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Education

Following The Trend, Why Are You Still Losing?

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Following The Trend, Why Are You Still Losing?

Trend is friend, this has long been a matter of no more debate, but what is worth mentioning here is that this friend really help us. These are issues that trader needs to take into account, in fact, trader often have moral hazard and trend, especially the trend is clear. The result of dependence and confidence in the trend is the loss of the trend itself.

Perhaps this article will have a lot of suspicion and criticism from some traders, especially trendy – idoled traders, that I am a trader following the trend, but not always.

First of all, I would like to share my perspective on the trend and the sustainability of friendship between traders and traders, if you do not agree with the point, then criticize it. No one is right, none is wrong, only the point that matches the trader only.

WHY TRADERS ARE STILL LOSING?

The trader does not know how to take advantage of the trend, the following are the causes of my experience and experience from other traders:

  1. Understand what rising trend means.

Buy when the price goes down, Sell when the price goes ip and assuming that price increase / decrease is trending. The uptrend and price increase are completely different, because in the uptrend, prices may also fall. If you see a bull run in the uptrend, it’s a good signal, but it’s only good once you’ve entered the bull market. And if you see the price increase that you enter the command, sometimes you are one step behind and your command is more risky than the trader has BUY before. As a result, BUY in the uptrend still can’t win.

The market has a lot of unpredictable volatility, the current is rising, but the next down is the most normal. Therefore, it can not be said that the price increase is the upward trend.

  1. Trader gets FOMO.

FOMO stands for Fear Of Missing Out, called fear of losing goods. FOMO is the psychology of traders when the price is too high then excited to buy because they think the price will increase again. But often the reality is completely against the wishes of the trader. When prices rise too high, especially in the uptrend, it is a sign that the market is about to crest and reverse the trend. Such moments are the opportunity for traders to take profit and the opportunity for the Short trader to start thinking about entering the game.

Thus, BUY in the uptrend still not work.

By the way, we have an article about Signs That You’re FOMO‘, please refer.

  1. The trend is not determined.

Actually, defining trends is very important. Because if you are still blind on the trend you do not know yet BUY or SELL. The market is easy to spot trends, but sometimes extremely complicated to make trader wrong.

As in the example above, we will determine whether this is a downward trend or a rising trend and will BUY or SELL? BUY is not because many times this is just a wave in the rising channel. SELL is also a bit risky because of the price increase, not like any wave.

Therefore, BUY in the uptrend is still ineffective.

  1. Trade style and time frame are not defined.

Let’s take the example above:

If you short the day trading style is clear in your eyes, this is BUY.

But if you keep a little longer, using a slightly higher time frame, obviously this is a downward trend.

The fact that we are still in the middle of trading time swing trading makes it difficult to determine the trend and thus make the wrong decision in the trend. fall and SELL in the uptrend.

Therefore, BUY in the upward trend is still not a good point.

HOW TO WIN?

To win, be diligent. That is we accept a little hard:

+ It is difficult to cultivate knowledge about trends and trends

Be patient and focus on that trend

  • Limited FOMO, don’t listen to anybody, anyone for the contract must also analyze.
  • Do not be shaken.
  • Mindfulness, the tendency is you but not everything, not too conservative and trending idol it can also change the attitude of the enemy when you lose focus and patience. After all, it’s just one of the tools to support a BUY / SELL decision maker.

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WEBSITE

=> https://TheBlockchain101.com

TELEGRAM

=> https://t.me/TheBlockchain101

FACEBOOK

=> https://www.facebook.com/TheBlockchain101

INSTAGRAM

=> https://www.instagram.com/TheBlockchain101

TWITTER

=> https://twitter.com/Blockchain101_

TRADINGVIEW

=> https://www.tradingview.com/u/DrDarvas/

 

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Education

Good For BITCOIN, Also Me

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Good For BITCOIN, Also Me

I read a story that resuscitated the mood so I think that I should share with you – who are in the same mood:

Firstly

1.5 years ago, after I read the Bitcoin documentation, I really liked it. At the age of 18, I used 100 Euro to buy Bitcoin, the adventure started. We all know what happened then, terrible increase, terrible hype and FOMO terrible. I continued to buy more and have a good profit, but profit does not satisfy me, my only goal is to own Bitcoin as much as possible. I also did a part-time job besides studying and earning about 200 Euro every month, and every time I get my pay, I buy Bitcoin all the time.

Then

In my last summer vacation, I work nonstop, 7-9 hours a day and 4 days/week, I do it for one purpose: to buy more Bitcoins, for me it is the goal of today’s life. Many people work for expensive things or endless beer parties. But not me, although I am currently at a loss, I continue to use my monthly salary to buy Bitcoin. Nothing changed. Bitcoin is a great different currency, it will return to its true position in the future, each cycle means that Bitcoin is more held. Bitcoin is not a substitute for legal money. I’m not the absolute believer, but it is really a great difference.

Good For BITCOIN, Also Me

Finally

Reflections on the story feel more open minded, I am young, have no family, not much to worry about. Instead of spending the monthly money on expensive items, the drink is not very useful! Why don’t save cash to buy Bitcoin? It’s not a bad idea, but now Bitcoin prices are very low anymore. There is risk, but in life, if you want to be succeed or want to make a lot of money, you must bet and take risks. If the worst case happens, then I just lost a few luxury items that sometimes after a while to use it to realize that it is not necessary, lose a few healthy snacks, I do not really lose much. Thinking more optimistic, the worst case happens, I still benefit from it, more lessons, more purpose to try to make more money, failure is not bad at all.

But what is the worst case scenario and what if the good case happens? In this case everyone can imagine and imagine better than anyone else.

