I guess we all know what happened after 2007 right?
Most new generational traders haven’t seen a volatile market before, such as the one we are currently in. Most traders haven’t experienced a market crash like the one in 2008 or 2000, and I am among them for sure. I started trading since 2010, it was the beginning of the bullish market when the FED’s QE operations were successful to ‘save’ the market from crashing to the ground. But I won’t let that blind me from reality and make me live in a fantasy land where “everything REMAINS amazing”. I always try to be aware when things are changing and I start to adapt before it’s too late. So with everything that is currently going on throughout the world, geopolitically and economically, combining them with this year’s crazy volatility... I can’t help but to conclude that the end of this market cycle might be closer than most people realize.
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Link in bio: 👉🏼@legendary_trades
EUR/CAD is still ranging and it has created a inner range now. The market is stucked between 1.5030 and 1.4860 at the moment. It seems that the market is rejecting the 1.5030 level so far a the buying momentum slowed down I expect that in the upcoming week we come down to 1.4860 and there we can either make a third bounce and go up again or we break through this level and test the outer range (1.4780) and may have our third bounce at this level 🤔
Tightening equilibrium channel forming on the weekly chart for #emeraldhealththerapeutics.
Bears still have temporary control with the weak close on Friday (-6.00%). Series of lower highs and higher lows
🐂 will be looking for a higher low to form next week in comparison to $2.87 support to maintain the tightening formation.
1 1044 minutes ago
Tell us where you're from!
3 16949 minutes ago
ZOOM IN and look at last weeks close on the Weekly TF.. the fresh supply and bearish breaker held up and price ran into unfilled sell orders after running significant liquidity including Septembers fractal high.
Next week looking for a trace higher to test fresh supply on the lower timeframe. The ultimate confirmation for a swing is fractal high completion after next weeks candle forms and a MS break on H4 TF. Limit sells will be placed in the mean time 💯💯💯
My outlook for EUR/USD we are currently in a downtrend channel and just a few Pips away from the 1.1440 resistance. I expect that we gonna continue the bearish momentum in the upcoming week. I am waiting for a third bounce and also a break of the drawn on counter trend line. The first take profit is 1.1230 and the second one is 1.1120
One of my favourite charts EURUSD
EURUSD broke trend line on the daily chart, yet hasn't broken bearish daily trend.
Market has retraced 100% and testing its previous high at 1.14300 a daily close above this level will be an indication for long positions.
A close rejection of this level will open doors to previous low or maybe a lower low.
GBP/CAD rejected the 1.7250 level of resistance as expected this week. We still have a few pips to the next lower level of support(1.6660) there we can either bounce for the third time or break through it. Like I said previously as long as we are stucked in a range I will always look for bounces no matter long or short I‘ll take them. That’s why I am looking for a third bounce on this 1.6660 level in the upcoming week. Wait for the bullish signal and then take a long trade on it 🙌🏼
2 252 hours ago
Ray Dalio is an absolute legend. Accused of many things on a personal and business level, especially by the media. But as he states “A good principle is; Don’t believe everything you read in the newspapers”. As a Hedge Fund Manager of Bridgewater Associates with $160 billion Assets Under Management, he is with no doubt one of the most succesful and influential people in the world. His five main principles are
1. Have clear goals.
2. Identify and don’t tolerate problems.
3. Diagnose problems to get at their root causes.
4. Design a plan.
5. Push through to completion.
Highly recommend this book for all traders! 🙏🏼
False breakouts can occur in the market, this outlines the importance of utilizing stops and proper risk management. Identifying a false breakout, however, can prove to be very profitable if you catch it at the right time! 🎯
GBP/JPY is coming down to the 143.30 level of support we already rejected this level 2 times and I expect a third time as long as we don’t break out to either side I gonna look for possible range bounces. Keep it simple don’t overcomplicate things ✌🏼
Your ability to self review is a key component to being successful in any investment career.
At the end of every week, month and quarter all positions executed are scrutinised, a minor tweak can be the difference between success and failure.
