How to Practice for Forex, Stocks and Binary Options Trading

How to Practice for Forex, Stocks and Binary Options Trading
We all have heard phrases “Practice makes perfect” and “Practice, Practice, Practice”. So how do we practice to better our selves in the skill of trading financial markets. How can we master Forex, Stock and Binary Options trading? What is the best way to practice?

For best results, trading like any other skill requires our subconscious brain to understand rules of engagement. We do not master a skill unless rules of engagement have been learnt, understood and burned in our mind. It is like driving a car, playing golf or learning how to play a guitar. It is no different. However as per multiple researches conducted over years and from my own personal experience, I find these 3 ways of practising work best.

1. Visual Practice: You learn rules of a system and open up charts. You do not take any action but just monitor charts visually to see when and how those conditions arise and what happened and what you could have done to trade or avoid a trade. This helps preparing your mind for actual execution.

2. Actual Practice: You start taking trades as per rules and try to stick to the plan. Without the first kind of practice this is a waste of time. Most traders start from here and hence fail or give up.

3. Mental Practice: Here you close your eyes and mentally rehearse your trading rules, entry, management and exit strategy. You see your self in market taking and managing trades. It is like meditation. This is the most important practice type. This runs along with other two practice types. Without this, it will take longer for brain to learn and burn the new skill of trading.

I do all these 3 myself every day and they have helped me become a profitable trader.

Happy Trading

-TradeYodha

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Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
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Why Brokers Usually Rate A Stock and What’s in it for them?

We see brokers rating a stock and reiterating them all the time. To an inexperienced investor/trader that may sound like a great recommendation for free sent by a reputable company. But Why Brokers Usually Rate A Stock and What’s in it for them?

Let’s take an example of a London stock exchange stock.

We have seen multiple reiteration of BUY ratings of a London Stock Exchange company by their broker (Source: http://www.directorstalkinterviews.com/?s=qfi+rating ) They have been rating 45p since November 2015.
But as they say “The Devil is in Details” or rather “The Devil is in the Disclaimer” of their recommendations and research reports.

I found a copy of their Research Report where their reiterate BUY rating and published their research. Wooaah! what do I see in the Disclaimer of their Rating/Research report on the last page!

1. THEY SAY THAT THEIR RATING/RECOMMENDATION DOCUMENT IS JUST FOR MARKETING.
2. THEY MAY BE GETTING PAID/COMPENSATED TO DO THIS BY THE ISSUER OF PUBLICATION.
3. THEY CAN HAVE 1% OR MORE OF ANY CLASS OF ENTIRE AVAILABLE STOCK PILE.
4. THEY CAN ACT AS MARKET MAKERS TOO IN THE STOCK THAT THEY RATE.

This clearly shows a Conflict of Interests. They are not doing anything legally wrong as they have disclosed this information.

As per law introduced few years ago all brokers and paid promoters must include this in their report. Here is why they have to include this information:

https://www.sec.gov/oiea/investor-alerts-bulletins/ia_newsletters.html

http://en.wikipedia.org/wiki/Markets_in_Financial_Instruments_Directive (Directive 2004/39/EC)

An investor/trader must keep this in mind before following them blindly.

Good Luck
-TradeYodha

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
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Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
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Trade: AERO – A Strong Buying Opportunity

Trade: AERO – A Strong Buying Opportunity

I initially posted this chart on 5th of December on advfn board expecting a retrace to lower 8s or early 7s before prices could start moving to 10p area for the completion of Bat Pattern.

AERO Bat Pattern Buying Opportunity
AERO Bat Pattern Buying Opportunity

However, there was new of placing which caused a minor sell off but the bat pattern formation is still valid. In fact now since B point of BAT pattern has been broken upwards, it becomes a great BAMM style  (read more about it here) buying opportunity.  At the moment AERO is looking a very strong Risk/Reward buying opportunity with several technical reasons (Bat Pattern, 3 Drives Pattern, Harmonic Movements)  to buy.

Snapshot:

This is how AERO is looking now. This can give us approximately 1:4 Risk/Reward Ratio.

AERO - A Good Buying Opportunity
AERO – A Good Buying Opportunity

Reasons For Trade:

  1. 3 Drives Pattern is forming potentially taking price to 10p
  2. Bat Pattern is still forming
  3. BAMM entry available right now.
  4. Price is slightly oversold on lower time frames

Stop Placement:

5.25p

Targets:

9.5p

Trade Execution:

On market

Concerns:

None

Planned News/Events Expected:

Unknown

Post Execution Review:

 

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
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Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
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Trade: QFI Speculative Buy Opportunity

Trade: QFI Speculative Buy Opportunity

Snapshot:

 

QFI Speculative Buy Opportunity
QFI Speculative Buy Opportunity

Even though there are chances of it falling over to 10p area due to HNS pattern formation (see below a chart from  November 20th, 2015) there can be a speculative buy opportunity right now for a short term gain.

