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15. Jun
2018

The major reason why suicide traders don’t use stop loss

Geschrieben von: mustaphaazezz

Getagged in: Forex , Basics

Note: This article shows why the use of stop loss is 100% mandatory, despite what suicide traders (who call themselves professionals may say). This article comes from someone with over 60 years of experience in various financial markets.

 

 

Would you ever think of jumping out of an airplane without a parachute? Of course not, but that's what some people do when they trade the markets. They are very willing to put their money on the line, but they don't have much to protect them from a major disaster. Placing a stop, for example, can prevent you from allowing a small loss to turn into a big one, but many traders avoid placing stops. Why do some traders take risks by not placing stops? It can be difficult to know where to place a stop. If you fail to account for volatility, you will get stopped out too soon. Other people are afraid to place stops. Placing a stop requires you to consider the worst-case scenario, and to many, it's difficult to consider failure. It's easier to deny the potential problem, and to pretend it will not possibly happen. Many experts, however, suggest placing stops. They know that nothing is certain when trading the markets. They view protective stops as a kind of insurance policy that prevents a catastrophic loss.

 

One seasoned trader I talked to, says "I never take a trade without knowing my stop. When I take a trade, I'm pretty convinced it's something worthwhile. I've already figured out my stop. I've accepted the (potential) loss before I ever clicked the button or made the call. So if it starts going against me, I don't feel a flood of emotions." For that trader, stops not only protect him from losses, but they help him control his emotions. Stops give him a feeling of security, and allow him to feel calm and relaxed.

 

Experienced traders may use stops all the time, but even the most experienced traders have difficulty following them. For example, one trader I know, admits, "I've blown stops and it's painful. The weird thing is that money does not seem to be driving it. Afterwards, I sit and try to analyze the incident. I certainly knew better. I believe trading is something of a self-journey. It involves learning about your character, your self-control, and your ego."

 

Still another trader also admits he blows his stops: "Sure. That happens all the time. There's nothing I can do about it. That's one of challenges that continue to engross me. Do you hold them or do you fold them? If you fold a long position and prices go up, you get angry because you made a mistake. If you hold a long position and prices go down, you become angry again. Nevertheless, you have to stay focused on what's going on and learn from the experience and try to apply it to the future. You're going to take your lumps in the market."

 

Even though stops are difficult to set and difficult to keep at times, they are an essential component of risk management. Losses are commonplace in trading. As hard as it is to focus on losses, they are impossible to avoid. Rather than avoid thinking of the worst-case scenario, face it head on. Figure out what could go wrong and where you can place a stop to protect you from a huge financial loss. In the long run, you'll find you will limit losses and trade more profitably.

 

Author: Joe Ross

Source: TradingEducators.com

 

 

The note below ends this piece.

 

“So, what is a trader to do?  Well, one of the things to do is to re-evaluate the way you envision the markets and your relationship to loss.  What you want to develop is an I don’t care attitude regarding your trading.  You must look at the markets as being exactly what they are, totally unpredictable. 

 

No matter how good a level looks, it is not a foregone conclusion that any particular outcome is definite.  What we look for is the high probability trade. There are times when the probability may get very close to 100%, but no matter how close it gets it can never be 100%.  This means that whenever you enter a trade you must embrace it as a possibility for loss. When you do this, it detaches you from the loss potential because you are prepared for it.

 

Of course, you already have begun this process whether you realize it or not.  You have put in a hard stop! This is imperative. The stop’s first and main job is to protect your capital.  If your capital is gone you cannot trade, so it follows that this is the most important part of your trading; and, of course it is derived from an appropriate risk calculation.” – Dr. Woody Johnson (Source: TradingAcademy.com)

 

 

www.tallinex.com wants you to make money from the markets.

 

 

 

Trading realities: http://www.advfnbooks.com/books/unlockpotential/index.html  

  

11. Jun
2018

Daily analysis of major pairs for June 12, 2018

Geschrieben von: mustaphaazezz

Getagged in: Forex

Daily analysis of USD/CHF for June 12, 2018

 

 

USD/CHF

The USD/CHF did nothing significant on Monday – except consolidating. In the long-term, the market has been caught in a slow and gradual downwards movement, and it is a situation in which short-term rallies often lead to further downwards movement. The outlook on USD/CHF is bearish for the week, especially when the EUR/USD gathers some stamina.

 

The EMA 11 is below the EMA 56, and the Williams’ % Range period 20 is showing some form of neutrality. There is a Bearish Confirmation Pattern in the market. The support levels at 0.9800 (which has previously been tested), 0.9750 and 0.9700, would be reached soon, and that might bring about a strong Bearish Confirmation Pattern in the market.

 

Daily analysis of USD/JPY for June 12, 2018

 

11. Jun
2018

Daily analysis of major pairs for June 11, 2018

Geschrieben von: mustaphaazezz

Getagged in: Forex

Daily analysis of USD/CHF for June 11, 2018

 

 

USD/CHF

This is a weak market, for the USD/CHF has been caught in a slow and gradual bearish movement since May 10 (over 230 pips). It is possible that the market would continue going further downwards (albeit slowly), especially when EURUSD gains a lot of stamina. This is because the EUR/USD and the USD/CHF are negatively correlated.

