Open Trading Club
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Our objective is to provide all trade ideas about market analysis & commentary for active traders and investors. Posts about equities, options, forex, futures, analyst upgrades & downgrades, technical and fundamental analysis, and the stock market in general.
- OrganizerJuly 27, 2021 at 7:05 am
What beginner investors should know
- OrganizerJuly 27, 2021 at 7:32 am
Currency transactions are not always smooth sailing, sometimes even frustrating. Some people clearly in the beginning of a small profit, but after a period of time and all lost, what is more, some people from the beginning to the end of the loss. In fact, as long as the people who do the trade, who do not want this situation to happen to themselves. They know this: there will always be dealmakers, so why not me? So what exactly does it take to become a successful trader? Here is a successful day trader who goes by the pseudonym “John” sharing his story:
Become a currency trader
1. Be interested in the deal
John is buying and selling stocks and trading. He became interested in financial markets during a trip two years ago, when he saw a group of foreign tourists exchanging money at a kiosk. He looked at the shiny liquid crystal display that showed the exchange rates of the day’s major currencies – the dollar, euro, pound, Swiss franc and so on.
The exchange rate changes every day. One day, he walked by the exchange booth and noticed that the euro had appreciated against all the other currencies, which meant that if John decided to change money that day, he would get more of his own currency.
“I think it will be interesting to trade currencies, particularly to buy currencies that are expected to rise and sell those that are expected to fall,” he said.
By then, he had a good understanding of the stock market and decided to start trading. The next step is to open a brokerage account.
2. Open a brokerage account
John didn’t know much about brokers, spreads, leverage and margin. All he knew was that he needed a brokerage account to start trading. So he opened his own brokerage account at the first broker he found online. That was his first mistake.
His first broker had a high spread and offered so much leverage that his trading book blew up. He said he focused on a very short time frame, used a dozen technical indicators and took large positions early in his trading career.
“All of these mistakes are common among beginners, and without them I would not have learned the great lessons I know today,” he said.
High – margin fees accounted for most of his profits on a handful of profitable trades. He later discovered that his first broker was not even regulated.
On the road to a successful trader
Stage 1: First brokerage account – bursting
It wasn’t long before his first trading account blew up. “Psychology plays a big role in trading,” he says. After a series of winning trades, I took too many risks. I thought I knew how to play this game. Eventually, I got a margin call.”
As it turns out, excessive trading and poor risk management were the main reasons John’s account exploded. He adds: “Most traders have the experience of their first account bursting. it doesn’t matter I know where I made mistakes and how to avoid them in the future.”
Stage 2: Second brokerage account – break even
After his first trading account blew up, he closed it and began learning as much as he could. He found a trading mentor online and started reading a variety of books on trading, including technical analysis, fundamentals, trading psychology and risk management. He also set up a mock account, developed his own trading strategy and applied key risk management techniques to all his trades.
“After a few months of learning and trading on a mock account, I felt ready to trade again,” he says. He deposited his money in a second trading account at the new broker and began using all the knowledge he had learned from trading over the past few months.
Soon, he found himself able to make ends meet in the market. He didn’t lose much and he didn’t gain much.
He said: “I feel great! I knew I could make a profit in the market with just a small change in my trading strategy.”
Unfortunately, a bad trading decision later cost him a lot of money. “I feel the pressure to profit in the market. Even though I had been break-even, I made a big bet on GBP/USD and decided to go short minutes before an important market report.”
Stage 3: A third brokerage account – consistently profitable
“I was sad,” he explained. I made a bad decision that nearly destroyed my trading account.” Fortunately, he still had some money left in his trading account, and he added some more to cover the losses from the GBP/USD trade.
“From that moment on, I stopped letting fear and greed interfere with my trading decisions,” he says. Trading is a marathon and I want to stay in this business for years to come.”
Since then, he has fine-tuned the risk-management rules. “I risk a dollar to get a dollar,” he says. “That’s why I keep breaking even.” A simple adjustment helped him eventually make a steady profit in the market.
Remember that the risk you take is always less than the potential return, and you need to keep your profitable trades going until you reach your profit target.
- This reply was modified 2 months, 3 weeks ago by Z-Studio.
