Firstly, thanks for the overwhelming comments and feedback. Genuinely really appreciated. I am pleased 500+ of you find it useful.submitted by getmrmarket to Forex [link] [comments]
If you didn't read the first post you can do so here: risk management part I. You'll need to do so in order to make sense of the topic.
As ever please comment/reply below with questions or feedback and I'll do my best to get back to you.
Letting stops breatheWe talked earlier about giving a position enough room to breathe so it is not stopped out in day-to-day noise.
Let’s consider the chart below and imagine you had a trailing stop. It would be super painful to miss out on the wider move just because you left a stop that was too tight.
Imagine being long and stopped out on a meaningless retracement ... ouch!
One simple technique is simply to look at your chosen chart - let’s say daily bars. And then look at previous trends and use the measuring tool. Those generally look something like this and then you just click and drag to measure.
For example if we wanted to bet on a downtrend on the chart above we might look at the biggest retracement on the previous uptrend. That max drawdown was about 100 pips or just under 1%. So you’d want your stop to be able to withstand at least that.
If market conditions have changed - for example if CVIX has risen - and daily ranges are now higher you should incorporate that. If you know a big event is coming up you might think about that, too. The human brain is a remarkable tool and the power of the eye-ball method is not to be dismissed. This is how most discretionary traders do it.
There are also more analytical approaches.
Some look at the Average True Range (ATR). This attempts to capture the volatility of a pair, typically averaged over a number of sessions. It looks at three separate measures and takes the largest reading. Think of this as a moving average of how much a pair moves.
For example, below shows the daily move in EURUSD was around 60 pips before spiking to 140 pips in March. Conditions were clearly far more volatile in March. Accordingly, you would need to leave your stop further away in March and take a correspondingly smaller position size.
ATR is available on pretty much all charting systems
Professional traders tend to use standard deviation as a measure of volatility instead of ATR. There are advantages and disadvantages to both. Averages are useful but can be misleading when regimes switch (see above chart).
Once you have chosen a measure of volatility, stop distance can then be back-tested and optimised. For example does 2x ATR work best or 5x ATR for a given style and time horizon?
Discretionary traders may still eye-ball the ATR or standard deviation to get a feeling for how it has changed over time and what ‘normal’ feels like for a chosen study period - daily, weekly, monthly etc.
Reasons to change a stopAs a general rule you should be disciplined and not change your stops. Remember - losers average losers. This is really hard at first and we’re going to look at that in more detail later.
There are some good reasons to modify stops but they are rare.
One reason is if another risk management process demands you stop trading and close positions. We’ll look at this later. In that case just close out your positions at market and take the loss/gains as they are.
Another is event risk. If you have some big upcoming data like Non Farm Payrolls that you know can move the market +/- 150 pips and you have no edge going into the release then many traders will take off or scale down their positions. They’ll go back into the positions when the data is out and the market has quietened down after fifteen minutes or so. This is a matter of some debate - many traders consider it a coin toss and argue you win some and lose some and it all averages out.
Trailing stops can also be used to ‘lock in’ profits. We looked at those before. As the trade moves in your favour (say up if you are long) the stop loss ratchets with it. This means you may well end up ‘stopping out’ at a profit - as per the below example.
The mighty trailing stop loss order
It is perfectly reasonable to have your stop loss move in the direction of PNL. This is not exposing you to more risk than you originally were comfortable with. It is taking less and less risk as the trade moves in your favour. Trend-followers in particular love trailing stops.
One final question traders ask is what they should do if they get stopped out but still like the trade. Should they try the same trade again a day later for the same reasons? Nope. Look for a different trade rather than getting emotionally wed to the original idea.
Let’s say a particular stock looked cheap based on valuation metrics yesterday, you bought, it went down and you got stopped out. Well, it is going to look even better on those same metrics today. Maybe the market just doesn’t respect value at the moment and is driven by momentum. Wait it out.
Otherwise, why even have a stop in the first place?
Entering and exiting winning positionsTake profits are the opposite of stop losses. They are also resting orders, left with the broker, to automatically close your position if it reaches a certain price.
Imagine I’m long EURUSD at 1.1250. If it hits a previous high of 1.1400 (150 pips higher) I will leave a sell order to take profit and close the position.
The rookie mistake on take profits is to take profit too early. One should start from the assumption that you will win on no more than half of your trades. Therefore you will need to ensure that you win more on the ones that work than you lose on those that don’t.
Sad to say but incredibly common: retail traders often take profits way too early
This is going to be the exact opposite of what your emotions want you to do. We are going to look at that in the Psychology of Trading chapter.
Remember: let winners run. Just like stops you need to know in advance the level where you will close out at a profit. Then let the trade happen. Don’t override yourself and let emotions force you to take a small profit. A classic mistake to avoid.
The trader puts on a trade and it almost stops out before rebounding. As soon as it is slightly in the money they spook and cut out, instead of letting it run to their original take profit. Do not do this.
Entering positions with limit ordersThat covers exiting a position but how about getting into one?
Take profits can also be left speculatively to enter a position. Sometimes referred to as “bids” (buy orders) or “offers” (sell orders). Imagine the price is 1.1250 and the recent low is 1.1205.
You might wish to leave a bid around 1.2010 to enter a long position, if the market reaches that price. This way you don’t need to sit at the computer and wait.
Again, typically traders will use tech analysis to identify attractive levels. Again - other traders will cluster with your orders. Just like the stop loss we need to bake that in.
So this time if we know everyone is going to buy around the recent low of 1.1205 we might leave the take profit bit a little bit above there at 1.1210 to ensure it gets done. Sure it costs 5 more pips but how mad would you be if the low was 1.1207 and then it rallied a hundred points and you didn’t have the trade on?!
There are two more methods that traders often use for entering a position.
Scaling in is one such technique. Let’s imagine that you think we are in a long-term bulltrend for AUDUSD but experiencing a brief retracement. You want to take a total position of 500,000 AUD and don’t have a strong view on the current price action.
You might therefore leave a series of five bids of 100,000. As the price moves lower each one gets hit. The nice thing about scaling in is it reduces pressure on you to pick the perfect level. Of course the risk is that not all your orders get hit before the price moves higher and you have to trade at-market.
Pyramiding is the second technique. Pyramiding is for take profits what a trailing stop loss is to regular stops. It is especially common for momentum traders.
Pyramiding into a position means buying more as it goes in your favour
Again let’s imagine we’re bullish AUDUSD and want to take a position of 500,000 AUD.
Here we add 100,000 when our first signal is reached. Then we add subsequent clips of 100,000 when the trade moves in our favour. We are waiting for confirmation that the move is correct.
Obviously this is quite nice as we humans love trading when it goes in our direction. However, the drawback is obvious: we haven’t had the full amount of risk on from the start of the trend.
You can see the attractions and drawbacks of both approaches. It is best to experiment and choose techniques that work for your own personal psychology as these will be the easiest for you to stick with and build a disciplined process around.
Risk:reward and win ratiosBe extremely skeptical of people who claim to win on 80% of trades. Most traders will win on roughly 50% of trades and lose on 50% of trades. This is why risk management is so important!
Once you start keeping a trading journal you’ll be able to see how the win/loss ratio looks for you. Until then, assume you’re typical and that every other trade will lose money.
If that is the case then you need to be sure you make more on the wins than you lose on the losses. You can see the effect of this below.
A combination of win % and risk:reward ratio determine if you are profitable
A typical rule of thumb is that a ratio of 1:3 works well for most traders.
That is, if you are prepared to risk 100 pips on your stop you should be setting a take profit at a level that would return you 300 pips.
One needn’t be religious about these numbers - 11 pips and 28 pips would be perfectly fine - but they are a guideline.
