Our Forex Trading Academy:

Tradeciety Pro Forex Course




Home / Author – Rolf

Author – Rolf

Profile_PhotoBelow, you find all articles written by Rolf. Just click on the title or the image to read the full article.

Full bio: click here

Want to learn how to trade my strategy? Take a look: Tradeciety Pro Trading course

Contents in this articleStep 1: Fast, Medium, Slow?Step 2: What’s your goal with the moving average?More: Learn my trading strategy hereStep 3: Avoid over-thinking and over-optimizationStep 4: Commit to one thingNo magic bullet?More: Learn my trading strategy here So what is the “best moving average” for your trading? Believe it or not, we get asked…
Following up with my last swing trading article, today I want to go a bit into detail about a particular setup I am trading that allows me to get in with or without price action confirmation. It is based on the confluence of Support/Resistance, Supply/Demand and the Fibonacci 50% Retracement. The principles, as always, stay…
No Comments
How To, Tips
Contents in this articleThe problems traders haveCandle close decisionsDoes it really work? The tradeoff Trading successfully doesn’t have to be complicated and when working with our traders, we saw that a few little tweaks often can make a big impact. In today’s article, I am sharing a very simple hack that has completely turned my…
I have written about my higher timeframe price action trendfollowing strategy before, and many times was asked to elaborate a bit further on it, so today I will do just that. I trade this strategy on the 4-Hour, Daily, Weekly and Monthly Charts and, as always, mostly with the trend, sometimes there are setups in…
2 Comments
How To, Tips, Tools
Contents in this articleStep 1: Preparation & WatchlistsStep 2: Trading Plans and price alertsStep 3: The ChecklistSum it up Becoming a good trader while having a 9-5 job is very challenging. I have been there myself and it wasn’t until I implemented certain tools and routines in my own trading that I saw improvements. The best…
No Comments
How To
Once more I did not have a lot of time for trading as I was in Singapore (VLOG coming soon!) last week, promoting Edgewonk, and then I traveled back to Chiang Mai. Here are the two trades, one winner, one break-even trade. A steadily growing portion of my trading is done on higher timeframes these days, and…
Contents in this articleHead and ShouldersTrendlinesMy bread and butter trade3 tips for finding a transition point1. Momentum changes2.Head and Shoulders3. Trendlines I do call myself a reversal trader but most people do not understand that every new trend starts with a reversal. A reversal trader should, thus, probably be called “early trend” trader and conventional trend-following…
As a technical trader we have all heard about keeping a trading system simple and effective, and it is not a surprise to see most of the successful traders often glaring at clean (read naked!) charts with price action on the forefront rather than fancy colorful indicators. I am not a stark opponent of indicators,…
Contents in this articleStep 1: Find a higher time frame levelStep 2: Higher time frame reversal signalStep 3: Lower time frame entry timing – find the broken market structureStep 4: Staying in the trade and exiting the tradeChallenges of reversal tradingOur Pro Forex Academy Successful trading is 90% waiting and 10% execution – which is…
It comes across as a general consensus among technical traders that former swing points matter tremendously when it comes to locating potential future trouble areas for price. However, little light is shed on the actual dynamics of these swing points. In this article I will elaborate on the importance of a particular rhythm followed by…
Contents in this articleWhy do you ask it?Trading isn’t a sure thing.The next step: don’t limit yourselfI am not youFinally: How much return can you make… This is probably the question that we get asked the most via email so I thought I spend a few minutes exploring this topic and what every trader needs…
12 Comments
How To, Tips
I recently listened to an interview with Naval Ravikant on the Farnamstreet podcast and one thing struck me immediately once I saw the connection to trading and why so many traders fail. Naval talked about the differences between “external multiplayer games/activities” and “internal single player games/activities” and why following the wrong lifestyle will lead to…
Understanding “Space vs Traffic” – The Key To Big Trades! As traders we all love the feeling of having to see a trade run straight into profit right after entry, and it’s always a pain having to wait for the slow ones to gradually turn us a profit (hopefully!). This article is going to elaborate…
Multi timeframe analysis is a keyword that gets thrown around a lot but is it really working? Multi timeframe analysis is important but when it comes to making actual trading decisions, it’s often impossible to have all the timeframes line up the same way – you probably know how difficult this really is. In my…
Contents in this articleThe 6 tips for supply and demand trading1) Moderate volatility2) Timely exit3) The “Spring”4) Strong force leaving the zone5) Freshness6) Amateur squeezeHow to use the concept of supply and demand?1 – Reversal trading2 – Support and resistance3 – Stop Loss and Take Profit Whether we look at strong price turning points, trends or…
Contents in this articleA Look at the Engulfing Bar PatternTrading Engulfing BarsAdvanced Trading Methodologies3 Tips to Select the Best Engulfing Bar Patterns#1 Trade them at Swing Points#2  Big bars are good, very big bars are bad:#3 Look for Strong Closes When it comes to reliable candlestick patterns the ‘engulfing’ pattern lies in the same league…
Contents in this articleMy Gold trade of last weekWhat is a retest?Not a retest yet:The real retest: Time flies and we are almost half-way through March. How is your trading coming along? Are you making progress and following through on your New Year resolutions or have you forgotten them already? Don’t let more time pass…
Contents in this articleWhat is momentum?Following and understanding momentumCandle analysis – Follow-through momentum and micro-momentumMore usage examples: Breakout momentumRight now: USD/CAD fading momentum Momentum is one of the most important concepts when it comes to understanding price charts and making good trading decisions. In this article, I will explain how I use momentum in my…
Inside bars are among the most popular candlestick patterns price action traders use in their analysis and trading. Defined as (usually) a smaller ranged bar that is totally engulfed by the bar prior to it – these are great to identify halts in momentum that can serve as a crucial cue when looking for trade…
Contents in this article#1 Understand what a good market is#2 Timeframe selection#3 Know when not to trade#4 Look at chart context#5 Know when to cut a loss#6 Be realistic with targets#7 Small wins add up#8 Have a mental stop Successful trading does not have to be complicated and very hard. In fact, the best traders…
It’s been a great week and patience really paid off here. I want to share my favorite trade of the week, an interesting setup for next week and some important tips on how to cut losses.   Last week’s best trade I pointed this setup up for the last 2 weeks and last week it…
No Comments
Tips
Contents in this article#1 An object in motion will stay in motion#2 The Magic T Indicator#3 Red light / Green light#4 Don’t put stops below the low and above the high in a range#5 Put/Call contrarian indicator#6 Understand the newsMindset and psychology#7 Connect with your charts and work ethic#8 Use a checklist and a trade…
3 Comments
How To, Tips
There is ample mainstream guidance available on how to better manage your trades. From cautioning on trade selection, to laying out the entire trading plan, there is enough material out there to guide you through your trades. This article however, is not about regurgitating the clichéd trade management ideas, but it is rather about discussing…
Contents in this articleWhat are correlations?Measuring correlationsCorrelations and riskMost important correlationsForex Triad Correlations play a BIG role in trading, and in Forex trading especially. As Forex traders, we trade international currencies from different countries from all around the world. Currencies are issued by central banks and are used for international trade, investing and to control economies.…
Happy Sunday, I hope you had a great week. For reversal traders, it was another incredible one and there were LOTS of great setups happening last week. I recorded 7 of my trades step by step from entry to exit and here are 2 for you. The rest can be found in our member area…
5 Comments
Beginners, Tips
Contents in this article#1 No more predicting and calling tops #2 The best entry for safe trades with the momentum#3 Better market selection#4 I regained my trust and abandoned FOMO#5 The checklist for fool-proof trading When I started trading, I quickly noticed that I am much more comfortable spotting reversals than finding conventional trend-following or…
It is a well-known fact that volume, as you see on your Forex pairs, is actually not ‘true’ volume and is really only ‘tick volume’ implying simply the number of ticks that price moved in that given time frame. Real volume – as used in other markets like stocks – is, of course, the number…
No Comments
Macro Monday
Contents in this articleLast week’s fundamental dataKey marketsKey support and resistance levelsThis week’s events and outlook As mentioned during last Monday’s Macro analysis, it seems like the Trump-trade is back and all major US stock indexes hit record highs. However, haven investments like Gold or Treasuries didn’t follow the euphoria as we will see shortly.…
Contents in this articleMy favorite setup of last weekMy mistake – celebrating too earlySomething I am watching for next weekQuestion of the day: Can I trade without a stop loss? It was one of the best weeks in a long time with lots of reversals happening across many different Forex pairs. I caught a few…
No Comments
How To, Statistics
Edgewonk is much more than ‘just’ a regular trading journal. Most trading journals, especially the free alternatives on the web, are data graveyards where you just get a summary of all your trading data blended together into meaningless figures. Disclaimer: Edgewonk is a trading journal developed by Tradeciety and modeled after our own trading journals.  Edgewonk is the first…
2 Comments
How To, Psychology, Tips
Contents in this articleWhat does “trade the probabilities” really meanThe most important word for you in trading: RepeatableTips for generating repeatable tradesNon-repeatable situations I think it’s important to spend quality time thinking about the common knowledge that gets passed around. Those phrases are often meaningless and people have no real understanding of what they actually mean. Or,…
Contents in this articleHow To Trade Pin Bars: Three Best Locations For Pin Bars1)   Absolute Swing Points2)   At Pullbacks to Important Areas3)   Off Crucial Support and Resistance levelsHow To Trade Pin Bars: Three Worst Locations For Pin Bars1)   Within Tight Consolidation Zones2)   Against A Pertinent Story3)   Against MomentumConclusion Pin bar (or the hammer as it…
2 Comments
Macro Monday
Is the Trump trade back? Late last week, we saw a shift back to risk-0n as Trump indicated something “phenomenal” about taxes to come in the next one to two weeks. This was enough for traders and investors to get back into equities and drive the S&P 500 into new all-time highs while the Dollar…
6 Comments
Market Analysis
Contents in this articleMy favorite trade of the weekI missed this beautyA good chart for next weekQuestion of the day: Which is the best timeframe? Overall, it was an interesting week for reversal trades and whether you were on the Daily, the 4H or the 1H timeframe, there was plenty of action. I will share…
Contents in this article1 – Avoid over-analysis2 – Audit your trade: improve the process3 – Analyze your risk4 – Accept randomness5 – Believe in yourself6 – Understand when you are wrong7 – Stay courageous8 – Walk away from your trades9 – One trade doesn’t mean anything You probably know that you can’t win all your…
Contents in this articleWhen to stay in a trade 101Mid-candle vs candle-close decisionsExample 1 – follow the momentumExample 2 – Reading a noisy trendExample 3 – Chart and wave analysisExample 4 – Calling tops? Follow the momentum! Today, I want to talk about a topic that can make a huge difference in anyone’s trading life…
Contents in this article#1 Know the Bigger Picture#2 Mark Out First Trouble Area#3 Mark Out Subsequent Trouble Areas#4 Managing Stop losses We would all agree trading can essentially be broken down into three distinct actions; entering a trade, managing it, and the exit. Assuming you have a winning trading system that frequently allows you to…
No Comments
Macro Monday
Contents in this articleLast week’s fundamental dataKey marketsThis week’s events and outlookKey support and resistance levels Despite the different central bank meetings, FOMC appearances and the NFP Friday, we did not see any major fireworks and price behaved more or less normal last week. However, especially on the daily timeframes many Forex pairs are showing range-bound…
Contents in this articleMy watchlist pick for the next weekLast week’s favorite tradeHow could I have missed this?Send us your questions Happy Sunday, don’t be surprised but the format of my Sunday watchlist is going to change slightly from now on and the reason is a new ‘thing’ here on Tradeciety that we have been…
No Comments
Tips
Learning by doing doesn’t really exist in trading and executing trades alone or randomly flipping through timeframes and staring at charts all day long will not make a difference either. Luckily, there are a few very specific things that can help traders improve their skills rapidly and very targeted.   Practice, expert performance and trading…
One of the most dreaded circumstances for a trader is when markets (often inevitably) enter into notorious sideways consolidation phases. It can be frustrating trying to gauge market sentiment, as technical indicators that you perhaps loved until very recently for their accurate and timely signals, start going bonkers with conflicting signals and moving averages get…
5 Comments
Macro Monday
Contents in this articleThe US immigration curb and what markets thinkLast week’s fundamental dataKey marketsThis week’s events and outlookKey support and resistance levels Happy Monday. The wait is over and markets are finally open again after a very turbulent weekend. Just as last week, the Trump policies are setting the tone for this week again. I’ll…
Contents in this articleSubscribe to our newsletterUSD IndexEUR/GBPEUR/USDGBP/AUDGBP/USDGoldWTI OilUSD/JPY For the most part, traders got whipsawed around last week, especially on the higher timeframes. Markets are in a waiting position and the move had little follow-through right. I moved to the 1H for the most part and just took some very short term trades. Make…
2 Comments
Beginners, Tips
Contents in this article#1 Avoid unrealistic expectations#2 Focus on the right things#3 Should you demo trade?#4 Build a playbook#6 Treat trading like a business#7 Finding a mentor#8 Protecting emotional capital We won’t sugarcoat it because from own experiences and from our work with hundreds of traders we know that trading is very hard and challenging.…
Contents in this articleCalculating the ATRMomentum vs VolatilityVolatility in uptrends and downtrendsATR + DATR How to use the ATRSL – Volatility StopTrade potential and profit potentialThe ATR indicator as your universal market tool The ATR is a very popular trading indicator but I see often that many traders interpret or use the ATR incorrectly. With this…
Contents in this articleLast week’s fundamental dataKey marketsThis week’s events and outlookKey support and resistance levels Happy Monday. First of all, thanks for all the great feedback on last week’s first Macro Monday. So I guess, this will become a thing here now 🙂 Today’s Macro Monday will include a lot of “Trump talk” because it’s the main…
Contents in this articleUS-DollarAUD/USD – follow the momentumCAD/JPYEuroEUR/USDEUR/AUDGoldUSD/CHF It was a challenging week for reversal traders on the higher timeframes as most trends continued. The 1h did offer some decent opportunities and I managed to squeeze out a good trade on USD/JPY early on in the week and then realized a scratch trade on Palladium later…
4 Comments
Psychology, Tips, Tools