- OrganizerJuly 27, 2021 at 7:37 am
Why is there such a statement as “it is better to be in the stock market than at work”?
Everyone enters the market normally when the market is hot, let a person feel to fry very easy, try to make money casually, does that major exceed not make money more? Actually,
In the bull market, the choice of stocks is not very important, but how much profit, buy up, catch can soon come back. A lot of people think that’s all there is to the stock market, and when it’s easy to make money, this kind of talk or idea will multiply. In fact, the vast majority of retail investors do not have a bad market in the case of profit or capital preservation.
In the more than three years of operation of the Traders club, we have contacted a large number of individual investors, no less than tens of thousands of outstanding investors, most of them lost money.
We must pay attention to, you have profitable experience, does not mean that you have the ability to make profits! Before trading professionally, you should study and practice a lot to improve your understanding of the market and trading. If the part-time stock can profit more than three to five years, in consideration of full-time, not late!
Big trading floor _ Traders’ club
Why is the average line called a lifeline? What are the techniques?
Litigation alone is extremely unlikely.
2. There was no explanation of how to appear. The deal, the entrance is much more important than the entrance. Because the exit decides the trading logic, determines the trader’s risk control ability and the ability to grasp the market.
30 average line in actual combat is the most effective, the most basic use method is: a average line. All trading strategies around moving averages should be optimized and extended on the basis of a moving average. For example, add various filters to filter trading opportunities. The trading method of a moving average is more powerful, I use the 30 moving average to test the market trend you know:
Big trading floor _ Traders’ club
The yellow line is the capital curve.
Do short – term trading really can not make money?
Futures trading short – term although difficult to do, but if you must hate to leave, there is no hope of success, it seems to be too absolute, after all, every line will always have a handful of top people, can do outstanding in their own good place. However, the strategies used by those who invest in speculative trading in China and abroad are mainly medium and long term trend trading, and few people are famous for making money from short term trading, which also proves the value of non-short term trend trading strategies in one aspect.
Big trading floor _ Traders’ club
At present, most people in the futures trading are intra-day short, especially those who have not been in the futures market for a long time, will basically start from the intra-day short, many people can not understand those who only operate a few dozen times a year, such a number of times for many people, a week will be more than them.
Big trading floor _ Traders’ club
Is the stock market a hoax?
We need to fix our human flaws and our trading plans if we want to be profitable in the long run. We need to understand what the nature of the transaction is. We can’t say that the market is a fraud, and we can’t make a deal to go to the casino and gamble, and lose money without knowing anything.
When we enter the trading market, we must take a stop loss on the road, we do what we should do, as to how much profit, that is determined by the market and our trading system. If you can understand the meaning of these three charts, I believe that you can become a qualified trader and make steady profits in the stock market for a long time, rather than think of it as a casino or a fraud.
Eight weeks trading training record + with my intraday trend capture trading system
Will focus on the general direction, will be the premise of the general direction, most of the list will be homeopathy trade, but not to say that never do the reverse of the single. This is also an opportunity, as long as the admission conditions accord with the deal, the final failure also have to enter. In the use of trend to do trading methods, we should pay attention to two points: one is that the trend can be appropriate to enlarge the profit and loss ratio, admission can be a little bit risky, and contra trend trading needs to be more cautious, choose a more conservative point, reduce the profit and loss ratio. For example: and contrarian trend trades, 2 it is the choice of opportunity, homeopathy trades can be entered when the signal did not appear completely sometimes, and contrarian trend trades cannot, contrarian trend trades can enter only in contrarian signal the ability below the circumstance that gets complete confirmation. Trading system this thing, in fact, I’m sure it’s meaning, I think it is a complete set out rules, trading discipline, positions, a combination of management and financial risk control, and the purpose is to let oneself can more accurate judgment trading opportunities, will clear request we do varieties, traded in what period of time, position, admission rules, the rules of play, Position size, money management, and so on. I can’t say how meaningful trading systems are, but for me, here’s a little explanation: What is a breakthrough?