Again - you should still use technical analysis to find meaningful chart levels for both the stop and take profit. Don’t just blindly take your stop distance and do 3x the pips on the other side as your take profit. Use the ratio to set approximate targets and then look for a relevant resistance or support level in that kind of region.
Risk-adjusted returnsNot all returns are equal. Suppose you are examining the track record of two traders. Now, both have produced a return of 14% over the year. Not bad!
The first trader, however, made hundreds of small bets throughout the year and his cumulative PNL looked like the left image below.
The second trader made just one bet — he sold CADJPY at the start of the year — and his PNL looked like the right image below with lots of large drawdowns and volatility.
Would you rather have the first trading record or the second?
If you were investing money and betting on who would do well next year which would you choose? Of course all sensible people would choose the first trader. Yet if you look only at returns one cannot distinguish between the two. Both are up 14% at that point in time. This is where the Sharpe ratio helps .
A high Sharpe ratio indicates that a portfolio has better risk-adjusted performance. One cannot sensibly compare returns without considering the risk taken to earn that return.
If I can earn 80% of the return of another investor at only 50% of the risk then a rational investor should simply leverage me at 2x and enjoy 160% of the return at the same level of risk.
This is very important in the context of Execution Advisor algorithms (EAs) that are popular in the retail community. You must evaluate historic performance by its risk-adjusted return — not just the nominal return. Incidentally look at the Sharpe ratio of ones that have been live for a year or more ...
Otherwise an EA developer could produce two EAs: the first simply buys at 1000:1 leverage on January 1st ; and the second sells in the same manner. At the end of the year, one of them will be discarded and the other will look incredible. Its risk-adjusted return, however, would be abysmal and the odds of repeated success are similarly poor.
Sharpe ratioThe Sharpe ratio works like this:
You don’t really need to know how to calculate Sharpe ratios. Good trading software will do this for you. It will either be available in the system by default or you can add a plug-in.
VARVAR is another useful measure to help with drawdowns. It stands for Value at Risk. Normally people will use 99% VAR (conservative) or 95% VAR (aggressive). Let’s say you’re long EURUSD and using 95% VAR. The system will look at the historic movement of EURUSD. It might spit out a number of -1.2%.
A 5% VAR of -1.2% tells you you should expect to lose 1.2% on 5% of days, whilst 95% of days should be better than that
This means it is expected that on 5 days out of 100 (hence the 95%) the portfolio will lose 1.2% or more. This can help you manage your capital by taking appropriately sized positions. Typically you would look at VAR across your portfolio of trades rather than trade by trade.
Sharpe ratios and VAR don’t give you the whole picture, though. Legendary fund manager, Howard Marks of Oaktree, notes that, while tools like VAR and Sharpe ratios are helpful and absolutely necessary, the best investors will also overlay their own judgment.
Investors can calculate risk metrics like VaR and Sharpe ratios (we use them at Oaktree; they’re the best tools we have), but they shouldn’t put too much faith in them. The bottom line for me is that risk management should be the responsibility of every participant in the investment process, applying experience, judgment and knowledge of the underlying investments.Howard Marks of Oaktree Capital
What he’s saying is don’t misplace your common sense. Do use these tools as they are helpful. However, you cannot fully rely on them. Both assume a normal distribution of returns. Whereas in real life you get “black swans” - events that should supposedly happen only once every thousand years but which actually seem to happen fairly often.
These outlier events are often referred to as “tail risk”. Don’t make the mistake of saying “well, the model said…” - overlay what the model is telling you with your own common sense and good judgment.
Coming up in part IIIAvailable here
Squeezes and other risks
Crap trades, timeouts and monthly limits
Disclaimer:This content is not investment advice and you should not place any reliance on it. The views expressed are the author's own and should not be attributed to any other person, including their employer.
IMPORTANT: OVER 75% OF PEOPLE LOSE MONEY WITH CFD TRADING. IF YOU'RE A NOOB, DON'T EVEN THINK OF OPENING A CFD ACCOUNT. TRY MAKING CONSISTENT MONEY SWING TRADING ASX STONKS FIRST. THEN KEEP DOING THAT UNTIL YOU GET BORED AND WANT TO LOSE BIG MONEY VERY QUICKLY. ONLY THEN YOU MAY HAVE WHAT IT TAKES TO TRADE WITH LEVERAGE.submitted by _HeyHeyHeyyy_ to u/_HeyHeyHeyyy_ [link] [comments]
You most likely don't have my discipline and pain tolerance. Or my feel for risk/reward math. On top of this you need markets to play nice and a bit of luck.
I'm no wiz, but I know my strengths and weaknesses. I smell a good setup and prepare accordingly.
Hope you all nail your big opportunity when it shows up. If not, that's okay too. You'll keep getting chances. Be patient. Focus on small wins. Plus there's far more important things in life than being loaded.
How I lost 5k trading CFDs then turned it around
Back in April, I was playing with CFDs and nearly blew up my account. Started with $5k and dropped to almost zero because trading forex with leverage is a very stupid game. This is why IG gives you a demo account. But instead of using the demo account to learn how not to fuck up massively, I was using it to place giant YOLO shorts on US markets.
By being a bit less retarded on the forex trades I clawed back some losses then topped up the account with another $2.5k before starting to open small positions in gold. From 3 to 10 contracts depending on how confident I felt. Then smelling a massive opportunity, I ramped up the leverage by going with much larger positions.
Entering the silver trade
It was only after making decent profits in gold that I dared venture into silver. I wanted to enter silver around $18 but missed the boat after waiting too long for a dip. $20 was still great. Tons of upside left.
Silver is one nasty motherfucker to trade. It's a much smaller market than gold so the swings can be wild. Silver will play along nicely then suddenly fuck you really hard. If you use too much leverage you're basically waiting for your account to blow up. Stop losses will save you, but they can also kill your best trades. I didn't bother with stops for most of the ride because I'm an ASX_bets retard but also because I had ultra high conviction in the $25-27 price target.
Started with 25 contracts. I very nearly missed out on this mini pump. Some might call it luck.
Adding to my silver positions
Increased my position size once I had a profit buffer to protect against sharp drops. It's WAY easier to blow up a CFD account than it appears. When trades are going well you feel like you can keep adding leverage and make millions. But even small swings will kill you if your positions are too big. Discipline is key.
Buying 50 contracts in silver is not the same as 50 contracts in gold because silver moves are 2-4 times bigger. When gold moves 100 points, expect a 200-400 points move in silver. Having an equal mix of gold an silver contracts helped lower the overall volatility of my account.
Anything over 10 contracts in silver is big. You can lose hundreds within minutes. Buy 50 contracts, the price drops $1 and you're $5000 in the hole. I knew when to push and when to hold back. This was EXTREMELY important. I did not get greedy. I was happy to let price moves do most of the lifting.
Started the day with 3k profits. Went to bed that night with big beautiful bhags. 17k
Woke up the next morning with even bigger bhags. 30k
More pump. I added 50 silver contracts that day after a decent drop. Profits now up to around 41k.
Held through the big swings...
Like a proper bitch, Silver dropped another 5% soon after I added those 50 contracts and my 41k profit became 20k very suddenly. But no stop loss and I held firmly. What's a 21k drop when you've been down 35k on BBOZ before. Metals bounced back hard later that evening. Still not selling. High conviction made all the difference here.
Five days later and I was up to 50k profit.
At that point, I felt safe enough to add another 50 contracts.
And it paid off BIG
Both gold and silver keep pumping. Profit now 86k.
Why sell now?
Not selling yet. GV's silver target was $25-27 so I was confident holding through some wild swings.
