Insights

Emotion Control: How to Trade with a Cool Head

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Most beginners and even many experienced investors believe that success in financial markets is determined by the right strategy and trading system. However, after some time, they face disappointment as perfect signals and precisely formulated capital and risk management rules lead to losses instead of the expected profits. The reason is that these ideal rules are not followed under emotional pressure. Thus, controlling emotions is extremely important for market participants. Everyone should know how to trade with a cool head.

Are Your Investment Fears Holding You Back?

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Investing is becoming more popular. But why do many people still prefer to keep their money in cash or bank deposits? It goes without sayibng that the first approach does not even protect capital from inflation, and the second does not help it grow. This attitude towards investments is largely due to fears, many of which are unfounded, that prevent people from assessing their own strengths and opportunities.

Why Doesn’t the Martingale Method Work in Financial Trading?

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Various strategies and trading systems are applied in trading on financial markets. Most of them are based on preliminary analysis of price behavior and volumes to generate signals for making trades. However, some traders believe that profit can be achieved without putting effort into learning and gaining experience. Among such market participants, a strategy involving the incremental scaling of positions until a positive result is achieved is quite popular. They rarely question whether the Martingale method can be used in trading.

What is the Sector Rotation Strategy and How to Use It?

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Investors aim to use trading strategies that maximize profits by exploiting market inefficiencies. Today, it is easy to find numerous trading systems and strategies whose authors claim to have found a universal solution with returns higher than those of broad market sectors. The credibility of most of these claims remains questionable. However, there are some strategies among these developments that can actually yield high profits. One such strategy is the sector rotation strategy.

Technical Analysis in Cryptocurrency Trading

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Technical Analysis (TA) is used by many traders not only to predict the price changes of stocks, indices, futures, and other traditional market instruments but also to determine the expected quotes of cryptocurrencies. Some investors question the effectiveness of this method. Experts have shared their opinions on how effective technical analysis is and whether it provides real benefits in the realm of cryptocurrencies.

Top Mistakes That Prevent Wealth

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Have you heard the common saying “money doesn’t make happiness?” While one can agree or disagree with this statement, a comfortable life in abundance allows a person to live more harmoniously and peacefully. Why do some people get lucky with money while others “toil” from dawn to dusk just to make ends meet? Improving your financial situation may involve working on the common mistakes that prevent wealth accumulation, both mental and financial.

What Is Market Volatility?

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Investors and traders assess their strategies and trading systems based on several criteria. The primary ones are potential profitability and risk level. Both depend on the price changes of selected assets or portfolios. The speed and magnitude of such changes are quantitatively assessed by calculating the volatility indicator. So, what is market volatility in simple terms, what does it depend on, and how is it used in trading?

Is The 200-Day Moving Average Effective in Trading?

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To conduct effective technical analysis of prices for any financial instrument, traders use graphical objects and technical indicators. While the former primarily answer the question of when to enter the market and fix profits or losses, the latter serve as a mathematical model of price behavior and can help identify patterns on charts. Even the simplest indicators possess these properties, which is why they have gained wide popularity. Among proponents of the latest technologies, such as neural networks, and fans of classical methods, heated debates continue regarding the accuracy and effectiveness of various indicators. For instance, investors try to determine if the 200-day moving average is effective in trading. Let’s try to answer this question.

Overcoming Tilt for Success

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Traders sometimes lose control of their emotions and begin making irrational decisions based on fear, anger, or greed. This phenomenon is called “tilt.” It can lead to significant losses in trading, so it’s important to understand what it is and how to deal with it.