Know Your Trading Edge

25/07/2021

“Talent wins games, but teamwork wins championships.”

Teamwork makes everything better, including trading.

Teaming different trading techniques in specific combinations can really elevate results.

14/07/2021

Here I have collected the main subjects that, one should focus for successful trading.

1. What to trade?
Though to many it may sound obvious, in practice I know that a lot of people are struggling with a simple question "What to trade?".
You must learn to properly build your watchlist and you should have strong reasoning behind the selection of each unite that is inside.

2. Key levels
Key levels are the strongest supports and resistances.
Of course, spotting various supports and resistances on the chart,
we can not say that they all are equal in their significance.
There is a strong (however subjective) hierarchy of them.
The most significant are called key levels and from them, the most significant moves are always expected.

3. Trend analysis
When I teach my students how to analyze the price chart,
I always start with a trend analysis topic.
Knowing where exactly the market is going,
having specific and objective rules for the trend identification
are necessary for successful trading.

4. Top-Down analysis
Multi-time frame analysis is my passion.
I am constantly combining the signals & observations from different time frames to make my trading decision and predict future market moves.
It proved to be a very efficient method of trading various markets.

5. Trend following trading
As we know, the trend is our friend. And even though the phrase itself is very simple and straightforward, it takes so much effort and time to learn to follow the trend properly.

6. Counter trend trading
Occasionally the market reverses. Properly identifying early reversal signs and then catching a sharp counter-trend move, huge profits can be made.
Even though such a style of trading is considered to be extremely risky, being applied properly will generate a lot of cash.

7. Risk management
Losses are inevitable.
They are part of the game and we can do nothing about that.
The only thing that we can do, however, is to control the losses.
Calculating the risk for every single transaction is essential to avoid a margin call.

8. Trading psychology
Playing with real money, occasionally losing significant portions of your trading account can be a tough game.
It takes time to build a strong psyche to deal with the irrationality of the marke

18/06/2021

Bearish/ Bullish Harami:
- This is a good example of a reversal pattern. The first candlestick is a candle against the trend direction followed up by a new candle in the trend direction showing still possible continuation till a final smaller candlestick with a smaller body than the previous one sets the tone for the reversal.

16/06/2021

Liquidity Pools
Liquidity pools are areas where we can assume clusters of limit orders and/or stops reside.
Pending limit orders are, by definition - liquidity! They are triggered as price trades through a particular area.

From an institutional perspective - if price trades through X:
Buy orders hit the market = potential short liquidity.
Sell orders hit the market = potential long liquidity.

This brings us to the next question: How do institutions identify liquidity pools?

The answer: Where does the average retail trader place their stop?
Below a swing low or a range low
Above a swing high or a range high

23/04/2021

A sign that you are becoming mature trader
1. You stop searching for 100% accurate no loss strategies
2. You are focusing more on learning than profits
3. You have found answers to Why do you want to trade and What you want from trading
4. You are focusing on long term consistency.

19/04/2021

18/04/2021

People have wrong belief that trading is a dream job because you can just look at screen, click a mouse and make lots of money.
the reality of trading is very different. being a trader means doing lot of research, analyzing setups, working lonely, waiting for hours for trade entry, staying strong during drawdown and keep learning from mistakes

16/04/2021

Emotion is both the source of opportunity and the greatest challenge in trading. Master it and you will succeed.

11/04/2021

Good trading is not about being right every time. you need to think of the long run and ignore the outcome of individual trades.

18/03/2021

Working because You Want to and not because You have to is real Wealth.
Don't confuse money with wealth

12/01/2021

Fundamental vs Technical which is better?
1. First one should understand that both are price forecasting methods.
2. Both try to predict instruments price using different data.
3. Fundamental analysis uses financial data while technical analysis uses price movements
4. Both methods have their pros and cons. One should first decide time period of investment.
5. Fundamental analysis can be useful for longer term while technical analysis can be used for short term trading.