- OrganizerJuly 27, 2021 at 7:55 am
Founder of women’s Trading Club: The best option is for retail investors to huddle together
Experienced traders know how important it is to find a circle to belong to. As an ordinary retail trader, you don’t have the allocation of an institutional trader (capital, first-hand information, trading data, trading mentors, risk management teams, etc.). Retail investors are arguably the most difficult role to play in the trading world, as most retail investors are on their own and have absolutely no money or news to compete with their counterparties. “Huddling” works for institutions, but even more so for retail traders.
In the United States, where financial trading is very sophisticated, there are many such private trading clubs, where local and nearby traders meet regularly to share their trades. With their more sensitive and cautious approach to trading, female traders are a force to be reckoned with in the trading world.
Set up a female trader club to share successful trading experiences
Sylvia Marshall is the organizer of a local trading club in the United States. The difference is that all members are women. Sylvia formed the club by a stroke of luck. “One day, a female friend of mine called me and said she had lost nearly $30,000 on a trade, and I had been doing so well, so she asked for my advice. Later, with my help, her trading performance improved. More and more friends contacted me, hoping that I could also help her. As the number grew, I decided to form a trading club so we could communicate regularly and grow together.”
The club does not charge any extra fees and members who attend the month’s events share the venue fee. At the same time, some female members will prepare their own special dishes before the party, such as pie, bread, etc. The atmosphere at each gathering is relaxed and cheerful. As you enjoy your meal, you review your best deals of the month. Underperforming traders in such an environment, psychological stress is also a good release.
Of course, most of the time, Sylvia is the trading instructor at the club, and she is still the club’s highest-earning woman, with an impressive annual return of nearly 50%. “Women traders do start out at a disadvantage compared to men for a variety of reasons. What drives them into the trade may not be love, or even curiosity, but simply a desire to make a little money to help the family. Perhaps due to lack of motivation, most of them lose confidence and leave soon after they suffer losses.” This is what Sylvia knows about retail women traders.
“What I’m trying to do is put them on the right trade path. I want them to know that trading isn’t hard. It’s as easy as making pies or baking bread. All you need is someone to guide you and an environment that inspires you to continue. Of course, there is a correct understanding that trading is also a process that requires experience, time and effort to learn and improve.”
In three years, silvia has trained more than 150 female traders, a third of whom are currently active in trading, through regular information sessions held by the club. “I’m very pleased with the results. I’d rather spend time with individuals who really want to stay in the trading world than have big talk sessions with people who have no interest in trading and just want to take advantage of the market’s recent performance and walk away.”
What trading means to women
After years of running the club, Sylvia sums up what trading means for women. She believes that trading for financial success can give women a psychological boost. “One woman joined us after going through a terrible divorce. Perhaps because of the shock, she worked harder than anyone else to learn the trade. She knows she can only achieve financial independence and restore her self-esteem if she succeeds in the transaction.”
“I absolutely believe that both men and women can make great traders. Of course, none of the qualities and characteristics required to do this job well are gender-specific — hopefully more women today are aware of this.
You need to be confident enough to take on the risks and pressures associated with exposure to significant trading positions. You also need to be able to overcome short – and medium-term disappointments when markets are bad.
In many ways, a woman’s emotional intelligence and empathy are also an advantage in the job. Finally, it’s about balancing the stress of a bad deal and the negative impact it may have on family life. But this applies to all professions, not just trading.
Don’t be afraid of the word “trader.” This is not a job for men alone. I’ve been trading for years and I love it. I love waking up in the morning and embracing the challenges of the day. Every day is different, requires new decisions, new beginnings. Evaluate, reevaluate, adapt and change. A woman’s intuition is also very valuable in trading.
Start small. I say this to everyone: start by making 10 basis points. When this is profitable, turn it into 11 points, then 20 points, then 50 points, increase leverage. In addition, risk control is also indispensable.
Marshall believes that anyone can trade successfully if traders follow smart strategies. “I think a lot of women don’t want to do deals because there are all these complicated charts that they don’t think they can read. But if you keep things simple, then it will be easier to deal. It’s also very important to be together, to encourage each other and to share experiences. Having a healthier trading environment is also crucial for traders to get to the end.”
