$SOL #BTC #ETH #XRP 🚨 It's not about winning or losing. In trading, it's particularly about perfecting your strategy overnight by making it better. Profits and losses are just indicators to show you whether your strategy is working properly or not.
This is complemented by Discipline and Patience: the ability to wait for the right opportunities and not be influenced by emotions.
$ETH As the price continues to rise, on-chain data (lookonchain) reveals that there is virtually no significant resistance before $3,100. However, once this level is reached, some selling pressure could develop, as 4.1 million ETH addresses will reach the breakeven point after being in loss for about six months.
#TruthSocialCryptoBlueChipETF According to Cryptoast 🇺🇸 Following these statements, the House of Representatives plans to announce concrete measures next week to make the United States the "global capital of crypto," responding to President Trump's call.
#Fed According to Cryptoast 📉 Christopher Waller, a member of the Federal Reserve Board, stated that the U.S. central bank may consider a rate cut this month. $BTC $ETH $SOL
The "distribution phase" is a key concept in technical analysis, part of market cycle theory. It describes a period when informed investors (often institutions, the "strong hands") begin to sell their assets after a rising phase, taking advantage of the optimism and demand from the general public (the "weak hands"). It is a transitional phase between a bullish trend and a bearish trend.
Here is a more detailed explanation of the distribution phase:
#Fed Trump says : Our Fed Rate is AT LEAST 3 Points too high. “Too Late” is costing the U.S. 360 Billion Dollars a Point, PER YEAR, in refinancing costs. No Inflation, COMPANIES POURING INTO AMERICA. “The hottest Country in the World!” LOWER THE RATE!!!
Even with an excellent trading strategy, good technical analysis, and solid risk management, emotions can sabotage a trader's decisions. Fear, greed, hope, regret, and other emotions can lead to costly mistakes. Trading psychology helps identify and manage these emotions to improve overall performance.
Common emotions that affect trading:
• Fear: The fear of losing money can lead to irrational decisions, such as selling too early or not taking winning positions. • Greed: Greed can lead to taking excessive risks or staying in a position too long, hoping for larger profits. • Hope: Hope can lead to holding onto losing positions for too long, expecting an unlikely turnaround. • Regret: Regret over not taking a position or selling too early can lead to impulsive decisions. • Excitement: Excitement after a series of winning trades can lead to overestimating one's skills and taking excessive risks. • Anger: Anger after a loss can lead to impulsive revenge trading. • Anxiety: Anxiety can lead to hesitation in taking positions or irrational decision-making. • Overconfidence: Overconfidence in one's skills can lead to excessive risk-taking and neglecting risk management.
#RiskRewardRatio The risk/reward ratio (Risk/Reward Ratio or R/R Ratio) is a fundamental tool used by traders and investors to assess the profit potential of a transaction relative to the risk of loss. It allows determining whether an investment opportunity is worth considering by comparing the potential gain with the maximum acceptable loss.
How to calculate the risk/reward ratio?
The risk/reward ratio is calculated by dividing the risk (the maximum potential loss) by the potential reward (the target profit).
Formula:
Risk/Reward Ratio = Risk / Reward
Where:
• Risk: The difference between the entry price (purchase price) and the stop loss level. This is the maximum loss you are willing to accept on this transaction. • Reward: The difference between the target price (potential selling price) and the entry price. This is the profit you expect to make on this transaction.
Example:
• Purchase price of a stock: €100 • Stop loss level: €95 (risk of €5 per share) • Target price: €115 (potential reward of €15 per share)
Risk/Reward Ratio = €5 / €15 = 1/3 or 0.33
Interpretation of the risk/reward ratio:
• Ratio less than 1: Indicates that the potential reward is greater than the risk. For example, a ratio of 1:2 means you are willing to risk €1 to potentially gain €2. • Ratio equal to 1: Indicates that the potential reward is equal to the risk. For example, a ratio of 1:1 means you are willing to risk €1 to potentially gain €1. • Ratio greater than 1: Indicates that the risk is greater than the potential reward. For example, a ratio of 2:1 means you are willing to risk €2 to potentially gain €1.