Contents in this articleWhen do you have time? A first assessmentWhat is the approach that fits your lifestyle?What to do when the markets are closedThe myth of screen-time Are you also struggling to find the time to establish a serious trading routine besides working your regular day job, following your hobbies, and spending time with…
Don’t’ trade your P&L (profit & loss) is a common phrase that gets thrown around a lot, but very few traders have a real understanding of why we trade our P&L in the first place, what causes this negative behavior and how to avoid it. The popular and trivial tip, “just don’t look at your…
Contents in this articleMarket Equilibrium VS DisequilibriumThe Importance of Key ZonesThe Liquidity VacuumLiquidity Vacuums near Key Zones I’d like to begin this article with a question: Looking at Charts A and B below, which one would you say shows a strong uptrend that you think would sustain itself in the future? Chart B, right? Well,…
Contents in this articleLast week’s fundamental dataKey marketsThis week’s events and outlookKey support and resistance levels We are starting a new series here on Tradeciety and every Monday we will provide a broad overview what has happened in the global markets the previous week, discuss the economic data and trends and releases and provide an outlook for…
2 Comments
How To
Contents in this articleLast week’s trade – EUR/AUDVideo analyisAUD/CADAUD/USDEUR/JPYEUR/USDGoldS&P 500USD/JPY It’s been a great once and 2017 is off to a good start. The watchlists of the past 2 weeks are unfolding nicely and there are some bigger plays in the making right now. Besides the benefits people see in the watchlists and the technicals…
Contents in this articleUnderstanding the Broader IdeaPrice Bars Collectively Represent Deep Story LinesImplicit Divergence ExplainedTradeciety Announcement As a technical trader who knows anything about price action and some common technical indicators, you might as well have come across the phenomena of ‘Divergence’, either as a stand-alone concept to validate your entries, or a tool to…
Trend strength - price action
Contents in this article1) Price action analysisTrend waves – length, steepness and smoothnessPullbacks during a trend2) The slope of trendlines3) Bulls vs. Bear and micro-structures4) Rejected reversals5) ADX6) Moving averages (MA)The relation of price to the MA and the slopeThe MA crossover – sentiment shiftsThe space between MAs – momentum information7) RSI8) Bollinger Bands ®Knowing the strength of a…
No Comments
Tips, Tools
Contents in this articleSitting is the new smokingStress – A trader’s best friendThe computer mouse – how bad is it really?Computer screens and artificial lightningOur tips and tools for a healthier trading environment The correct setup of your desk The best office chair The ultimate, ergonomic mouse Reducing the bad effects of a bright computer…
Contents in this articleMy two tradesVideo analysisUSD IndexEUR/AUDEUR/JPYGBP/CHFGBP/JPYUSD/CADUSD/JPY We saw lots of back and forth in the markets last week and trading hasn’t been easy. But it’s great to see the progress the guys in our trading room made over the past few months and most are seeing a huge improvement in their trading and performance. On the higher…
Contents in this articleTechnical Analysis Is Subjective And Any Method Can WorkThe Takeaway Message For Technical Traders – What really mattersThe Imperfection Of Price PatternsWhy Technical Analysis Can Be UnprofitableTips On How To Use Technical Analysis Let me put it out there: It doesn’t matter which strategy or system you use. Any trading method can make…
As Forex traders, we can use intermarket analysis to our advantage when it comes to choosing trades and trading opportunities. In the financial markets, everything is correlated and interwoven. And in Forex especially, because of the 2 currency pair structure – each currency pair has two components – this is even more important. Let’s take a look…
Contents in this articleDollar IndexS&P 500AUD/USDEuro BundEUR/JPYGoldUSD/CHFUSD/JPY The first trading day of the new year is here and what’s more exciting than starting with a clean slate? Now it’s up to you what you’ll do with the new opportunities. By the way, this is the best moment to join our unique trader development program and get…
No Comments
How To
Contents in this articleOur most popular trading articles#1 Price action secrets and price action trading concepts#2 A very honest look from Moritz at trading and the role of trading in your life#3 Another great one from Moritz about how we sabotage ourselves#4 An in-depth guide on how to use moving averages#5 If you know how to read divergences, it…
2 Comments
Tips
Contents in this articleCuriosity without expectations. How to win at anythingYou don’t need to know where you are going. Just go!How to make 2017 your best year as a trader#1 The first step for every trader#2 Process and an understanding of your method#3 Consistency for consistent profitability#4 Keystone habits for traders Another year has passed…
4 Comments
Market Analysis
Contents in this articleAUD/CHFCAD/JPYDollar IndexEUR/JPYGoldUSD/CADUSD/JPY Last week was one of the best weeks in all 2016, especially after the nice turnarounds that we have seen in some of the JPY pairs that I highlighted during last week’s webinar. This week’s watchlist also comes with some super interesting setups but since we are going into the year end,…
Contents in this articleOrder absorption – why common trading knowledge is wrongIdentifying high probability supply and demand zonesChart example – supply and demand imbalances Some anti-examplesA timeless market pattern The difference between supply and demand, and support and resistance may seem small, but a trader who understands the implications of supply and demand can develop…
5 Comments
Market Analysis
Contents in this articleOverviewUSD/JPYUSD/CHFUSD/CADGBP/CHFEUR/JPYCAD/JPY I just love trading and the past few weeks showed that clearly to me once again. It’s a constant mix of planning, adjusting, being patient, managing your downside and striking hard when the opportunity presents itself. I wrote a short article about that yesterday and I recommend that you take a…
6 Comments
Psychology, Tips
The last 2 weeks have been particularly interesting and they make for a great case study why and how most traders end up losing money. Over the past 2 weeks, there was little action for us reversal traders. A small win here and there, a few losses when the early reversal turned around again but overall…
3 Comments
Tips
Contents in this article5 Keys To Manage Yourself & Take Control Of Your Trading Success1st Key: Take Responsibility2nd Key: Understand That You Will Be Tested3rd Key: Pay Attention To How You Feel4th Key: Learn To Go Against Your Mind5th Key: Embrace The Process & Kill Your Expectations This is a guest post from Desiretotrade and Moritz…
No Comments
Psychology, Tips
Traders doubt their trading methods, the way they manage trades and their own abilities as traders. They are uncertain about how to approach the markets, how to manage trades, when to exit trades or how to set a stop loss correctly. And all this uncertainty and continuous doubting lead to fear – the fear that…
Contents in this articleAUD/CADCAD/JPYDollar IndexGBP/CHFGoldNZD/JPYUSD/CADUSD/JPY It’s harder to find good reversal and transitioning trades these days, but it’s a normal market cycle every system goes through and the importance of patience is obvious at the moment. Every system goes through different stages and you have to maximize profits when it performs best and sit on your…
Contents in this article1. Swings – Highs and lows2. Support and resistance3. Price action wave analysis4. Trendlines5. Moving average Being able to read a price action chart is important to make the right decisions. The problem many traders have is that they overcomplicate things and get easily confused – or they don’t have a process…
Contents in this articleS&P 500USD-IndexEUR/JPYEUR/USDNZD/JPYUSD/CHFUSD/JPY And here we are again with another Sunday watchlist update. Last week started slow for us reversal traders and then by the end of the week, things suddenly started to move. Right now, there are many interesting setups building and I picked the 7 best charts for you. I encourage you…
2 Comments
Psychology
Contents in this article1. Separate charting from execution platform2.Move to a higher timeframe3. Look at candle close only4. Reasonable risk5. Honor your stop6. Engage in physical activity7. Only use speculative money8. Trade the market where you have an edge9. Journaling and performance review10. Go small during losing periods Preserving emotional capital is often more important…
Contents in this articleGoldUS-DollarCAD/CHFEUR/JPYEUR/USDNZD/JPYUSD/CHFUSD/JPY Those are exciting and very interesting weeks for us reversal traders. Our patience keeps getting tested but the trades that result from that are worth the wait. Especially the AUDNZD long trade last week was a textbook reversal and I got a lot of emails from people saying they see a big…
2 Comments
Statistics, Tips, Tools
Contents in this articleInitial Reward:Risk ratio (RRR)R-MultiplePotential R-MultipleExpectancyAverage Loss and Average WinnerUpdraw and DrawdownMFA and MAEEmotional capital metricsAdvanced Data analysis conceptsSeparate by setupSeparate by quality A trader can choose from dozens of metrics and statistics when it comes to performance analysis and it is, therefore, easy to get lost and feel overwhelmed, especially if a…
Contents in this articleThe ADX lineThe DI linesThe DI crossover signalMore chart studies and trade examples The ADX indicator is a popular trend indicator and it provides information about momentum and trend strength. In this article, we will dissect the individual components of the ADX and explore step by step how to use them to…
2 Comments
Market Analysis
Contents in this articleCrude OilEURCADEURUSDGoldNZDUSDUSDCHF If you have attended our webinar last Sunday (Facebook live webinar here) or read the mid-week AUDCAD post, you’d probably had a pretty good week 😉 Many traders in our trading room ended the week green and despite the failed setup on the GBP/CHF at the beginning of the week, it…
Confluence is an important concept in trading and it means that a trader looks for different clues on his price chart and then lets price tell him a story. Trading with confluence is key and combining different signals to form a sophisticated trading idea is important and also helps build confidence in one’s setup. At the same…
No Comments
Guest Post, Options
Contents in this articleMyth #1: Trading options is a zero-sum gameMyth #2: It’s easy to make money with optionsMyth #3: The only profitable way to trade options is buying calls or putsMyth #4: Only 90% probability strategies make moneyMyth #5: Selling naked options is very riskyMyth #6: 90% of options expire worthlessMyth #7: Only options sellers…
Contents in this articleStep 1: Stop loss distanceStep 2: Define the risk level of your tradeStep 3: Introduction to lot sizes and pip values Final step: Find the correct lot size based on stop distanceWhy your position sizing should be consistentMyth: Trading without a stop loss?>> Download the Position Size Excel sheet << Being able to size…
2 Comments
Market Analysis
Contents in this articleAUD/CADAUD/NZD (look for shorts)BundDAXGoldNZD/USDWTI Crude Oil It’s been an interesting week to say the least with the US election. The initial financial market shock of the Trump win quickly faded off and markets completely rebounded as if nothing has ever happened. However, the spikes we saw last week during the election day make it…
9 Comments
Psychology
Contents in this article#1 The 80/20 rule applied to trading#2 Micro-managing vs. set-and-forget#3 Screen-time and boredom#4 Eliminate the need to trade#5 Minimizing errors easily#6 Get your priorities straight and finally stop over-trading Over-trading and micro-management (continuously fiddling around with your trades and orders) are among the main reasons why traders fail and very few understand…
Contents in this articleThe US-Dollar during the election periodsS&P500 and Gold – Ahead of US election 2016S&P500 and Gold – US election 2012S&P500 and Gold – US election 2008AUD/CADAUD/SGDCAD/JPYEUR/AUD Let’s just get it over with and get the US election behind us. Over the past few weeks, this topic has dominated the world of finance social…
8 Comments
Psychology, Tips
Contents in this article#1 There is no learning by doing in trading#2 Dealing with losses the right way – mental flushing#3 Smaller circles a.k.a how to become a better trader. Guaranteed.#4 Bulletproof entries with checklists#5 Price alerts to reduce screentime#6 The screenshot collection hack#7 Know your method inside out – Trading plan & watchlist#8 Find…
Contents in this articleUSD-IndexGoldAUD/NZDAUD/SGDEUR/CHFNZD/JPYUSD/CADWTI Crude Oil Time is racing and we are going into the second last month of the year 2016 – hard to believe. The presidential election in the US is only a few days out (November 8) and you can probably expect to see an increase in volatility spikes, whipsawing and erratic moves…
2 Comments
How To
Most traders have very similar problems and go through the same struggles. After having worked with hundreds of different traders on Edgewonk.com, we know exactly what keeps them from achieving the success they are after. Here are the most common problems we see daily: Note: Edgewonk.com is a professional trading journal software, developed by and…
Contents in this articleDefining trading ‘with the trend’Chart studiesAUD/NZDNZD/JPYUSD/CAD Trading with the trend is said to be the ‘best’ and most effective way to trade but when it comes to defining what trading with the trend is, most people don’t really know what it means. By definition it would mean that you always have to…
Contents in this articleEUR/CADEUR/CHFEUR/USDUSD/CADUSD/SGDUSD/WTI – Crude Oil There are quite a few setups building for us reversal traders right now but I will narrow it down to 6 for this watchlist. If you want to know more about other setups, join me in tonight’s webinar (October 23, 9pm Bangkok time) on my Facebook page: Live webinar and…
6 Comments
Psychology
Contents in this articleWhat is an edge?Our whole life is a gambleGambling in tradingGood vs bad bets Traders always want to tell themselves that what they are doing isn’t gambling and that, because you can have an edge, trading is a ‘safer’ way to make a living. This is simply not true but it doesn’t…
No Comments
Podcast, Tips
We are always looking for new and fun ways to share what we have learned over the years and also provide the best value for all of you out there to help you take your trading to the next level. From now on, we will do a weekly trading Q&A podcast series where we answer…
1 Comment
Market Analysis
Contents in this articleWatch my Facebook live sessionMarket OverviewAUD/NZDEUR/CADEUR/USDUSD/JPYUSD/SGDUSD/TRYUSD/WTI It was a mixed week for us reversal traders and we saw lots of volatility around the market tops and bottoms that showed setups. However, this means that some of the setups from last Sunday’s analysis are back in this week’s update in a slightly different form…
Contents in this articleSideways range – break and retest validationHead and ShouldersTrendline shiftRange trapForms and shapes of traps II20 SMA break and retest Technical analysis works and it has been around for decades and decades…you have probably heard such slogans and claims dozens of times but is that really true and why are so many…
Contents in this articleAUD/SGDEUR/JPYNZD/USDSilverUSD/JPYUSD/SGDWTI/USD It was a slow week for us reversal traders last week but, at the same time, anyone who didn’t come close to the GBP meltdown should count his/her blessings. Such a black swan event can easily cost you a big portion of your account if you are on the wrong side,…
Contents in this articleNew: Our free trading routine and journaling video courseThe 2 main problems with conventional trading journals#1 They miss the purpose#2 Journaling is boring and a pointless activityWhat a good trading journal does for youWhy Edgewonk?Famous traders and trading websites about trading journals…Finally, there is a solution to solving the trading journal problem…
Contents in this articleAUD/SGD and AUD/NZDCrude OilGBP/AUDGBP/CHFGoldUSD/MXNUSD/NOKA video analysis of a few selected pairs This week, I had to look much harder to put together a good watchlist and I feel that after 2/3 weeks of solid reversal action, many markets have entered a range now. I expect a quiet start to the week and we…
10 Comments
