🧵 LESSON: #Trading with a Bias
As a trader, one of the most important skills you can develop is the ability to form and maintain a bias in your trading.
As a trader, one of the most important skills you can develop is the ability to form and maintain a bias in your trading.
📍Helps you stay focused:
When you have a bias, you have a clear idea of what you want to achieve in your trading. This can help you stay focused and avoid getting distracted by market noise or short-term fluctuations.
When you have a bias, you have a clear idea of what you want to achieve in your trading. This can help you stay focused and avoid getting distracted by market noise or short-term fluctuations.
📍 Improves decision-making:
By having a bias, you can make better trading decisions. You will be less likely to second-guess yourself or make impulsive trades, as you will have a clear view of what you want to achieve.
By having a bias, you can make better trading decisions. You will be less likely to second-guess yourself or make impulsive trades, as you will have a clear view of what you want to achieve.
📍 Avoids emotional trading:
Emotional trading is one of the biggest pitfalls for traders. When you have a bias, you can avoid making trades based on fear or greed, as you will have a clear view of the market and your goals.
Emotional trading is one of the biggest pitfalls for traders. When you have a bias, you can avoid making trades based on fear or greed, as you will have a clear view of the market and your goals.
So, how do you form a bias in your #trading? There are several factors you can consider, some of them could include:
📍 Macro analysis:
This involves analysing macroeconomic data such as GDP, inflation, and employment figures. By looking at these factors, you can get a sense of the overall health of the economy and determine whether it is likely to improve or worsen.
This involves analysing macroeconomic data such as GDP, inflation, and employment figures. By looking at these factors, you can get a sense of the overall health of the economy and determine whether it is likely to improve or worsen.
📍 USD strength:
The US dollar is the world’s reserve currency and is therefore a crucial factor in many global markets. For example, if the #USD is strong, it might indicate that investors are seeking safe-haven assets, which could lead to a bearish bias on riskier assets.
The US dollar is the world’s reserve currency and is therefore a crucial factor in many global markets. For example, if the #USD is strong, it might indicate that investors are seeking safe-haven assets, which could lead to a bearish bias on riskier assets.
📍 HTF trends:
This refers to the overall direction of the market over a longer period of time. By analysing HTF trends, you can get a sense of the overall direction of the #market and form a bias based on that direction.
This refers to the overall direction of the market over a longer period of time. By analysing HTF trends, you can get a sense of the overall direction of the #market and form a bias based on that direction.
In conclusion, having a bias is a critical component of successful trading.
But always remember that any bias has an expiration date and the sooner you can drift a change in it the better the opportunities you might get.
But always remember that any bias has an expiration date and the sooner you can drift a change in it the better the opportunities you might get.
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