Trading Psychology: Greed Trading Manual Part 15

Trading Psychology: Greed

Greed is known as one of the most dangerous emotions in trading. It is mostly caused by a streak of wins or by success. You will feel like you are mastering the trading
game, and it will make you feel like you found the holy grail. You will quickly grab the illusion that trading for example with 24option trading is an easy game which will make you rich in a short period of time. You will start searching for luxury products and you probably think you are going to make it within the same year. With 24option the first withdraw is completely free.

Greed also occurs when you are trading without a plan or a target. With a target, we mean a realistic goal which is truly achievable. Don’t set goals as a new Ferrari in 1 year or something, as it isn’t realistic. Set goals as; Buying a new Mac Book in a couple of months, or anything like that. Trading without a goal is just as driving without any destination. You must stay disciplined and focused as a losing streak can occur-just as fast and simple as a winning streak! A lot of greedy trader’s jump in with extra position size when a trade is going in their favor, they are simply taking more and more risks to satisfy their greed.

Even the best traders can be brought down to the bottom by greed. A lot of amateur traders think, that if they can make 30 pips on a small lot size, they could have also
done that with bigger lot sizes; Completely forgetting about their trading plan and risk management. You only increase your position sizes as your trading plan lets you
do so. When your account is growing, you don’t need to scale up the sizes immediately, as you could also bring the risk down. You don’t need to double your account or anything in that direction. The only need you have, is to learn a strategy which makes you a living from your trading account!

Furthermore, greed is caused by being grounded and the lack of setting proper trading targets. When you set up your actual target with a proper plan, you won’t be
easily tempted to risk the whole thing. When you achieved your target, don’t forget to hold gratitude towards your new goals!

Greed can also be accused by overconfident traders! When you feel overconfident, you are more than likely going to forget about all danger and traps in the market. No
matter how confident you are of yourself, you should always take in consideration that any trade can lose, ANY!

Get rid, if you aren’t already’, of the “get rich quick” thoughts and start realizing that trading is a long term game which gives you enough probabilities to make a decent income from it. If you are using a decent risk management, in combination with a decent trading plan you will become profitable in the long-term. Never forget, out of 1000 trades with an 80% success rate, there are still 200 losing trades. It’s simply impossible to predict if the price goes in the wished direction.

”Greed does not rest until it is satisfied, and greed is never satisfied”

Trading Psychology: Greed Trading Manual Part 15 is available on: Online Review Network Service

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Psychology Trading Manual Part 14

Psychology “The Hitman of Trading”

The title of this chapter explains it all. Our 15 years of combined experience taught us that the control of emotion and having a straight emotional game, are even more
important than a decent trading strategy. The difference between a winning or a losing trader, lies in the control of emotions and the control of psychological mind-set.

The psychological aspect of trading is extremely important, and the reason for that is fairly simple: A trader is often making important decisions where he puts his money at risk. To accomplish this, you will need a certain presence of mind. But, you will also need discipline to stick with your trading plan. Emotions simply can’t get in your way here!

Around 90% of the Forex educational programs these days don’t tell you anything about psychology or the importance of emotions within the Forex market. Although this is one of the most important aspects. But why don’t they? This is easy to explain; they just want you to think that trading is an easy game where you can get rich by
just using their trading strategy’s or systems!

So, when you are a logical thinker, it wouldn’t be that hard to see that if there was a certain system or indicator that could make you money on auto-pilot; It would
definitely not be sold for a couple hundred. You would be basically paying millions of euros for it.

At Cryptotrading Masterclass we would like to be fully transparent, and that’s what makes us not only teach you a trading strategy, but also the full psychological part of trading. We like to complete the whole Forex puzzle with this information, where others are still searching for the remaining piece. If you can’t control your emotions, it would simply not be possible to make a consistent living from trading.

So, it’s important to know which emotions can impact your trading and how they do so. There are 4 major emotions we will run you through. All of those 4 can influence
your trading very badly, this is why we like to give you a detailed explanation of them!

