New video scalping
Hello Lem,
Regarding the question of my future video translations, first of all thank you very much for your great feedback, it will definitely help me. From my point of view, the distribution of the 3 trading styles in the retail area could look like this:
Swing trading: 30%, Day trading: 60% and Scalping: 10%
Scalping is the least used strategy as it requires a very fast response time due to the fees and costs, which is why it is also known as the Formula 1 of trading. With all 3 trading styles I can earn and lose money equally. Effective risk management is crucial, because first and foremost, every trader should secure his account as well as possible. The leverage, the position size but also the value of pips per minute play a decisive role. For day traders and scalpers, momentum is more important than for a swing trader who wants to take a complete sequence of movements with them. Many retail traders also use several strategies in order to adapt to the respective market conditions. This is also strategically wise, as the market never aligns itself with us.
What you wrote: I have previously noted, the sheer volume of simply outstanding information you post boggles the mind. I truly don't know how you do it!
I feel very honored and would like to answer you. When I started trading, earning a lot of money was not my primary goal, as I had already done this as a self-employed person for over 20 years. The challenge of having a realistic chance against the best traders in the world with the help of probabilities fascinated me much more. For this reason, I have spent a lot of time over the years to get an even deeper market insight and thus to optimize my strategies. With the stock market data two years ago, the breakthrough finally came. The decisive factor was the approach of the big players, the programming of their algorithms and how they react to special market changes. If you put the optimal probabilities of the different strategies, setups and money management on top of each other, the best opportunities arise. In contrast to the lottery, we are not dealing with random probabilities here, as the big players repeatedly use certain price regions to carry out their strategies. As soon as these price zones have been burned, new zones are created and used until these too are unusable. Then the game starts all over again.
What fascinates me is the accuracy with which the big players stop all traders (scalpers, day traders and swing traders) or limit their profits. The big players know that almost all traders look to the past. This creates fictional zones where retail traders keep making the wrong decisions. Comparable to a spider web, which is not clearly recognizable due to the color reflections. What we see in the chart and what we derive from it is not reality, but a strategic trap of the big players. You can stop the course exactly on the pipette and thus create zones that give us retail traders a deceptive certainty as to where the course will go next. And we fall into these traps again and again and have done so for many decades.
I created the best course of action for me from the different probabilities.
As you rightly noticed: this way definitely works if you keep other crucial things in mind. Since a course can only go up or down, this results in a deceptive probability of 50%. This is a false security, because spreads and our stops reduce this probability to only 10%. Many market participants who claim that trading is easy should keep in mind that 90% of all traders are not profitable. And that is not because these traders are stupid, but because the big players present the price developments in such a way that everyone thinks they know where they are going next. The more certain a trader is, the less likely his forecast is.
And that's exactly why I find the strategies of the big players so fascinating.
Kind regards Michael
Disliked{quote} Hi Michael, Another perfect round up of another tactical aspect of trading - just so happens to be my own style if trading. As re the videos, I personally find that watching, then reading, then re-watching them as you describe is my favoured way of absorbing them. I have been in this game for a long time - beginning as a (very) high time frame trader and eventually finding my true calling as a scalper once I moved out in my own - and this way certainly works. Hopefully it does so for others also. That way you will be able to get into a groove...Ignored
Hello Lem,
Regarding the question of my future video translations, first of all thank you very much for your great feedback, it will definitely help me. From my point of view, the distribution of the 3 trading styles in the retail area could look like this:
Swing trading: 30%, Day trading: 60% and Scalping: 10%
Scalping is the least used strategy as it requires a very fast response time due to the fees and costs, which is why it is also known as the Formula 1 of trading. With all 3 trading styles I can earn and lose money equally. Effective risk management is crucial, because first and foremost, every trader should secure his account as well as possible. The leverage, the position size but also the value of pips per minute play a decisive role. For day traders and scalpers, momentum is more important than for a swing trader who wants to take a complete sequence of movements with them. Many retail traders also use several strategies in order to adapt to the respective market conditions. This is also strategically wise, as the market never aligns itself with us.
What you wrote: I have previously noted, the sheer volume of simply outstanding information you post boggles the mind. I truly don't know how you do it!
I feel very honored and would like to answer you. When I started trading, earning a lot of money was not my primary goal, as I had already done this as a self-employed person for over 20 years. The challenge of having a realistic chance against the best traders in the world with the help of probabilities fascinated me much more. For this reason, I have spent a lot of time over the years to get an even deeper market insight and thus to optimize my strategies. With the stock market data two years ago, the breakthrough finally came. The decisive factor was the approach of the big players, the programming of their algorithms and how they react to special market changes. If you put the optimal probabilities of the different strategies, setups and money management on top of each other, the best opportunities arise. In contrast to the lottery, we are not dealing with random probabilities here, as the big players repeatedly use certain price regions to carry out their strategies. As soon as these price zones have been burned, new zones are created and used until these too are unusable. Then the game starts all over again.
What fascinates me is the accuracy with which the big players stop all traders (scalpers, day traders and swing traders) or limit their profits. The big players know that almost all traders look to the past. This creates fictional zones where retail traders keep making the wrong decisions. Comparable to a spider web, which is not clearly recognizable due to the color reflections. What we see in the chart and what we derive from it is not reality, but a strategic trap of the big players. You can stop the course exactly on the pipette and thus create zones that give us retail traders a deceptive certainty as to where the course will go next. And we fall into these traps again and again and have done so for many decades.
I created the best course of action for me from the different probabilities.
Inserted Video
As you rightly noticed: this way definitely works if you keep other crucial things in mind. Since a course can only go up or down, this results in a deceptive probability of 50%. This is a false security, because spreads and our stops reduce this probability to only 10%. Many market participants who claim that trading is easy should keep in mind that 90% of all traders are not profitable. And that is not because these traders are stupid, but because the big players present the price developments in such a way that everyone thinks they know where they are going next. The more certain a trader is, the less likely his forecast is.
And that's exactly why I find the strategies of the big players so fascinating.
Kind regards Michael
Forget:That does not work, amateurs build the ark, pros the Titanic!
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