What is trading and how is it different from investing? Welcome to Day One of the series
Participants in financial markets are divided into two main categories: traders and investors. Trading: Time horizon: short to medium term (hours, days, or weeks). Goal: take advantage of ongoing price fluctuations in the market to achieve quick, direct profits. Approach: focuses primarily on technical analysis, charts, and tracking the momentum of price movement.
Fake platforms deceive customers by making them believe they will earn high profits, but in the end, they cannot withdraw their profits or their capital.
Following FinCEN’s recent designation of MEXC as a primary money laundering concern, Binance will no longer be able to process transactions involving the crypto-asset service providers/platforms listed below. MEXC Global Limited MEXC Estonia Limited GIDA Technology AG MXC Global Limited MEXC Global Foundation MEXC Singapore Pte Ltd MEXC (Comoros) Limited Mexico MEXC Global MEX Global Limited MX Global Limited MEXC Exchange (former name) MEXC affiliates Accordingly, please do not send, receive, or participate in any transactions through the Binance platform that involve these entities, directly or indirectly. Any requests to transfer funds from a Binance account to any of the entities listed above will be rejected. Any deposits Binance receives from any of the entities listed above will be temporarily withheld and subject to a compliance review. Users may also be subject to additional restrictions under Binance’s Terms of Use, including account termination. During the compliance review, restrictions may also be imposed on the affected account, as this activity may be considered a violation of Binance’s Terms of Use. #transactionfees $BNB
Day 25: Liquidity Sweeps and Stop Hunts (Liquidity Sweeps & Stop Hunts)
Liquidity Sweep Concept 🪤 Concept: A temporary, rapid break above a previous high or below a previous low to hit stop losses and trigger smart money orders before reversing in the true direction. 2. Liquidity Pools 🎯 Goal: Identify areas where strong liquidity accumulates, which are often above equal highs and below equal lows.
Qatar’s foreign minister announces that the United States and Iran have failed to reach an agreement.
News of the failed negotiations is positive for gold prices (pushing them higher) in the near term. The reasons:
Increased safe-haven demand: Geopolitical tensions drive investors away from stocks, currencies, and risky assets toward gold to protect their capital.
Higher oil prices and inflation: The failure to reach an agreement heightens concerns about energy supplies, causing oil prices to surge and fueling inflation. Gold is the primary hedge against inflation.
Note: The movement is rapid and highly volatile (Volatility). Whether the rally continues depends on how events unfold on the ground and diplomatically over the coming hours.
1. What is a Fair Value Gap? (Fair Value Gap Concept) 🕳️ Concept: An empty area on the chart that occurs when price moves extremely quickly in one direction (an impulse), to the point that the first candle does not overlap with the third candle. ⚡ Significance: It reflects a sharp imbalance between supply and demand in favor of one side. 2. Types of Fair Value Gaps (Types of FVGs)
What Are Order Blocks (Order Blocks Concept) 🏦 Concept: The last candle moving against the trend before a strong move (Impulse Move) breaks the structure (BOS). ⚡ The secret: Major institutions leave their “footprint” and pending orders in this candle. Price later returns to test it before continuing in its direction. 2. Types of Order Blocks
Day 22: Market Structure and Liquidity Concepts (Market Structure: BOS & CHoCH
Market Structure Concept 📈 The Basics: The market does not move randomly; it forms a series of higher highs and higher lows (in an uptrend) or lower highs and lower lows (in a downtrend). 🎯 Goal: Identify who is currently in control of the market (buyers or sellers). 2. Break of Structure (BOS) 🚀 Concept: Price breaks above the last high in an uptrend or below the last low in a downtrend, and a candle closes below/above it.
Trade predictions on Web3 with Binance on the same platform at a 10% discount via the link https://web3.binance.com/ar/activity/prediction-referral?ref=AFBRUB66. This offer is available for a short time—don't miss it.
📌Binance has revealed new details about the hack that led to the theft of $6.3 billion worth of cryptocurrency, following an operation whose preparations lasted about five months and involved hacking engineers’ devices using malware and a fake job interview.
📌According to an initial report published by the company and cited by Reuters, the operation began last June with the hacking of a computer belonging to a wallet engineer. Another engineer was then lured in September through a fake job interview to download malicious code.
📌On October 20, the attackers used the compromised devices and an internal artificial intelligence tool to access the systems of other engineers.
📌On October 29, the attackers carried out the theft. The unauthorized transfers continued for nearly four hours, while Binance announced that it had frozen or intercepted assets worth about $2.85 billion. #Binance #jobs
Day 21: Multi-Timeframe Analysis (Multi-Timeframe Analysis)
1. The concept of multi-timeframe analysis (Multi-Timeframe Concept) 🔭 Concept: Use different timeframes (large, medium, small) to accurately understand the context of price movement, as price moves in waves within larger waves. 2. The larger timeframe: The big picture (The Big Picture - e.g., Daily) 🧭 Goal: Identify the overall direction (trend) and the major, strong support and resistance levels.
Day 20: Trader Routine & Daily Trading Plan (Trading Routine & Daily Plan)
Preparation Before the Market Opens (Pre-Market Preparation) ⏰ Routine: Review the economic calendar for impactful news, and determine the overall direction on higher timeframes (daily and 4-hour). 2. Watchlist Selection 🔍 Screening: Select only 2 to 3 pairs/stocks with clear patterns and levels, and avoid spreading your attention across too many assets.
Risk Management and Capital Management (Risk Management & Position Sizing)
1. What is risk management? (Risk Management Concept) 🛡️ Concept: A set of strict rules that determine how much money is put at risk in each trade, with the goal of staying in the market for as long as possible, no matter how bad the conditions get. ⚡ Golden rule: Your capital is your "tool of the trade"; losing it means your final exit from the game. 2. Risk-to-reward ratio (Risk-to-Reward Ratio 1:3)
Recklessness without capital management is dangerous and can lead to losing all your money. Be sensible: setting a reasonable goal and a defined loss with a known stop-loss each day is better for you than making a profit today and taking a loss tomorrow.
Concept: What are Fibonacci levels? ♾️ Mathematical basis: It is a sequence of numbers in which each number is the sum of the two preceding numbers. The ratios derived from it (such as 61.8%) are considered “golden ratios” that prices are drawn to. 🎯 Trading purpose: Used to identify potential support and resistance levels during a corrective move within a clear uptrend or downtrend. It is a “leading” indicator that predicts levels before the price reaches them.