Psychology Trading Manual Part 14 was originally published on: Online Review Network Service Blog

Best Forex Trading Indicators – Trading manual part 13

fundamentals of trading

Fundamentals Explained

So, now it’s time to get you a clearer view on fundamentals in Forex. What they are,
what they do and how they can influence your trading. Things as Interest rates,
Employment reports and the inflation indicators all fall into the realm of
fundamentals. As a Forex trader, checking all of those certain news out comes, will
become part of your daily routine. Fundamentals are a vital aspect on not only the
Forex market, but also any other financial market like the stock market. Financial
markets simply follow economic numbers!

‘All of those different economic indicators can have a direct — and to some degree
predictable — effect on the value of a nation’s currency in the Forex market.

Given the impact these indicators can have on exchange rates; it is important to
know upfront when they are due for releases. It is also likely that exchange rates
spreads will widen during the time leading up to the release of an important indicator
, and this could add considerably to the cost of your trade.

Therefore, you should regularly check the economic calendar before entering or
closing any trades. We personally strongly advise you to make this a part of your daily
trading routine.

So, let us explain you what all those economic indicators are, and how they affect the
currency pairs.

economic-Indicators-ORN

Economic indicators

  • Gross Domestic Product

A strong GDP result indicate a healthy economy,
suggesting that the currency may increase in value compared to currencies for
countries with weaker economies. Basically a positive GDP encourages bullish price
action where a negative GDP encourages bearish price action.

  • Consumer Price Index 

A CPI that continues to trend upwards month over month
could be a signal that inflation is eroding buying power to the point that the Central
Bank will raise interest rates to curb spending. An increase in interest rates may lead
to an increase in demand for the currency as the potential for a higher return makes
the currency more attractive for traders and investors. In common, a positive CPl
encourages bullish price action, where a negative CPI encourages bearish price
action.

  • Employment Data 

If employment trends downwards, the economy could weaken
as fewer people will have the means to purchase non-essential goods. If employment
is increasing, then spending is likewise expected to increase, and a stronger economy
often leads to a stronger currency. Positive employment data will often result in
bullish price action, while negative employment data often results in bearish price
action!

  • Interest Rates

Investors and traders naturally look to currencies that provide the
best return. If interest rates rise for a particular currency, investors will increase their
holdings in that currency to profit on the higher return. The resulting increase in
demand for the currency could cause it to appreciate in value compared to other
currencies. In common, higher interest rates encourages bullish price action, while
lower interest rates encourage bearish price action.

  • Producer Price Index

Like other inflation-based reports, increasing PPI values could
signal an interest rate hike to combat inflation. Interest rate increases can lead to a
greater demand for the currency. In common, positive PPI outcomes encourage
bullish price action while negative PPI outcomes encourage bearish price action.

  • Retail sales 

A stronger retail sales report indicates overall growth in the economy,
thus increasing the currency’s appeal to investors. In common, stronger retail sales
encourage bullish price action where weaker retail sales encourage bearish price
action.

  • Industrial production Index 

A positive or increasing IPI suggest continued economic
growth, which often leads to a stronger currency.

  • Commodity Price Index

An increase in the Commodity Price Index means that
commodities are generating more income for the economy, which often leads to an
appreciation in the country’s currency.

  • Non-Farm Payroll

Non-farm payroll is a monthly report generated and reported by the U.S. Bureau of
Labour Statistics intended to represent the total number of paid U.S. workers of any
business, except:

– General government jobs
– Private household jobs
– Employees of non-profit organizations
– Farm employees

The nonfarm payroll statistics is reported monthly, on the first Friday of the month,
and is used to assist government policymakers and economists with determining the
current state of the economy and predicting future levels of economic activity.

The Non-Farm payrolls create a lot of volatility on the Forex market. Mostly all USD
pairs will be strongly affected by it. We advise you not to trade on NFP days. Just start
again on Mondayas you can see the continuing direction by then!

Best Forex Trading Indicators – Trading manual part 13 is available on: https://www.onlinereviewnetworks.com

Trading Manual Part 9: Major, Minor & Exotic currency pairs

Major, Minor & Exotic currency pairs

In the world of currency trading, all the different currency pairs are placed in 3 categories’. We
call these: Major, Minor and Exotic’s. Below, you can find these 3 with their
associated currency pairs (assets).