Psychology, Tips
Contents in this articleThe entrepreneurial and trader mindsetSeparating between easy-unnecessary and hard-important tasksNo guaranteed paycheck. Uncertainty and performance-based salaryTake responsibilityBeing realisticAutonomous decision-making – don’t listen to anyoneThe problems and advantages of part-time traders The problem in trading is that there is no surefire path to success whereas all our lives we are used to being…
1 Comment
Market Analysis
Contents in this articleAUD/NZDAUD/USDEUR/AUDEUR/GBPNZD/CHFNZD/JPYXAG/USDUSD/MXN Happy Sunday. Last week was incredible for reversal traders and momentum is back to normal after the quiet summer period. A lot of traders in our trading room had a fantastic week and I am super thrilled to see the big progress in there. In this watchlist, I handpicked 8 of the best…
Order blocks are a different way of looking at support/resistance and supply/demand. There are two possibilities how a trader can use the concept of order blocks to improve his chart reading and trading skills: 1) Identifying re-entry opportunities into reversal trades 2) Finding high impact price key levels   Characteristics of a good order block…
4 Comments
Market Analysis
Contents in this articleAUD/JPYAUD/NZDAUD/USDEUR/CADXAU/USD – GoldUSD/CADUSD/SGDWTI/USD – Crude Markets have been trending a lot last week which often leads to good reversal opportunities for us. This week, I have quite a few setups for you and it could be another interesting week. As a quick reminder, check my other article here about how I create my…
It was a great week for us reversal traders and I had one extremely great trade with the GBPAUD short for +5R. What made me even happier was that the traders in our trading room even outperformed me and many had a great week as well. I decided to make another step by step video where…
5 Comments
Market Analysis
Hello and happy Thursday, today I wanted to do my watchlist update a little different and so I made a short video analysis for you. I go over a few selected Forex pairs, I explain what I look for in them, why I choose the ones I did and how to time your trades. If…
2 Comments
Psychology, Tips
Contents in this articleStep 1: Planning – watchlist and market selectionStep 2: Waiting – avoiding bad tradesStep 3: The entry – executionStep 4: Management – micro managementStep 5: Exiting & post exit emotional problemsStep 6: Review and improvement This is a very controversial topic and one that, if understood correctly, can make the difference between…
5 Comments
Market Analysis
Contents in this articleDAXEURAUDEURCADNZDJPYUSDCADEURMXNAUD/CHFAUDJPYAUDUSD Last week was an eventful week for reversal traders with LOTS of great setups.  I moved back to Thailand on Wednesday and didn’t trade during the second half which made me miss some setups. However, I am very happy to see that the traders in our trading room performed very well…
Contents in this article1) Location2) Higher timeframe confluence3) Know the market condition4) Size of the signal5) Confluence factors6) Signals where you ‘don’t have to think’ Which trader wouldn’t like to improve his trade entries? It is possible to create a much stronger trade entry method, but you don’t (and shouldn’t) look for different indicators or…
6 Comments
Market Analysis
Contents in this articleAUD/NZDCAD/JPYEUR/JPYGBP/CHFNZD/CHFNZD/JPYUSD/JPYUSD/SEKUSD/WTI This week, it was much easier to find good reversal setups for my Sunday watchlist which is a good sign because it means that momentum has started to pick up again. Especially on JPY and CHF related pairs, there will probably be plenty of opportunity next week. US and Canadian markets are…
Although all trading disclaimers state that trading is risky, it doesn’t – or it shouldn’t – be too risky at all. What makes trading risky is the wrong execution, paired with a wrong mindset. The concept of risk in trading is often misunderstood and once we have completed our comparison between reckless trading – the…
Contents in this articleAUD/NZDAUD/USDDAXNZD/USDS&P500USD/BRLUSD/WTI Last week, we did not even generate one trade signal but the fact that it is mid of August and traders are in their summer holidays, it gave a good opportunity to take the foot off the pedal. I spent my week auditing my journal, updating my trading notes and working…
Contents in this articleHot Hand Fallacy – a trader on fire?Humans suck at mathAvoid over-confidenceLosing streaks happen all the timeWhat to do during winning and losing streaks How often have you felt invincible after having 5 winning trades in a row and then lost a bunch of money on the 6th trade because you took…
Contents in this articleAUD/CHFAUD/USDDAXEUR/SEKEUR/USDNZD/USDUSD/CADUSD/ZAR Welcome to the summer period. The VIX keeps falling and is now at 11.34 which is the lowest we have seen in over a year. However, equity markets are hitting major resistance levels and as we’ll see for the DAX, markets are also attracting new sellers. With the low and declining…
Contents in this articleAUD/CADEUR/AUDAUD/CHFCrudeDAXUSD/CADUSD/ZAR What a week for us reversal traders. Our Sunday setups on the Aussie pairs are playing out textbook-style and I have gotten dozens of emails from people who are also in those trades, which makes me happy. For the rest of the week, I also have a few new setups that are building…
Contents in this article1. Find a trading style that fits you and your daily life2. Don’t ride the learning curve3. The most important day for a part time trader with a job is…4. Active improvement as a trader5. Get your priorities straight6. Don’t focus on the when and the how much. Asking the wrong questions…
Contents in this articleAUD/CADAUD/NZDAUD/USDCrudeEUR/AUDGoldUSD/MXN Markets have clearly entered the summer period now and while the smart money is enjoying a summer break, financial markets are slowing down further. This week, I only found 7 interesting charts but some are still a few days from generating signals. It’s tough to find good reversal setups these days because…
Contents in this article1. Double bottom + Squeeze / Bollinger Bands® spike2. The demand zone dip3. Head and Shoulders4. Exhaustion gap5. Supply dip and deeper dip6. Range top and S/R flip7. Triple top and momentum candle Being able to understand when a trend is likely to stop and/or reverse is an important trading skill and…
Contents in this articleAUD/CADAUD/NZDAUD/USDEUR/SEKGoldNZD/CADNZD/USDSilverUSD/JPYWTI Oil The anticipated, apocalyptical bearish reversal in the stock market hasn’t happened last week and price has rallied back into the highs, leaving the perma-bears behind licking their wounds. CNN’s fear and greed index is back into high greed ratings and the VIX keeps moving lower and lower, reaching lows last seen in…
No Comments
Psychology
Psychology is not the most important part of becoming a successful trader. This may sound a little strange coming from a guy who makes a living from helping athletes, poker players and traders solve the psychological problems limiting their performance. But it’s the truth. The idea that after learning how to read a chart and…
Contents in this articleThe trading edge – what does it really mean?The 4 types of market topsPreamble – when we look for reversals1) The consolidation top2) The parabolic top – V top 3) Swing top4) Grinding top I am a pure mean reversion and reversal trader which means that I look for clues that an…
Contents in this articleIntro: what is a trading plan?Optimize your trading timeStress-free tradingConsistency for more successAn underused trading tool: price alertsStay open for changesOur template for creating a trading plan A trading plan, together with a thought out trading routine is what I attribute most of my trading profitability to. The benefits of having a…
Contents in this articleThe 4 secrets of candlestick tradingThe 5 best candlestick patterns#1 Abandoned baby – Evening star#2 Doji  – Spinning top#3 Engulfing or outside bar#4 Inside bar and Fakey#5 Pinbar, hammer, kangaroo tail Price action trading and candlesticks patterns are probably the most commonly used concepts of technical analysis. At the same time, there…
Contents in this articleIntro: The different market phases1. The simple way: line graph2. Highs and lows3. Moving averages4. Channels and trend lines5. How to use the ADX indicatorCombining the best trading tools Trading with the trend is trading with the flow. When the prevailing trend is up, why would you want to look for short entries when…
Contents in this articleRotating market cyclesKnow your edge and when you can make moneyMarket-pool and inner watchlistFrom watchlist to trading planBonus: What I do when I screen an instrument How do you find great trades? When it comes to being practical, most traders have a very wrong approach – if they have an approach at…
Contents in this articleExtra: Here is how you install MetaTrader4, one of the most popular trading platforms.No question, demo first!Purpose of demo tradingWhat demo trading can’t do The greatest danger of demo tradingHow to transition from demo to live One of the most commonly asked questions new traders have is how long they should stay…
A bull trap occurs when traders take a long position on a promising setup and then have price reverse and move lower very sharply. This pattern is called a ‘trap’ because the traders were tricked into a long position with usually very obvious bullish signals as we will see later. Bull traps often happen around…
Contents in this articleCognitive dissonance 101 – Your brain is not made for tradingPopular everyday examples of Cognitive DissonanceCognitive dissonance in tradingReducing cognitive dissonance in trading Every trader knows this scenario: you found a great setup and entered a trade, then price goes against you and you buy more because you believe that price will…
Contents in this article#1 Rigid vs. flexible vs. emotional exitsRigid exitFlexible exitEmotional exit#2 RRR vs. R-multiple – understanding your trades in a new way#3 Price follow-through and time-stop#4 Should you go to a lower timeframe when you are in a trade?#5 Know your last trade#6 Exits, doubt and fear – and what to do about…
Contents in this articleNew: Free Forex 101 beginners course Forex trading sessionsNo-gaps, over-night exposure and riskNews  and Forex tradingWhat is a currency pair?Bid and ask priceMajors and minors Forex pairsForex jargon Forex stands for “Foreign exchange” which means that foreign currencies are being traded. The Foreign Exchange market is the largest market in the world with…
Contents in this articleTrading with a lack of trust and confidenceChicken and egg problem: how to gain trust to your system?Leap of faithFear and uncertaintyGet obsessed with processes and rulesThe power of checklist, plans and proceduresA simple performance hack to destroy uncertainty Every trader knows that you have to trust your system if you want…
Contents in this articleDrawing and trading trendlinesRe-entry and confirmation signalsMomentum acceleration at the Bollinger Bands® extremeNatural trend structure and trendlinesLive trade example in actionMore: Learn to trade trendlines in-depth in our price action trading course I am a pure reversal trader, looking for those tipping points where the markets go from bullish to bearish trending…
Reasons why mental stop loss don't work
Contents in this article#1 Not having a stop loss#2 Sizing positions is impossible without a stop loss#3 Mental stops don’t work in Forex trading#4 The wrong stop loss placement sequence#5 Obvious stops without breathing room#6 You widen your stop loss#7 Stop trailing and break even stopsConclusion: stops are the most misunderstood trading concept Stop placement…
Contents in this articleThe top-down approach – let price come to youIs it NOT important why things work!#1 Daily and weekly moving averages#2 Daily and weekly support and resistance#3 Supply and demand – the origin of trends#4 Trendlines and channels#5 Round numbers#6 Pivot points#7 Previous day high low In trading, the concept of confluence is…
Contents in this articleThe 6 Forex majors – a brief overviewPip value in the Forex majorsThe 6 Forex majors1) The EUR/USD – the most popular Forex pair2) The USD/JPY – the safe haven pair3) The GBP/USD – the most active Forex pair4) The USD/CHF – safe haven pair and gold correlatedThe two commodity currency pairs5)…
Contents in this article#1 A support/resistance level alone isn’t enough to buy or sell#2 Your insurance – miss the first and last part of a move#3 Strong vs weak demand#4 Trendlines, angles and momentum#5 The momentum shift signal When you are a technical trader, you should specialize in trading one setup only until you can comfortably trade…
Contents in this articleMissed tradesWhat to do with my trades when I sleep?Entries don’t matterRules are good, but you need contextTrading on opinionsThe art of not caring about your trades There are so many trading topics and concepts I’d love to talk about, but often they don’t make for a good or long enough article.…
Contents in this articleThe basics of the MACD indicatorTrend- following entry | scenario 1MACD trade entry | Example 2MACD divergences as early entriesMACD vs RSI – which momentum indicator should you pick? The MACD is a momentum and trend-following indicator that is based on the information of moving averages and, thus, ideal to act as…
Contents in this articleBollinger Bands ® explained 101Trend-trading with the Bollinger Bands ®Finding tops and bottoms with Bollinger Bands ®The role of the moving averageSee the Bollinger Bands ® in action Bollinger Bands ® are among the most reliable and potent trading indicators traders can choose from. Bollinger Bands ® can be used to read market…
Contents in this articleSteve BurnsAssad TannousDr. Brett SteenbargerTom Dante ChatWithTradersMoritz C.Rayner TeoPeter BrandtMatt ZimbergKirk du PlessisSeth FreudbergDan ShapiroJoel KrugerBreaking BadMichael LamotheBruce BowerGavin, Options IQ Over the past few weeks, we asked 17 trading professionals from all different areas of trading to answer one question: What is your #1 risk/money management advice for novice traders?  …
Contents in this articleNFP and the economyNFP data and the US-DollarVolatility and trading before the NFPHow to trade NFP and understand the jobs dataWhen investors get confusedTrading tips for NFP day The Nonfarm Payrolls (NFP) are among the biggest market movers in the Forex markets. At the first Friday of every month, the U.S. Bureau…
23 Comments
Psychology
Contents in this articleIf you need money, you won’t get it – research confirmedWhat not do when it comes to trading goalsCharacteristics of good goals The right goals When people get interested in trading, there is usually only one reason behind it: money. And there is nothing wrong with it. Trading is a great opportunity…
Contents in this articleFirst step: taking the indicator apartConversion and Base LinesConversion and Base lines signals and meaningThe Ichimoku CloudIchimoku Cloud signals and meaningThe Signals – how to use the Ichimoku indicator to find trades The Cloud: long term trend, resistance and color The faster Conversion and Base lines signals RSI and creating confluence Stop…
11 Comments
Psychology
Contents in this articleFreeing up time and reducing the cost of living to work on your edgeEliminating the need to make money and trading lessWork-Life balance2A different perspective on life A few years ago, I decided to leave Germany and start traveling around Asia. However, it wasn’t only that I wanted to travel the world, but I…
Contents in this articleWhat you’ll learn:What is the best moving average? EMA or SMA?What is the best period setting?How to use moving averages? 3 usage examples Moving averages are without a doubt the most popular trading tools and indicators. Moving averages are a great tool if you know how to use them – most traders,…
Contents in this articleSetting orders and the reward:risk ratioAvoid break-even stopsNever even use fixed stop distancesAlways compare winrate and reward:risk togetherDon’t use daily performance targetsPosition sizing like a proUsing the reward:risk ratio and R-multiple together Take spread seriouslyCorrelations – increasing risk unknowinglyStart paying attention to risk management Risk management usually ranks very low on the…
Contents in this articleWhat is a divergence?A RSI divergenceHow to trade a divergence – the optimal entryTip: Location Divergences are one of my favorite trading concepts because they offer very reliable high-quality trading signals. Although indicators are somewhat lagging – just like price action is lagging too – when it comes to divergences, this lagging…