GV = Gold Ventures https://twitter.com/thelastdegree
A turbo chad from Belgium who made a massive fortune trading options during 2008-2011 when silver went from $9 to $50 before crashing hard. GV is a certified wizard when it comes to timing the gold and silver cycles. Started with his wife's 32k savings and is now worth 18 million EUR or USD, I'm not sure and who cares. GV is pretty low key but commands plenty of respect from other metal traders on Twitter.
Meanwhile GV was on holiday but still shitting money.
GV also has a junior miner portfolio worth several millions. I believe it's true. I went deep into his Twitter history. He was buying heavily into the March crash and some of his picks like AbraPlata have since made 10x. Junior miners are like call options on metal prices with no expiry date but you still need to pick winners and enteexit at the right time.
Magical Six Figure Milestone
Not long after... BOOM! Hit 100k in profit.
When starting, I knew there was potentially 40k-50k to be made from this setup even without playing it perfectly. I would have been okay with 20k.
Start taking profits
Silver was still going strong but I felt it was time to de-risk.
So I started taking profits on both gold and silver around that time.
Okay I'm out
The way silver kept pumping, I knew a big correction was imminent. By 12pm I was completely out with over 110k profit. Home and dry.
I went on with my daily work routine, a bit more relaxed and not checking charts every 5 minutes.
And then metals dumped hard.
There was money to be made on the short side but there was also a strong possibility of shorts being squeezed. So I didn't bother.
After the dump, I had no appetite to get back in with big positions. In hindsight I could have made tons more if I held to $29 but the ride from $24 to $29 is far more risky than $20 to $26. I'm quite okay with my 40x performance. Plus I needed to reset mentally after this rocket ride. More often than not, the best thing to do after a huge trading win is to take a break. Wisdom gained from the BBOZ days :)
Withdrew my initial capital and 90% of the profits from IG. Left around 6k on the account to keep playing.
Feels good to have extra funds to invest with but I also need to set some aside for the monster tax bill next year. You're welcome Australia, and all the JobSeekeJobKeeper leeches.
Hey everyone, check out my insane stats!
That 85% win rate though...
Less impressive when zooming out to include the forex train wreck in April and my more recent metal trades.
https://twitter.com/thelastdegree - already covered above
https://twitter.com/DaveHcontrarian - called the metals and S&P500 bull runs
https://twitter.com/AdamMancini4 - simple yet powerful charts
https://twitter.com/badcharts1 - advanced silver charts
https://twitter.com/graddhybpc - advanced gold and silver charts
https://twitter.com/Northst18363337 - another master of charts
https://twitter.com/bhagdip143 - ultimate master of monster position and making bhags
BTW fuck Facebook groups, you'll hardly learn anything there. Full of losers. Twitter is where the elite traders and big dick fund managers bounce ideas. A solid Twitter list is worth thousands if not millions in the right hands.
submitted by Eva_Canares to FTMO_Forex_Trading [link] [comments]
Stop-Loss and the Hunger For New Capital
Ever wonder why when you trade your stop gets tagged? Although you put it in a spot where "There's no way price will want to reach my stop level for sure this time"
As a trader, particularly a new trader – I've always wondered why my stops were only tagged for the price of running briefly the area that I've ever so carefully researched ... hit my stop point ..... then move on in the direction of my original study and run to the point where my profit should have been taken.
Everything leaving me wondering ...... In the hell for what did this do??? Obviously this is a common issue that has plagued most traders. At least, I know that I have faced this very problem for years.
What I noticed was that there was a very distinctive pattern going on, and it was repeating itself again and again. I noticed that the traditional supply and demand theory, support and resistance zones, or double top / double bottom trading patterns that I have been told time and time again that price has always covered these regions, was not really a real thing.
The argument had been, ..... Put me into the shoes of the major investment banks vs. the home-trading fighter who was going to conquer the markets every day. If you were a large company with an infinite supply of money and you decided to bring a massive chunk of it into the game, you can't just dump the whole lot into the game and demand all your orders to be filled out at once, then take off the price in the direction you want .... no ..... That is not exactly the way it operates.All these major organizations need to do is pair orders.
And they match that order by sending the markets to areas where liquidity is high .... The stops AKA!
Let 's say you 're evaluating the markets, for example, and deciding that price wants to go higher than an old regular target as it's in a bullish uptrend at the moment. And you see price for the past day, or so, not willing to go any lower.
What looks like a bit of a demand shelf or support level where the demand is all in a nice tight clustered row that just doesn't seem to want to go down and you know for sure this time price won't go under that heavily protected area ..... only for the price to run down quickly and refuse to go up (in this case a long position).
And I started to note that these "secure zones" or places where price is certainly not going to come up / down to be simply used by these large entities as feeding grounds for harvesting liquidity and adding more positions to include them in a larger movement.
They need a lot of money to buy in and just to do so, your sell stop is great. Many traders put their stops below this tight pack range of candles a few pips / ticks / cents believing they 're secure as price obviously doesn't want to come down below them. And most traders have their positions liquidated by the hungry major capital banks to feed the whole push higher than you were originally right about.
And how can you stop this pitfall happening to you is the million-dollar question? There are a few ways to handle this and keep your hard-earned money from being ripped away from you in an moment, which you have at risk in the markets.
Stop-Hunting and the Hunger For New Capital
I found that you would do much better in your trading career if you look at these areas (in the above example a long position) as a chance rather than a safe zone to put your stop. What I mean by that is, anticipate them coming down under those equal lows and try to get far below it instead of getting long above the area of consolidation. Yeah, that means you're going to have to go long when the competition runs against you and I know , I know, it feels really uncomfortable and wrong and goes against all you've been taught ... but believe me that this approach can give you the very best possible entries.
Imagine: getting into the day 's low and riding price action all the way up to the top of everyday scale!!! Wouldn't this be terrific?
Well, if your quantitative skills are timely and your business research tells you to go a long way, then all you need to do is wait for the perfect entry. Let the price build up and create "demand shelf" or support areas for that. Let the market shift sideways and bounce around like a pinball mocking all the other traders who were at the top of these stuff for a long time and put their stops just below them in hopes that the price would not come down and stop them. All the while playing with and holding their emotions on the cliff of –Will this be a winner, or a trade loser? So when price does the unimaginable and runs below the support area and scoops up all the traders stops you can then go long and take part in the glorious upside of being right – and of course make some money doing it.
Notice facile? Well, that is not so. It takes patience and timing and experience to catch all those eager participants who keep their stops on a silver platter for the fat and thirsty banks to suck them up, as the markets normally send price south of the border.
Stop-Loss and the Hunger For New Capital (meme)
You have to define the times of the day when the wrong move is made apparent.
Or when they make that low of the day – typically within the 1st 1 – 4 hours
of the trading day, and I don't mean either when the banks come online at 8 a.m. NY.
I mean 12 am, at the beginning of the day.
So yes you 're definitely going to have to be awake if you like watching
price do its thing and don't trust the process of buying into those down candles.
And use a limit order like me-then go to sleep and trust your overall analysis to be right and wake up to your morning with a nice little start.
But the trick is-where are you going to shop under the lows?
And where does your stop then go when you buy?
Those are all interesting questions that I should seek to answer clearly here – but alas, all markets are different.
Yet general rule of thumb as follows:
However if that is the case then try to turn your power back.
You don't need to make every trade worth a million dollars.
This is about continuity, when dealing, not winning the draw.
I am not recommending trade in these types of trades against the trend.
You need to be in full agreement with the direction of the total daily level.
And bringing it in.
Also, a great way to place the maximum risk reward for your take profit:
Attempt to position it in places above the market where short-sellers will stop.
