EURUSD Long and Short Ideas


EURUSD Long and Short Ideas by TradeYodha on TradingView.com

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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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Making Money in London AIM Markets

Making Money in London AIM Markets

1. Never have ego. Market feeds on people with ego because they are one who are trapped more often and get their stops hit. They buy high and sell low. Is that how you usually do your shopping? Aren’t you supposed to buy low and sell high?

2. Market manipulation (AIM is heavily manipulated by hedge funds and institution who release news, tips etc. Watch Jim Cramer’s video on that, If you can not beat them in their game, you have no chance of survival. So at least stay in the game with them. They have the kind of money to move a stock up and down.)

3. Charts and market behaviours (You can not escape that. Chart shows orders filled and L2 shows orders in book. They tell you what will happen with 80% of accuracy in my experience not matter what RNSs. Charts are representation of market psychology)

4. Investment versus trading (hedge funds trade, novices invest in AIM. Read up on 4 emotional cycles link)

5.Never trust any one. Make your own decisions and research. If you are not capable enough, stop trading/investing and study markets.

6. Plan your trades/investments and follow that. Remember: “Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win – Art of War”. This quote explains the difference between professionals and novices.

7. Trade what you see, don’t speculate

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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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Issues With RNS Based Trading/Investing – Simple Logic

Issues with News(RNS based trading)/investing are:

1. you do not know when it is expected
2. you do not know what it is or will be
3. you do not know at what price it will come
4. you do not know what is the max the share price will go up to.
5. you do not know whether and RNS is not something designed by Institutions.

For example: Let’s say a particular stock goes down to lets say 5p and then the long awaited RNS comes and I get a bullish signal and I enter the market at 7p.

Lets assume that on this long awaited RNS the share price can go up to 100-200% up but what really matters is point 3 above i.e. at what price the RNS came in. Lets say it it came in at 5p and the stock goes up by 200% so the price will be 10p. At this point the person who bought at 10p will NOT be in profit. He will barely break even. A person who bought at 10p+ price will still be in loss.

On the other hand, because I entered at 7p price I will be up by 40%+ at soon it hits 10p and if the market carries on further I will make more and more profits. In this example, in effect I have bought at low price and sold at high price. Whereas people who bought at 10p or 10p+ will still be either in break even or loss.

It is simple logic.

Remember: It is a war, plant it or lose it

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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.
---------------------------------------------------------------------------------

Dangers of Averaging Down Your Positions

One of the most common practices that investors and traders is average down. In simple terms it makes sense but some of the logical and obvious points are always ignored. Here are Dangers of Averaging Down Your Positions.

People who average down by adding at lower prices have following issues:

1. If their previous buys were at high prices then they will have to spend a lot more money to be able to bring their average to a break even level

2. You do not know when the market has bottomed out. What if you bought more at a low price to average down but then market falls further. Now you will have to buy even more. There is no end to it. Every time market falls further, you will have to spend more and more money to bring your average to break even.

3. By buying too many shares in the rush to average down, you are increasing your market risk exposure. That means if the company goes bust, you will be seriously out of pocket; much more than you previously were before you started averaging down.

4. If there is a heavy placement of new shares at low prices, it may dilute the stock value. The share price in that case may never return to its highest highs leaving investors/traders in losses for good.

It is all simple logic and maths. Take care.

Happy Trading

Remember: It is war there, plan it or lose it.

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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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