- OrganizerJuly 29, 2021 at 7:31 am
Precious metals investment in the ultra-short – term trading points
Precious metals investment in the ultra-short – term trading points
1, too strong easy to fold: the market has a classic, widely recognized as “strong, weak constant weak.” This is often true. The key is “constant” to what extent, certainly not eternal. But, constant three days or constant three months? Actually, it is difficult to control in a firm offer. What is emphasized here is that there is another side to the understanding of the strong, which is that the strong is easy to fold; Note: When strong silver prices weaken, sell-offs or cover falls may sometimes be more vicious. Therefore, for the continuous pull up after the strong must be careful, would rather miss, can not do wrong. A spent force is absolutely to give up.
2, the first turn strong: silver price turn strong attack, in the daily chart can be clearly seen, is the initial strong or strong; If the recent stage has been the shock accumulation or small Yang slowly rising, suddenly the volume of strong, this strong is its concern value, because it belongs to the initial strong. If the continuous volume of attack 5-8 trading days later, you just chase into, this is not called chasing strong, this is called chasing high, because, it has been the end of strong; Chasing the end of strong silver price risk will increase. Firm dish, the need to pay attention to is the first turn strong starting position.
3, trading psychology: a lot of people dare not touch the strong silver price, for fear of rising is a false action, he was caught in. This is a very common trading psychology. Some novices have more or less operated strong silver prices, but after being fixed by silver prices, become careful. No matter how you trade, it’s perfectly normal to have trouble trading. It does not need to be stressed that strong silver has a better chance of performing on the day and the next day than silver in general. Need to emphasize repeatedly is: strong silver price on the next day if the strong is not strong, we must strive for in the first time. This is small make up to emphasize “do not go up”. Learning to limit losses to predetermined levels will reduce the fear of trading strong silver prices.
Leaving skills: in fact, skills are to give way to strategy. Strategy is relatively reliable, but skill can be “self-defeating.” For ultra-short term precious metals traders, the “up or go” strategy is a general next day strategy that requires coping skills to implement. Several points are particularly important – opening price, first volume ratio, time-share average price line, last close, running time, the first half hour volume performance. Simply put, if the volume is high open, silver price is always running above the time-sharing average price line, the gap is not filled, and this feature can be maintained, it is a clear position signal; The more contrarians there are, the more they need to be eliminated in the first place.
Respect the facts: This is very important. Most of the time, when the price of silver goes down, we like to imagine that the main force is washing the dishes and can go up again. Maybe you’re right. It’s a dish. But it could be wrong, and it could actually go down. Here, there are ways to distinguish, but no reliable way to do so. Especially for short-term operations, it is more straightforward and reliable to respect current facts than to proceed from fantasy or speculation. Decisive, resolute implementation of the “do not go up” strategy, will be more pragmatic than the intraday analysis of true and false, more effective. In the long term, it is more advantageous than the ultra-short – term trading. Moreover, it can ensure that the transaction will not be harmed significantly, and block the time for the unfavorable transaction to grow, so as to ensure the safety of long-term transactions.
In short, based on facts; Taking the trading system as the criterion is the principle that the ultra-short – term trader should follow.
- OrganizerJuly 29, 2021 at 7:33 am
Gold invests small knowledge :8 big factors affect gold price to change
old price changes, most of the reason is influenced by the supply and demand of gold itself. Therefore, as an investor with his own investment principles, he should try his best to understand any factors affecting the supply of gold, so as to further understand the dynamics of other investors in the market, and predict the trend of the gold price, so as to achieve the purpose of reasonable investment. The main factors include the following aspects:
(1) Dollar trend
The dollar is not as stable as gold, but it is much more liquid. Thus, the DOLLAR is considered the first class of money and gold the second. When international political tensions are uncertain, people buy gold on the expectation that prices will rise. But the currency most people keep in their hands is real time dollars. If a country needs to buy weapons or other supplies from another country in times of war, it will sell its gold in exchange for dollars. So the dollar may not necessarily rise during periods of political instability, depending on how the dollar moves. Put simply, when the dollar is strong, gold is weak; When gold is strong, the dollar is weak.