And in a nutshell, with a bit of analysis, all the knowledge I described above can be readily found, I didn't come up with it on my own and these ideas are not unique. Yet how you adapt them to your particular trading style is up to you and relies on your interpretation of these principles for your success and/or failure. Price is fractal and would want to return to markets it has previously sold before – if you accept the basic fact you ought to be doing very well in your business career.
Eva " Forex " Canares .
Cheers and Profitable Trading to All.
About FTMO -
They fund forex traders. Just Pass their risk management rules and begin trading for their company. They'll provide you capital up to $300k USD for trading the financial markets. 70% of profits you keep and losses are covered by them. How does it work?
How to Become a Funded Forex ,Stocks or CryptoCurrency Trader?
submitted by JalelTounsi to ethfinance [link] [comments]
1. BreakoutBreakout strategies center around when the price clears a specified level on your chart, with increased volume. The breakout trader enters into a long position after the asset or security breaks above resistance. Alternatively, you enter a short position once the stock breaks below support.
After an asset or security trades beyond the specified price barrier, volatility usually increases and prices will often trend in the direction of the breakout.
You need to find the right instrument to trade. When doing this bear in mind the asset’s support and resistance levels. The more frequently the price has hit these points, the more validated and important they become.
Entry PointsThis part is nice and straightforward. Prices set to close and above resistance levels require a bearish position. Prices set to close and below a support level need a bullish position.
Plan your exitsUse the asset’s recent performance to establish a reasonable price target. Using chart patterns will make this process even more accurate. You can calculate the average recent price swings to create a target. If the average price swing has been 3 points over the last several price swings, this would be a sensible target. Once you’ve reached that goal you can exit the trade and enjoy the profit.
2. ScalpingOne of the most popular strategies is scalping. It’s particularly popular in the forex market, and it looks to capitalise on minute price changes. The driving force is quantity. You will look to sell as soon as the trade becomes profitable. This is a fast-paced and exciting way to trade, but it can be risky. You need a high trading probability to even out the low risk vs reward ratio.
Be on the lookout for volatile instruments, attractive liquidity and be hot on timing. You can’t wait for the market, you need to close losing trades as soon as possible.
3. MomentumPopular amongst trading strategies for beginners, this strategy revolves around acting on news sources and identifying substantial trending moves with the support of high volume. There is always at least one stock that moves around 20-30% each day, so there’s ample opportunity. You simply hold onto your position until you see signs of reversal and then get out.
Alternatively, you can fade the price drop. This way round your price target is as soon as volume starts to diminish.
This strategy is simple and effective if used correctly. However, you must ensure you’re aware of upcoming news and earnings announcements. Just a few seconds on each trade will make all the difference to your end of day profits.
4. ReversalAlthough hotly debated and potentially dangerous when used by beginners, reverse trading is used all over the world. It’s also known as trend trading, pull back trending and a mean reversion strategy.
This strategy defies basic logic as you aim to trade against the trend. You need to be able to accurately identify possible pullbacks, plus predict their strength. To do this effectively you need in-depth market knowledge and experience.
The ‘daily pivot’ strategy is considered a unique case of reverse trading, as it centers on buying and selling the daily low and high pullbacks/reverse.
5. Using Pivot PointsA day trading pivot point strategy can be fantastic for identifying and acting on critical support and/or resistance levels. It is particularly useful in the forex market. In addition, it can be used by range-bound traders to identify points of entry, while trend and breakout traders can use pivot points to locate key levels that need to break for a move to count as a breakout.
Calculating Pivot PointsA pivot point is defined as a point of rotation. You use the prices of the previous day’s high and low, plus the closing price of a security to calculate the pivot point.
Note that if you calculate a pivot point using price information from a relatively short time frame, accuracy is often reduced.
So, how do you calculate a pivot point?
ApplicationWhen applied to the FX market, for example, you will find the trading range for the session often takes place between the pivot point and the first support and resistance levels. This is because a high number of traders play this range.
It’s also worth noting, this is one of the systems & methods that can be applied to indexes too. For example, it can help form an effective S&P day trading strategy
6. Moving Average CrossoverYou will need three moving average lines:
So, You’ll open a position when the moving average line crosses in one direction and you’ll close the position when it crosses back the opposite way.
How can you establish there’s definitely a trend? You know the trend is on if the price bar stays above or below the 100-period line.
the source : https://www.daytrading.com/strategies
Dear Traders,submitted by Horizon_Trading to u/Horizon_Trading [link] [comments]
My name is Ludovico and I am an associate of Horizon Trading team. Today, I would like to share with you a scalping technique that will give you an advantage in following price action fluctuations. Most importantly, this article will focus on fast timeframes trading tactics, how to spot important key levels and trigger your positions.
So, do scalping and price action go well together?
Considering that price action aims to predict what price is doing right now and where is heading, fast mindset and quick analysis become crucial; scalp trading is about the same thing. A scalp trade will take approximately 1 to 30 minutes, so to be effective and consistent in this discipline one must be reacting rapidly to price movements. Therefore, scalp requires quick analysis, quick responses and quick decisions, and at its core there is price action, which as well is all about speed and efficiency.
Now let s move on today’s topic on how to steadily understand fast trading potential earning set ups and to become a killer scalper.
What is scalping trading?Scalping is a trading style that specialize in profiting off small price changes. It requires high level of concentration, because, due to its speed, a trader must have a strict entry exit strategy, otherwise one large loss could cancel all the many small gains in a blink of an eye.
The main features of scalping are:
Less exposure, lesser risk: A smaller exposure to price fluctuation will reduce the odds to run into adverse events.
Smaller moves are easier to forecast: Because like every market forex works on principles of supply and demands, a higher imbalance is needed to generate bigger price changes.
Smaller fluctuations are more regular than wider ones: Even in days when markets tend to less volatile, working with smaller timeframes such as (M1, M5, M15 & M30) will still grant chance of earning more frequently.
While swing trading relies on big price moves, therefore aiming for long trend following a scalper will trade that fluctuation continuously. Price action comes into play here, a solid scalp trader must be very aware of level of support and resistance and when the price could bounce off.
See image Below:
Figure 1: Support & Resistance, XAUUSD, M1, (23rd July 2019
In order to better find these areas a comparison between timeframes is necessary considering that is always advantageous to highlights the most recent zones of support & resistance (2 to 5 previous days)
Once understanding levels strategy become easier to follow, let’s find out.
Simple scalping and Horizon X scalping patternWhen trading trends continuously, important is to gauge market signals which indicate the trend is strong, opening to new potential earning scenarios for investors. When noticing price is coming back to retest important key levels forming pullbacks, a trader should always look out for entry-points.
Scalping pullbacksScalp traders must focus on key resistance and support level to find entry point while trading pullbacks. Here at Trading Academy we developed a system, based on fast moving price action that will enable traders to have successful daily session.
We based our method on understanding where big money players come into action and by following their liquidity volume open winning positions. Horizon X is based on several scalping price patterns which find their fundamentals in risk and money management, key levels and entry points.
See image below:
Figure 2:Scalp trading pullbacks, XAUUSD, M1, (23rd July 2019)
In the picture above I highlight the principle of trading pullbacks in M1 timeframe, this method relies on entering the market in specific hot spot key levels. Even though many traders globally do not take into consideration risk management, our vision is that while scalp trade, investors should follow clear objective rules to be effective, here is one of our coral patterns and its trade management rules.
Horizon X Pattern #3This pattern aims to gauge momentums, big money players moves, consisting in fast formation of large body candle sticks (black bearish/white bullish)
Figure3: Pattern #3 configuration
To be formed Pattern #3 require several steps to be accomplished by the market before we can enter our position with confidence:
Entering the marketPattern #3 can be traded by entering the market within the retesting price area at consolidation level, however the tactics would be based more on aggressivity of trader personality and behaviour. In this booklet we will describe the most commonly used one.
