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[This is the most important technical level one the chart]
Here are a few reasons why…
Reason #1: Losing traders hoping to get out at breakeven
Multi-year highs represent extreme optimism in the markets because most traders (and investors) are in profits.
But as you know, the price cannot go up forever. Eventually, it has to retrace or reverse altogether.
When that happens, many traders will exit their long trades.
However, not everyone will do the same. Some will continue holding, hoping the price could breakout higher to give them even more profits.
But when the market collapses even lower, they’ll regret not selling earlier as their open profits have been eroded and they are now sitting on their losses. They hope the market could re-test the highs so they can get out of their trades at breakeven.
Reason #2: Bearish traders looking to short the markets
For bearish traders, multi-year highs present an opportunity to short the market at a “high price” because they can reference the highs to set their stop loss.
So as the price approaches multi-year highs, the short interest from bearish traders will increase.
Reason #3: Momentum traders looking to buy breakouts
Momentum traders buy breakouts as the price moves above a certain level. It could be breakouts of a range, swing high, resistance, etc.
But what’s interesting is if the price breaks out of multi-year highs, it’ll attract attention from traders across different timeframes.
That’s because whether you’re a day trader, swing trader, long-term trader, etc. the multi-year highs will be something visible on your timeframe (and charts).
Now, whether you’re bullish or bearish, multi-year high is a significant level for traders.
If you’re bearish, then you can reference it to set your stop loss above the highs.
If you’re bullish, then you can look to buy the breakout and have your stops below the previous multi-year highs (anticipating that it could become previous resistance turned support).
(And vice versa for multi-year low.)
How To Trade Different Types Of Trend Lines (Ultimate Guide)
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This is a 31-page trading booklet that contains a specific trading system that has generated 1451.74% since 2000—and has 18 winning years out of the last 20.
Learn More 👉 https://pullbackstocktradingsystem.com/
Discover 19 Powerful Lessons from the Legend, Jesse Livermore
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Trading doesn't solve your money problems—it amplifies it.
Читать полностью…
[The hidden cost of copy trading that nobody tells you]
Copy trading is a business.
So, if you’re not being charged any upfront fee, then you’re paying more for the spread and overnight fees.
I’ll explain…
For most Forex brokers, the spread on EUR/USD is 1 pip. But on a copy trading platform, you might pay 2 to 3 pips more.
But don’t take my words for it because you can compare the spreads of a normal Forex broker with a copy trading platform and you’ll see the difference.
So, what’s the implication?
Two things.
#1: If you’re a trader being copied, then bear in mind your trading strategy won’t work as well because you’re paying more in spread (compared to a typical Forex broker).
#2: If you’re copying another trader, then it’s best to follow traders who trade infrequently so the spread doesn’t eat up a huge chunk of your profits.
Now, the spread isn’t your only cost because you still have to consider overnight fees (if you’re holding positions for longer than a day).
This fee is calculated by taking Libor + X%.
(Libor stands for inter-bank offered rate. It’s an interest rate that banks charge to other banks for borrowing the money.)
So, what is X?
Well, this is the mark up that’s determined by the copy trading platform and you’ll need to check with them for the exact amount.
The good news is, you don’t have to worry about calculating all these because the platform will likely do it for you—so do check it out before placing a trade.
Now, there are probably other fees to consider but the spread and overnight fees make up the chunk of it.
I wasted years trying to find a perfect trading system.
Then I realized it didn't exist.
Instead, it's about knowing your goals as a trader and then adopting the right system that fits with it.
The Ultimate Divergence Cheatsheet
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Many traders think you need to take high risk for high returns.
Wrong!
You should risk small, let your edge play out, add capital, and compound your gains over time—that's how you make it BIG.
[Pullback stock trading tips]
When it comes to stock trading, it’s possible to have hundreds of stocks forming a pullback trading setup at the same time.
So the question is:
How do you know which stocks to buy and which to avoid?
Well, the secret is to focus on stocks which have increased the most in price over the last 12 months.
Why?
Because these are stocks likely to outperform the market (and it’s been proven in theory as well according to the paper Returns to Buying Winners and Selling Losers by Jegadeesh and Titman).
So, how do you apply this to your trading?
1. Rank stocks according to their rate of change (ROC) over the last 50-weeks—from the highest to the lowest
2. Look for a pullback trading setup on stocks with the highest ROC value. If there isn’t, then move to the next stock (with a lower ROC value)
3. The top 5 stocks with a valid pullback trading setup are the ones to focus on
Pro Tip:
You can use a platform like Thinkorswim to help you rank the stocks, and it’s free.
The government don't owe you anything.
The world don't owe you anything.
The rich don't owe you anything.
Nobody is here to save you.
The good news?