Usually when investors are saving for capital protection, they will withdraw gold rather than dollars, and withdraw dollars rather than gold. Gold is not legal tender per se, but it always has a value and cannot be devalued into scrap metal. If the dollar is strong and there is a good chance that it will appreciate, people will naturally chase the dollar. Conversely, the weaker the dollar on the foreign exchange market, the stronger the gold price.
(2) Periods of war and political turmoil
In times of war and political instability, economic growth can be severely limited. Any local currency may depreciate due to inflation. This is where the importance of gold comes into play. Because of its recognized properties and its status as an internationally recognized medium of exchange, people turn to gold at such moments. The rush for gold is bound to lead to a rise in the price of gold.
But other factors also conspire. For example, in 1989-92, there was a lot of political turmoil and sporadic war in the world, but the gold price did not rise. The reason was that everyone was holding dollars and abandoning gold. Therefore, investors should not mechanically apply war factors to predict gold prices, but also consider other factors such as the dollar.
(3) The world financial crisis
How would gold react if a world-class bank failed?
In fact, this situation is because of the emergence of the crisis. Naturally, people would keep their money, and there would be massive runs on banks or bankruptcies. The situation is similar to the recent economic crisis in Argentina, when people all over the country had to exchange dollars from banks, but the government, in order to preserve the last investment opportunity, banned the exchange of dollars, which led to continuous riots and panic in the country.
When the financial system of the United States and other western powers becomes unstable, the world’s money will be invested in gold, the demand for gold will increase, and the price of gold will rise. Gold serves as a haven for money. Only if the financial system is stable will investors lose confidence in gold and sell it, causing prices to fall.
As we know, the purchasing power of a country’s currency is determined by the price index. When a country’s prices are stable, the purchasing power of its currency is more stable. Conversely, the higher the rate of inflation, the weaker the purchasing power of the currency, and the less attractive the currency. If price indexes in the U.S. and other major regions of the world remain stable, holding cash will not depreciate and it will earn interest, which will make it the first choice for investors.
On the other hand, if inflation is high, there is no guarantee of holding cash, and the interest charged cannot keep up with the price surge. People would buy gold because the theoretical price of gold would rise with inflation. The higher inflation in major Western countries, the greater the demand for gold as a hedge, and the higher the world gold price will be. Among them, us inflation is the most likely to affect the movement of gold. Smaller countries, such as Chile and Uruguay, can inflate as much as 400 times a year without having an impact on gold prices.
(5) Oil price
Gold itself is a hedge against inflation and goes hand in hand with US inflation. Higher oil prices mean inflation will follow, and so will gold.
(6) Local interest rate
Gold does not pay interest and is only profitable if the price rises. When interest rates are low, gold has a measurable benefit; But when the interest rate goes up, it becomes more attractive to charge interest, and the value of the gold investment without interest goes down. Since the opportunity cost of gold investment is large, it is not as stable and reliable as charging interest in the bank. In particular, when interest rates rise in the United States, the dollar will be absorbed and gold will suffer.
Interest rates are closely linked to gold, and if interest rates are higher in your home country, consider whether it is worth losing interest income to buy gold.
(7) Economic situation
Economic prosperity, people’s life will naturally enhance people’s desire to invest, the private purchase of gold for preservation or decoration will greatly increase the ability, the gold price will also get some support. On the contrary, people living in poverty, economic depression, even people can not meet the basic security of food and clothing, where will be the interest in gold investment? Gold is bound to fall. Economic conditions are also a factor in gold’s price swings.
(8) Gold supply and demand
The price of gold is based on supply and demand. If gold production were to increase significantly, prices would fall. But if, for example, a prolonged strike by miners stops production from increasing, the price of gold can rise even as demand exceeds supply. In addition, the application of new mining technology, the discovery of new mines, the supply of gold increases, in the form of price of course, the price of gold will fall. There may also be a tendency to invest in gold in one place, such as the gold boom in Japan, which requires much more investment and leads to higher prices.
There are many aspects to the fundamental analysis of the gold trend, and when we use these factors, we should consider the intensity of their respective effects. Find out the priority and time period of each factor to make the best investment decision.
The fundamental analysis of gold is divided over time into short-term (usually three months) factors and long-term factors. We have to treat their effects separately.
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