If the financial market fluctuates unpredictably, then what can pull you away from the constant rushing tsunamis that want to submerge your account? If you were human, then everyone would have emotions. But when emotions are out of control during trading, bad things will begin to happen.
I have a friend who is trading in Olymp Trade. When the market worsened, due to a moment of losing his temper, he wiped out his profits in the past few months. $1,432 is not a small number.
This article will share the importance of maintaining discipline. Which will help us avoid unnecessary losses when trading in Olymp Trade.
- 1 The key to success for traders
- 2 Observe the market when trading in Olymp Trade
- 3 Risk management
- 4 Review on orders opened on March 23, 2020, by a friend
- 5 Review on orders opened on March 23, 2020, by me
- 6 What are the good Orders when trading in Olymp Trade?
The key to success for traders
From the first time joining trading to the present, I have gained a little experience to avoid risks and aim for safer transactions.
The trading psychology
(i) Be objective – getting rich in a short time is impossible
In trading, the behavior of traders sometimes is significantly influenced by common emotions such as fear, greed, hope, etc. People who are weak and overconfident, greedy and stubborn are all committed as victims of the market.
Understanding your abilities, strengths, and weaknesses will help traders avoid losses. The above plus the ability to know the psychological state and behavior of the crowd in the market will guarantee your success.
(ii) Don’t be too greedy when trading in Olymp Trade
One of the motivations you engage in trading in financial markets is the ability to make “easy money” or, frankly, greed.
The result of greed is the motivation for making short-term transactions and expecting wealth to come to you shortly.
If traders do not have a clear working plan for each transaction, this shows that they are working under the influence of greed, not reason.
(iii) Do not expect excessively
The next factor motivating a trader is hoping to make a profit. Especially when trading in Olymp Trade, the expectation of winning can easily make you lose your control. That is when we are trading riskily. The high expectation leads new traders to prolonged losses.
Traders who live with expectation will have to accept defeat. It is the expectation that pushes traders to make one of the biggest mistakes – uncontrolled trading, especially when trading in Olymp Trade.
(iv) Accept the loss
You will not be able to become a successful trader unless you accept winning as well as losing. Both of these are an integral part of the transaction process. On the way of acquiring the art of trading, there will often be obstacles.
If you do not accept losses, then the transaction will have no stops until your balance burns out. When traders are not ready for losses, they often become bigger and bigger.
Observe the market when trading in Olymp Trade
To be a successful trader, you must clearly grasp the following 5 factors:
– Opening price
– Closing price
– Highest price
– Lowest price
– Transaction volume
Never lose the money you can’t afford. Learn to calculate how much you lose. Amateurs think about how much they make, but professionals think about how much they can lose.
Review on orders opened on March 23, 2020, by a friend
These are the transactions sent by my friend and I would like to share them with you.
In a day of fluctuating financial markets, no technical indicators could predict the trend exactly. At that confusing moment, no matter how you trade, you would still lose and my friend was no exception. People who consistently make money in Olymp Trade can still make fundamental mistakes by not following the risk restriction principle.
Let’s analyze the reasons of losing money from which to avoid making mistakes of those who came first. This is also a very effective way to learn.
order 1: $50
My friend: The price closed above the upper band + RSI (overbought zone) => opened a DOWN.
Me: This is a method usually used by the faithful of reversal trading. This is to combine RSI and Bollinger band indicators to find entry points. It is quite risky to open a DOWN right now.
=>The price continued to rise. order 1 lost.
Order 2: $150
My friend: It was still the same condition as Order 1, but he opened the Fixed Time Trade with a bigger volume to recover the loss of order 1 and continued to open a DOWN.
Me: It becomes a little bit edgy here. Although everything had happened already, it still affected the opening of order 2. He started to open many Fixed Time Trade continuously without any logic.
=>The price again rose. Now he lost $200 already.
Order 3: $350
My friend: The candle closed 100% above the upper band + RSI (overbought). The next candle had to be a bearish one. Opened a DOWN.
Me: I have never seen a situation in which a candlestick which closes 100% above the upper band in the overbought zone but the price would decrease. This is probably because he was too confident in technical indicators.
=> It was another fairly long bullish candle. Now, $550 was gone.
At this point, everything happened too fast, and he could no longer keep up. My friend’s emotions were pushed to the peak.
Now, the only thing that he wanted was to recover the losses however risky it was. But the more he wanted to recover, the more he got stuck.
Order 4: $882.33 (all-in)
My friend: The price had continuously risen by 3 candlesticks. The candle for order 4 closed 2/3 outside the upper band. The next must be a bearish candlestick – he thought with 100% confidence – so he continued to open a DOWN.
Me: If he wins, he will probably recover all the losses. But if he loses, what will he have for trading once his balance reaches 0?
=> Another bullish candle. $1,432 disappeared into thin air.
Here, the tragedy was closed and the one who suffered was the one who lost his temper. And sadly, when there’s no money left, his prediction was now correct. The taboos during the transaction that are going against the trend, opening many Fixed Time Trade continuously, both appeared in the 4 orders above. So losses are inevitable if you let emotions lead.
Review on orders opened on March 23, 2020, by me
Spending some time on drawing the resistance/support lines is the key to good trading.
The dominant strategy is still T.S (Trend + Signal)
Trading in Olymp Trade has never been easy. However, this is a very basic strategy that I draw from statistics after a long time of experimentation. It still works very well for me now, as evidenced by my profit.
If one bad day, the T.S method no longer works, I will have to change to another trading strategy to survive in the market. But for now, it is still quite stable, so it goes on.
Here are the articles introduced carefully about the T.S strategy in Olymp Trade, which you can refer to.
Here are the principles.
– The maximum number of orders opened per day is 5. And the risk level I accept is $250. So, there will be $50 for each order.
– Never go against the trend.
– Never open many orders continuously.
– Enter a trade only when there are enough conditions.
(i) Only open UP in a bullish trend. Vice versa, find the safest entry points for DOWN in a bearish trend.
(ii) Signals are prioritized in the following order: Pull-back candle, Pin bar candle, high precision candlestick patterns.
Specific entry points when trading in Olymp Trade
Order 1: Uptrend + long bearish candle touched the support zone => Opened an UP.
Order 2: Bullish trend + the candle tested the support level the second time => Opened an UP.
Notes: Regarding the support or resistance zones in which the price has tested more than 2 times, the probability of being broken is very high. We should limit trading when the price has hit the levels several times.
Order 3: Stable upward trend + bullish candle with the lower tail touched the support zone and bounced back which proved that the price had been pushed by a strong bullish force
=> Opened an UP.
Order 4: Uptrend + Hanging man candlestick appeared and nicely tested the support level => Opened an UP .
Order 5: Bullish trend again + the price tested the support level just passed the second time => Opened an UP.
This week’s work is quite busy, partly because it’s the end of the month and I need to complete the reports. So only I traded on Monday, but it was not bad at all when I can still make $17 of profit.
What are the good Orders when trading in Olymp Trade?
To me, good Orders are the ones that I open exactly as the strategy I set out. Winning or losing cannot determine a good or bad Order. Because there are Orders which can still bring you profit but it’s totally incorrect compared to your strategy. While, the correct Orders, as set in the strategy, lose.
Try to focus on winning yourself during trading by doing exactly as the principles you set out. Then, the reward will be the profit credited on your account.
No need to wonder more or less, just follow the rules. At weekends, withdraw profits to your account.
I wish you learn how to keep calm when trading in Olymp Trade in front of a market full of temptation.