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4/65
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Introduction
This article is to explain and show how a price flow actually works, thorugh some extremely simplified examples, in the attempt to show what is in my opinion the most important concept to understand about financial markets.
Basic concept
Everything starts from accepting a law: if there is an imbalance between supply and demand, as direct consequence a price will change. This is true for any exchangeable stuff, will it be a product, a service, an idea, a commodity and so on. It is an extremely simple concept indeed: more demand equals price up, more supply equals price down. If there is 1 unit of anything, and a lot of people looking to buy it, price will be rising till the point where only 1 will be the buyer.
On the other side if there are 100 units and few buyers, price will be correcting down to attract new customers till the point where all units will be sold.
Supply / demand flows
In a financial marketplace there is a continuous exchange and participants can be either selling or buying the same instrument, or even simultaneously selling and buying. An important difference with any other market, is that there is unlimited quantity of any given instrument, so price…
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loriana avatar
loriana 1 Dec.

Great read

hrustiashka avatar

Good article!

TInna avatar
TInna 2 Dec.

very good!

chuvee avatar
chuvee 2 Dec.

I like the article.

MR_KHALEDBADRY avatar

nice work

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7/56
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Introduction
This article will continue the "Trading Abc" series, going through a deeper analysis of what is a chart, how price flow is represented on different timeframes and how to consider a timeframe compared to another which are some basilar points I need to focus on before going through the main aspect regarding supply and demand and market behaviors.
If you are interested, here below the list of previous parts:
Charts
Everytime we look at a chart, what we see is the graphical representation of the consensus price for a given instrument over a specific period of time. This is done by a software elaborating all data and drawing a line for every new tick, so for example this is how the GBP / USD chart looks like:
In this case the chart represents all ticks coming in 20 minutes from 14:00 to 14:20, and they are connected each-other by a line so to simplify and make the visualization more readable by human eye. There are other ways to visualize the same price changes over a period, and the most commonly used is the candlestick chart, where every candle is a representation of all tick data over a specific frame of time. Let's say …
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olya2517 avatar
olya2517 5 Nov.

good)

TInna avatar
TInna 9 Nov.

wery well!

BhimSha56166409 avatar

good

adiray avatar
adiray 16 Dec.

great article there

Starsailor avatar
Starsailor 31 Dec.

nice work

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15/56
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Introduction
My experience in trading started long time ago and I can already count something about 7 years on charts and I feel like my learning process is just at the beginning. It is not about the ability to recognize a price direction, or to correlate price setup with current fundamental scenario: it is about the mental attitude, the psychological ability to accept and behave properly depending on the changing conditions.
Focus
When thinking about my experiences in trading, I can divide my learning process in 2 clear steps: one about learning all the technical part, and one knowing how to behave. The first part took me some years in reading, listening, doing researches, comparing, analyzing and recognizing the different technical developments while happening in a chart. The second part started at a certain point in the meantime, when I had already learnt a lot of things, but still was able only to burn a one thousands dollars account in a very, very quick time.
As per our nature, when things go wrong we tend to blame something or someone. My first reaction was to blame market, being always ready to get my stops no matter where I put them. If I moved stop at breakeven, price…
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GammaBurst avatar
GammaBurst 19 Oct.

Big good work my friend!

TInna avatar
TInna 19 Oct.

well done!)

klintons avatar
klintons 20 Oct.

Very well

rupesh1984 avatar
rupesh1984 25 Oct.

Quite a topic opened here, the one above all other aspects, very top of the ladder. Nicely explained friend, true words!

Bidza avatar
Bidza 27 Oct.

Well done, you have brought OneGoodTrade out into the article writing too...great work.

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3/30
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In this article I'm going to outline the key elements of my trading philosophy, share my background and how my trading style has developed over the years. It is based on my +5 years of experience in the market , my own research, back-testing and forward-testing, and also the insights learned from countless books reading about the markets. My trading philosophy is based on my own interpretation of price movements during a long process of trial and error, and also my interpretation of how great traders like Jesse Livermore, Paul Tudor Jones, Ray Dalio, George Soros, Ed Seykota, Michael Marcus, Marty Schwarts, Nicolas Darvas and many more, are trading the markets.
This was definitely the most challenging thing I've done in my life, if you take in consideration the rate of success in this business you soon realize this is a tough business. Jesse Livermore one of the greatest traders who ever lived noted that:"The game of speculation is the most uniformly fascinating game in the world. But it is not a game for the stupid, the mentally lazy, the man of inferior emotional balance, or for the get-rich-quick adventurer. They will die poor." I have to say that my greatest inspiration, i…
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luke1973 avatar
luke1973 22 Apr.

I like it very much i only disagree with the most important thing in trading money management.On figure 3 for account 5000-10000$  trading with 2 lots even 1 lot is too much.With such size of trading you will be out in a very short time

luke1973 avatar
luke1973 22 Apr.

If you use tight stop you need to trade with very small size this way you will let yourself do many trades.It will not destroy your psychology in case you get caught in a losing streak.

Daytrader21 avatar

luke1973 Thanks. Well, trading only 1 lot on a 10k account with a tight stop of 30 pips(that's my case)is just a 3% loss($300). I have to disagree on the tight SL, as this is quite contrary it gives you the opportunity to increase your position size and also gives you a better RR if you time the market right. You're right on the pshichology as your state of mind is an important component for your success

Airmike avatar
Airmike 23 Apr.

Hi D21. I just want to say that article is awesome :).

Daytrader21 avatar

Airmike Thanks, appreciate your kind words.

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