Trading - Time Value of Money

The Mindset of a Trader By Tom The mindset of a trader is what separates the 1% of successful traders from the rest. A winning trader is patient, embracing the time it takes to analyze and wait for the right moment to strike. They work tirelessly to hone their craft, building confidence that comes only through consistent effort. Their mindset is resilient, pushing them to persist even when trades don’t go as planned. Crucially, they trade without greed, focusing on their strategy rather than chasing profits blindly. In stark contrast, the losing 99% are plagued by impatience, rushing into trades without the due diligence that builds long-term success. Laziness shortcuts their path, relying on luck instead of the hard work that fortifies the 1%. Fear and a weak mindset drive their actions, leading them to abandon strategies at the first sign of trouble. And greed – the desire for fast profits – blinds them to the discipline required to win. This 1% mindset doesn’t come easily, but it’s ...

It's all in the charts and price action by Tom If you can plot a price on graph paper or chart it using software, you’re already set up to analyze and potentially trade it. The fundamental psychology behind price movement—supply, demand, and human behavior—is remarkably consistent across various markets. Whether you’re trading Forex, stocks, commodities, or even cryptocurrency, the same patterns of price action can reveal the underlying trends. In fact, this basic concept is at the core of price action analysis. By interpreting charts, traders can identify recurring formations and responses that point to potential opportunities, regardless of the asset. This simplicity is why many prefer "old school" methods, even today, as they keep the focus on the basics: identifying price swings, support, and resistance levels without complex indicators cluttering the view.

Price-Action Chart Analysis - The Core By Tom Trendlines, Fibonacci levels, and chart patterns serve as highly effective indicators for identifying potential price reversal zones in financial markets. The strength of these tools lies in their alignment with market psychology and the behavior of professional traders around these levels, where significant buying and selling decisions often occur. 1. Trendlines: How They Work: Trendlines, drawn along support and resistance points, highlight the general direction of a market. They connect a series of highs or lows, offering a clear visual of an uptrend or downtrend. Why They’re Effective: Professional traders watch these lines closely, as they indicate key levels where the price has repeatedly respected a trend. When the price approaches these trendlines, they often act as dynamic support or resistance levels. Traders tend to place buy or sell orders around these areas, betting on a continuation or expecting a breakout and reversal. Psych...

 How high or low can a price go?  Prices are driven by market demand and external factors, so there's technically no limit on how high or low they can go. For instance, with Gold, current bullish momentum can push it even higher. This was also clear in 2020 with Oil, which saw prices plunge lower than expected due to unprecedented conditions. Trends can exceed what we predict because market sentiment, geopolitical events, and supply-demand dynamics constantly change the playing field. That’s why monitoring price action and chart patterns is crucial in anticipating these potential extremes. See www.forexcollege.co.za for more.  #trading #forex #Forextrading #TradingSouthAfrica