Entering in consolidation structure
Market needs more liquidity for further movement and is going deeper toward the structure taking stop losses of weak traders. Smarter investors, however, use these stop losses for their position gaining, entering the market when a fractal is formed.
See image below:
Figure 4: Pattern #3, entering market at consolidation structure, USDCHF H1 (22nd July 2019)
Entering at consolidation boarder
Price touches edges of consolidation and starts to reverse. We would like to open position when fractal is formed.
See image below:
Figure 5: Pattern #3, market entry at consolidation border, GBPUSD M1 (14th Mar 2019)
See image below:
Figure 6: Pattern #3, market entry after false break out, GBPUSD M1 (6th June 2019)
Trade ManagementSimilarly, we can use 4 elementary exit strategies of our Horizon X Pattern #3.
Follow Golden Rules and Consistently Win Tradessubmitted by alfafinancials5 to u/alfafinancials5 [link] [comments]
Habits are something that is very difficult to change, so why not cultivate some good habits. For a Trader one such habit should be of winning trades. But certainly to achieve that some techniques or golden rules must be practiced wholeheartedly. Systematic Planning and following that is one of the basic rules a trader must follow. A combination of all such techniques when applied together forms the mantra that leads you to the path of success.
The paramount techniques that every plan must have:
Examine your skills
Trade only when you are ready to trade. Know your skills and plan accordingly, because when you follow the tricks what other traders do, sometimes it might not work. So realizing your skills and planning according to it would earn you profit.
Be prepared consciously
For a Trader, the mental strength is an important factor, be it his/her daily life or in forex trading. A trader should not get affected by any mental or physical trauma that will interrupt the way to his/her success. A trader must set a goal and repeat it like an incantation to stay away from any distractions. To be in a place where distractions are bound, a trader must learn to dodge.
Set the Risk levels
The reason a trader must have his/her risk level in a safer zone is because there is a chance that your portfolio will be on risk. The range can be set anywhere around 1% to 5%.
Keep your intentions high
There is a saying "What you think, you become". So think Big and set your goals higher while keeping your head on your neck and setting real & achievable targets and also focusing on the risk to reward ratios. When you realize the profit is much greater than the risk, it is worth taking the risk. Carry on with the same approach with some high goal and believe that you can achieve it with your skill in trading.
Practice in private.
Practice makes man perfect but definitely, there is a difference between bravery and stupidity. You can’t afford to invest your hard earned money for a gamble in trading without a deep study of the things going around. Have an eye on what is happening around the world before stepping into the market. Get to know whether the overseas market is moving up or down so it will be useful for you to plan accordingly.
No matter which trading system and program you work on, the only thing you need to make sure is that you tag or mark the major and minor support and resistance levels. Setting notifications or alarms for your entry and exit signals would be a great idea and to safeguard this you need to make necessary arrangements to easily identify these signals when received, using a visual or audible method.
A plan to exit
Traders passionately concentrate on how to enter a market, but they don’t concentrate on when and where to exit, which is equally important as the entry level. Better make a proper plan for the exit before entering a trade. Traders don’t sell off their positions if the market is going against them as they don’t prefer to be in the stage of loss. A trader must be very confident and he /she should get over the loss and move forward. More comparingly, traders tend to lose more than winning, in the field of trading. So by managing the money, traders do make profits at the end.
Maintaining the data for the trades your won & loss is another good practice a trader must follow. Note down the entry & exit points you choose, open & closed positions of the market at that time, the targets that you had set for the support & resistance levels, and even the Overseas market updates. Equally important is the data & conditions that landed you in a loss will enable you to understand the factors that went against you and those which can be avoided and taken care in the future. Keeping a track of all your trading strategies will make you a successful trader.
Taking into consideration all of the above points if followed sincerely will lead your way towards a successful trading career. Nobody can guarantee that every trade will be profitable, it is your efforts and skills in studying the market along with your presence of mind that will lead your way. No matter what happens you should not be driven by your emotions while trading. Trading on paper and real money trading are two different things but yes surely practicing more will give you some extra confidence to take a brave step as you have already tested it on paper.
We Alfa Financials one of the regulated forex brokers in UAE offers access to many forex trading pairs through your trading account.
|So you've managed to be in the green during the years when any idiot could throw darts at a dart board for stock picks and derive gains. What happens when a bear market comes along?||LOL I love my haters/doubters, why are u all so inept? I do BETTER IN BEAR MARKETS, I'M A SHORT SELLER YOU MORON! LOLOLOLOLOL.|
|You also manage less than $4M and only have $1M in your trading accounts right now. I wouldn't trust a lot of the people I know with more than that in their accounts for advice (and neither would they, that's why their money is managed by others). So, what exactly is it that makes you qualified to give advice for long term success for other investors to follow you?||I could trade with $20 million and probly make $10-15 mil/year but then i wouldnt be able to teach which i love more.|
|Do you know the success rate of all of your subscribers as a whole, including the ones that didn't stick through your "program", do you have any stats? Not just the two millionaires?||U can see alll my students trades, add up the profits, go fetch, Link to profit.ly|
|LOL I love my haters/doubters, why are u all so inept? I do BETTER IN BEAR MARKETS, I'M A SHORT SELLER YOU MORON! LOLOLOLOLOL. As a sell-side analyst who has worked on Wall Street for several years and has met analysts and portfolio managers at the largest hedge funds and investment banks in the world, I'd like to ask everyone reading this a question: would you entrust your life savings to a guy who talks like this? Do you think the people at Goldman Sachs or Third Point talk like this?||The good thing is i dont manage other people's money, all i do is teach lessons i've learned over 15 years...ignore my rules at your own risk, nobody forces u to learn them...|
|How did that hedge fund you started work out?||I was the #1 ranked short bias hedge fund for 3 years and then tried investing as i got too greedy...overall made 2%/year over 4 years, still #1 ranked in my category, see details Link to tim.ly i accept your apology for your laziness.|
|I do BETTER IN BEAR MARKETS. Have you traded in a bear market before? Because to me it looks like you started trading shortly after the crash. i could trade with $20 million and probly make $10-15 mil/year. Then why not put more money into your trading account, it's not like holding more than half your in assets in cash is somehow going to improve your awesome performance? but then i wouldnt be able to teach which i love more. If you love it so much, why don't you offer it at a more discounted rate than $1200/year per person? For that much money most people could buy all the best investing books on the shelves. Are yours somehow better than everyone who has come before you? As well, at $1200/year, if you only have 10k in your account, that's 12%/year. For 12% a year you could hire some of the best money managers in the world, or even for a flat rate fee, you could find at least a half-decent financial planner. What advantages do you offer over those people? u can see alll my students trades, add up the profits. After factoring in relative risk, and performance relative to the market, how does this fare? I mean if all your students at so successful why not display that front and center on your page, I'm sure it'd draw in more customers and there would be more faith in your advice. Your own success and the success of a few hand picked students isn't a lot to go on. How do you become a better sprinter, do you ask the world's fastest sprinter, or their coaches? Do you judge these coaches based on the performance of the most skilled students (who likely had an innate ability to begin with), or do you assess them based on the sustained increase in performance across the board, relative to other coaches? Generally the guy with $500k in his bank account is going to have an easier time making 1M than the guy with $5k in his account is. I'm not hating on you, I'm just asking why some of this data hasn't been gathered to show just how successful your students have been, relative to the rest of the people in the markets they've been trading in. go fetch. Are you aware of what selection bias and survivorship bias are? Also have you considered offering a full refund for people who have blown up their account after buying your books? Where do you see your investment future headed with these sizable gains so quick in your short career? Do you think your performance will compare to that of Berkshire Hathaway, or the Medallion Fund in the long term?||Yes i've traded bear markets, i made my 2nd million dollars 2000-2002, u have a long comment but u didnt bother researching me so i have no time for lazy people, sorry!|
