable assets of more than $1 million, which excludes his primary residence. There are also a few other groups, but these are the main ones that we are interested in and we can call them major players or almost big ones. Now let's get back to the techical part, all of these major players place stops in the double circled zone on the chart. So it is a bis SALE place. And the most important thing is that we have already reached it on this pair, even closed a few candles, so think for yourself.😉 Ask questions in the comments.
Education
by MiriamRapoport
Steps to invest successfully #2Hello everyone, During this video we are going to analyse the following subjects: - Look at the bigger picture. - Draw trend lines using the most significant lows/highs. - Look for support and resistance. - Look for candles. - Understand where the stock/coin sits now. - Reasonably predict where the stock/coin will be in the future. - Make sure you are using EMA lines. - When and why placing your stop loss is important. - Pivot point. Remember, you will never be right every time. However, the key factor is to limit your risk by buying close to support. Seb.
Education
by michael772
Nasdaq: An Idea for BuyingThis is a tutorial in how to enter a trade on the 1hr time frame. We expect a higher high followed by a lower high (ABC if you know Elliott Wave) and we buy the second dip, we set our stop a few points below our buy zone with a maximum of 1% loss. Here I just speculate were the buy could happen as the 200MA hourly often acts as resistance. So do not use this as an exact template of levels for buying this is only an idea. What we want to see is a bounce off the 50% RSI or the Stochastic moving out of oversold 20% upward. And more importantly the ABC pattern.
CME_MINI:MNQ1!
by Sinex
5
NFP REPORTSHello traders! Today I want to share with you interesting information that can bring you profit. Let's talk about NFP What is Nonfarm Payrolls? Nonfarm Payrolls (NFP) is the number of new jobs in the non-farm sectors of the economy over the past month. The released figures show the dynamics of changes (increase, decrease) relative to the previous period. These statistics cover about 500 sectors of the economy: construction, trade, business services, transport, logistics, financial sector, medicine, tourism, and so on. The calculations do not take into account workers in the agricultural sector, non-profit organizations and self-employed citizens. A change in the NFP value of 100-200 thousand jobs will lead to strong volatility in the quotes of world currencies in pairs with the US dollar, gold and stock markets. Long-term reaction to the growth of non-farms is the weakening of the US dollar against a basket of major Forex currencies; The short-term reaction is unpredictable due to a sharp jump in the rate, leading to the triggering of many pending orders and an unpredictable exit and infusion of huge amounts of money into the markets in a short period of time. Position search An example of looking for a trade setup would be to use 30 pips. It is not unusual for the EUR/USD pair to advance 30 pips within the first few minutes of the release of the report. The larger the initial movement, the better for determining the direction of the pair's movement. After the initial big move, there is usually a price pullback that signals an entry point. Using one-minute price bars, traders draw a trendline from the high of the initial move to the high of the one-minute price retracement (if the initial move was up). They buy when the price breaks above the trend line. If the initial movement was downward, then a trend line is drawn from the low of the initial movement to the low of the price retracement using the same criteria. Traders enter into a short trade when the price breaks below the trend line. Some traders like to wait 5 price bars before plotting a trendline, while others may have experience telling them less or more is better. It also helps to place a stop loss in case the price bar chosen was not the actual price pullback low. If a trader is using the 5 price bar method, then a stop loss should be placed one pip below the low of that move if a long trade is taken. If a short trade was entered, then the stop loss should be placed one pip (plus the size of the spread) above the high formed on the movement of 5 price bars. Profit target To determine an exit position, or profit target, traders use the difference between the opening price and the initial move. The difference is divided in half. The target price is this number. For example, if the initial move was 115 pips, then the profit target would be 57.5 pips. Risk Only enter a trade if your profit potential is at least 1.5 times your trading risk. Ideally it should be 2x or more. In the examples above, the profit potential is about 3 times the trading risk. Don't forget about risk control. Do not risk more than 1% of your capital. Practice Before Using the Method It is impossible to describe how to trade all possible variations of the strategy that may arise. That is why it is recommended to use the strategy on a demo version before real trading. Understand the principles and the reasons why they exist, so that if conditions are slightly different on a given day, you can adapt and not be bombarded with questions. If a profit target seems too bold, use a 3:1 reward/risk ratio target. The goal is to place the target in a logical and reasonable place based on the trend and volatility. The profit target method helps with this, but it is only a guide and may need to be adjusted slightly depending on the conditions of the day. EUR/USD will not behave exactly the same after every NFP report, so it will take some practice to see how these trade setups play out and be fast enough to jump in and trade them. Practice the strategy on a demo account until you show total profit after trading at least five NFP reports. Only then can you consider trading this strategy with real money. conclusions News trading is not easy. During such a period, the price moves quickly. It is worth gaining enough experience to confidently trade on the news, so it is recommended to practice on a demo account. Control the risks, follow the strategy and the profit will come to you. Good luck!