Contents in this articleThe 3 components of chart patterns#1 The foundation: highs and lows#2 Strength of a trend: length and steepness of trend-waves#3 Strength of trends II: depth of pullbacksPart 2 – Understanding the 4 best chart patternsTrianglesHead and ShouldersDouble Top / Double BottomCup and HandleConclusion: Try to understand what price tells you I am…
Contents in this articleAUDUSDNZDUSDUSDJPYEURGBPGBPUSD and what to expect Monday was a mixed start to the week, but overall it was relatively quiet. Most currencies were flat and only the Yen and the AUD showed some real movements. The performance map below confirms that and we will also see that the AUDUSD and the USDJPY showed the best…
Contents in this articleWhat is self-awareness? Forget the spiritual mumbo-jumboSelf-awareness and trading – success didn’t come naturally to me Why lying to ourselves feels so damn good – healthy smokers, happy marriages and invincible bikersHow I became a self-aware and better traderMy top 4 recommendations for the serious trader(1) Mastery of one thing(2) Journaling my…
Contents in this articleS&P 500Crude OilGoldAUDUSDEURGBPEURUSDGBPUSDNZDUSDUSDCADUSDJPY Last week has been  fairly slow, but I expect to see more action and opportunities during the coming week. The VIX las week has declined further and it’s now at 15. In the meantime, equities had another solid week and overall investors are still in the risk-on mindset which is driving equities.…
Contents in this articleGBPUSDUSDCADAUDUSDNZDUSDMy 3 trades so farEURGBPEURJPYAUDUSD Happy Wednesday. It was quite an eventful start to the week and I already had 3 trades so far (scroll to the end of this article to see more). At the same time, there are a few interesting setups building up at the moment that I am currently…
Contents in this article#1 Support and resistance zones are better than levels#2 Highs and lows are all you need to focus on#3 Location – improve your trading instantly#4 Everything is relative – get context#5 The 4 clues of candlesticks and price action#6 Broker time doesn’t matter#7 The amateur squeeze and stop hunting#8 Correct market selection Price…
Happy Sunday to everyone out there. Despite the long Easter weekend and the fact that most markets will still be closed on Monday, I want to take the time and do my weekly analysis and market prep here. If you want to take a look at my trades of last week, you can click here and…
This is a very choppy week and from the emails I got I can see that many traders get lured into taking “boredom-trades”. It’s important to know when you have an edge and when you don’t. I have been sitting on the sidelines and just had one scratch trade so far. Momentum is low and it…
Last week was another follow-through risk on week. Equities performed strong and so did most currencies and commodities. At the same time, volatility declined further, confirming the strong market rally. Like every Sunday, I want to share my complete market analysis with you, point out the high impact price levels you should have on your charts and which…
Contents in this articleWhy do candlestick patterns work?Two proven candlestick patternsThis is what you need to know about price actionTwo components of price action trading Price action and candlesticks are a powerful trading concept and even research has confirmed that some candlestick patterns have a high predictive value and can produce positive returns. Especially interesting is a…
Tuesday and Wednesday were a real test and I talked to quite a few traders on Snapchat (ID: DigitalRolf) about potential setups. Most were eager to get in, but markets were slow and it wasn’t until the mid of the US session that the Forex markets woke up. (more…)
Contents in this articleMyths around the reward:risk ratioThe basics – reward:risk ratio 101The dynamic reward:risk ratio – advanced conceptsA step by step trade example – how to use the reward risk ratioThe reward-risk ratio: the ultimate risk management toolExtra: Professional traders about reward:risk ratio The reward to risk ratio (RRR, or reward:risk ratio) is a very controversially discussed trading…
Monday was a great start into a new trading week. Two of the trade scenarios I laid out on Sunday played out perfectly already and we will take a look at them first. By the way, if you want to follow me throughout my trading day, add me on Snapchat (user: DigitalRolf) and you’ll be…
Happy Sunday. Yesterday, I published my complete trade recap of all my 4 trades of last week on my other, personal blog and you can see my trades and my thought process behind each one. But today we want to take a closer look at my Sunday market prep and what to expect from next…
Contents in this articleMistakes and misconceptions about targets, exits and profit takingProfit taking methodsTools and indicators for setting profit targetsThe best of both worlds – the ultimate TP strategy Take profit placement and trade exits usually rank very low on a trader’s priorities list; typically way behind finding better entry signals or effectively setting stops. This…
A very interesting trading week so far with a few potential trade scenarios building up. The markets are very erratic and there is also a lot of ranging going on in Forex. My watchlist has become smaller and smaller over the past days, but here is what I am looking at right now. (more…)
Contents in this articleWhy do you want to trade?Why do you limit yourself to one income stream?Trading and varianceBecome a better trader due to distractionsBuilding your account If you call yourself a trader, other traders, profitable or not, see it as “treason” when they hear that you are also pursuing other businesses besides trading. In…
Monday was a very quiet day in the markets and not much has changed since our major analysis on Sunday. There are only a handful of scenarios I want to draw your attention to in this update. (more…)
Risk appetite has been rising last week again. Equity markets and commodities all around the world have been performing very strong while volatility has further declined as investors are looking for higher returns. Like every Sunday, here is my complete watchlist with the most important technical levels and potential trade ideas I am watching for…
Contents in this articleWhat’s the amateur squeeze?How to trade double tops and bottomsSupply, demand and price analysisBollinger Band spikeDivergence and deeper squeezePrice rejection and gappingMore chart studiesConclusion  Double tops and double bottoms are one of our favorite trading patterns. They offer reliable trade signals and they can be combined with other trading tools and charting concepts…
Contents in this articleCurve Fitting Is Asking For DisasterAt One Point You Have To Decide Where You Stand As A Trader – And Expect To LoseYou Have To Strive For Excellence, Not PerfectionInstead Of Optimizing One Setup, Simply Master Another Setup Or MarketConclusion: Never Change A Running System Inspired by this brilliant StockTwits podcast with…
A good first three days this week. Equities are moving higher, Gold is consolidating with rising risk appetite and some of the currencies are waiting for NFP data. This is what I am looking at right now. (more…)
No Comments
Tips, Tools
Contents in this articleMean Reversion Trading SecretsRisk Manager 2.0Trading Psychology GuideSign up for our newsletter and get access to our 3 free ebooks Sign up for our newsletter and get access to our 3 free ebooks Sign up for our newsletter By subscribing, you agree to our privacy policy Over the past 24 months, we…
Monday was a quiet start into the new week. European and Chinese data was mostly negative, but markets don’t seem too concerned although Monday was a 2% down day. It’s a high impact news week and it’s likely to see volatility dry up going into the second half of the week. (more…)
Like every Sunday, I want to share with you the most important price levels I am watching, especially in the Forex market. I will point out the high impact price levels that I have on my charts into the first few days of the week, where I set my alerts and how I view the charts…
Contents in this articleProblem I – Chart arrangements, zoom level and the space availableProblem II – Chart platformsProblem III – Colors and our wiringImproving your pattern recognition abilities Trading is all about pattern recognition and the setups you trade are patterns with unique characteristics that allow you to put the odds in your favor by…
Two new trades to discuss and a few interesting levels worth having on your charts. This is what we are looking at on our charts right now. (more…)
2 Comments
Psychology, Tips
Contents in this article#1 Daily loss limits#2 Don’t use weekly monetary or trade count goals#3 Three sources of errors and emotional downward spiral#4 Do you recognize progress?#5 Beliefs are hypotheses to be tested, not treasures to be guarded.#6 Gut feel exists, but it’s not what you think it is#7 Fear comes from uncertainty #1 Daily loss…
Monday was a follow-through of last week and some trends have started building up. There was one trade so far and another tempting setup right now. Let’s take a look at what else there is. (more…)
As on every Sunday, we are going to take a top-down look at the markets we trade, point out the most important levels to watch and map out potential trade ideas. (more…)
Contents in this articleHigh probability wave patterns – The 4 different typesType #1 – The single waveType #2 – Grinding waveType #3 – Wave exhaustionType #4 – Spiking waveWhy wave analysis is the best non-retail patternConclusion Reversal trading, the trading approach we follow on Tradeciety, combined with independent wave analysis is a robust and adaptive…
This week’s trading activity is the exact opposite of last week’s trading. Equities seeing buyers, the VIX is falling, China has stabilized, Crude is rallying and risk appetite is rising slightly. (more…)
3 Comments
Psychology
Contents in this articleWhere contrarianism starts – think outside the boxTechnical analysis fallacy – common knowledge is seldom rightYou have been hard-wired to screw upThe contrarian trader’s work ethicConclusion You all have probably heard the statistic that 95% of traders fail, right? The bad news is that the actual number is way higher and broker…
Last week showed a lot of volatility in equity markets and in most other markets as well. The week started off with significant losses but, in contrast to most other indices, the S&P was able to recover most of it when Friday’s news came in positive. (more…)
Contents in this articleTransitions vs. chasing price – where the real money is madeThe 4 transition patterns for successful reversal trading#1 – Structural changes with the Head and Shoulders pattern#2 – Fading momentum divergences#3 – Trendline breaks#4 – Volatility spikes and double topsAdvanced technical analysis and market transitions A main reason why traders fail to…
No Comments
Trading Notes
There are so many trading topics we want to write about here on Tradeciety, but often these don’t offer enough material to justify a whole article. That’s why we are starting the category “Trading notes” where we cover individual ideas, shorter concepts and share interesting links from the world of trading.   #1 – Price…
Wednesday was Yellen day and traders listened carefully. During her talk she said that a rate hike will be delayed but not completely abandoned. The recent developments with regards to falling stock prices and a turmoil on financial markets don’t work well with a new rate hike and higher borrowing costs. (more…)
The best trades happen when fundamentals and technical line-up. In our Sunday’s analysis, we highlighted the fading risk appetite and the flow to safe haven investments. So far, we have seen an almost perfect follow-through.  (more…)
Last week was a big up and down. First Fed’s Dudley down talked a potential rate hike and then Friday’s job numbers made the rate hike more likely again. (more…)
No Comments
Tips
Contents in this article1. Your stop is like your quarterback2. It’s not over until it’s over3. Small scores add up if your defense is good4. Know when to take a loss5. You can’t win all the time6. Pick your play wisely and keep adjusting 7. Peak performance8. It’s a team effort With the Superbowl weekend…
It shouldn’t have come as a surprise, but it did. On Wednesday, the Fed indicated that it’s very likely not going to rate the hikes again soon. The subsequent drop in the dollar showed that investors were very optimistic about future rate hikes and then had to reverse their positions. (more…)
Contents in this article1- Trading without a stop loss is better2 – Leverage is bad3 – Trading with a reward-risk of 1:1 is gambling4 – Trading with a winrate of 50% is gambling5 – Higher time-frames are easier6 – You can start trading with $1007 – Justifying bad trades with a high reward:risk ratio8 –…
After 2 days of relief, reality is catching up with investors and the S&P500 is back to where it where it trades last week. Risk appetite is fading and we are back to risk-off mode. (more…)
A quiet start into the week except for Crude. The Fed is pointing to no new hikes, oil sold off, Gold rallied and equity markets are flat. (more…)
On Friday, the BOJ surprised the whole world with cutting interest rates below zero to help its economy. Furthermore, the negative US numbers on Friday made another rate hike of the FED less likely which also caused some sharp moves and could set the tone for the next week. (more…)
The human brain is a fascinating machine. It allows us to do many things simultaneously without having to think about doing them. You can drive a car, have a conversation about a complex topic on the phone, eating a sandwich, observing your daughter on the back seat, while all your inner organs and body mechanisms…
The S&P 500 is continuing its up and down game – one up day has been followed by a down day for the past 5 trading days. Moreover, the overall movements have decreased while volatility increased (candle-bodies have become smaller and wicks larger). (more…)
FOMC shows more dovishness. As expected, no actions were taken during the FOMC meeting, but the message was clear… (more…)
After yesterday’s article, where I encouraged readers not to trade, we received a few emails saying that not trading is not the solution for traders. Looking at the price action since then, I am very sure that most of those traders lost money. (more…)
Monday wasn’t a particularly good start for Wall Street. Equities sold off and Crude is back below $30. Oil output is said to rise even further which, of course, will add more pressure. So much for the recovery.   (more…)
No Comments
Psychology, Tips
Contents in this articleRespect your trading rulesConfidenceLearning and paying tuitionsLosses and riskBest of…Instead of hoping he must fear; instead of fearing he must hope. He must fear that his loss must develop into a much bigger loss, and hope that his profit may become a big profit. There are only very few traders who have…
Keep in mind that it’s only the fourth week of trading in 2016 and markets keep going from one extreme to the other. After a major sell-off for 2 weeks, last week saw a turnaround. Are we going to see a follow-through this week? This is what we look at… (more…)
Contents in this articleBollinger BandsTrendline and Support and ResistanceFibonacci levelsMoving averagesATRPrice patterns and price formations – the natural price methodThe time stopThe worst stop loss concepts Following a consistent stop loss approach is very important because it takes out the emotional and impulsive aspect of taking losses that so many traders struggle with. If you…
Thursday was a follow through after Wednesday’s relief-bounce. Draghi’s speech did not do much to the markets either. China and Crude have been relatively stable which helped commodity currencies and eased risk averasion. So what’s in for today? (more…)
Wednesday was a particularly worrisome day for equities markets. 9 out of 10 sectors in the S&P 500 were down – the S&P ran into its support level. The DAX gapped lower. Forex markets are concerned. Oil lower. Again. (more…)
4 Comments
How To, Psychology
Contents in this articleTrade what you see vs. Trade what you thinkPhantastic Object BiasIllusion of Control BiasAnchoring Bias7 tips to master the concept of “trade what you see”Tip 1: The 5-seconds ruleTip 2: Wait one more candleTip 3: Make candle by candle decisionsTip 4: Use a physical checklistTip 5: Separate trading from chartingTip 6: Have a…
Slow start into the week after a long weekened. The Chinese markets closed positive on Tuesday which led to a sigh of relief and help lift risk currencies. Equity markets followed suit and closed almost unchanged. (more…)