Majors

The major currency pairs all contain the US Dollar on one side — Either on the base
side or quote side. They are the most frequently traded pairs in the Forex market.
The majors generally have the lowest spread and are the most liquid. The EUR/USD is
the most traded pair with a daily volume of nearly 30% of the entire market.

– EUR/USD – USD/CHF
– USD/JPY – AUD/USD
– GBP/USD — NZD/USD
– USD/CAD

Minors:

Currency pairs that do not contain the US Dollar are known as minors. Historically, if
we wanted to convert a currency, we would have to convert the currency into US
Dollars first, and then into the currency we desired.

With the introduction of currency crosses we no longer have to do this tedious
calculation as all brokers now offer the direct exchange rates. The most active crosses
are derived from the three major Non US Dollar currencies. (the Euro, GB Pound and
the Yen). These currency pairs are also known as the minors.

EUR/GBP
EUR/CHF
EUR/CAD
EUR/AUD
EUR/NZD
EUR/JPY
GBP/JPY

-CHFAPY
-CADHPY
-AUDHPY
-NZDHPY
-GBP/CHF
-GBPAAUD
-GBP/CAD

forex table

Exotics:

Exotic currency pairs are made up of a major currency paired with the currency of an
emerging or a strong but smaller economy from a global perspective such as Hong
Kong or Singapore and European countries outside of the Euro Zone.
These pairs are not traded as often as the majors or minors, so often the cost of
trading these pairs can be higher than the majors or minors due to the lack of
liquidity in these markets.

— EUR/TRY – USD/ZAR
– USD/SEK – USD/HKD
– USD/NOK — USD/SGD
– USD/DKK

Leverage:

In Forex, investors use leverage to profit from the fluctuations in exchange rates
between two different currencies. The leverage that is achievable in the Forex and CFD market
is one of the highest that investors can obtain. Leverage is a loan that is provided to
an investor by the broker who is handling his or her Forex account. When an investor
decides to invest in the Forex  or CFD market, he or she must first open up a margin account
with a broker. Usually the amount of leverage which is provided is either 50:1, 100:1
or 200:1, depending on the broker and the size ofthe position the investor is trading.
A standard lot size in trading is done on 100,000 units of currency, so for a trade of
this size, the leverage provided is usually 50:1 or 100:1. Leverage of 200:1 is usually
used for positions of 50,000 units or less.

To trade $100,000 of currency, with a margin of 1%, an investor will only have to
deposit $1000 into his account. The leverage provided on a trade like this is 100:1.
Leverage of this size is significantly larger than the 2:1 leverage commonly provided
on equities and stocks.

Although 100:1 may seem extremely risky, the risk is significantly less when you
consider that currency prices usually change by less than 1% during swing trading. If
currencies fluctuated as much as equities, brokers would not be able to provide as
much leverage.

Although the ability to earn significant profits using leverage is substantial, leverage
can also work against investors. For example, if the currency underlying one of your
trades moves in the opposite direction of what your analyses told you, leverage will
greatly amplify the potential losses. To avoid such a catastrophe, we use a strict risk
and money management.

Margin:

Margin is the amount of money you need to open a position on your Forex account.
It’s basically an amount which is set aside for every new trade you open. For example,
when you have a $1000 margin balance and you need a 1% margin minimum to open
a position, you can control a position of $100,000. This makes it possible for a trader
to leverage their account 100:1.

How higher the leverage chosen, the higher the available margin percentage will be!
When you use to high lot sizes or open to many positions, it could happen that your
account falls under the minimum amount which is required to keep a position open.
When this happens you get a “margin call”. When this occurs, you will need to
deposit more money in your trading account, or you will need to close positions.
When your margin percentage falls under the 50%, the broker mostly cut your trades
automatically what will literally make you cry. This is why we trade safe and stick to
our risk management plan.

This is also the reason why you need to be very careful with the amount of positions
you open, when a high leverage is chosen. For example, when you opened your
trading account on a 400:1 leverage, 2 standard lot sizes would be to much as you
have a S2000 account. 2 standard lot sizes will bring you a pip value of somewhere
around $20. When you take the margin in consideration, you would have around
$1300 left in your trading account, this would make it possible to get your account
wiped out in about 65 pips. To avoid all this, we use a lot size calculator…!