You don't need anybody because you already have all the resources at your disposal—the internet.
You can acquire almost anything skills you want if you put your mind to it
So go for it.
[My trading journey]
Here’s my learning curve as a trader:
I started with indicators, then price action trading.
And for a few years, I thought that’s all I needed because after all, the price is king and that’s all I needed to be a profitable trader.
But that hurts my growth because I tuned everything else out (and limited myself only to price action trading).
When I realized my folly, I quickly went back to being a student of the markets.
So I asked myself:
“What are other winning traders doing to profit from the markets?”
That’s when I got exposed to trend following, systems trading, mean reversion trading, etc.
The outcome?
Today, I trade multiple trading strategies across different markets—which results in a smoother equity curve of my portfolio.
So the lesson is this:
You might be a profitable trader but, it doesn’t mean your learning curve is over because you’re always a student of the market.
When you have some trading profits, don't upgrade your lifestyle too quickly.
Because when the losses come, they will be a liability to your finances, mindset, and performance.
Limit Order vs Stop Order: Which one Should You Use And Why?
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Triple Bottom Chart Pattern (The Essential Guide)
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[STARTS IN 2 HOURS]
Do you trade the US stock market?
Then join me at my free upcoming event called, Stock Trading Secrets.
Claim your free ticket here: https://www.tradingwithrayner.com/sts/
In this 2-hour webinar, you'll discover...
1. How to beat the markets and earn an extra 10%, 20%, or even 40% a year—without analyzing candlestick charts, reading financial reports, or studying technical analysis
2. How to grow your account to 7-figures and beyond even if you have a small starting capital
3. How to generate consistent profits during a bull market, bear market, or even a recession
4. A simple trading system to profit from the stock market—even if you have tried everything else and failed
So if you trade the US stock market or have plans to do so, then this event is for you.
Claim your free ticket here... https://www.tradingwithrayner.com/sts/
If you want to grow your account from $500 to $1000, don't be a trader.
Get a job.
It's faster and has lower risk.
[The truth about support and resistance nobody tells you]
If you read most trading textbooks, they’ll tell you that the more times support and resistance are tested, the stronger they become.
But that’s not true, because the more times support and resistance are tested within a short period, the weaker they become.
Here’s why…
Support exists because there’s potential buying pressure around a certain price level.
(This buying pressure could be institutional orders, retail orders, smart money, etc.)
So what happens when the price re-tests support multiple times?
Well, these orders start to fill up.
Eventually, when all these orders are filled up, there’s no one left to buy and that’s when support breaks.
This means the more times support and resistance is tested (especially within a short period), the weaker it becomes.
Why a short period?
Because it’s unlikely new orders will be “replenished” so quickly.
And that’s why the more times support and resistance are tested within a short period, the weaker they become.
When it comes to stock trading, you want to buy stocks that are in an uptrend (just like how you want to chase the hottest chick in school). Why?
Because these are the proven stocks that are likely to continue higher. It could be due to positive sentiments, a well-run company, earnings, etc.
And the good news is, the US stock market is in an uptrend now.
But there are thousands of stocks, how do you know which to buy? When should you enter a trade? And what if the stock goes against you?
Well, in this upcoming webinar, I’ll share with you a simple stock trading system that has generated 3225% over the last 22 years. And yes, you’ll learn when exactly to buy & sell a stock—even if you have no experience.
Learn more: https://www.tradingwithrayner.com/sts/
How To Catch A Falling Knife (The Essential Guide)
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The Definitive Guide To Heiken Ashi Candles
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Fib Extension vs Retracement: Which To Use And Why?
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The Complete Guide To Trading Sideways Markets
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Discover Professional Price Action Trading Strategies To Profit In Bull And Bear Markets
Learn More 👉 https://priceactiontradingsecrets.com/
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The Parabolic Stock Trading Strategy Guide
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How To Set Take Profit Orders (The Essential Guide)
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Money Flow Index Indicator (The Essential Guide)
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The Inverter Hammer (A Definitive Guide)
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[If you want a consistent income, don’t be a trader]
Here’s the deal:
Many traders get into trading because they want to generate another source of income.
That’s because they want to quit their 9 to 6 job and have the freedom to do the things you love.
Now, if that sounds like you then here’s a warning to you…
Trading is one of the worst ways to earn a regular source of income.
Why?
Because the markets are always changing!
A trading strategy that makes money this week might go into a drawdown the next.
Now, it doesn’t mean you can’t trade the strategy anymore but, it’ll take time for market conditions to revert to your favour—and it could take a few weeks or months.
This means you shouldn’t expect to make profits every single day, week or month.
You only take what the markets give, and nothing more.
It's easier to make $1k from your job than trading.
But it’s easier to make $1m from trading than your job.
That's the power of compounding.