|In the wake of Flash Boys, if you could recreate the market to your specs how would you want it? Single exchange? No maketaker? No darks? Trading pauses? Cancel fees? No Internalization?||People whine too much, i could care less about HFTs.|
|Why does google have more scam accusations than success stories when I search your name?||Because i expose scams and those scammers spread lies...already sued one penny stock promoter and won, but their skillset is spreading misinformation on the internet so it works well to smear me...but they couldnt stop Link to tim.ly or Link to tim.ly and as i create more millionaires, more people will realize i'm 100% right...until then let the haterade flowww.|
|I love how so many of the people asking questions here are ~5 hour old accounts...Got a bunch of your students pumping and dumping your AMA too?||I just sent the link out to everyone we dont give a crap about reddit, stupid hater.|
|My question keeps disappearing for some reason. ??? On a $15,000 account, what position size ($) would you risk, max, and what % gain target would you shoot for to minimize risk in partial fills/no-fills? I know this depends greatly on volume.||I answered it in long before, no time for double questions.|
|You are quite the heartless prick. You publicly laugh at all the traders when your short brigade tanks a stock price. Has anyone recognized you in public, walked up and threatened you?||Nah actually everyone who meets me is very thankful for my tireless work and EDUCATION...anyone who hates on education deserves to be poor.|
|Do you want to eventually settle down with a wife and have kids and get out of the spotlight?? And do you ever get tired of the fame?||Of course but i never get tired of trading/teaching.|
|What indicators do you use to find earnings/contract winners? What news sources do you read through? How do you find them?||Go watch Link to timothysykes.com|
|2pac or biggie?||Eminem.|
|If you're so fucking rich why do you need to sell shit? Why did you make this AMA? To get more customers. Those who can't do, teach.||Link to www.timothysykes.com|
|You're a typical lazy, inept hater, u accuse before u do research, sad.|
|Tim, big fan, love the instagram photos. Quick question, why not use options to position for trades (assuming they are availalbe in a particular name at all), rather than long/short? I've had problems getting margin approval (long story) even though i make six figures a year, so buying calls and puts is where im at right now. thoughts? Less serious question, "on a scale of Moses to Hitler" (Andy Samburg quote), how Jewish do you consider yourself? Favorite brand of coffee? Favorite toy?||My stocks arent usually optionable, oh how i wish they were :) i dont drink coffee and no time for toys.|
|TIM SYKES. If you had a son or daughter, which majors would you want them to study? STEM field? Liberal arts? Other. Pic related: Link to i.imgur.com.||College is useless, I'd want them to live and learn in the real world.|
|How was the conversation with Wolf when you guys ended the little Twitter war? What caused that whole mess?||It was me probing whether he was a stock promoter or not and i'm confident that he's just a naive newbie.|
|Are you familiar with BullsOnWallstreet? What do you think of their trading education, chatroom, and hedgefund?||Yah, nice guys but i dont know their teachings/track record, try to get them to post publicly on profitly.|
|What % of your income is from trading, what % from subscribers/dvds/marketing etc.?||Link to mixergy.com|
|Hi Tim, what advice would you give a new trader with a very small account ~$500. on the best way to grow the account over time?||Focus on volatile stocks and realize my top student started with just $1500 and turned it into $1.71 million in 3 years...anything is possible if u study and work ahrd.|
|Tim, what is the tech analysis software you use in all of your video lessons. Is it thinkorswim?||Its Etrade PRO but I don't recommend them -- I only use them as I'm superstitious and have made too many millions of dollars with them over 15 years...Otherwise I'd recommend Link to stockstotrade.co as it has great scanning/screening tools too.|
|Tim, as happy as I've been with my Silver sub so far, I was a day trader for four years in forex and am a bit burned out on it. But I do love swing and positional trading and have really fallen in love with options over the last six months. Right now I am thisclose to buying Tim Longterm. Do you get a lot of optional stocks in the TL program?||Cool yes timlongterm has more optional stocks.|
|How did you become interested in the stock market?||Read Link to timothysykes.com|
|How has your self-made wealth changed your lifestyle?||Yes i live very well now :)|
|Where do you see yourself in five years?||Depends how many millionaire students i can create.|
|Was trading stocks your first career choice?||I never thought about careers, i just made a ton of $ when i was young and liked doing that so i wanted to do it more.|
|Tim, I've been a silver sub for about three weeks now and have made some nice trades and done well so far, including a sweet +13% on ARTX (would have made more if I'd waited for it to break support). But I haven't seen any of the big-spike penny pumps happening so far. How often do you see them happening?||Cool, big spike penny pumps were every day in dec, jan, feb...they'll be back but u just missed the busiest season in 15 years.|
|How would you invest / what would you buy for $100 ?||I'd buy a good sushi lunch for that amount, it's too low for stocks.|
|How much does it cost to become one of your students?||Go look Link to timothysykes.com prices rising soon too so i'd lock in current prices for life if i were u.|
|I should've clarified, how much is it to become one of your millionaire challenge students?||Depends, we offer different options, gotta apply and be accepted first anyway.|
|Differences between the Tim Sykes Challenge and the silver membership?||See Link to timothysykes.com|
|Do you regularly give talks/seminars at colleges and universities. Would you ever consider coming to a smaller university to give a lecture on stock trading and smart investing?||Yes hit up Link to timothysykes.com|
|What do you think about forex? I just started larning about forex, because here in méxico there is not much information about penny stocks; and As i said before I want to make the amount to take you challenge.||Too low odds of success for me to care.|
|How backed up are your email responses for trader challenge requests? And what is the difference between silver and being accepted into the challenge. And by differences i'm referring to benefits.||75,000 emails or so.|
|Thoughts on fspm?||Below technical resistance so its irrelevant.|
|When you were growing up Tim, in your teens, did you look into the future and want to be wealthy? Was it a dream of yours to be where you are today or did you decide so much later on?||Always wanted to be wealthy, thought i needed to go to a good school & get job on wall street to make it happen.|
|When you first started out.. How did you handle the stress when you weren't trading? I'm having some crazy up days $12k+ and then when I make a shitty trade and lose $3k I wanna throw something...||No stress if u stick to rules...i didnt have rules at first and that was stressful...i didnt have a mentor either...luckily for u with me in the picture u now have both :)|
|Dear Tim, I have a dream of making an automated trading machine out of your system, I have experience and the trading floor access. In your opinion, why shouldn't it work ? (I can automate: market research, stock picks, technical indicators, risk management, money management etc.)||Do it up, i'm sure it would work I just havent had the time and I'm more interested in teaching people to be self-sufficient.|
|When did you start trading?||Go read Link to timothysykes.com and stop being so lazy.|
|Would you accept a deal to start being your student? I sent an email but i'd like to know what do you think, if the answer is not, it's ok; but i want to know what do you think;||No time for deals, only looking for dedicated students.|