Monday was a quiet day because of US holiday market close. The other markets around the world did not do much either. Forex saw some interesting price moves though. Not much has changed since our Sunday analysis, but we want to point out the AUD/USD scenario briefly. (more…)
Next week could be the key trading week for the next few months. Markets are lining up to make the jump over the cliff. Support needs to hold here. (more…)
Contents in this articlePrelude – Your chart setup1 – Charting vs. trade execution2 – Setting up Tradingview I – templatesSetting up Tradingview II – charting 4 – Using templates for more efficiency5 – Create alertsStep 1: The night before 1 – Chart preparation2 – The trading planStep 2: Good morning. Pre-market preparation1- Your daily dose of…
Thursday was a recovery day across international markets, but the apparent recovery is probably just the result of short covering, rather than improving market sentiment. (more…)
We said it yesterday: markets can turn any minute and it’s not the time to think about a correction. On Wednesday, equity markets tanked and commodities fell further. There are some major levels in play today… (more…)
Contents in this articleIndicator redundancy – seeing the same things on different indicatorsOveremphasizing informationIndicator categoriesMomentumTrendVolatilityChart studiesStacking the odds – combining tools in a meaningful wayExample #2More is not always better – the right combination of tools is what matters When it comes to indicators, there are three classes: momentum indicators, trend-following indicators and volatility indicators.…
On Tuesday, the Shanghai Composite rose. However, China made short selling the Yuan very expensive by driving up the Hong Kong Interbank Offer Rate (HIBOR) from 13.4% to 66.8%. This helped boost AUD and NZD, and also equities markets were able to avoid further losses. (more…)
Despite a 5% drop in the Shanghai Composite and Crude sliding to fresh lows, equities in Europe and the US managed to trade around break-even. (more…)
Every Sunday we take a look at the higher timeframes, draw the most important support and resistance to keep an eye on for the week ahead and evaluate what to expect. (more…)
6 Comments
Beginners, How To, Tips
Contents in this articleWhen you have to think about the tradeWhen you don’t know where your stop goesIf the market does not favor your systemWhen you want to increase your sizeWhen you think that markets are “too high” or “too low” If price has already moved away from the best entryWhen you haven’t done your…
1 Comment
Psychology
Contents in this articleUnconscious incompetenceConscious incompetenceThe Aha momentConscious competenceUnconscious competenceWhich stage are you at right now? There are 5 stages every trader will go through over the years. You can’t skip one and knowing which one you are in and being totally honest with yourself is essential.   Unconscious incompetence This is the initial phase…
The S&P500 is having its worst start into a new year since 1988 and you didn’t have to be super smart to understand that China’s 7% loss and the shutdown of trading activity would lead to a meltdown in Europe and the US as well. (more…)
Are we currently seeing the beginning of a major market shift? After only a few hours of trading trading in China was stopped as the Shanghai Composite plunged 7% after the open. (more…)
Contents in this articleIntro – what is a consolidation?Consolidation patternsRangesFlagsPennants and wedges (triangle patterns)How to trade consolidations1 – Volume analysis2 – The length and width of the consolidation3 – Always wait for the retest back safer Conclusion Consolidations are common and they represent a natural price and market structure; other market structures are trends and…
Tuesday showed some stabilization after Monday’s sell-off, but markets are very worried. Data keep disappointing, China’s conditions are worsening, commodities under pressure and investors look for safe alternatives. (more…)
2016 started with a surprise and huge moves. After China down 7%, the markets went into risk aversion mode and the Chinese panic selling also affected global equity and the Forex market. (more…)
Happy New Year! Welcome to the first daily market recap – although this one is more of an outlook – in 2016. Our goal is it to provide 250 daily market recaps in 2016 and share our view on the markets with you. In our latest article in this category we provided an outlook of what…
No Comments
How To, Tips
Fight Club Trading
Contents in this article1. You can’t avoid getting hit2. Take many hits without taking that ONE hit that will knock you out3. You don’t have to go for the Knockout. A win on points is also a win4. Control your emotions. Don’t let your opponent in your head5. The preparation for every fight is different6.…
Contents in this articleThe starting point of each tradeYour risk changes when price moves1 – Price moves into profits2 – Price moves against youTrade management decisionsTrailing a stopClosing a profitable trade ahead of targetCutting a loss ahead of the stop lossAdding to a positionAdding to a losing tradeAdding to a winnerConclusion: risk is a dynamic…
2015 was an interesting year in the financial markets and we want to take a look at the biggest winners and losers across the different asset classes. By connecting the dots you get a clearer picture of the current state of the financial markets and how to position yourself for a successful year 2016. (more…)
Contents in this articleExpectationsWhat to focus onDemo trading?Learn about your toolsFinding a mentorHow to improveIt is very obvious what your first steps should be We won’t sugarcoat it because from own experiences we know that trading is very hard and challenging. No wonder that the analysis of brokerage data confirmed that 40% of traders quit…
No live market update today as markets are now in complete holiday mood, but we want to use the opportunity to provide an outlook for 2016. With the recent developments and the FED announcements of additional rate hikes going forward, we want to take a look at what a stronger US-Dollar means for other financial…
5 Comments
Statistics
Contents in this articleIndependence – a winner after a winning trade?The illusion of control – who would pick losing trades in the first place?“Better” trades with a greater reward-risk ratio?Statistics and trading are closely linked Today we will clear up with a few misconceptions about trading which will help you look at your trading and…
We mentioned it on Sunday and yesterday, a slowdown of the markets is very likely and that’s exactly what has happened… (more…)
As mentioned on Sunday, markets could end up winding down as investors take the foot of the paddle and enter Bonus-Protection mode. With few things to be bullish about, it seems as if markets are entering the quieter year end period already… (more…)
The last trading days of the year are ahead of us and the uncertainty in the financial markets couldn’t be greater. The positivity from the FED rate hike seems to be off the table and the markets are looking into the unknown future…. (more…)
The hawkish FED policy surprised bankers and hegde funds alike. Can we see more Dollar bullishness in 2016? (more…)
Contents in this articleWhat indicators don’t do: Indicators don’t provide signalsIndicators provide information ONLYTrading is about finding cluesIndicators tell you immediately what is going onIndicators are ideal for rule-based tradingWhy do indicators lag? Why do they always show important things when it is too late?Conclusion: The true meaning of indicators One of the greatest misunderstandings…
The FED did not really surprise markets: it hiked the rates and further said that the rates would be lifted more in 2016. The follow-through was more or less as expected. The US was up and the strong Dollar put pressure on other FX pairs. (more…)
Tuesday saw another day with a lot of movement in the equities market, Crude oil up the second day and the US-Dollar was among the strongest currencies, sending EUR/USD and the AUS/USD lower. (more…)
Contents in this articleCatching the extremes – adjusting the Bollinger Bands®Volatility spike vs. trend grindStacking odds – creating high probability setupsTrading the Bollinger Bands® volatility spikes in 6 steps                  Bollinger Bands® are a great trading tool because they provide instant information about volatility, trend strength, momentum and potential reversals. Not many tools or indicators give…
Monday was a very interesting day and a lot is going on right now. The way the financial markets move is comparable to a chess puzzle. We will help you make sense of the moves and explain how to put yesterday’s price action into context: (more…)
Welcome to the first daily market analysis here on Tradeciety.com. We are glad to announce that from now on you’ll find daily updates about the financial markets here on Tradeciety. We cover indices, Forex majors and other important developments around the world. (more…)
Forex trading - BUND
Contents in this articleCOT – Forex trading following the professionals tradersGDP and UnemploymentBonds – assessing risk sentimentUS-Dollar Index for US-Dollar Forex pairsMulti-dimensional Forex trading Most traders will say that they are purely technical traders and then use that as an excuse to avoid following fundamentals. Such ignorance can be expensive. Forex traders who know how…
No Comments
Psychology
Trading excuses
Contents in this articleWhy traders make excusesExcuses lead to…Common excuses traders makeExcuses during trades Making excuses is what is holding you back from achieving your full potential – not only in trading, but also in life in general. Traders are experts in coming up with excuses on a daily basis. But making excuses does not…
Contents in this articleLook for tight range with low volatility and increasing momentumA trend change: sell-off, consolidation, rallyConsolidation breakout in a trendTrapped traders               How to trade breakouts – recap Markets spend a lot of time ranging. Knowing how to spot and identify a successful breakout can help a trader find good trading opportunities and…
No Comments
Psychology
Losing streak
Contents in this article Constructive criticism – it all starts in your headHave the market changed? How can you improve? Step back. Don’t try to make it back.The drawdown checklist Drawdowns and losing streaks happen all the time and even the best trader will encounter multiple losing streaks and drawdowns during his trading career. Whereas…
1 Comment
How To
Contents in this articleHow did you find your trading system?Know yourself . Self-awareness as the key to trading successTwo major trading stylesDay-traderSwing-traderWhat does this mean for you? How did you find your trading system? This is where most traders go totally wrong and it is one of the major reasons why the majority of traders…
Contents in this articleHow to draw and use trendlines 101 Upper and lower trendlinesThe slope and angles of trendlines – trend strengthThe break of a market structureThe trendline-flipHow to use trendlines – putting it all together Trendlines are a great trading concept and tool, but they are more than just some lines that you throw…
Contents in this articleConfused complicationConfused simplicityLazy simplicityEffective simplicityKeep it simple in trading with rules and clarity Everywhere on the web you can read that you have to keep it simple if you want to become a professional trader. However, trading isn’t simple and you can’t just eliminate indicators, “clutter” and all the rules from your…
Contents in this articleTop-down vs. bottom-up – the biggest mistake of multiple time frame analysisMultiple time frame analysis helps you stay open-mindedMultiple time frame analysis – step by stepWeekly / Monthly  – Where are we? Daily – Strategic time-frame4H (1H) – ExecutionStaying open minded – 2 tips Most traders pick their one time-frame and then…
Contents in this articleWhat is a triangle telling you?Triangles in the world of tradingTriangles and losing momentum – 3 case studies on how to trade trianglesHow not to trade trianglesWrapping things up – how to trade triangles Triangles are a very popular price action concept but there are a lot of misconceptions about what they…
Contents in this article Double and Triple tops (bottoms) Head and shoulders Candlesticks RSI Divergence Stochastic Divergence Not rising on positive news Location, location, locationPick your reversal tools – discretionary reversal trading does not work Knowing how to trade reversals can be very lucrative skill in trading and it can mean the end for your…
I just finished reading the book “What I learned losing a million Dollars” by Jim Paul and while reading it, I couldn’t stop making annotations and highlighting passages. As the title suggests, the book deals with the aspects of losing money in trading and the author BRILLIANTLY describes the components of losing and dealing with…
Contents in this article8 things a FOMO trader saysWhat drives FOMO trading (Fear of missing out)?1-  You enter early because you don’t want to miss out2 – You wait for price to show the perfect setup and then miss the trade3- You wait until you get the perfect setup At any given moment of the…
Reversal trading has a very bad connotation to it and as soon as you hear about a reversal trading method, you probably think about a very risky and gambling-like method, right? The truth is, reversal trading – as we follow it here – can even be used as a trend-following entry method. First, you identify…
No Comments
Psychology
It does not matter if you are a price action trader, use indicators or are a news and fundamental trader, every trader goes through the same 5 stages on his (her) way to profitable trading. For your development as a trader, it is important to have a decent level of self-awareness so that you can honestly…
4 Comments
How To, Tips
Contents in this articleWhat is a Forex triad?The relationship between Forex pairsWhat moves a Forex pair?Forex trading with the Forex triad step by stepHow to use Forex triads for better trading decisions Forex is unique in many different ways, but the fact that currencies are traded in pairs allows traders to make use of the…
9 Comments
Psychology, Tips
Being prepared is important as a trader; you are dealing with uncertainty constantly, you have to make decisions under pressure and the outcome of all events is unknown to everyone involved in the financial markets. Most traders spend the majority of their time focusing on finding entries and once in a trade, they often don’t…
No Comments
Psychology
Contents in this articleAmateurs and results-oriented thinking – It’s only about the moneyDon’t worry about the moneyHow professional traders think and tradeCharacteristics of process-oriented thinkingObserve your thought process and analyze your decisions There is a big difference between the average losing and the average winning trader, and the difference does not lie in the way…
No Comments
Guest Post, Options
Contents in this articleShort Strangles And StraddlesIron CondorsNaked Puts And CallsConclusion * The following article is a guestpost. If you are an experienced trader and want to share your expertise with our readers on Tradeciety.com, check out our guestpost guidelines and contact us. * Volatility is the heart and soul of option trading. With the proper…
When people hear that you trade reversals they immediately believe that you try to predict a change in direction or follow the “catching a falling knife” trading approach. It really important to understand that reversal trading is not a trading style that predicts whether markets are going to turn and try to trade the absolute…
Contents in this articleTrading is finding patternsHumans drive the marketsRhythm in the market – ForexRhythm in the market – StocksWhat does this mean for you? Trading is finding patterns Trading is all about finding patterns and being in tune with the rhythm of the markets. Although all traders will probably agree with the previous statement,…
Contents in this articleYour need to be right is blocking your trading successWhy we get stuck inside this need to be rightThe exact measure of reality How to let go of this need of always wanting to be rightConclusion The following article is a guestpost by Yvan Byeajee. Yvan is a full-time trader. ; hloves…
No Comments
Stop Loss