— — — — — — — — — — — — — — — — — — — — — —

WEBSITE

=> https://TheBlockchain101.com

TELEGRAM

=> https://t.me/TheBlockchain101

FACEBOOK

=> https://www.facebook.com/TheBlockchain101

INSTAGRAM

=> https://www.instagram.com/TheBlockchain101

TWITTER

=> https://twitter.com/Blockchain101_

TRADINGVIEW

=> https://www.tradingview.com/u/DrDarvas/

 

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DAI

Diary Of A New Trader (Newbie)

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Diary Of A New Trader (Newbie)

I have more thoughts about trading, during that course, I began to understand what I was doing wrong. It shows me a better understanding of financial markets and various financial tools including forex.

I have also researched a bit about the history of the markets and the people who really represent this market, I know the forces that move the market and who are the market participants.

Above all, I started to learn what a new trader needs to learn. Probably the most talked-about thing about the trainer is stopping the loss, stopping at all times to avoid going out of the way.

Before going into the article, I share with you about ‘Newie Problems: Pitfall

Diary Of A New Trader (Newbie)

About automatic trading

To protect ourselves, our teacher advised us to switch to automated trading, but if you do that then I should invest money through a financial adviser who will have more experience managing the money.

I didn’t choose that way, before handing out money to anyone I wanted to study myself, even if I lost money, it must be my own hands. I choose the mathematical approach in the transaction and use a few more indicators. There are pros and cons in my strategy, I have yet to profit. In terms of psychology, it seems I am in a state where I am fascinated by everything.

Sometimes I thought, “Now that I know everything, I can not wait any longer to put it into practice and start making money.”

Personal aspects

I have a girlfriend before I know about trading, my period of study on forex is also a time when my girlfriend needs some money, I told her that I would earn more to have a little help her that.

Unfortunately, everything was not as I thought, my trading journey begins to deviate from the path I want to take to a whole new level.

In moments of loss, the lecturer’s words came to my mind, oh for a moment I forgot his words about the importance of discipline, respect for the rules trading plans, trading logs, and I do not follow any rules.

Diary Of A New Trader (Newbie)

Book and transactional discipline

I started looking for trading books to see if that helped, the first book I read was “Trading in the Zone” by Mark Douglas. This book is very well appreciated in the field of transaction psychology.

I was also advised to read “Master Trader” (Capra and Velez), a blend of trading techniques and market psychology.

I need to read them all and I bought them all, read them, but I’m not yet in a good enough stage to really understand all of these books because I’m still a beginner and too inexperienced to understand. their real meaning.

But in some ways these books helped me better, trading more carefully, in my head began to produce more thought as I sat in front of the screen, I began to lose less and I used stop loss.

That is how my trading journey began and from a beginner’s beginner, I carefully continued my journey of self-discovery step by step.

— — — — — — — — — — — — — — — — — — — — — —

WEBSITE

=> https://TheBlockchain101.com

TELEGRAM

=> https://t.me/TheBlockchain101

FACEBOOK

=> https://www.facebook.com/TheBlockchain101

INSTAGRAM

=> https://www.instagram.com/TheBlockchain101

TWITTER

=> https://twitter.com/Blockchain101_

TRADINGVIEW

=> https://www.tradingview.com/u/DrDarvas/

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Education

Psychological Effects Related to Trader’s Trading Errors

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Psychological Effects Related to Trader's Trading Errors

First of all, please refer ‘Overcome The Boredom‘ to get more information about Psychological Effects.

The human brain is an attractive biological machine

It allows us to do many things at the same time that may not need to think about how to do it. You can either drive a car or have a conversation about a complicated topic, or just have breakfast and read a document.

This is only possible because our brains use “shortcuts” to process the data automatically. Unfortunately, these “shortcuts” do not always work as expected, especially when it comes to dealing and investing, which requires a lot of different skills and thinking.

The automation of thinking and decision making is done through so-called psychological biases or based on prior experience. It’s a little confusing, but we’re going to go into the focus right now, this is a list of 17 psychological biases that affect trading decisions.

Psychological Effects Related to Trader's Trading Errors

How it affects the trader

People often estimate the possibility of an event based on what they are most likely to remember, traders are affected by the most recent deals and let the results influence their decisions.

After a loss, the trader often feels scared and the psychologically lead to incorrect trading decisions.

After winning, the trader was too confident, thinking that he really understood the market and traded more coyly.

=> A trader must always be wary of the impact from the latest deals, remember to always inappropriate data depletes data appropriately. Using too many tools and concepts to analyze the price can be a travesty and lose sight of the core.

Using tools fairly and focus on the most basic.

Assuming that the probability of self-balancing in the short run.

After a consecutive losing sequence, the trader thinks that the probability of winning will be higher, but this is not certain (especially with low time frame traders).

=> In the short term the probability is not very accurate, so focus on the long term.

Overestimate the importance of the first information obtained. When opening a trading order, the trader usually puts all their attention on the “bid price” and loses sight and perspective.

=> Trader must always have a plan BEFORE entering a command.

There is no accurate assessment of the importance of sample size, a trader too often makes assumptions about the accuracy of the system that he uses based on only a few transactions. Or even changes the parameters after the appearance of several defeats.

Minimum sample size is 30 – 50 orders, you don’t change anything about your approach before reaching this number.

=> Persistence with a method and evaluation on the sample set large enough.

— — — — — — — — — — — — — — — — — — — — — —

WEBSITE

=> https://TheBlockchain101.com

TELEGRAM

=> https://t.me/TheBlockchain101

FACEBOOK

=> https://www.facebook.com/TheBlockchain101

INSTAGRAM

=> https://www.instagram.com/TheBlockchain101

TWITTER

=> https://twitter.com/Blockchain101_

TRADINGVIEW

=> https://www.tradingview.com/u/DrDarvas/

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