 

Check our coverage strategy for forex and crypto trading: Coverage strategy

Avoid scams check our scam brokers and system list: Trading scams

Trading Manual Part 9: Major, Minor & Exotic currency pairs was first published on: ORN

Trading Manual part 11: Trading Charts

Different Forex Charts

Within the Forex market, there are multiple chart forms. However, 3 of them are
taking the lead. In this course we will go in depth on: Line chats, Bar charts and the main Candlestick charts. In our trading style, we basically only use the candlestick charts, as they give us the most data. Their information is the most accurate and comprehensive.

Line charts

The line charts are basically the simplest ones. They are an extremely simplified
image of the price action. It basically shows you the overall trend of a certain asset.
On this chart form, support and resistance levels can be drawn; but that’s basically all as they won’t give you any more information. You can’t trade from the line charts as it doesn’t give you the essential information as the opening and closing price from a
certain period of time. The line goes from high to high, low to low, open to open or
close to close.

We basically see the closing price as the most important one. Based on the closing
price, we can determine who won the battle (bulls or bears). Below you can find an
example of a line chart. You can see some key levels where the price has bounced off.
This is why line charts can be useful sometimes when drawing support and resistance
levels.

line chart

Bar charts

The bar chart gives a more detailed look on the price action, when we compare it
with the line chart. The bar chart shows a bar for all price action in the period of time
you chose. So for example, you selected the 1-hour timeframe, every bar will
represent the price action over the 1 hour you’ve selected. When you selecting
higher timeframes, you are basically zooming out to get the overall price action. And
vice versa of course.

So, what actually does a bar shows you? Every bar will show you 4 parts of essential
information. This information can help you as a confluence for entering a trade, or as
a confluence for certainly not entering a trade. The bar gives you an opening price, a
closing price, a high price and a low price. Every bar sticks to an independent period
of time, there is absolutely no connection between the bars.

Below you can find an example of a bar chart. You can see the high, low, open and
close price are indicated on the chart.bar chart picture from ORN

Candlestick charts

Candlestick charts are the most common in nowadays trading, you will be using candlestick charts as your main chart form. They simply give you the most accurate view on the price action. The candlestick charts basically give you the exact same information as the bar charts do. However, the candlestick charts make you visualise the price action more easy!

As mentioned before, candlestick charts are the most popular in nowadays trading.
On the right we’ve placed a screenshot of what a chart looks like on the
analysing platform we will be using throughout your trading journey.

Source article: https://onlinereviewnetworks.com/news/trading-charts-part-11/

 

Try different strategies using these charts. Check out our strategies page: Forex and CFD strategies

Trading Manual part 8: Forex Terms & Phrases

forex-crypto-terms-teacher

Forex Terms & Phrases

As a professional trader, you need to know everything about the different terms we
use on a daily basis. We’ve tried to split down the Primary conditions for you in this section
Of the course. You Will Have to be completely aware of them so as to continue the
course! Make Certain That You Get your mind about them and don’t hesitate to write us if
There remain any questions.

Pips

Pip stands for “percent in

points”. A pips is the tiniest motion in the price activity we utilize. A normal Forex
Quote is composed of 5 digits 0,0000. The pip is that the 5″‘ digit which can be found at the

quotation. So, Once the cost from GBP/USD goes from 1.2320 into 1.2346 we can
Calculate the pip difference. 1.2346 — 1.2320 = 26 pips difference.

Thus, to Ascertain the worthiness of 1 pip, we should look at your account size as it
Depends on the size of places you could take. But also the amount or threat you can
Take plays an important part! To calculate the gain based on the amount of pips per
Trade, you just multiply the amount of pips 26 with the value per pip $10 (for
Example) = 260.

Point

Some trades, and especially swing traders, are citing points in their trading
routine. So, if the cost from a certain asset moves from 1.2300 to
1.2400 the has basically moved by 1 point.

Base & Quote currency

Within the Forex market, the currency units are offered as currency pairs. The base
Currency — also referred to as the transaction currency — is your initial currency appearing in a
Currency pair quotation, followed by the second portion of the quote, known as the
Quote currency or even the counter currency. For accounting purposes, a company may use the
Base currency as the national currency or accounting currency to represent all
Gains and losses.