Go on any website, trading forum or listen to traders talk on social media and eventually the conversation drifts towards trading without a stop loss. Amateur traders see their stop as the thing that works against them and so they try to come up with reasons why trading without a stop loss will make them…
2 Comments
Tips, Tools
Contents in this articleWhat is a trading watchlist?Watchlist vs. trading planGetting to know the Tradeciety watchlistGet your free watchlist now A big part of trading success and profitable trading is the ability to organize yourself and to follow a structured routine. A solid trading routine will not only save you time, but it also provides…
No Comments
How To, Tips
Contents in this article5 questions you need to ask yourself before quitting your job to become a full time trader1 – Are you a risk taker? 2 – Is your trading account large enough? 3 – Do you need to withdraw every month?4 – What is your motivation?5 – How long have you been trading? A…
1 Comment
Psychology
If you are a trader, you are in the business of decision making; every day you have to make decisions about what to trade, when to buy, how to maneuver your orders, when to exit and how to react to changing conditions. If you want to be a successful trader, you have to make the…
No Comments
How To
There are many alternatives to choose from when it comes to online brokerage accounts. You need to find out several things before deciding which broker to choose: First, you need to find out if the broker is trustworthy and legitimate. Ask how you will get back your money should you want to withdraw. Investigate online…
5 Comments
Stop Loss, Tips
Contents in this articlePoint 1 – trade entryPoint 2 – the break even stopPoint 3 – the retracementPoint 4 – money left on the tableTwo better ways to handle such a scenario Do you use break even stops? Is your trading account not where you want it to be? Although understanding break even stops is…
7 Comments
Indicators
The Donchian channel is a trend-following indicator which has been heavily used by the infamous Turtle traders. The Donchian channel measures the high and the low of a previously defined range – typically of the past 20 days.  The screenshot below shows the channel on Apple with a 20-day range where it marks the highs…
Contents in this articleOpen Position RatiosHow to use itNot all markets are equalOANDA Order Book Round-up The following article is a guestpost by JB Marwood. JB Marwood is an experienced trader with a passion for financial analysis and trading systems. Check out his blog at http://jbmarwood.com and enroll in his free trading tools course.  …
Contents in this article Volatility based stop loss orders of the turtle traders A maximum position of 2% Correlations and risk Adding to a winner Adjusting position size during losing streaks The Turtle traders were a legendary group of traders coached by two successful traders, Richard Dennis and William Eckhardt. They selected 10 people (turtles)…
No Comments
Psychology
Emotions are a big influencing factor in trading. Emotions cause impulsive trading decisions which are responsible for revenge trading, over trading, adding to losers and playing catch-up, missing potentially good trades or risking too much money on any one trade. The list goes on but if you are a trader you already know that if…
S&P 500 stands for Sober and proud for 500 days Stocks and profits 500 days in a row Standard and Poor's 500 Correct! Wrong! - Continue >> The Forex market is the world's largest financial market No Yes Correct! Wrong! - Continue >> The company with the largest market capitalization in the S&P500 is Apple…
Compound interest is a mathematical principle that creates those staggering growth curves we have all seen. Understanding compound interest is of great importance as a trader because it teaches you many lessons that are critical to internalize if you want to stay on top of your game.   Compound interest 101 Compound interest works so…
2 Comments
Psychology
Today we are going to talk about a topic many traders will deny and it’s important for you to keep on reading, especially if you feel offended or think that this article isn’t about you. This article has the goal to raise awareness of negative behavioral and thought patterns. The concepts highlighted can help you…
Contents in this articleUp, Down or Sideways – Trend vs RangeHighs and LowsSupport, Resistance and Trend LinesDiagonal lines – channels and trendlinesMoving AveragesDifferent moving averages for different purposes If we boil it down to the core, price can do one out of three things: it can go up, down or sideways. In the trading jargon, we…
Contents in this articleThe Trading PlanThe WatchlistA ChecklistEmotions Cheat SheetMath Cheat SheetGet our free tools now Trading is not easy, it requires a lot of effort and attention to detail. As a trader you constantly have to work on your game and make sure you don’t stand still. On top of that, the financial markets…
2 Comments
Psychology
What separates the professional trader from the amateur? It is not that the professionals use better indicators, they don’t have a secret method to time entries or know how to call tops and bottoms perfectly. In fact, the difference between good traders and struggling traders usually comes down to a few, very specific points. The…
Why do prices behave so differently around support and resistance levels? If you have been trading for a while you know that price behavior around a support and resistance levels is never the same and we are going to take a look at why this is so.   Support and resistance in action The chart…
Contents in this articleAveraging upCost AveragingMartingaleAccount Development With MartingaleAccount Development With MartingaleAnti-MartingaleFixed ratioKelly’s Criterion Whereas risk management comprises the handling and the impacts of position size on the account growth and determines the size and the significance of possible drawdowns and losing streaks, money management describes the methods to establish a repeatable and structured approach…
Who doesn’t hate math? But, in trading, math is always present and even if you are not aware of how math concepts impact your performance, it is a huge influencing factor. Understanding the most important math principles can help you make better trading decisions and provide a completely new view on your trading. Fortunately, the…
No Comments
Psychology
Regretting the past and seeing what you should have done, or worrying about the future and not knowing what will happen next are the two fundamental problems a trader deals with every day. But it goes much deeper and how you handle your past trading experiences and how you think about the future influences your…
Contents in this articleRegaining focus in times of adversity Attention deficit and being presentKnow your strengthsMaking smaller circles I recently came across Josh Waitzkin after listening to his interview with Tim Ferriss. Josh Waiztkin became a chess ‘superstar’ as a child and a grandmaster later on, before making a radical change and pursuing a career…
Contents in this articleThe introduction to the “Boom and Bust” pattern The characteristics of uptrends and downtrends – the nature of mass psychologyMeasuring the “Boom”Tips to trade the “Boom and Bust” pattern Most traders struggle because they continuously fight some of the most essential trading principles. At the top of the list is trying to…
1 Comment
Tips
Learning from losses is important as a trader and it’s a key component for trading success. On the other hand, amateur traders often learn the wrong things from their trades, especially from their winning trades. Unlearning negative trading behavior is very hard once you have adopted a certain pattern and that’s why being aware your…
No Comments
Psychology, Tips
How do you build something big? You start small. This principle is true for everything in life: The Great Wall of China has been built by laying one brick at a time. A highway is built by completing one mile after the other. The invention of the airplane didn’t just happen, but it was the…
Contents in this article1 – Higher time-frame perspective2 – Highs and lows  3 –  Support and resistance levels4 – Channels and trendlines5 –  Moving averages6 – Price action information7 – Volatility8 – Momentum and trend strength9 – Divergence / Convergence: Stochastic and MACD10 – Upside and downside potential How do you understand what is going…
Contents in this articleWhy traders like to call tops and bottoms?Wrong expectations when calling tops and bottomsThe 6 golden rules and principles for reversal tradingFurther reading Would you also like to be able to sell the highs and buy the lows? Wherever you go, traders are always in a state of calling top and bottoms…
4 Comments
Psychology, Tips
Contents in this articleTennis – who is making mistakesBaseball – be content hitting singles and doublesFootball – the ultimate mix of offense and defenseBoxing – being prepared for the next tradeIce Hockey – plan aheadChess – don’t lose your headSeason sports – one match doesn’t matterTeam sports – understand Your positionYour winrate is not important…
1 Comment
How To
Are you also struggling to find the time to establish a serious trading routine besides working your day job, following your hobbies, and spending time with friends and family? You are not alone. In fact, establishing a better trading routine and being able to make the most use of your limited time will have a…
Contents in this articleTrend vs. range indicatorsTrend indicatorsRange-bound oscillatorsPeriod SettingsIndicators or price action? Indicators are tools that take price and/or volume information, apply a formula to it and then transform it into visual information such as graphs or oscillators. By analyzing and crunching price data, indicators provide information about the strength of a trend, momentum,…
Indicators are very famous tools and used by millions of traders. However, often traders don’t really know what their indicators are doing or how to use them. Over the past articles, we covered and explained many different indicators in depth and I am going to link them up here as well. But, to summarize all the…
Contents in this articleThe introduction – Understanding the RSIExample 1Example 2Oversold and OverboughtWhen Support and Resistance breaksThe RSI DivergenceConclusion: Know what price is doing The Relative Strength Index, or RSI is among the most popular indicators used by traders. The RSI provides information about the strength of the price movements on your charts, hence the…
When is price ready for a reversal and when is a divergence not an accurate signal? Although it can be hard to find momentum and established trends these days, we want to talk about an important trading and price information concept today: the effectiveness of divergences and how to increase the accuracy when using divergences.…
Contents in this articleConfluence stopVolatility stopTime -based stopsConclusion: The ultimate stop loss strategy Setting stops is a very underrated and misunderstood concept are in trading. Your stop loss placement impacts your trading performance on so many levels. It decides over the reward:risk ratio of your trades and, thus, determines the expectancy of your trading system.…
1 Comment
How To, Tips
Contents in this articleLosses and risk managementEmotions and mindsetDevelopment and self-improvementMore trading tips I have read dozens of trading and trading related books over the years and I have extracted a huge collection of trading quotes  with tips and advice I use in my daily trading. Listening to what the most successful people have to…
Contents in this articleMaster the basics first – The bottom-up approachRealistic expectations and the correct mindsetBeing honest with yourself7 tips to kick-start your trading and make a fresh start The question “What does it take to become a better trader?”, is one of the most asked questions we receive on a regular  basis, besides indicator…
Boring is the word that probably comes to your mind when you read about another must-read trading books list. But hold on, in our recommended reading list you won’t find any books that advertise systems, trading strategies, entry methods, or praise the best indicator. We believe that a trading strategy is something very personal and…
The following article is a guestpost by Bruce Bower. Bruce Bower manages a portfolio of emerging market equities at a hedge fund. He has a keen interest in markets, psychology and self-development, having trained as a hypnotherapist and he regularly publishes articles on his site, Howoftrading.com.   Achieving peak performance in the markets is hard. It takes…
Contents in this articleMarkets are always changingExamining price behavior and trend directionWhat is a flexible trading approach?Where to start? Not all trades are the same. We have talked about this topic many times here on Tradeciety and highlighted the importance of adjusting your trading methodology based on market conditions. A big mistake most traders make…
Contents in this articleForeign Exchange Market (Forex)Stock MarketDifferences Between Stock and Forex MarketsCommodity MarketsInfluecing factors of commodity marketsProxy for other traders and marketsConclusion When a trader is just starting out he has to choose the market he/she wants to trade. Although most traders don’t make those decisions consciously, but rather trade the market that they first come across,…
No Comments
Tips
Contents in this articleThe 4 questions asked by amateur traders#1 Should I trade without a stop loss?#2 Is trading rigged?#3 How can I become a millionaire?#4 How can I stop having losing trades? Today’s topic addresses a very common problem in trading and a major reason why traders don’t see the results they are hoping…
The history of currencies and trading is as old as mankind and Talmudic writings mentioned people who assisted others doing transactions in exchange for a commission a few thousand years ago. Today, we would call these helpers brokers. In the following, we take a look at the origins of currencies and trading, see how currency…
Contents in this articleMean reversion trading – a brief introductionThe 4 main challenges of mean reversion trading#1 How do you determine the mean?  #2  Sometimes price does not reverse, but the moving average catches up with price#3 Mean reversion vs. catching a falling knife#4 Emotional stability and discipline Mean reversion trading is often referred to…
Contents in this articleImplied volatility – The unknown factor of options tradingVega – Changes in implied volatility and option price changesLong Straddle – Get the most from a change in implied volatilityLong Strangle – Risk less in exchange for less upsideReverse Iron Condor – A more conservative strategyConclusion: Additional considerations The following article is a…
Contents in this articleOur primary instinct – trading cavemenAre you attached to your trade?Signs that you are attached to a tradeWhat is detachment for a trader?Detachment in sports7 tips to achieve detachment from your trading Being emotionally attached to a single trade is a very dangerous state to be in because it often leads to…
Contents in this articleSpotFuturesOptionsBinary OptionsSpreadbettingCFD Spot Trades done in the spot market are effective immediately and the trades happen instantaneously. The Forex spot market is the largest market worldwide and most retail Forex trading happens in the spot market.  Whether you trade through your regular broker (where the majority offers spot trading in Forex) or…
No Comments
How To
After months of working behind the scenes we are happy to show you our new Tradeciety Trading Academy. In 6 sections we have over 65 articles that cover all different aspects of trading from absolute beginner education to advanced concepts, risk management, trading tools, trading tips and resources and much more. In the future, we will…
Contents in this articleEconomic CalendarForex Factory CalendarNasdaq US Economic CalendarNasdaq Earnings CalendarFutures CalendarNews AggregatorNewsmapSocial Heatmatp – StockTwitsRansquawk – Live Market commentaryFear and Greed IndexNews sites When it comes to keeping track of daily news events and being aware of what is happening around the world, the internet offers a wide variety of places where a…
Contents in this article#1 Finviz#2 Zacks#3 PastStatCharting#4 Tradingview#5 Stockcharts There are many great resources in the internet that allow traders and investors to find possible investments, screen stocks based on specific fundamental or technical data. In the following we provide an overview over the 5 best online tools.   #1 Finviz Finviz is a stock…