QFI Head and Shoulders Pattern
QFI Head and Shoulders Pattern

Reasons For Trade:

  1. Almost oversold
  2. 100sma providing support around 14p
  3. 14p area is neckline of HNS pattern which may throw one last bounce
  4. Expectation of news can create hype on Monday
  5. Possible Bat Pattern formation if price holds 14p price level

Stop Placement:

12.5p

Targets:

First: 18p

Second: 21p

Trade Execution:

On Market now for a good entry level

Concerns:

Speculative buy

Planned News/Events Expected:

Expected

Post Execution Review:

 

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
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Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
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Trade: NPT Butterfly Pattern Bullish Divergence Buy

Trade: NPT Butterfly Pattern Bullish Divergence Buy

Snapshot:

NPT Butterfly Pattern Bullish Divergence Buy
NPT Butterfly Pattern Bullish Divergence Buy

Reasons For Trade:

  1. Completion of butterfly pattern
  2. Price oversold
  3. bullish divergence
  4. Previous support area
  5. Completion of abcd pattern
  6. Good buy volume few days ago

Stop Placement:

4.8p

Targets:

7.8p

Trade Execution:

On market

Concerns:

None

Planned News/Events Expected:

Unknown

Post Execution Review:

 

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
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Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
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Trade: CBUY Bullish Divergence Oversold Buy Opportunity

Trade: CBUY Bullish Divergence Oversold Buy Opportunity

Snapshot:

CBUY Bullish Divergence Oversold Buy Opportunity
CBUY Bullish Divergence Oversold Buy Opportunity

Reasons For Trade:

  1.  6p acting as a support
  2. RSI is showing bullish divergence
  3. volume increased

Stop Placement:

3.7

Targets:

First: at 1.618 Fib extension i.e. 9.3p

Second: 12 p where previous structure is

Third: 17p where 200 sma and price action gap is

Trade Execution:

Take either multiple positions on each target completions based on market condition or take one position and sell 3 times.

Concerns:

None

Planned News/Events Expected:

Unknown

Post Execution Review:

 

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
---------------------------------------------------------------------------------
Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
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Trade: HYR Oversold Buy Opportunity (London)

Trade: HYR Oversold Buy Opportunity

Snapshot:

HYR Oversold Buy Opportunity
HYR Oversold Buy Opportunity

Reasons For Trade:

  1. Oversold
  2. Reaching support level 3.7
  3. Directory’s buy today on 7th of December

Stop Placement:

3p

Targets:

First Target: 5p

Second Target: 6p

Trade Execution:

Watch for the price action to reach below 4p.

Concerns:

None

Planned News/Events Expected:

Unknown

Post Execution Review:

 

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
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Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
---------------------------------------------------------------------------------

Trade: Buy COMS on Resistance Breakout

Trade:Buy COMS on Resistance Breakout

Snapshot:

Buy COMS on Resistance Breakout
Buy COMS on Resistance Breakout

Reasons For Trade:

  1. Price has already tested resistance level at 1.13 and now has come back on a good volume.
  2. Price is not oversold yet. There is still chance for it to go higher.

Stop Placement:

0.850

Targets:

First: 1.52p

Second: 2p

Trade Execution:

 

Concerns:

Price close to oversold so it may come back down now and then try to break 1.13 level.

Planned News/Events Expected:

Unknown

Post Execution Review:

 

---------------------------------------------------------------------------------
Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
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Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
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Trade: Sell OptiBiotix Health PLC (OPTI) (ABCD Pattern, Gartley Pattern)

Trade: Sell OptiBiotix Health PLC (OPTI) (ABCD Pattern, Gartley Pattern)

Snapshot:

 OPTI Short ABCD Gartley Pattern

OPTI Short ABCD Gartley Pattern

Reasons For Trade:

  1. ABCD Pattern formation
  2. Gartley Pattern formation
  3. 200sma confluence with gartley completion
  4. Weekly and Monthly RSI 7 Overbought

Stop Placement:

110p

Targets:

51p

Trade Execution:

At market or higher

Concerns:

None

Planned News/Events Expected:

Unknown

Post Execution Review:

 

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
---------------------------------------------------------------------------------
Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
---------------------------------------------------------------------------------

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Trade: Sell DOTD DotDigital (Double Top, Possible Bat Pattern Formation)

Trade: Sell DOTD DotDigital (Double Top, Possible Bat Pattern Formation)

Snapshot:

DOTD Short Double Top Bat Pattern
DOTD Short Double Top Bat Pattern

Reasons For Trade:

1. Double top with bearish divergence

2. 50% Fib has been hit already

3. 0.886 fib confluence with 1.618 fib

4. 1.618 fib confluence with 200 sma

5. a Price gap around 200sma

Stop Placement:

49p

Targets:

First Target: 35p

Trade Execution:

Take position on market now

Concerns:

None

Planned News/Events Expected:

Unknown

Post Execution Review:

 

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
---------------------------------------------------------------------------------
Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
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Binary Options, Forex and Stock Trading