#RiskRewardRatio The risk/reward ratio (Risk/Reward Ratio or R/R Ratio) is a fundamental tool used by traders and investors to assess the profit potential of a transaction against the risk of loss. It helps determine whether an investment opportunity is worth considering by comparing the potential gain with the maximum acceptable loss.
How to calculate the risk/reward ratio?
The risk/reward ratio is calculated by dividing the risk (the maximum potential loss) by the potential return (the target profit).
Formula:
Risk/Reward Ratio = Risk / Return
Where:
• Risk: The difference between the entry price (purchase price) and the stop loss level. This is the maximum loss you are willing to accept on this transaction. • Return: The difference between the target price (potential selling price) and the entry price. This is the profit you hope to make on this transaction.
Example:
• Purchase price of a share: €100 • Stop loss level: €95 (risk of €5 per share) • Target price: €115 (potential return of €15 per share)
Risk/Reward Ratio = €5 / €15 = 1/3 or 0.33
Interpretation of the risk/reward ratio:
• Ratio less than 1: Indicates that the potential return is greater than the risk. For example, a ratio of 1:2 means you are willing to risk €1 to potentially gain €2. • Ratio equal to 1: Indicates that the potential return is equal to the risk. For example, a ratio of 1:1 means you are willing to risk €1 to potentially gain €1. • Ratio greater than 1: Indicates that the risk is greater than the potential return. For example, a ratio of 2:1 means you are willing to risk €2 to potentially gain €1.
#RiskRewardRatio The risk/reward ratio (Risk/Reward Ratio or R/R Ratio) is a fundamental tool used by traders and investors to assess the profit potential of a transaction in relation to the risk of loss. It helps to determine whether an investment opportunity is worth considering by comparing the potential gain with the maximum acceptable loss.
How to calculate the risk/reward ratio?
The risk/reward ratio is calculated by dividing the risk (the maximum potential loss) by the potential reward (the target profit).
Formula:
Risk/Reward Ratio = Risk / Reward
Where:
• Risk: The difference between the entry price (purchase price) and the stop loss level. This is the maximum loss you are willing to accept on this transaction. • Reward: The difference between the target price (potential selling price) and the entry price. This is the profit you expect to make on this transaction.
Example:
• Purchase price of a stock: €100 • Stop loss level: €95 (risk of €5 per share) • Target price: €115 (potential reward of €15 per share)
Risk/Reward Ratio = €5 / €15 = 1/3 or 0.33
Interpretation of the risk/reward ratio:
• Ratio less than 1: Indicates that the potential reward is greater than the risk. For example, a ratio of 1:2 means you are willing to risk €1 to potentially gain €2. • Ratio equal to 1: Indicates that the potential reward is equal to the risk. For example, a ratio of 1:1 means you are willing to risk €1 to potentially gain €1. • Ratio greater than 1: Indicates that the risk is greater than the potential reward. For example, a ratio of 2:1 means you are willing to risk €2 to potentially gain €1.
#StopLossStrategies A "stop loss" strategy is a risk management technique used by traders and investors to limit their potential losses on an open position. It involves placing a sell order (stop loss order) with their broker, which is automatically triggered if the asset's price reaches a certain predetermined level.
How does a stop loss order work?
1. Choosing the stop loss level: The investor decides on the price level at which they want to sell their asset to limit their losses. This price level is generally based on technical or fundamental analysis. 2. Placing the order: The investor places a stop loss order with their broker, specifying the price level at which the order should be triggered. 3. Triggering the order: If the asset's price reaches or exceeds the stop loss level, the order is automatically triggered and converted into a market sell order. 4. Executing the order: The broker executes the sell order at the available market price, allowing the investor to limit their losses.
Types of stop loss:
• Fixed stop loss: The stop loss price level is fixed and does not change. It is easy to set up but may be triggered prematurely if the price fluctuates temporarily. • Trailing stop loss: The stop loss price level automatically adjusts based on the asset's price movement. It helps protect profits while limiting losses. For example, a trailing stop loss can be configured to follow the price upward at a certain distance (e.g., 5% below the highest price reached). • Volatility-based stop loss: The stop loss price level is determined based on the asset's volatility. The higher the volatility, the further away the stop loss will be from the current price. • Time-based stop loss: The sell order is triggered after a certain period, regardless of the asset's price.