Ln Forex, the base currency represents how much of this quote currency is required to get
You to get one component of the base currency. For Instance, If you’re looking at the
CAD/USD currency set, the Forex are the base currency and the U.S.
Dollar would be the quote currency.
In Forex, currency pairs are written as XXX/YYY or just XXXXXX. Here, XXX is your
Base currency and YYY is the quotation currency.

When supplied with an exchange rate, currency pairs indicate how much of the
Quote currency is necessary to buy one unit of the supplied base currency. For
Example, reading EUR/USD = 1.55 means that the $ 1|s equivalent to $1.55. So this basically
Says that so as to purchase $1, a buyer should pay $1.55. The currency pair
Quote is read in precisely the same way when selling the base currency. If a seller
Wants to sell $1, he will get $1.55 for this.

Forex quotations are stated as pairs since investors concurrently buy and sell
currencies. For example, when a buyer buys EUR/USD, it essentially means that he
Is buying Euro and selling U.S. bucks in the same moment. Investors buy the set if they Believe that the bottom currency will gain value compared with the quote currency. On The flip side, the sell the set if they think that the bottom currency will eliminate value in Comparison with the quote currency.

Spread

In order to trade the Forex market, you will have to find access through it. That is Obtained through a broker.
Those currency pairs on the market. It’s therefor perfectly understood that they
Need to get money. Their income is earned through spread. They basically earn
Money through every transaction that’s made by them!

spread example

As stated before, there are two costs which could be discovered on a currency pair.
Those are given as the bid and ask price. The difference between these rates is
This is fundamentally the commission for the broker.
So, when you are buying a currency pair You’ll Be paying the Ask price that is
Quoted on the broker platform. When You’re selling a currency pair you will be
Paying the Bid price that’s also quoted on the agent platform.

Next part of the Trading guide forthcoming out shortly! So keep tuned!!

Try out one of the best strategies for Crypto, Forex and CFD: Bands of bollinger strategy

Trading Manual Part 7

morning trading

Daily evaluation of the Market

As a trader, your trading routine starts as soon as you wake up. You will
Assess the current market status, as well as the price movement immediately. This shows you
What occurred to some positions that were open .
Losses or your stop loss may even been hit.
Take profit was hit while you were sleeping.

The essential part is to enroll any stops or take profits on your free trading journal
Which is included with this program! This is what most amateur traders neglect to do, or
Don’t want to do. However, this is exactly what separate the amateurs from
the professionals. Your trading travel can only be seen over a long period of time,
Therefore it’s essential you upgrade your journal everyday to see your growth.

We strongly suggest that you take screenshots of all your trade set-ups as. This will help
It will
Surely help you to improve your trading routine, which will provide you with the opportunity
To spot large potential trade set ups in a short time period.

Professional trader tips

As a professional trader you will only be trading a selected amount of currency pairs.
Trading a wide assortment of currency pairs will only bring you additional risk. We’ve proven That a professional trader who is focussing on a selected amount of currency pairs,

Was able to achieve a lot more profit than a cluttered trader who was trading tons of
currency pairs. It is simply more efficient, and you will see that your investigation become
“much more effective; This normally leads to success and profitability within the Forex market.

morning financial news

The essential part of the development from a trading pattern, will be assessing the
Markets on certain times during the day. You will need to treat trading as you would
You can not see trading as a fun game you play

Whenever you have some time off, as this will surely not bring you any gains on the
long term. As a professional trader you will be monitoring in the beginning of the
Primary trading sessions as the London session or the New York/European session.
It depends on which one comes first in your specific time zone.

The overall thing we attempting to describe here, is that a professional trader has pre-
defined trading times. Besides that, they master their trading strategy perfectly, and

They know the value of trading only a couple of resources which suits them. This
Ultimately enables them to have an adequate trading pattern, which make them
Understand that LessMore in the market.

Next part of the trading guide releasing shortly!!!

Check out our Selection list of Agents: Top Agents 2018

Check before picking a broker, this list out! : Scam Agents List