|Any plans to expand the conference / speaking opportunities for you and your other gurus? I loved the Vegas event and think there is a large opportunity for smaller, regional Saturday events. Thoughts?||Ha nah in person events are a biatch, focus on online teaching is better.|
|I have to ask how often do you check twitter for hot news/tips? Also have you heard of Mark Gomes he is more like long term investor. I can't do margin on my ira so lose out on a lot of opportunities when trading. Gotta let the funds settle.||I could care less about news/tips, I'm ALWAYS searching for good patterns though.|
|Amazing call on artx I'm now number 1 in my finance class stock game||Nice!|
|I'm 23 years old, looking for stock investment options. What type of stocks should I be looking at with about $500 to spend?||Nothing, forget about investing with $500 and learn trading, watch these free videos Link to tim.ly|
|On a $15,000 account, what position size ($) would you risk, max, and what % gain target would you shoot for to minimize risk in partial fills/no-fills? I know this depends greatly on volume.||I am more aggressive in my trading when my account is small, I'd use 30-50% per play but watch the play like a hawk...for example I shorted ARTX yesterday at 4.50, today it dropped to 3.90...if i had $15k I would've shorted 1,500 at 4.50 and tried to cover at 4ish today to lock in $750 profit...then rinse and repeat and gradually grow the account.|
|How much money do you have in your checking account right now?||I dunno exactly, a few million last time I checked.|
|How often do you take money out of your trading account to spend? monthly, quarterly, annually or as needed?||Annually.|
|Hey Tim I am a big follower of yours on twitter and am considering purchasing your news letter. I got lucky and got in some marijuana stock in November and pretty much didn't look at it until February when I sold. I quickly found out how lucky I was afterwards by not taking profits on other stocks I had purchased. I was looking for another 10 bagger and quickly realized how rare it is for that to happen. My question for you is what type of percentage gains do you look for before securing profit?||Nice, normally i go for 10-30% gains, watch Link to tim.ly|
|What is the best product on your site to strictly see your stock picks? The best bang for my buck?||My newsletters at Link to timothysykes.com but picks do little good without knowledge/education behind WHY I am trading them.|
|Last one from me. I know you say to not be long before ERs but what do you think about Facebook with their upcoming ER ? Last time they jumped $10 but with the WhatsApp acquisition their stock has fallen back to where it was before last ER.||Don't guess on earnings.|
|You say college is useless, and I agree. What do you think should change in the education system to make it more relevant?||I'm doing EXACTLY what i think more teachers and their students should be doing.|
|What's the douchiest thing you've ever seen?||Too many characters needed, basically any Wall Street/Murray Hill party/event.|
|What would happen if too many people caught on to your short sale strategy? What strategy would you then adopt?||I was hoping that would happen when I first got into teaching so I could get more sleep! Sadly only a few people take the time to learn...I also buy and am up 100% in 4 months in 2014 mostly buying too.|
|Where can I find more information about the event in Harvard? Just moved to Boston.||U cant it sold out within minutes but we'll have it recorded for ya!|
|Thank you for the AMA and your reply. I bought your DVDs recently, but haven't finished. What ratio would you say your income is based on, trading vs. teaching? I ask because I think I would prefer teaching, but I need to learn first. So should I be learning to teach, or learning to just invest personally?||Teaching vs trading is something like 10-1...the cool thing is EVERYONE wants to be rich, the sad part is not many are willing to study hard to get there.|
|Hey TIM, I am a Pennystocking Silver member for about 2 months now and have been trying to figure out what is the maximum size position you can take when long on a stock? How do you know when to buy 100 shares or 100,000 shares? I have been making sure not to buy more than 2% of a stocks daily trading volume, I think I heard that in one of your DVDs, is that accurate?||There is no set maximum or minimum, every play is different...just gotta be comfortable and understand your risk/reward BEFORE making the trade and then stick to the rules during the trade.|
|Any recommendation to control overtrading? Btw I am flying all the way from Miami to Boston to be at Harvard on saturday, someday not too far I will be one of your top students :)||As I say in my Link to timothysykes.com DVDs, I try to think of myself as a retired trader who only comes out of retirement for the perfect setups when I know I'll feel guilty missing...otherwise I'm retired ALL the time, understand?|
|In An American Hedge Fund you mention that you met a trading coach at a large hedge fund you were interviewing for. Later you said you bought all his books. Would reccommend his books/ mind sharing his name?||It was Dr. Ari Kiev, sadly he died, but he's written some great books, use Google.|
|Besides your book that I enjoyed, do you have a few other books you would recommend?||Yes go read Link to investimonials.com|
|How did you know to short it since it gapped down right at open?||I shorted yesterday, see my video lesson I sent out mid-day yesterday too.|
|How long do you think BIOF will stay up before it will start going down? and what is holding it so far?||Irrelevant chart pattern, gotta focus on Link to tim.ly patterns if you want better odds.|
|Tim! Which actress do you think is the hottest? I like Scarlett Johansson a lot! (and thanks for changing my life!)||Nobody can compete with my girlfriend :)|
|Make sure she reads that post ;)||I will :)|
|Who would win in a fight you or superman(supertrades)?||Superman, he's strong and fit, I'm overworked and out of shape.|
|Here's my question: What is your favourite stock? Also you should come into this chat: Link to webchat.freenode.net. It is the official unofficial chat for /wallstreetbets -- a sub which adores your trading style. Thanks for taking the time.||Link to tim.ly|
|Hey Tim, huge fan, ive watched ALL of your DvD's expect for the how to read SEC filings. And i've been following your exact strategy for finding stock picks that you showed in your TIMfundamentals part deux DvD but i never find the same one's that you trade, for example ARTX did not come up on my watchlist. Did you change your strategy on finding stock picks? If so, what's new?||Link to profit.ly|
|Have you ever considered world domination?||Nah thats boring, my focus is world education.|
|I haven't read all about the challenge information yet, but how much is the amount I have to bring in ?||Different for everyone first u need to apply and get accepted Link to tim.ly|
|Can you make a gif animation of you flying to da moon and post it every time you tell us your stock picks?||Sure I'll put it on my to do list.|
|Tim I am I college student and I started trading this year mostly because of your story. I have bought into the company TWD (tweed marijuana inc.) Do you have any suggestions for me? Ps, they're all just haters.||Cool, the companies don't matter and TWD's chart is a mess, focus on Link to tim.ly patterns.|
|Right on, is the Vegas conference going to be a DVD also this year or is that the video you are talking about? BTW can't wait for the conference this year hopefully its the best one yet.||Nah brand new DVD going over all the basics.|
|I'm low on funds so more newsletters or getting equity feed? About the same price so just pick one||Data is cheap, good information from newsletters is more useful, use Link to tim.ly sale while its still on.|
|Hey Tim, I was accepted to your challenge but was unaware about needing $7500 to begin. Any way around that? I think what you do and how you help people is great. I'm guessing you have someone answering your emails so I thought this was the best way. Thanks.||Gotta invest in your financial education, my program is a steal given the value of what u learn...skimp out on everything in life, but not education.|
|To start off, you are my biggest inspiration for trading stocks. That being said, in the future I would love to trade with you like Tim G and your other students in the Maldives or other crazy places you go. I currently trade my own strategies and am making pretty good money. Do I need to become one of your challenge students to hang out/trade with you?||Yup Link to tim.ly students get first dibs on everything.|
|Hi Tim, TimAlerts subscriber here, When you started out with $12,500 what was the lowest your account went to in the beginning, did your ever drop below $10,000 ?||Go and look at the first 1,000 blog posts on Link to timothysykes.co i tracked EVERY trade.|
|Hello Tim, Big fan here & Silver Subscriber! Been watching a lot of your videos and I've read your book. I live in Denmark, so a lot of brokers won't accept me as a customer. Only broker I can find is SureTrader. What do you think?||Cool i use suretrader they have shorts every now and then.|