Regardless of your ability to read markets, your profitability or time spent as an investor, self reviewing is essential.
Sun Tzu: The Art of War
One of the greatest military strategy books ever written. Did you know how much of military strategy can be applied to stock trading? Here are my 3 top takeaways:
1. Sun Tzu said “every battle is won before it is fought”. This can be rephrased to “every trade is planned before it is executed”. Know when a trade is setting up correctly like a Wyckoff Pattern or a Volume Contraction Pattern. Only risk capital when the odds are greatly in your favour.
2. Sun Tzu said “all warfare is based on deception”. This can be rephrased to “smart money uses deception in the stock market to fool retail traders”. Understand how the smart money tries to deceive people and use this to your advantage to profit handsomely.
3. Sun Tzu said “know your enemy and know yourself, and you need not fear the result of 100 battles”. This can be rephrased to “understand the stock market and understand your trading plan”. Your trading plan is there to give you an edge. All you can ever have in the market is an edge (think of the casinos edge). You need to understand how your trading plan (battle plan) works, both its strengths and weaknesses. You need to understand how the stock market (the enemy) will react / fight against your plan. Before every trade (battle) you want to have determined what you’ll do if X, Y or Z happen. Unemotional. Rational. Objective.
.. or more like a profitable lesson! The most frustrating thing is looking back or even instantly after pressing the trigger knowing where your exit/entry should have been. I have all major points/trends on charts, I know where the money is! Yet real time miss entries through watching other stocks then jump in from fear of missing out (FOMO), at a sh❗️T entry point as the stock retraces. ALWAYS make a plan before entry, stop loss and where you take profits then move on. Also stick to a few stocks per day and not jump on somebody else’s band wagon. Tomorrow is another trading day. Dust of and go hard again. Success is just around the corner. Keep putting in that work!
Hank Pruden: The Three Skills of Stop Trading
A very good book for those who want to learn about behavioural finance, controlling your emotions and the Wyckoff Method.
My top 3 takeaways:
1. Richard Wyckoff was a genius. He understood that on Wall Street the game is rigged. The smart money accumulates positions in stocks at wholesale prices before marking the price up and selling at a huge mark up to retail traders. The #wyckoffmethod is a way to understand when a stock is going through the accumulation phase and when the smart money is ready to mark the price up. Once you have identified when the price is about to be marked up you can enter a very good low risk / high opportunity trade. (See my charts many use the Wyckoff Method). 2. Betting against the smart money is suicide. You may get lucky a few times, but over the long run it’s far better to swim with the tide. Remember, making money is more important than being right.
3. Understanding your emotions and cognitive biases is crucial for success. Human beings do not make good traders. We make all sorts of mistakes. We want to become like a machine - rational, objective, and unemotional.
3 165 hours ago
Mark Minervini: How to Trade like a Stock Market Wizard
#bookreview#markminervini This is the single best book I’ve ever read on Trading. It encompasses almost everything, helping you to become the complete trader.
The 3 main takeaways were:
1. Volume Contraction Patterns (VCP). A VCP provides an optimal point to enter a trade after a phase of accumulation before the next breakout/move higher. Due to the setup pattern you can protect the downside with stop losses, and not limit your upside (🔑). A stock can form multiple VCPs on its uptrend move, enabling you to keep adding to the position, achieving super performance.
2. Go deep, not wide. So many ‘market gurus’ say diversify, Minervini says if you want super performance you need to concentrate. He’ll have on average 4-6 trades on at any one time, 10-12 max. This enables him to focus on his positions and act accordingly. When you’re your own Hedge Fund Manager having 20,30,40 positions to manage daily is detrimental to performance, and likely to only match the benchmark.
3. When you’re wrong, get out. Small losses stop big losses. When trading VCP patterns you know how the stock should act and perform, if it is doesn’t act as you expected something is wrong. Get out. Reassess. Keep the stock on the watch list and monitor to see if another correct setup occurs. You want to compound capital as quickly as possible. Holding onto losing stocks is emotional straining and will kill your chances of super performance.