Author: rcanessa - Page 33

Trading Psychology: The keys to success

To succeed in trading there are two fundamental factors that depend directly on you: The first factor is the knowledge and experience that is achieved with dedication and a lot of practice. The second factor, on which we will focus on this article, is in your mind with your attitude and with the proper control of your emotions.

The path to success in trading is no different in many other facets of your life, for example if you practice a sport, in addition to many hours of practice, a good psychological and mental preparation is essential to face the opportunities, sacrifices, obstacles , victories, failures,…

Trading psychology is vital for any beginner trader, who must develop their own investment strategy while learning to deal with these emotional factors. But it is also for professional traders who must remain psychologically strong and not lose discipline in order to be consistent and profitable for years.

A small turn to stop loss with ATRs: Kase DevStop stop loss

by rcanessa

When I think about how to adjust the level of stop loss to volatility, the first thing that comes to mind are the stop losses calculated according to the ATR. It is a dynamic stop loss type that fits very well to trend following.

But today’s question is: are there other ways to calculate a stop loss adjusted to volatility? A good response has been given to me by a blog reader asking me about the Kase DevStop.

Profit factor – Definition and Calculation

by rcanessa

The profit factor is one of the most popular performance metrics used in trading.

Its calculation is very simple: in the formula, the total amount earned in the positive trades is divided by the total lost in the trades with losses.

Donchian Channels – Definition and Calculation

by rcanessa

El Donchian channel is a technical indicator trend type represented as a dynamic market price channel based on price movements.

The Donchian channel is a technical indicator, as it is part of the technical analysis. In addition, it is a trend indicator because it aims to identify which is the main market trend. And, its graphic representation is as a dynamic channel. What does dynamic mean? That is a channel that changes as the price moves. Its appearance is as follows:

Hopes of progress in the trade war between China and the United States

by rcanessa

Chinese Vice Premier Liu He said Friday that Beijing will work with the United States to address the concerns of both sides, and that it would be good to stop the trade war for its own interests and those of the entire world.

Liu He also announced that it will allow Chinese investors to have direct access to Hong Kong shares. The new measure will take effect from October 28 and could be very positive for Asian stock markets.

The president of the United States, Donald Trump, said he believes that a trade agreement between the United States and China will be signed when the Asia-Pacific Economic Cooperation meetings in Chile are held, which will take place on the 16th and 17th of November.

Cup with Handle Pattern – Definition and Features

by rcanessa

One of the most useful chart price patterns in trading is the the cup and handle pattern. It does not appear very often in the Forex market but when it appears the chances of a good entry are very large. As with many chart patterns, its use is recommended mainly in long-term graphics and not so much in short-term time frames. The cup and handle formation consists of two parts. The first part is a low U-shaped formation that forms the “cup.” After the cup a consolidation period appears that forms the handle, the handle of the cup.

Trading Contest “Top Trader” of the broker FXPrimus

by rcanessa

The Forex and CFD broker FXPrimus (regulated by organizations such as CySEC) organizes a trading tournament for real accounts that takes place every month and offers interesting prizes to the winners in three different categories. This contest is called the “Top Trader Challenge” and will be held from mid-2019 to mid-2020. At the end of the competition, FXPrimus will conduct a raffle among all winners of the previous rounds, where prizes such as a private jet ride and a BMW X1 sDrive 20i Sport will be raffled.

In this contest all clients of this broker, both new and existing, who open a real trading account and deposit at least $100 USD can participate.

The Calmar Ratio – Profitability and Risk Indicator

by rcanessa

The Calmar Ratio is an indicator that is designed to measure and compare the performance of an investment portfolio or trading system.

The interesting thing about this ratio is that it summarizes how the profitability of the period has been with respect to the assumed risk.

Although it is a less known indicator than the Sharpe ratio, the Calmar ratio is currently widely used in the financial industry. It was first published in 1991 in the Futures magazine and was developed by Terry W. Young; precisely its name comes from the acronym formed from the name of the newsletter that the author sent to his clients, called CALifornia Managed Accounts Report. The Calmar ratio is defined as the ratio between the annualized profitability of the system and its maximum drawdown in absolute value.

Week marked by trade negotiations between the US and China

by rcanessa

Stock markets are trading aimlessly on Monday after macro data showed that the US unemployment rate fell to its lowest level in almost 50 years, easing fears of a slowdown in the world’s largest economy.

Wall Street optimistically celebrated the latest monthly employment report in the US, after learning that 136,000 jobs had been created in September, and that the unemployment rate fell to 3.5%, its lowest level since December 1969.

The employment report last Friday was strong enough to mitigate fears of a recession, but kept alive the hope that the Federal Reserve will remain firm in its stance to cut interest rates at the end of the month.

How to trade Forex with economic news?

by rcanessa

The events and economic news bring strong movements in the financial markets at the time of publication. In this article we will explain all the keys to trade these scenarios successfully.

It is possible that more than once we have suffered the consequences of economic or political events with an open position. In such situations we observe how the market, suddenly, takes a strong impulse and sometimes advances in our favor and others against us.

There is no doubt, before and after the publication of an economic news the market reacts, and in many occasions in a very violent and unpredictable way. If you do not know how to handle these situations well, it is possible that you make the wrong decisions, those that inevitably lead to loss.

The objective of this article is precisely to learn how to improve your trading during these situations and try, with success, to trade with economic news. Being in a position to be able to make the appropriate decisions when important economic events are published, so that we can take advantage of the high volatility that occurs.

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