Education
by DeGRAM
3
GOLD PRICEHello! In difficult times, investors become interested in gold, as has been done for a long time. But what factors affect the price of gold? Let's try to find out today. Reserves of the Central Bank Central banks hold fiat currency, but gold is also held in reserve. Ever since the US went off the gold standard, central banks have been building up their gold holdings. Overall, governments bought a total of 650 tons of gold in 2019, down from the 656 tons bought in 2018, and still at 50-year highs. US dollar value The strength of the dollar affects the price of gold. If the dollar is strong, then the price of gold is usually low. If the dollar is weak, the price of gold rises. As a result, gold is often seen as a hedge against inflation. As inflation rises, so does the price of gold. Global demand for jewelry and industry In 2019, jewelry accounted for more than half of the demand for gold, which was equal to 440 tons. In addition, 7.5% of demand is related to technology and industry, where gold is used to make equipment. These directions, their growth or decline, strongly influence the price of gold. Welfare Protection In times of crisis, gold has always been considered a "safe haven" for investors' funds. Time passes and gold is still being used, and even the arrival of bitcoin has not changed the situation much. When the expected or actual yields of bonds, stocks and real estate fall, interest in investing in gold may increase, causing its price to rise. In addition, it is believed that gold provides protection during periods of political instability. Investment demand In addition to the central bank, gold is owned by exchange-traded funds that issue shares available for purchase and sale to investors. SPDR Gold Trust (GLD) is the largest holding over 1,078 tons of gold in March 2021. In general, gold purchases from various investment vehicles in 2019 amounted to 1271.7 tons, which is more than 29%. of the total demand for gold. Gold production Major players in global gold mining include China, South Africa, the US, Australia, Russia and Peru. The production of gold in the world affects the price of gold, which is another example of supply and demand being met. The mine's gold production was approximately 3,260 tons in 2018, up from 2,500 in 2010. Every year it is more and more difficult to mine gold, and this also affects the price. conclusions Gold, after several centuries, is still used not only as jewelry, but also for investment. Every year, the price of production is growing, banks are accumulating gold in their reserves, crises and other factors are raising the price of gold. Using the data, you can predict the rise or fall of prices. In any case, nothing more expensive than information has yet been invented. Good luck! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩
Education
by Lingrid
11
📌WHY RISK MANAGMENT❓❗📛✅ Traders heard to consider risk management but aren't given good enough reasons for this risk management rule. We'll explain the the psychology and biology behind our frenzy of buying any stuff in bullish market or depression after our thoughtless, recklessness decisions ... ⚪⚫🔴🔵 🆗Anyone who has taken a risk understands its visceral feeling. Dr. John Coates puts it beautifully, “Risk engages our entire being,” and his book The Hour Between Dog and Wolf: Risk Taking, Gut Feelings, and the Biology of Boom and Bust explores how risky wins and losses can change us “Jekyll-and-Hyde-like beyond all recognition.” Running the derivatives trading desk for Goldman Sachs and later Deutsche Bank in New York, Dr. Coates witnessed first-hand this biology of risk-taking and its effects in the financial markets. During the dot-com bubble and bust, he observed cocky and unreasonable behavior when traders were on a winning streak, and the extreme opposite after huge losses. Looking to bring biology to the story of overconfidence and irrationality in our financial market instability, he retired from Wall Street and returned to the University of Cambridge in 2004 to study neuroscience and endocrinology, in order to understand how risk-taking affects our bodies. Dr. Coates’ research found that hormones are at work during risk-taking: testosterone is likely to rise in a bull market, while cortisol is likely to rise in a bear market. Moreover, these hormones and signals from the body not only influence risk-taking among financial traders, but they also have wider implications beyond the markets. In the John Coates Book, That winning feeling The ancient Greeks believed that we were visited by gods during defining moments in our lives, such as winning battles, love, and childbearing. Those instants felt extra vivid and powerful, but Dr. Coates discovered that these feelings are really induced by our hormones, not Olympian gods. Testosterone fuels the “winner effect.” It affects the brain, increasing confidence and appetite for risk, but after an extended winning streak, testosterone also causes overconfidence, unreasonable exuberance, and obliviousness to danger. 🔸🔹🔶🔷◾ ✅SO doing the Risk Management Techniques for Active Traders is vital : 0)Planning Your Trades "Every battle is won before it is fought." This phrase implies that planning and strategy—not the battles—win wars. successful traders commonly quote the phrase: "Plan the trade and trade the plan." Just like in war, planning ahead can often mean the difference between success and failure. ⬛ 1)Consider the One-Percent or 2% Rule Although this rule mostly depends on your trading strategy and your market ,but this rule of thumb suggests that you should never put more than 1% of your capital or your trading account into a single trade. This strategy is common for traders who have accounts of less than $100,000—some even go as high as 2% or even more if they can afford it. ⬜ 2)Setting Stop-Loss and Take-Profit Points The points are designed to prevent the "it will come back" mentality and limit losses before they escalate. For example, if a stock breaks below a key support level, traders often sell as soon as possible. On the other hand, a take-profit point is the price at which a trader will sell a stock and take a profit on the trade. This is when the additional upside is limited given the risks. ⬛3)buying or selling in several steps this rule also called "averaging down or up". In this