Contents in this articleExamples in the world of financeImplications for tradersStop loss order will not always workSegregation of funds The term ‘Black Swan’ was coined by Nicholas Taleb, a finance professor, author and former Wall Street trader. A Black Swan event describes an unexpected event that shocks the world by its impact and the magnitude.…
Understanding and evaluating trading and system performance correctly and avoiding costly mistakes is very important. Although most traders do not fully understand how to interpret trading results and risk properly, this can be overcome very easily.   Performance figures 1) Expectancy The expectancy provides information about how much money you will make on average per…
Contents in this articleWhy you should not trade without a stop loss order1) It helps you to determine position size2) It defines the worst-case scenario3) Defining the reward:risk ratio4) Protect your profitsTips for better stop loss placement1) The correct process of placing stops2) Use reasonable price levels3) Don’t personalize losses and stick to your stop!5…
Contents in this articleThe location and the size of the gap matter1) Breakaway gap2) Exhaustion gap3) Common gaps4) Continuation gapFilling the gap Gaps are common, especially in stock trading and they can provide information and insights about the underlying market dynamics. A gap is usually created when the close of the previous day and the…
In life, and in trading, what is easy and entertaining is usually not what yields the greatest reward. In almost all aspects of our lives, we usually know what we should be doing. But very rarely we do it to the degree that would lead us the results that we want to achieve. In university,…
Contents in this articleThe 6 most common emotions in tradingFear GreedHopeExcitement / AnxiousBoredomFrustration Emotions are without a doubt among the most influencing factors for traders and how traders handle emotions in their trading determines whether or not they can be profitable over the long term. In the psychology section of the Tradeciety Academy we analyze…
There is an ongoing debate whether you have to follow news and fundamental data in order to succeed as a trader. And although there is no right or wrong when it comes to answer these questions, it can surely help to be aware of what is happening in the world on a day to day…
Contents in this articleImportant economic variables and news events Average earningsBuilding permits Consumer sentimentCorporate/ Company EarningsCOT – Commitment of traders reportCPI – Consumer price indexExisting home salesFlash ManufacturingFOMCGovernment bondsGDP – Gross domestic productHousing startsIFO Business ClimateIndustrial ProductionInterest rates (official bank rates, FED fund rate)NFP – Nonfarm payrollsPPI  – Producer price indexRetail salesTrade balanceUnemployment claimsZEW Survey – Economic…
Contents in this articlePrice actionIndicators Trading Tools & other conceptsFundamental Analysis As shown in a previous article, there are many different trading styles, and finding the one that fits your personality and also makes the most sense to your thinking is important in order to become a profitable trader. After choosing the trading style, a…
Contents in this articleWhat is a stop loss and how to use it effectivelyDo brokers hunt stops?Position SizingReward:Risk Ratio – the basics R-multiple2 basic money management techniquesFixed amount of moneyExamples - Fixed Position SizeExamples - Fixed Position SizeFixed percentageExample - Fixed PercentageExample - Fixed Percentage Protecting the capital you have and being able to come back…
Contents in this articleReading Charts for Beginners Line graphBar & CandleThe candlestickTime-framesOrder TypeMarketLimitMore concepts about executing trades and price informationBid / Ask and SpreadStop LossTake Profit Most trading platforms are very similar in the way that the information is arranged. Usually, when you open up your trading platform, the price area is the biggest area…
Contents in this articleDay-tradingSwing-tradingScalpingAlgo / Automated tradingDiscretionary vs. Rule-basedRule-based trading Discretionary trading Finding the right trading style for your personality and for your daily lifestyle is an important factor when it comes to succeeding in the trading world. Most traders don’t make this connection and just randomly choose a trading approach without cross-checking whether or…
Contents in this articleOverall character traitsSelf-awarenessProcess-oriented thinkingSensation seekingDiscipline and a strong work ethicDirectly trading related traitsPatienceEmotional stability EgoIndependence and responsibility Trading is a very special profession and trading successfully requires a unique set of skills. The following overview provides a detailed list of skills and characteristics a person needs to possess in order to trade…
There are mainly two types of brokers: dealing desks, or market makers, and no-dealing desks and in the following we explore the main differences and provide an 8 point checklist that you have to be aware of when it comes to choosing a broker. Looking for a broker? We recommend IC Markets. Take a look at the…
If you are an expert in a specific field around trading, investing or anything alike, and you want to contribute your wisdom here in the Tradeciety trading Academy, this is your chance. We are always looking for new contributors with a high level of expertise who want to share their knowledge. Whether you think you…
Contents in this articleThe one and only thing that a stop loss order really should beA trading scenarios and stop loss placementNobody cares about your entryWhat moving a stop loss means… A stop loss is not only one of the most important things a trader has to have, but executing it the right way and…
No Comments
Tools
In Germany we have saying called “Ordnung ist das halbe Leben” which in translation means “Order is half of life”. Parents tell it to their kids when they are supposed to tidy up their room, and teachers tell it to their students when they can’t find their homework. There is a lot of truth to…
Although the type of trading style impacts the choice of time-frames to some degree, it is worth highlighting the differences and nuances of the individual time-frames explicitly to enable traders to make a conscious decision about which time-frame to use for their trading based on their objectives, personal needs and character traits.   Higher time-frames…
1 Comment
Psychology
Contents in this articleCasino vs. Stock MarketCasinosThe Stock MarketResearch on investor behavior and media coverageImplications for your own trading and tips to counteract the outside influence#1 “Think slow to think at all”#2 Who do you engage with during trading? #3 Check your surroundings#4 The colors on your chart Traders don’t like it when their profession…
The following article is a guest post by Richard Cox:   Richard Cox is a university teacher in international trade and finance. He writes for MarketBulls.net, CNBC, TheStreet, Seeking Alpha, and the Motley Fool.   For those that are looking to trade in stocks or indices (which is still a large majority of the traditional…
Contents in this articleHow the professional prepares for a sessionTrading is a mental gameSelf-awarenessCheck your state of mind Cathy Hulbert is a professional ‘gambler’ who made a lot of money playing blackjack, slots and poker professionally over decades. I recently read the book ‘Gambling Wizards’ where she was  featured, among other professional gambling legends. One…
No Comments
Tools
A trading plan is the place where you collect your ideas and plan your trading week ahead. Before you start your trading week/day, you create your trading plan(s) where you map rational and thought-out trade ideas. A trading plan is your battle plan. When the going gets tough, markets move in real-time, when you have…
No Comments
How To
Investing and Trading Blogs
Another week has passed, and a lot has been written all over the web. I want to show you my 7 favorite trading related articles I came across. Also, you find a personal book recommendation at the end.   Succeeding At Trading By Listening To Smart People The struggle to define risk Pro trader Steve Burns interviews…
Contents in this articleBollinger Bands®Fibonacci extensionsMACD  HistogramPrice actionConfluenceTrade ScenariosScenario 1Scenario 2Scenario 3Conclusion: Confluence, confirmation and alternative use In the past weeks we have analyzed different indicators and trading tools. Now it’s time to combine what we have learned and apply it to the charts. In the following article we explore how to use confluence analysis…
Contents in this articleInflation, supply and demandThe 6 main factorsGovernments and central banksInterest RatesCurrent Account DeficitsDebtSpeculationUnderstand the context to make better decisions The foreign exchange market (Forex/FX) is the global market for the trading of currencies. This market helps to determine the values of all the currencies around the world.   Inflation, supply and demand…
Contents in this article1. You can’t go broke taking profits 2. Price action is better than indicators 3. Leverage is bad 4. Higher time frames are easier to trade 5. HFT is making it impossible to trade profitably 6. Screentime will make you a better trader 1. You can’t go broke taking profits This is a very dangerous statement because, although it makes sense at…
No Comments
How To
Investing and Trading Blogs
I like spending my time on weekends reading articles, listening to podcasts, nurturing my mind, while getting away from the markets for a few hours. Following you find 8 of the best and most interesting articles I came across over the last week. Please, if you have an interesting article, share it with me in the…
Contents in this articleWhat retail traders really doStops and Take Profit OrdersStop loss orders– past round numbersTake profit orders – ahead of round numbersResearch about round numbersRound numbers and support and resistanceIdeas for using round numbers in your trading Understanding what other traders do, how they look at charts and how they perceive information is…
The exciting start Do you remember how you got started in trading? Everything seemed possible, and you were ecstatic about the possibilities that trading offered, but what happened afterwards? This article will help you understand the different phases almost all traders will go through, why they are stuck in the same routine, and where they…
Contents in this articleThe three goals as a traderThe combination of winrate and position sizeWinratePosition size – the variable and controllable factorA money management digression:Risk and performance simulations Not through picking the right entry method or a ‘better’ combination of indicators you will achieve your trading goals, but through risk management and position sizing you…
Contents in this articleWhat is risk?3 probability concepts that cause traders to lose moneyPersonal level of riskWinrate – Adjusting position size for your level of risk toleranceRisk and performance simulationsUndercapitalizationConclusion: The overlooked connection between winrate and position size The most successful traders don’t see themselves as traders, but as risk managers; professionals understand that protecting…
Contents in this articleWhy people take large risksRisk Averse IndividualsRisk SeekingWhat are your objectives and goals?Results vs. Process oriented mindsetWhy trading should not be too risky#1 Position sizing & Stop loss#2 Guaranteed Stops / Segregated funds#3 Implementation of risk limitsConclusion: Risk in trading is multi-dimensional Why people take large risks The economic concept of the…
To become better at anything, you need to practice and develop your skills over a long time with consistency. Soccer players can work on their physical skills and their ball handling skills, musicians can rehearse their plays and chess players can analyze the best plays. In trading, the skills are not as obvious and your…
Trading and backtesting
Contents in this article#1 Back-Testing Is a Game#2 Let Me Fast Forward: This Year Is Boring#3 No Mid-Candle Decisions#4 Markets Are Living Organisms#5 Screw The News#6 IsolationTips On How To Improve Your Back-Testing Should you really backtest your trading strategy and will it provide accurate information about what you can expect from live trading? Most…
Contents in this articleWhat is a system?The EUR/USD opening patternThe Frankfurt openThe triggerThe last 3 trading weeksCaution: What is a pattern?Conclusion: Build your trading arsenal step by step Most traders spend the majority of their time trying to find the ultimate trading strategy and they go through dozens of indicators, entry methods and spend hundreds…
Why traders lose money - Psychology
Contents in this articleAre you impeccable?Should you be aggressive?Frequency of trades Leave your ego at the doorThe 4 Ps to establish a professional trading approach PreparationPurposeProgressProtectionConclusion Often, as traders we have periods where everything seems to go well and we have one winning trade after another. And then, there are these times when nothing seems to…
No Comments
Tips, Tools
Emotions and psychology play an important role and are often the cause for trading failure. The Edgewonk Pro trading journal includes a set of unique features and metrics that not only analyze the impacts of psychological biases, but also shows you exactly how to overcome these problems. In the following article we introduce the 4…
Contents in this articleHow to use Fibonacci? There is no right or wrongStep 1 –  Find an ‘A to B’ moveThe following 4 screenshots show typical A to B movesConnecting A to B moves with the Fibonacci retracement toolStep 2 – Find the retracement point C Finding the C-Fibonacci retracement levelTip #1: Trial and errorTip #2:…
2 Comments
How To
Investing and Trading Blogs
Time flies by and we are already one third through 2015. A lot has been said and written in the past weeks and I would like to present the 8 best trading articles that I came across. The #1 NBA sports gambler opens up and talk a little bit of what it takes to be a professional…
1 Comment
Statistics, Tips
Contents in this article#1 Impacts of your trading behavior#2 Tracking price behavior effectively and improving your orders#3 Personalized and quantifiable data#4 Project your future performanceConclusion “How can you increase your trading performance?”, is a commonly asked question. In a different article we already provided a few tips that can help you to find ways to…
Contents in this articleSteve BurnsDr. Brett SteenbargerMike BellafioreAssad TannousArdy IsmailForex School Online50 PipsSteve (UK Trendfollower)Joel KrugerGavin McMasterHenri SimoesMichael G LamotheH. Avni Kefeli Dealing with emotions is a very important aspect when it comes to trading successfully and the impact psychology has on your trading decisions can be significant. As a trader it is therefore very…
Options give a trader another dimension to speculate on the market. Used properly, they can be a very beneficial tool. The first thing to know about options is what they are. An option gives the buyer the right to take an action on a particular security at a certain price within a certain time frame.…
1 Comment
Psychology
Contents in this articleIn amateur tennis most points are won by errors of your opponent and not by your own skill.Profits, losses, threats and rewards – We are just monkeysWord of caution: Don’t go for homerunsConclusion: Increase your performance by overcoming evolutionary hurdles Upon entering a trade, most traders have a set risk reward ratio…
1 Comment
Tips
Contents in this articleUnfiltered DataSpeed of ExecutionStability of platformsPay attention to Cost This article is a guest post by Matt Zimberg who is the President of Optimus Futures, LLC which is a futures brokerage firm. In the following article he explains 4 important aspects that a trader has to be aware of when it comes…
The trading industry is vast and can be daunting. Where to start, which information to trust, which tools to use? In an era where information is everywhere and time is a scarcity, it’s just not possible for a single person to separate necessary from useless resources and know which path to follow.That’s why we compiled…
Contents in this articleConstructing a system – combining the right toolsThe ‘3 out of 4’ approach to offset weak spotsTrade example of using different filter criteriaInsurance is never free One reason why amateur traders don’t make money is because they cut their winning trades short and often exit good trades too early, ahead of their…
1 Comment
