There are professions in which “predators” are more successful than “herbivores”. “Predator” is sharpened on struggle, competition, capture of resources.
Trading is just such a field of activity. However, the market is big: “herbivores” can also quietly nibble the grass, collecting profits on low-risk deals and not engaging in large-scale confrontations with other players.
But big, really big money is made in a fierce struggle or in an ambush. It is no accident that images of traders are associated with wolves, sharks, bulls and bears.
Take at least the cinematic characters — Gordon Gekko, Bobby Axelrod. Charismatic predators. Predators in general are charismatic, because subconsciously almost everyone wants to possess the same strength and assertiveness.
First: you must have the courage to admit to yourself: yes, I am a predator or aspire to be one. There is no need to make excuses. Who to make excuses to — yourself? Why? Trying to sit on two chairs — “evil” and “good” — prevents you from setting goals and objectives. If your goal is to hunt a hare, you should not pretend to be a vegan. The psychological mindset is different.
Second: you should be a predator not only in moments of victory, but also in periods of defeat. A predator doesn't whine, doesn't look for excuses, doesn't complain. He fights back or retreats to lie low.
You can't be a wolf in half — here I am gnawing at someone's heel, and here I was kicked, I sat down and whimpered pitifully.
The predator is the image of the strong. There is no compromise.
Psychopaths on the Stock Market — The Most Stress-Resilient Traders
Psychopaths are a unique type of successful traders. Kevin Dutton, the author of the book "The Wisdom of Psychopaths," claims that such people prefer to "kill on the stock market rather than in dark, dirty alleys." While psychopaths make up only 1% of the population, they account for over 25% of successful traders.
Successful psychopaths are cold-blooded, stress-resistant, and ruthless individuals, focused on achieving their goals. They have a good understanding of other people's emotions but can switch off their own, which is useful in trading. In a relaxed state, they can be emotional, but at work, they turn into "Hannibal Lecter."
What You Can Learn from Psychopaths:
• Maniacal focus on goals • Fearlessness of mistakes • Lack of hesitation • Disregard for others' opinions • Zero guilt • Understanding of others emotions - Ability to switch off emotions at work
You don't have to be a psychopath to use their approaches.
The key is not to take it too seriously and remain a normal person outside of work.
Tilt is an emotional state of a trader, caused by strong emotions from Takes or Stop Losses, when he starts to lose control over his trading and make many mistakes. According to one of the versions, the word tilt to designate a psychological state appeared in the use among fans of slot machines. This term became widely known when it appeared in the active vocabulary of poker players. Now this concept is used both in gambling and in other activities that are associated with the competitive process.
Causes of tilt The most common cause of tilt is a loss, especially a public and humiliating one. It can shake the psychological balance necessary for objective perception of the market. The most negative emotions among traders are caused by a stop in a winning situation.
For example, when you go in after the first takeouts, thinking that it will definitely work out further, but the coin takes and turns around. A possible situation is also a “winning tilt”, which comes as a result of a positive trigger. For example, an unexpected win or a string of good luck. Strong positive emotions can be just as heady and damaging to trading as negative emotions. A tilt and a winning tilt can lead to the same consequences.
Tilt happens to everyone No matter how emotional and receptive you are, tilt happens to everyone, it's impossible to be cold-blooded about absolutely everything. The key awareness is to recognize when that particular moment of emotional instability has occurred and use the advice I've been giving. Distract yourself, analyze the mistakes, make a strategy for the future.
I hope this information, as always, has been helpful to you and will help you avoid mistakes and hurtful defeats in the future.
The best way to steal your emotions at the right time is knowledge and understanding of yourself as a person, so don't stop developing and be hungry for new knowledge.
At first glance, this advice from some psychologists seems paradoxical. Okay, when they say that you should be calm about the mistakes you have made - work through them and move on. But what does it mean “don't be afraid to make mistakes”? Isn't it better to avoid them?
However, there is some logic to this approach:
Trying to avoid mistakes, a person chooses the safest, well-traveled paths. He is afraid to take risks, to step out of his comfort zone. Therefore, he closes promising roads in front of him for fear of making a mistake.
Some psychologists see mistakes as a way of discovering points of growth. It is like with small losing trades: we probe the market, we pay for it with small losses, but we get a chance to find profitable entry points. And a good deal overlaps the previous “tests”. Another analogy is laboratory experiments. It is impossible to hit the bull's-eye neither from the first nor from the tenth time - a long series of trial and error is required.