|Do you lift?||I used to, no time now.|
|Tim! I've been following you now for a while and have learned a great deal from you! I live in Boston and would love to come see your talk! Is there ANY WAY I can get a ticket??||Cool, sorry my Harvard talk sold out within minutes, but it'll be recorded.|
|What trading platform do you use?||Read Link to tim.ly multiple brokers.|
|What is the best path i should take if i want to be sitting beside you on your next yacht adventure?||Apply at Link to tim.ly then study your butt off!|
|Do you watch game of thrones? If not you should get on it.||Yes its great, wish I had more time to watch them all a second time.|
|What do you think about the wild west of cannabis stock trading and do you think that it stands apart from the internet .com boom since it is ACTUAL product as opposed to a dozen guys in an office? Are they good for long term investments aside from possible law retractions being an obvious danger?||Just the latest stock market sector craze, little different from nanotechs, 3d printing oil, gold, ethanol, alternative energy...pump and dump, NOT longterm holds.|
|How long will your 60% off newsletter be on? I want to buy it but my money is locked up in the market and will take about a week for me to have enough to get it. tia||Just a few days more we cant have Link to tim.ly sale last forever!|
|Thanks for doing your AMA Tim! I currently am a TimAlerts subscriber and saving money to start trading some day as a (succesfull) European student of yours. I saw you are going to speak at Harvard in a few days, will there be a video of it afterwards?||Cool yes my Harvard speech will be recorded!|
|Why are they not longterm holds? because its the early stages of the industries development?||Theyre mostly scams and pump and dumps, development my ass LOL.|
|Any plans on doing a seminar anywhere on the West Coast some time soon?||Yes hit up Link to timothysykes.com to be added to the earlybird list.|
|Question - how did you manage to post losses of almost 40% in '06/07 when the market was doing so incredibly well?||I'm a short seller for one and second read Link to tim.ly I detail my losses in depth.|
|Timothy. My mentor. Why your loosing trades show profit in your page ? 4/10 MDBX $23.25 $22.1 $4365. Tell me how you enter at 23.25 and exit at 22.1 making $4365 in profit please. You have to teach me this magic !!||It's called short selling you incredible nitwit.|
|How much money do you make in a year from your DVDs, trading challenge, and subscriber alerts?||Link to mixergy.com|
|I lost 70% on SPLI, 40% on ERBB, and, 40% on MYEC, and 30% on MINE, should i hold?||Sorry to hear, they can always come back, but I wouldn't bet on it...gotta learn my Link to tim.ly rule #1 cut losses quickly.|
|I'm a college senior. Would you recommend me working at an investment bank or tech startup?||Do both, make connections everywhere.|
|What characteristics do you look for when people apply to your "Tim Challenge?"||Dedication, ability to follow instructions, hunger for immense wealth.|
|How many cars do you have?||I have 2, a Lamborghini and Porsche.|
|Is e-gear hard to drive? I have a automatic setup on my cayman s.||Nah its easy.|
|Can you annotate a chart of any instrument with price action or indicators?||Yes.|
|Tim, you have mentioned you have students from outside the US. Have you recommended them any brokers in particular or do you happen to know witch they use? Trading the OTC seems to be a common problem for us folks outside the US. Any input on this would be appreciated.||My preferred Link to tim.ly all accept international customers.|
|Hi Tim, NEWBIE. What brokerage account do you recommend? Thanks||Read Link to tim.ly|
|Actually didn't know that. Thank you for your time Tim.||YES!|
|Can my girlfriend borrow $500 to adopt her dog?||Nope.|
|Hey Tim, I am a Pennystocking Silver subscriber and newbie to trading, and have been studying your teachings for about a month. Thank you for doing this AMA. In your book you say that the most valuable classes you took in college were micro and macro economics. I am an econ major and am curious as to how you apply econ theory to trading. Why do you value those classes so much, and what is the most important economic concept you apply to trading?||Cool always important to know supply/demand, that basically sums up all of penny stocks.|
For example, if your stop loss is 20 pips in a trade and your target is 100 pips, your risk/reward ratio will be 1:5. What Is the Recommended Risk/Reward Ratio in Forex Trading? 1:3 or 1:5 risk/reward ratio is achievable when (1) the market trends after forming a strong trade setup, and (2) you succeed to enter on time. That ratio is known as the risk – reward ratio. Example: Let’s say your account balance is $2,000. You place a trade risking 1% of your account or $20. The trade goes your way and hits your profit target, resulting in a closed trade and a $40 win. Since you risked $20 and profited $40, this trade would have achieved a 1:2 risk to reward ratio. The Risk to Reward Ratio is one of the most critical aspects of risk management in Forex trading. Traders with a clear understanding of what RRR is can improve his/her chances of making more profits. In this article, let’s discuss the fundamentals of Risk to Reward ratio with examples and also the ways through which it can be increased while taking your trades. What is Risk/Reward? Risk/Reward is the ratio of how much you’re risking on a trade vs. how much reward you’re targeting. Here is an example… If we opened a trade with $100 risk, and we aimed for a profit target of $500 then our risk/reward would be $100/$500 or 1:5. We are risking $100 for a $500 return; this would be a 500% return on ... Remember that reward-to-risk ratio is simply the comparison of your potential risk (distance from your entry to your stop loss) and your potential reward (distance from your entry to your profit target).. In the example above, Alex first used a 2:1 risk ratio before he bumped it up to a 3:1 R:R ratio. If the latter trade had worked out, Alex would’ve bagged pips three times the size of what ... Chart 5 – USD/JPY: Daily (Risk/Reward) In the example above, we’ve included all aspects of the trade. The entry on the reversal bar, the stop sufficiently above it, a logical target, and the ... Learn where to put target orders to maximize reward:risk when forex day trading. Stop losses I always put in the same place, but deciding where to get out of a profitable trade is a trickier endeavor for many people. My preferred method is to use a target. A target is a limit order, set at a particular price, that will close the position if that price is reached. For forex day trading, I like ... What is Risk to Reward Ratio and How to Calculate it in Forex Trading. Risk reward is a simple concept, but how you deploy and use it in your trading can be as advanced as you like. At its most basic, risk reward is the formula for how much reward you stand to make for the amount you are risking. For example; if you risk 10 pips on a trade and you have a profit target of 30 pips, then your ... FOREX 1 MIN Scalping Trading Tricks By The Most Successful Forex Trader SMA-EMA Cobra Forex Bitcoin Trading System (extremely low risk high reward trading strategy) (COBRA SYSTEM) Complete Guide To Forex Trading : Forex Long Term or Short Term Trading Strategy Forex Currency Trading Course : How to Trade Forex Successfully with U-TURN Cross Over Trading System Forex Trading System that ... Favourable Risk:Reward Example. Below is an example of a recent pullback trade I took on the GBPCAD Forex pair. I entered this trade based on price bouncing from previous support turned resistance on the daily time frame. This trade had a favourable risk:rewards ratio as shown below. Poor Risk:Reward Example
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What is the Best Risk to Reward Ratio for Day Trading Stock Market and Forex? Official Trading Rush Website: https://tradingrush.net Download Official Tradin... Get the charts: http://www.tradingheroes.com/tradingview Calculating the risk reward on a trade can take some time. If you are tired of taking out your calcu... In today's video I share with you how to create and use the risk to reward ratio to evaluate your trading strategy. Did you know that you can make money winning less than 33% of your trades? This ... In this video I created a trading simulation by entering trades based on the flip of a coin. Heads = Buy, Tails = Sell. This is to demonstrate that even with... This video will explain in detail THE SIMPLE WAY to convert Lot Sizes, how Risk vs. Reward works, and also how to count Pips. These are the fundamentals of t... Risk reward ratio for forex, stock trading and day trading is not as easy as it sounds. Here's a "hybrid" technique improve your trading. http://www.topdogtr... Be sure to SUBSCRIBE!!! •$297 Forex Course 👇 https://www.fx-accelerator.com/fxfunnel •JOIN OUR 7-DAY FREE GROUP CHAT: https://www.fx-accelerator.com/master.....