Tips, Videos
Contents in this articleHow to use the risk reward ratio together with your winrate effectivelyWhat is a dynamic risk reward ratioUnderstanding and dealing with losing streaks like a professionalResults vs. process-oriented thinkingThe interaction of winrate and position sizing Edgewonk.com is our partner site that just has launched a few weeks ago. Besides offering professional trading journals there,…
Contents in this article#1 What traders means when they talk about support and resistance levels#2 The reality of support and resistance trading#3 How to use support and resistance zones#4 Using zones as noise-filtersSupport and resistance trading like a pro with zones Support and resistance trading looks so simple and easy. Just draw a horizontal line where…
Contents in this articleThe one thing you can’t controlWhat you can controlWhen you tradeWhen you exit a tradePick your weaponsYour insurance as a traderHow you interpret tradingConclusion: Don’t fight the markets. Use your possibilities The concept we are talking about in this article is very important to understand and once you realize that it is…
Contents in this articleWhat you don’t see makes all the differenceEvery opponent is differentOver the course of a season, losing a single game is not importantWhat you can learn from sports betting Trading is a performance game and there are a lot of similarities between trading and sports. Sports, especially team sports, offers a variety…
Contents in this articleWhat is the Put/Call ratioKnowing what the general crowd is doingWhy the average trader loses money – buy high, sell lowHow to use it for your own tradingConclusion: Only dead fish swim with the stream Far more than 95% of traders lose money consistently. Knowing this fact which also has been proven…
6 Comments
Psychology, Tips
How to trade like a pro
Contents in this article#1 Distractions and focus#2 Wasting screen-time#3 Overconfidence after a winning streak#4 Loss of confidence after a losing streak#5 Taking losses personally#6 Do you need money fast?Conclusion: Fake it until you make it A professional trader is not the one who was more trading screens, better equipment or the better indicators. A professional…
Contents in this article#1 Price action is better than indicators#2 Price action is leading, not lagging like indicators#3 Price action is objective, easy to follow and simple#4 Price action charts are clean. Indicators are messy#5 Price action is not a system. Price action IS the marketConclusion: Accept that price action and indicators are the same Today…
Contents in this articleWould, Could And ShouldHopefullyWillNever And AlwaysConclusion: Watch Your Language How you talk or think about your trades can signal how you are going to manage your trade and your language can even provide information about whether you are about to commit a wrong trading decision before you actually do it. You might…
3 Comments
How To, Psychology, Tips
Contents in this article#1 Trading is dealing with the unknown#2 Risk more when your winrate is high#3 Losing streaks happen. They are not your fault#4 Adjust your position size#5 Leave your emotions outside People call themselves ‘traders’ because traders trade, right!? But a more appropriate description of your job would be ‘risk-taker’. As a trader you…
Demo-trading is usually seen as a way of verifying that you can make money with your trading strategy before you start trading your actual money. However, you will never be able to translate successful demo-trading into trading real money. The reason is simple. If there is no money on the line, you eliminate one of…
Why traders lose money - Psychology
Contents in this articleOutcome Bias – as long as I make money I am doing everything correct.Recency Bias – I just had a few winners, my strategy is unbeatableSeersucker Illusion – I just trade based on the expert’s prediction.Self-Serving Bias – The loser wasn’t my fault. HFT is to blame.Negativity Bias – this big rally…
3 Comments
How To, Stop Loss, Tips
Contents in this articleFirst things first. How do markets change?What does high volatility mean for your trading?Market characteristicsStop loss orders – give trades room to breatheTake profit orders – capitalize on larger price swingsPsychological challengesLow volatilityMarket CharacteristicsStop loss ordersTake profit ordersPsychological challengesHow to track VolatilityThe simplistic approach – candle sizeThe Average True Range (ATR) indicatorBollinger Bands®Conclusion: Markets are dynamic…
Contents in this article1. High net worth investors are likely to have lower turnover 1 2. Examining the portfolio performance of investors who invest in lottery-type stocks, I find that the annual under-performance is roughly 5%. Within each income group, gamblers under-perform non-gamblers. 23. Poor, young men who live in urban areas and belong to specific minority groups invest more in…
Contents in this article1. Trade More Instruments2. Trading lower timeframes3. Increasing Position Size4. Adding a Second Strategy5. Improve Your Current StrategyConclusion Trading is all about making money and one of the most asked questions is “How can I make more money?”. There are mainly 5 different ways ‘to make more money’ in trading that we…
11 Comments
Tips, Tools
Contents in this articleHow to Change Metatrader to Get The Best Risk:Reward Ratio ToolStep 1: Where is the Fibonacci tool?Step 2: Reset the Fibonacci toolStep 3: Add the risk:reward ratio parametersLevelDescriptionStep 4: See the risk:reward ratio tool in actionChange back to Fibonacci levelsWhy do you care so much about risk:reward ratio? How to Change Metatrader…
3 Comments
Guest Post, How To, Tips
Contents in this articleWant to be a great trader? You have to put in the work and build your own trading strategy!How I developed a personal trading system:You verify the validity of your trading strategy.You start to really recognize the trade entry signals that you are looking for and the exit strategies that ensure you end…
Contents in this articleWhat is the Stochastic indicator?What is momentum and how does the Stochastic indicator measure it?What does a high Stochastic number mean?What does a low Stochastic number mean?What if the trend is really strong?Do you really need a Stochastic indicator?What the Stochastic does:What the Stochastic cannot do:Recap: How to use the Stochastic indicator The following…
Contents in this articleCandles Tell You a StoryHow to Read Candlestick patterns: The 5 x 5 of CandlesDemystifying Candle PatternsConclusion: No Need For Candlestick Patterns Understanding candlestick patterns goes far beyond remembering and recognizing certain formations. Many books have been written about candlestick patterns, featuring hundreds of different formations that supposedly provide secret information about what…
2 Comments
Tips
Contents in this articleAnswer these questions and you will know whether your should quit tradingYou have been trading for years and you are still losing money?Do you change your trading strategy frequently?Do you journal?Do you plan your trades?Is trading entertaining, exciting, or gives you a thrill?Do you believe that trading can make you rich soon?Be…
Looking around online, you will easily find either ‘Top 10’, ‘Top 20’, or even ‘Top 50’ lists of the most important things that you should know as a trader. Unfortunately, such lists often have an opposite impact to their stated purpose; these lists often scare traders off, especially when they are new to trading and…
2 Comments
Tips
Contents in this article 1. Losses Can Exceed Your Trading Capital 2. Your Stop Loss Will Not Always Work3. What Is a Segregated Trading Account?Conclusion: Do Not Put All Your Eggs In One Basket And Do Your Homework Yesterday, after the SNB scrapped the peg all CHF based currency pairs experienced price moves never seen before. Besides an 11%…
5 Comments
Statistics, Tools
“What is a realistic return that is achievable in trading?” is among the most asked questions for new and aspiring traders. The trading industry wants you to believe that you can easily double your money week after week and with enough leverage, even the smallest accounts can generate substantial profits easily. But how true are…
1 Comment
Beginners, How To, Tips
Why traders lose money - Psychology
Contents in this articleGeneral Trading MistakesWhat Traders SayRisk & Money ManagementTrade ManagementCommon Sense Awareness is the first step towards improvement and that is why we collected the 44 most common mistakes a trader can make. Making mistakes is not bad at all and it is part of the process, but when mistakes are made repeatedly,…
Contents in this articleThe Lazy Trader Is Never SurprisedWhen The Markets Open The Lazy Trader Only Waits To Make MoneySet-And-Forget Is The Secret To Lazy Trading SuccessThe Lazy Trader Does Not Care About LossesThe Myth Of Screen-TimeTrading As A Second Income StreamTrying Hard Does Not Work In TradingThe Lazy Trader Got His Priorities StraightConclusion: Do…
Contents in this articleDetermine Your Trader Personality1. The Aggressive Bully2.The Greedy Scrooge 3. The Anxious WimpFine-Tune Your Strategy Parameters Based On Your Personality TypeTrade-Frequency and the choice of timeframesHolding timeWinrate vs risk:rewardYour risk level per tradeConclusion: Finding Your Perfect Trading Strategy Is A Never Ending Process The average trader has a pretty messed up notion about what…
6 Comments
Psychology
Contents in this article“I missed the trade although it had all the entry criteria.”“How could I have lost so much on this trade? It looked so good.”“I think it’s going to turn around. I just widened my stop loss order a bit. It is a good setup.”“The trade looked so good. I thought it would…
Contents in this articleOver Confidence – What Traders Think About ThemselvesThe Effects Of Stop Loss Orders And Round NumbersWhat Does Research Say About Technical AnalysisThe Impacts Of Big Events And Financial MediaRandom Findings About Trading And InvestingConclusion If you would believe everything you read in social media, trading forums and financial news, you would be…
No Comments
How To, Tips
Contents in this articleThe Fear Of Giving Back vs. The Greed To Get MoreA Handful Of Pips Can Change It AllProtect Your ProfitsRetracement vs. ReversalSweating Every DowntickConclusion: Entries Are Overrated The majority of the time traders only talk about entries and techniques on how to find the best trades, but is finding the right entry…
Trading Strategy - Complexity
Contents in this articleThe First Decisions About Your Trading StrategyTrading Decisions Before You Take A TradeTrading Decisions When You Are In A TradeConclusion: Being A Trader Means Making Decisions On the first glance, trading doesn’t seem to be that hard: you can either buy or sell, that’s it. At the same time, the potential profits…
Why traders lose money - Psychology
Contents in this articleBandwagon EffectHerdingInformation BiasOstrich EffectOutcome BiasOverconfidenceSelf-Enhancing Transmission BiasConclusion: Humans Are Not Made To Be Profitable Traders “Trading is hard”, is something we traders know already, but there are proven psychological effects that explain why the human mind is not made for trading. In the following article we will explore seven of the most…
Trading Daily Timeframes
Contents in this article1. Patience2. Money Management3. Trade Management4. Risk5. Comparing TradesConclusion: Trading Daily Timeframes Is Not The Solution To Your Problems Everywhere in the web, in trading books or when you listen to traders talk in person you will eventually hear that they suggest trading higher timeframes because of ‘all the advantages’ they offer. The advice to trade…
Trading Price Action - Lagging
Contents in this articlePipsLeverageMarginPosition SizingExpectancy Of Your SystemLikelihood Of Losing And  Winning StreaksAccount Loss And Recovery RateProfitability CheckCorrelation And RiskWhat Do Correlations Mean For Your Trading?Word Of CautionGrowth Of CapitalWhy Traders Screw Up: Randomness, Independency And Sample-Size-ThinkingRandomnessIndependenceSample-Size-ThinkingConclusion: The Math Guide For Traders Is All You Will Ever Need In today’s world, math and statistics are…
No Comments
How To
The Thinking Behind A Rally In Price These days you can see excited and euphoric traders in twitter, forums and everywhere in the web talking about rallies, big profits and about the dream of making a ‘killing’ from joining the long-lasting trends you can witness these days. The truth is, traders join trends too late and…
2 Comments
Forex, How To, Tips
Being a forex trader is more than just buying and selling some currencies, but the fewest traders are aware of some of the most important concepts of foreign exchange trading and how to use forex pairs in the most efficient way. In the following infographic we illustrate what it actually means that currencies are being…
1 Comment
How To, Stop Loss, Tips
Advanced Stop Loss Strategy
Contents in this articleCorrect stop loss placement can make the difference between a winning a losing systemHow Important Stop Loss Placement Can Be For Your PerformanceThe Complexity Of Stop Loss Placement5 Things Traders Get Wrong About Trading And Their Stop Loss Strategy1. Trading ‘gurus’, books and trading strategies lie to you2. The hindsight fallacy3. The…
10 Comments
How To, Tips, Tools
How to Trading Plan Template
Contents in this article1. Do You Need A Trading Plan?2. What Is A Trading Plan?3. Install EvernoteTM4. First Steps In EvernoteTM4.1 Create Notebooks For Your Instruments 4.2 Create Your Trading Plan Template-Note 4.3 Using Skitch For Your Game Plan5. Using The Trading Plan Template5.1 Stay Organized5.2 When To Do Your Trading Plan?5.3 Your Time Saver Number One5.4…
Facts about High Frequency Trading
In the last few years High Frequency and algorithmic trading has been used as an excuse by traders when they found themselves in losing positions or failed to find explanations for market moves. However, the world in which HFT and algo-traders operate, is nothing but perplexing and impossible to imagine for the average trader and human-being. We…
How to trade like a pro
Contents in this articleWhat Is A Good SetupDon’t Confuse The Terms Mediocre And Losing SetupsWhat Does A Lower Winrate Mean And How To Make It WorkWhat Will Happen If You Take Mediocre SetupsWhat If Your Winrate Drops Further?How To Conquer The Downside Of Low A WinrateStep 1: Risk:RewardStep 2: Risk Per TradeHow To Trade Like A…
Best free online trading videos
A Google search for “free online trading videos” amazingly gives you more than 12 million results. If you leave out the “free”, Google will even show you a staggering 40 million results. Not only for new traders is it an impossible task to sift through those masses of videos and separate the ones which offer…
Stop Hunting is easy in trading
Contents in this articleCommon Trading Knowledge About Stop Hunting Is Wrong – Again!Your Broker Doesn’t Hunt Your StopsMental Stops Are Not The Solution To Avoid Stop HuntingHow Smart Traders Mess Around With You#1 The Bull and Bear Trap#2 Triggering Your Greed and Fear ResponsesHow To Avoid Getting Tricked Into Taking Losing TradesTips On How To…
Statistics about trading
“95% of all traders fail” is the most commonly used trading related statistic around the internet. But no research paper exists that proves this number right. Research even suggests that the actual figure is much, much higher. In the following article we’ll show you 24 very surprising statistics economic scientists discovered by analyzing actual broker…
If trading was easy, they would call it poker
These days you often hear about young boys becoming millionaire traders after making a killing playing online poker. There are even stories of former pro video gamers who now earn tens of millions of dollars trading. While those stories are perfect for marketing purposes, they attract many people who have never heard about trading before…
Reasons why mental stop loss don't work
If traders use a mental stops, there are mainly 2 reasons. Firstly, they are afraid that their broker will be hunting stops. Secondly, they believe it gives them more flexibility and an edge because they can react faster to sudden price moves. Both reasons are mainly used by new, amateur traders who have no stop-loss…

Forex Trading Academy



  • Forex price action course
  • Private forum
  • Weekly setups




Apply Here

FREE!!!
Price Action Ebook +
2 Trading Courses

Enter your email and get instant access
Subscribe Me!
No Thanks!

3 FREE FOREX COURSES

Enter your email and get immediate access to the video courses.