 

There is a Bearish Confirmation Pattern in the market. The support levels at 0.9800 (which has previously been tested), 0.9750 and 0.9700, would be reached soon, and that might bring about a strong Bearish Confirmation Pattern in the market.

 

08. Jun
2018

Daily analysis of major pairs for June 8, 2018

Geschrieben von: mustaphaazezz

Getagged in: Forex , Basics

Daily analysis of USD/CHF for June 8, 2018

 

 

USD/CHF

Price touched the support level at 0.9800 and bounced upwards. The upwards bounce pales into insignificance when compared to the overall bias on the market, and it may thus proffer an opportunity to enter the market at a better price (in favor of bears). Price could breach the support level at 0.9850 to the downside.

 

The current upwards bounce is not significant unless the resistance level at 0.9950 is breached to the upside. There is a Bearish Confirmation Pattern in the 4-hour chart and the Williams’ % Range period 20 is not far from the oversold region.

 

06. Jun
2018

Daily analysis of major pairs for June 6, 2018

Geschrieben von: mustaphaazezz

Getagged in: nicht getagged 

Daily analysis of USD/CHF for June 6, 2018

 

 

USD/CHF

The outlook on the market remains bearish and price is going southwards gradually. It is now below the resistance level at 0.9850, and it may reach the support levels at 0.9800 and 0.9750. Since the trend has been going on for some weeks in a row, it is supposed to continue for the next several trading days.

 

There is a Bearish Confirmation Pattern in the 4-hour chart and the Williams’ % Range period 20 is in the oversold region. Further southwards movement is expected until USD gains stamina, for that is what can reverse the trend.

 

01. Jun
2018

Daily analysis of major pairs for June 1, 2018

Geschrieben von: mustaphaazezz

Getagged in: Forex , Basics

Daily analysis of USD/CHF for June 1, 2018

 

 

USD/CHF

This market has been going downwards gradually, forming a clear bearish bias. The week has generally been bearish and price is approaching the support level at 0.9850 gradually and it would soon breach it to the downside. After which price would target another support level at 0.9800

 

A continuation of the bearish movement is expected today or early next week. There is a Bearish Confirmation Pattern in the market, and the bias is bearish.  The Williams’ % Range period 20 is almost into the oversold region.

 

31. Mai
2018

Daily analysis of major pairs for May 31, 2018

Geschrieben von: mustaphaazezz

Getagged in: Forex , Basics

Daily analysis of USD/CHF for May 31, 2018

 

 

USD/CHF

This market has been going gradually downwards (a movement that was started early last week). Price is now below the resistance level at 0.9900 and it may reach the support levels at 0.9850, and another support level at 0.9800, which would most probably favor bears. However, a strong selling pressure is needed for the support level at 0.9800 to be reached.

 

A continuation of the bearish movement is expected today or tomorrow. There is a Bearish Confirmation Pattern in the market, and the bias is bearish.  The Williams’ % Range period 20 is almost into the oversold region.

 

30. Mai
2018

Daily analysis of major pairs for May 30, 2018

Geschrieben von: mustaphaazezz

Getagged in: Forex

Daily analysis of USD/CHF for May 30, 2018

 

 

USD/CHF

The market is now quite choppy. This pair has done nothing significant this week – except a sideways movement in the context of a short-term downtrend. There is a ranging condition in the market. Even a pullback that was seen yesterday was quickly erased, as bears leave their footprints in the market.

 

However, a breakout is supposed to happen today or tomorrow, which would most probably favor bears. There is a Bearish Confirmation Pattern in the market, and the bias is bearish.  The Williams’ % Range period 20 is not far from the oversold region.

 

29. Mai
2018

Daily analysis of major pairs for May 29, 2018

Geschrieben von: mustaphaazezz

Getagged in: Forex

Daily analysis of USD/CHF for May 29, 2018

 

 

USD/CHF

This pair did nothing significant on Monday – except a sideways movement in the context of a short-term downtrend. However, a breakout is supposed to happen today or tomorrow, which would most probably favor bears. There is a Bearish Confirmation Pattern in the market, and the bias is bearish.  

 

 

The market can thus reach the support levels at 0.9900 and 0.9850, thereby erasing the long-term bullish outlook on the market…  However, for this to happen, there is a need for a strong bearish pressure.

 

28. Mai
2018

Daily analysis of major pairs for May 28, 2018

Geschrieben von: mustaphaazezz

Getagged in: nicht getagged 

Daily analysis of USD/CHF for May 28, 2018

 

 

USD/CHF

This USD/CHF is bullish in the long-term, and bearish in the short-term. Last week, price turned southwards, testing the level at 0.9900 several times and eventually closing below it on Friday. One reason why the market became bearish in the short-term is the strength in CHF. CHF still strong, as evident on major CHF pairs.

 

 

The market can thus reach the support levels at 0.9850 and 0.9800, thereby erasing the long-term bullish outlook on the market…  Short trades are not currently advisable as further bearish movement is a strong possibility.

 

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