It is also a way to find your weak links - and strengthen them. We may not realize our weaknesses for years until we make a mistake. It's better when the mistake is minor and the link hasn't broken - only a crack has appeared. So it makes sense to test ourselves little by little, giving ourselves permission to make non-critical mistakes.
Reading biographies of famous people, sometimes you are surprised: they made an incredible number of mistakes. And yet (or maybe because of it?), they ended up on top.
But what if a mistake is too costly? Perhaps we need to learn to find a balance: to allow ourselves to make small mistakes in order to avoid a major failure in the end. And, of course, we need to be able to learn from the bumps - otherwise we will end up with pointless masochism, and we certainly don't need that.
Trend lines have been traded, are being traded, and will continue to be traded. Even now, those who trade according to the Smart Money concept are still looking for entry points along the trend line. Those who have experience understand when it can be done, and when it is strictly forbidden.
When the price moves in one direction, clearly breaking away from the trend line visible to everyone, it does it for a reason. In addition to those who jump on the market structure, there are those who open deals pushing away from the trend line.
Stops of all participants are distributed behind the minimums (if we consider the trend line upwards), someone puts behind the first, someone behind the second, someone has greed and cowardice - they put them away. Most often all this liquidity will be cleaned out in the near future, and very often it happens in one sharp movement.
At the peak, the growth has already amounted to +5.91% of my original forecast, which is a lot for Bitcoin It reached a serious resistance in the form of ~$71,400 mark. Further down is more localized resistance ~$72,450.
The two mentioned levels form something like a resistance zone The lower level has more significance in it. If the price breaks through it and consolidates, there will be no strong resistances above.
Going forward, I expect a gradual continuation of the upside, but it requires the fulfillment of one condition
A breaker block (BB) is a support or resistance zone, depending on the current price location. The trader waits for the price to return to the rectangular area and opens a tra A breaker block in trading is an order block (OB) that is broken by a strong momentum without a rebound reaction. The breaker block formation condition is the breaking of the last maximum or minimum depending on the trend.↘
A rounded top is a trend reversal pattern that can be used to determine the end of a trend.
The rounded top looks like an inverted letter ''U'', that is why it is sometimes called ''inverted saucer'' in technical analysis books. This figure signals the reversal of an uptrend and the possible beginning of a downtrend. This means that a rounded top may indicate the possibility of opening a short position.
For this pattern to form, price must first rise sharply and then move horizontally for some time, forming a rounded top. Eventually, the price falls below the neckline.
How to trade on the figure of rounded top:
You should open trades using this figure at the base of the neck line. As soon as the price breaks through the neckline and the candle closes behind it, you can enter a "Short" trade. Or my team and I recommend waiting for the retest of the broken level. That gives a higher probability of closing the deal on take profit. Stop loss is always placed behind the level.
What can you do to avoid being trapped by inflation and ensure financial independence?
Step 1: Analyze your finances First of all, understand your finances. Keep a record of your expenses and income to understand where your money is going. This will help you identify areas where you can save money.
Step 2: Create a budget Develop a budget that includes all of your monthly expenses and savings. Try to set aside a certain portion of your income for savings and investing.
Step 3: Increase your income Look for opportunities to increase your income. This could be an extra job, freelancing, passive income from investments, etc.
Step 4: Education and personal development Invest in yourself. Upgrade your skills, learn new skills that can lead to higher income.
Step 5: Smart Investing Investing is the key to rebuilding your finances. Explore different types of investments such as stocks, bonds, real estate, cryptocurrencies and others. Diversify your investments to minimize risks.
Step 6: Financial Literacy Improve your financial literacy. Learn the basics of investing, learn to understand financial statements and make informed financial decisions.
Step 7: Build Reserves Build financial reserves for unexpected situations. This will help you avoid borrowing or selling investments in times of crisis.
Step 8: Long-term goals Determine your long-term financial goals. This could be retirement, children's education, buying real estate, etc.
Step 9: Constant tracking Review your budget regularly, analyze your investments and adjust your strategy if necessary.
Step 10: Consult with professionals If you are unsure about your financial decisions, consult a financial advisor or expert to help you develop the best strategy.
By following this step-by-step guide, you can gradually move away from inflation and ensure your financial independence for the future.
Hypnotic trap: how to break out if you're caught in it.