case assume you aim to invest in an asset but haven't any accurate strategy to determine a good entry point an exit , but you know the general trend of a market , and by allocation of your fund in different steps you can lower your risk of buying or selling , for example you want to buy bitcoin but you haven't any specific strategy so by regarding of your capital you can buy it after any drop or regular period of time for instance at each month. ⬜4)Diversify and Hedge Making sure you make the most of your trading means never putting your eggs in one basket. Whatever your asset is your challenge is to pick If you put all your money in one stock or one kind of an asset , you're setting yourself up for a big loss. So remember to diversify your investments—across both industry sector as well as market capitalization and geographic region. Not only does this help you manage your risk, but it also opens you up to more opportunities. ⬛5)Downside Put Options If you are approved for options trading, buying a downside put option, sometimes known as a protective put, can also be used as a hedge to stem losses from a trade that turns sour. A put option gives you the right, but not the obligation, to sell the underlying stock at a specified priced at or before the option expires
Education
by PRO_SMART_Trader
Multiple Time Frames - How to React Quicker & ConfirmationsIf you are trading the 1 Hour chart, you can use the 3 minute chart, for instance, to your advantage. You can either SHORT the Blue Line on the 1 hour chart, or if you are feeling unsure, you can wait for a breakdown in the lower time frames to confirm and enter. Let's say you are SHORTING ETH, but missed the Blue Line Short. On the 3 minute chart, price didn't reach the Blue Line. HOWEVER, if you are watching Bitcoin, which you should pretty much all of the time, you'll see a rejection on the 3 minute and a red candle pointing downwards on BTC. Because BITCOIN affects the market so much, it's safe to say ETH was never going to reach the Blue Line, especially since ETH/BTC was weak at the time. So shorting at this level on either ETH or BTC would have been safe and would have resulted in good profits. Of course, all of this is much more stress! BUT if you want to spend more time trading and increase your win percentage, watching the LOWER time frames is important. Otherwise, feel free to take trades at the Blue Line and set a stop/loss accordingly. Your win rate will still be high, just not as high.
Education
by reiiss7
8 MYTHS ABOUT TECHNICAL ANALYSISThere are many people and many opinions in the market. There are those who criticize technical analysis, calling it superficial and even useless. There are those who consider technical analysis (TA) the holy grail that can bring huge profits. Today we will try to debunk 8 myths about technical analysis. myths 1. TA is for short-term trading or day trading only. Many people think that TA is only suitable for short-term and computer-driven trading, such as day trading and high frequency trades. The history of TA actually goes back long before computers were invented, and many famous and profitable traders use it for long-term trading. Technical analysis is used by traders on all timeframes, from minutes to weeks and months. 2. Only individual traders use technical analysis. In fact, investment banks have dedicated trading teams that use technical analysis. High-frequency trading, which covers a significant portion of the trading volume of stock exchanges, relies heavily on technical concepts. 3. TA has a low success rate. To debunk this myth, all you have to do is read Masters of the Market: Interviews with Top Traders by Jack D. Schwager, which quotes many traders who profit solely from technical analysis. Traders with many years of experience have been making profits using technical analysis for more than a century. 4. Technical analysis is fast and easy. Novice traders open trades based on a simple TA, but this is not enough to be profitable at a distance. Success depends on continued study, practice, good money management and discipline. Technical analysis is just a tool, just one piece of the puzzle. 5. Ready-made technical analysis software can help traders make money easily. There are a lot of advertisements on the Internet that promise to give you a program for a small amount that will do everything for you and bring you profit - in fact, this is a scam. There are programs and indicators that can help you trade, but no program will give you guaranteed profits. 6. Technical indicators can be applied to all markets. Most often, yes, TA can be applied in all markets, but there are exceptions. Different asset classes move in their own way, with their own characteristics, and a trader must be able to adjust his TA for a particular asset. Don't make the mistake of applying technical indicators designed for one asset class to another. 7. Technical analysis can give very accurate price predictions. Beginning traders expect to see 100% accurate signals and accurate profit prices, reversals and so on from TA. This is simply impossible. Most often, TA helps to find the zone where the price can go, where it can reverse from and this is not a specific point, this is a zone and experienced traders understand this. 8. The winning percentage in technical analysis should be higher. If the first trader out of 5 made 4 profitable trades, and the second trader out of 5 made 1, who is more successful? You need to get more information to give an answer, it may be that the first trader earned $ 10 in 4 trades, but at the same time he lost $ 80 in one and then he will be in the red, and the second trader lost $ 40 in 4 trades , while in one transaction he earned $ 100. The right trading structure ensures profitability even with a small number of winners. It is not necessary to have many profitable trades, it is enough that the profit covers losses and something else remains, and sometimes one trade is enough for this. essence Technical analysis is not the holy grail, it will not give you 100% profit. It does not suit everyone and you need to study it before you understand whether it suits you or not. You need to gain enough experience to learn how to use technical analysis correctly. When used correctly, TA can give you a real opportunity for trading success. Good luck!
Education
by DeGRAM
7