#StopLossStrategies A "stop loss" strategy is a risk management technique used by traders and investors to limit their potential losses on an open position. It involves placing a sell order (stop loss order) with their broker, which is automatically triggered if the asset's price reaches a certain predetermined level.
How does a stop loss order work?
1. Choosing the stop loss level: The investor decides on the price level at which they want to sell their asset to limit their losses. This price level is usually based on technical or fundamental analysis. 2. Placing the order: The investor places a stop loss order with their broker, specifying the price level at which the order should be triggered. 3. Triggering the order: If the asset's price reaches or exceeds the stop loss level, the order is automatically triggered and converted into a market sell order. 4. Executing the order: The broker executes the sell order at the available market price, allowing the investor to limit their losses.
Types of stop loss:
• Fixed stop loss: The stop loss price level is fixed and does not change. It is simple to set up but can be triggered prematurely if the price fluctuates temporarily. • Trailing stop loss: The stop loss price level automatically adjusts based on the asset's price movement. It helps protect profits while limiting losses. For example, a trailing stop loss can be configured to follow the price upwards at a certain distance (e.g., 5% below the highest price reached). • Volatility-based stop loss: The stop loss price level is determined based on the asset's volatility. The higher the volatility, the further the stop loss will be from the current price. • Time-based stop loss: The sell order is triggered after a certain period of time, regardless of the asset's price.
#DiversifyYourAssets Diversifying your portfolio is an investment strategy that involves spreading your investments across different asset classes, sectors, geographic regions, and financial instruments to reduce overall risk and improve potential returns. The main goal is not to put all your eggs in one basket, so that if a particular investment performs poorly, the impact on the entire portfolio is limited.
Why diversify your portfolio?
• Reduce risk: Diversification is the primary risk-reduction strategy in investing. It helps smooth out market fluctuations and protects the portfolio from significant losses. • Improve potential returns: By investing in different types of assets, you increase the chances of taking advantage of growth opportunities in various sectors and regions. • Access different sources of income: Diversification allows for generating income from various sources, such as dividends, interest, and capital gains. • Adapt to market changes: A diversified portfolio is more resilient to market changes and can better adapt to different economic conditions. • Achieve your financial goals: Diversification helps better align your portfolio with your long-term financial objectives.
#BinanceEarnYieldArena "Binance Earn Yield" refers to the various options offered by the Binance platform to allow users to earn rewards ("yields") on their cryptocurrency assets. These options vary in terms of risk, flexibility, and potential returns.
Here is an overview of the main options for Binance Earn Yield:
• Simple Earn: This is the simplest and most accessible option. You deposit your cryptocurrencies and earn interest by lending them to Binance. There are two options: • Flexible Terms: You can withdraw your assets at any time, but the interest rates may vary. • Locked Terms: You lock your assets for a fixed period (e.g., 30, 60, or 90 days) and earn a higher interest rate. You cannot withdraw your assets before the end of the locking period.
• Launchpool: You stake your BNB or other cryptocurrencies to earn new tokens from projects launched on the Binance platform. This is a way to participate in the launch of new projects and earn rewards in exchange for your support.
• DeFi Staking: You stake your cryptocurrencies to participate in DeFi (Decentralized Finance) projects on Binance and earn rewards based on the project's performance. It is important to note that DeFi Staking carries higher risks than Simple Earn, as DeFi projects are often more volatile...
#SECGuidance "SEC guidance" refers to the guidelines, recommendations, opinions, and interpretations published by the Securities and Exchange Commission (SEC) in the United States. The SEC is the government agency responsible for regulating and overseeing financial markets and publicly traded companies in the United States.
The "SEC guidance" aims to help businesses, investors, and financial professionals understand and comply with securities laws and regulations. It provides clarifications on how the SEC interprets rules and laws, as well as advice on best practices to follow.
#SECGuidance "SEC guidance" refers to the guidelines, recommendations, opinions, and interpretations published by the Securities and Exchange Commission (SEC) in the United States. The SEC is the government agency responsible for regulating and overseeing financial markets and publicly traded companies in the United States.
The "SEC guidance" aims to help businesses, investors, and financial professionals understand and comply with securities laws and regulations. It provides clarifications on how the SEC interprets rules and laws, as well as advice on best practices to follow.