“I couldn't stop.” Sound familiar? Well, if it doesn't. But you can't be sure. Sometimes quite sober-minded people fall into the hypnotic trap, which causes painful hyper-concentration on some goal or task and does not let them get away from it. Strong concentration in itself is a useful thing. But the hypnotic trap has one dangerous feature: there is an effect of tunnel vision and disconnects critical thinking. Traders are hypnotized by the market itself. But the result is the same: complete inability to disconnect from the terminal, frantic overtrading, illogical trades, grandiose plum. And complete blocking of critical thinking, though in a normal situation a person sees the absurdity of his actions. What to do in such situations? Check-list in case you suddenly feel pathological overconcentration: ✅ Remember the hypnotic trap and stand up sharply from behind the monitor, throw aside the phone, go to another room, better yet to the street. Abruptly! (It doesn't always help. But if a person is already aware of the risk of a hypnotic state, there is a chance that the alarm will go off) ✅ If you realize the threat - don't try to fight it by staying in the deal. Even if you think you've taken control of the situation, there's a risk of letting the wheel out again. ✅ Pinch yourself. Harder. Bite yourself, do something else painful. It's an old tried and tested method and it works pretty well. Physical pain switches your thought processes, taking you out of the “tunnel”. ✅ Start breathing deeply, focusing on the breath, the physical sensations. This helps shift attention too. ✅ Set timers if you tend to get hung up on haggling. The timer should be beeping, screaming, and very far away from you so that you have to walk to it. ✅ Trade in a normal mental state. The risk of falling under the hypnotic influence of the market increases in periods of fatigue, nervous exhaustion, stress, depression. ✅ Trade in a normal mental state. The risk of falling under the hypnotic influence of the market increases in periods of fatigue, nervous exhaustion, stress, depression. ✅ Control fear, greed, excitement. They create a super goal, cutting off all other thoughts.
A stop loss is an order to the broker to sell an asset when it reaches a certain price. It is designed to limit the investor's/trader's losses. Although most investors, when talking about a stop loss, mean a long position, it can also be used to protect a short position - in this case, the asset, on the contrary, is purchased when its value rises to a certain level.
Stop losses are very important. Let's look at a few options for their use:
1. To save your money. In this case, we prevent the loss of our initial investment by automatically liquidating the position as soon as the value falls to the purchase price (or slightly higher, if we take commissions into account). 2. Not to get from a bad situation to a worse one. Here we are talking about limiting losses - you choose a level that is comfortable for you, and thus you get some room for maneuver in the expectation that the asset will grow back in value.
Basic principles of effective deposit management:
1. An amount of money should be allocated for trading that is not too bad to lose. It should not make a gap in the budget. Usually it is about 10% of monthly earnings;
2. Borrowed funds are forbidden. Always trade only on their own capital;
3. Emotions will affect trading. Your task is to learn to control them;
4. At the initial stage it is better to exclude margin trading. Work on the spot market. You can switch to working with leverage at any time.
5. Leverage itself is safe. But there is a temptation to enter the market with a large volume. A beginner may not be able to cope with the temptation.
A false breakout is a situation on the chart of an asset when buyers or sellers manage to break a strong level, but fail to consolidate behind it, after which the price goes back down.
There are often two reasons for false breakdowns, namely:
📌 market panic at highs and lows
False breakout can always be identified by one key factor — low trading volume. If a trader sees an impulse, but the volume indicator is at low values, he has two options — either not to enter a deal or to open a deal in the opposite direction to the impuls
❕Usually, market makers collect profits near the levels where most stop orders are placed. Simply put, they liquidate positions and collect liquidity
The situation with market makers can occur at any time and at any point in the trend, so it is particularly dangerous. If large participants want to collect cheap contracts or “shave hamsters”, a false breakout is drawn on the char
If we take market panic, it is much easier to recognize than manipulation. It often occurs at extremes — lows or highs of the trend. At such moments, beginners and some experienced traders often succumb to fomo, excitement and hope that the price will continue to move in the desired direction. In such cases, candles on the hourly and four-hour charts do not have time to close above the reached level and form tail 📌 price manipulation by market make
Break Of Structure, BOS is the most important level on the chart, after passing which the structure of the current market situation breaks. For example, a bull market becomes a bear market or vice versa. In this case, the current trading strategies sharply become irrelevant or require changes in accordance with the new market structure.
Market Structure
Market structure is the main part of technical analysis. It determines the nearest price direction and possible reversal points, support and resistance levels, as well as optimal buying and selling zones. Market structure is usually built on high timeframes, 4H, 1D and higher.
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