let's have a chat about some trading stuff that you see online and are usually wrong /thread
Technicals x Fundamentals - All markets move based on fundamentals on a large scale; the TA often supports the large moves, but if you think markets spend months trending because S/R flipped or MA got tested, you are delusional
On lower scales, this doesn't matter as much as news only cause thin moves during the macroeconomic releases; the point is the longer you want to be exposed to the market, the more you should care about FA, although 99% tells you otherwise.
Daytrading x Swing Trading - this actually brings me to my second point, as day trading is often presented as "noise". From what I have seen in my personal trading but also in other people performance, you are way more likely to become profitable on trading on short timeframes,
this is mostly due to the fact that it is actually easier to predict moves that will happen in the next minutes/hours rather than weeks/or months. This goes against popular "just wait for the next cycle" advice running around here,
but if you think you will just do nothing and then make life-changing money in a short time window, that's not going to happen. You need to be trading/testing things, and if you only take one trade a month, that will take a long time to see if things work or not.
Growing the account - although the popular "make it back in one trade" advice is horrible, most people that had huge account growth made it in a series of few trading days, ofc some of them made it by luck, but in most cases, they will also lose everything shortly after.
The difference between this and just "waiting for the next cycle" is that the money is not necessarily made in longing; you can bet on markets fall, or just push size in extremely favourable conditions for you. I often prefer take mean reversion trades rather than trends.
Where I can bet with higher confidence once I see one side of market participants trying to force a breakout and getting absorbed instead. The point is you need to be present and actually work on your trading to be able to spot these conditions early on.
Risk Management - Managing your risk is super important, but it won't make you profitable if your trading sucks. You always hear how risk management is key, but it should be one thing that goes without saying you utilize it properly.
Overall you can't go wrong with fixed % size risk per trade, but you should explore betting more on setups when you know odds are on your side. If you are day trading for example and every once in a while, you have a solid bias from higher timeframes when you know you have higher
win rate, it should be one of those situations where you bet more. If you still struggle with finding a profitable system, it doesn't have to be complicated; Id say that you can make money with simple price action, volume and orderflow understanding.
After all, in trading 90% of people lose money, to be in that 10% you don't need to reinvent the wheel, just understand what that 90% of people do and start doing the opposite.
Many people will tell you that trading is just gambling, but you can say that any situation where you risk your capital is essentially just a gamble. Trading is hard but not impossible to do.
Here is an additional list of resources on the topic:
tradingriot.com
tradingriot.com
tradingriot.com
tradingriot.com
tradingriot.com
tradingriot.com
tradingriot.com
tradingriot.com
tradingriot.com
tradingriot.com
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tradingriot.com
Also if you are interested in learning how I trade, you can check out the Bootcamp. tradingriot.com
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