Some traders believe news are unimportant, and news/narratives are always spun into prices. That's false. News are only sometimes spun into prices, and can be used effectively for speculative activities. It should be obvious, yet it's not. #trading#investing
This may sound extremely obvious to many, yet I've had many discussions where for example price of oil drops hard on a Saudi statement yet a fellow trader would argue news was irrelevant and price actually dropped because traders sold some 61.8% fibonacci retracement.
Prices are not magical self-contained entities following their own rules.
If in doubt look at the following on Trading View:
$GBPUSD on Jun/23/2016 => Brexit
$ES on Nov/7/2017 => US Election Night
$CL on Nov/27/2014 => OPEC
$BTC on Mar/10/2017 => SEC Bitcoin ETF
Gorgeous crypto reversal underway, particularly so on $ETH given how undersold it was, although the setup was cleaner on $BTC. Ideal long entries in my book:
- ETH: 1840-1920 EST $264-$270
- BTC: 1500-1930 EST $6100-$6170 #trading
Setup described as a strong drop that slowly rolls over, upwards. Ideal longs come in the 61.8%-70% reversal, ideally on a 2nd push towards a prior failed attempt to break higher - looking to trade the breakout of the prior failed attempt. Don't want to be dogmatic about the %s.
This may sound like a lot of work, requiring too much chart watching. But it is not so, as these kind of reversals do not happen that often.
This is my preferred breakouts system. Breakouts work. And can be identified algorithmically. Bear in mind, if trading a system based on high frequency data, initial stop should be accordingly in line. e.g. shorting at 6300 was great, regardless of price soon reversing. #trading
Yes, system caught the SEC Aug/7 breakout almost immediately. Try trading that with four hour bars and confirmation.
Notice the 8/5 top after a long bar. I distinctly recall traders making fun of whoever FOMOed long into that top. Ironically, that was a great long, and buying did not necessarily mean buying in FOMO. Just because buying that failed doesn't mean it wasn't a good long.
How to trade Support $BTC $XBT #trading small time frames:
#1: don't guess price will bounce off support, buy the bounce off support.
#2: must know how to take a loss and flip direction - or at the bare minimum take a loss. Never EVER get caught on a V-reversal back to support.
That's at least how I execute, and works extremely well. Can use this for scalping or for getting into larger moves/trends with the immediate impulse behind one's back.
This is called Price Action. Same price action concepts are applicable to all time frames => this approach to execution is useful for all short-term scalpers, mid-term swing traders, and long-term investors who want to enter with the trend.
1/ It seems every #trader has to do the same mistakes as their predecessors. There are #wisdowms you will only understand, if you have experienced them yourself. In this thread I will give you the #wisdom, which can make the difference between being broke and driving lambos #btc
2/ Money is made in big swings
When realizing what profits can be made with trading, many start daytrading and want to #profit from every movement. You won't make more #money. Instead you will lose plenty of time. Watch big time frames and take positions for weeks #btc#trading
3/ When entering a #trade, have targets and a stop loss order
There is nothing more for you to do. There are two outcomes:
-you being stopped out
-you reaching your target
either is fine
realizing losses > being a bagholder
realized profits > unrealized profits
Whenever I express my market views publicly, I find it even more difficult to change them when the actual market circumstances change. However good I try but my ego gets involved with my views so I think it is better to try to express data than opinion. #My2Cents #Trading
In most circumstances consistency is valued and adaptive. Inconsistency is commonly thought to be an undesirable personality trait. The person whose beliefs, words, and deeds don’t match may be seen as indecisive, confused, two-faced, or even mentally ill.
From - Influence
While in other walks of life consistency is desirable and respected, in markets we all know that traders need to adapt quickly according to changing markets. But we often see how traders are trolled for this adaptation i.e. changing their market views.
Ur True Journey as a #Trader starts only after you learn to ignore & stop Trading on so called Analyst Trading Call, Views, Opinions & start trying ur own Trading Strategy, Plan, System;
test them with small size, keep Trading Journal for tracking results to modify accordingly.
Those who not try to take efforts on his/her own,
sooner or later fall prey to Analysts who runs Slack Rooms (nothing wrong if one have legal authority to run) for Live Trading Calls & post same call on Social Media afterwards mainly if not going Acc. to their SR Call (unethical)
If not prey to Unethical Analyst then New Traders tends to take blind bets on Stocks without #Riskmanagement & Plan, Strategy.
Emotional Trading is cause of sure failure of #Trading.
Top bollinger V-bottomed on $INDU #Dow ... Put your seat belts on, equities about to rip... (Yet another confirmation signal $USDJPY about to run as well)
#Dow Daily: First Posted back in April 🤓 . Took longer than other indices but finally breaking out to ATHs. Updated chart with long term TLs, and although we have decent amount of room to run, #Dowjones is approaching a hard limit soon. #Markets#economy#stocks#SPX
#Dow Daily: $DOW backtested 13MA and bounced aggressively. Upper BB shape indicating strong push upwards to new ATH. Stoichs indicating one more pulse before a deeper pullback #Dowjones is approaching final high soon (purple). #Markets#economy#stocks#SPX