🧠 First: Things traders must understand
1. Capital management
Do not risk more than 1-2% of your capital in a single trade.
Always use a stop loss.
Do not enter the market with all your capital at once.
2. Control your emotions
Do not trade when you are angry or overly excited.
Avoid seeking revenge on the market after a loss.
Sticking to the plan is more important than momentary feelings.
3. Set a clear trading plan
Define a strategy (scalping - swing - day trading).
Know when to enter a trade and when to exit.
Do not enter a trade unless it aligns with the plan.
4. Ideal trading times
Best times: Session overlaps (European - American).
Avoid trading during strong news unless you are a professional.
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📊 Secondly: How to analyze and read candlesticks
1. What is a candlestick?
Each candle represents price movement over a period (minute, hour, day...). It consists of:
Upper wick: The highest price reached.
Lower wick: The lowest price reached.
Candle body: The difference between the opening and closing prices.
🔴 Red candle (bearish)
The closing price is lower than the opening price.
🟢 Green candle (bullish)
The closing price is higher than the opening price.
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📌 2. Candlestick patterns (very important!)
Model Meaning
Hammer A small candle with a long lower wick - indicates a bullish reversal.
Shooting Star A candle with a small body and a long upper wick - indicates a bearish reversal.
Doji The opening and closing prices are nearly equal - indicates market indecision.
Engulfing A candle that engulfs the body of the previous candle - may indicate a strong reversal.
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🔍 3. How do you analyze before entering a trade?
✅ Simple steps:
1. Identify the overall trend using moving averages or trend lines.
2. Look for support and resistance areas.
3. Watch for the formation of candlestick patterns at these areas.
4. Use a helper indicator like RSI or MACD to confirm the trade.
5. Set stop loss and take profit before entering.
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📌 Tips while trading:
Do not change the stop loss after entering.
Do not enter a trade because you "feel" that the price will go in a certain direction.
Monitor economic news if you are trading currencies or indices.
