When I first get in stock trading, it felt like stepping into a whole new world. I knew I needed to educate myself first, so I spent time learning about stocks, ETFs, and how to manage risks

Like wtf is this?

Financial readiness was another crucial step. I made sure I had cleared off any high-interest debts and set aside some emergency funds. It gave me peace of mind knowing I wasn't risking money I couldn't afford to lose..

Starting small was key(After five fuck-ups, of course). I avoided putting in money I might need soon, like for upcoming expenses because life i guess?

Choosing the right brokerage was like finding a reliable partner(Am I a bad advisor, or do I just want you to get your ass kicked like I did? Probably the second :)). It made trading smoother and helped me understand the companies I was investing in.

Diversification became my mantra. Instead of going all-in on one stock, I spread my investments across different types like ETFs. It helped cushion the impact if one investment didn't perform as expected.

As I gained experience, I adjusted my portfolio regularly. I kept an eye on how my investments were doing and made changes to stay on track with my goals and risk tolerance.

Stock trading in Australia has its ups and downs, like riding a wave. But with careful planning, patience, and a bit of guts, it can be a rewarding journey.

In my trading strategy(if it's still working... i hope so), I use several tools and techniques:

Technical Analysis: I study price charts and use indicators like moving averages, RSI, and MACD to determine entry and exit points with Tamap.

Fundamental Analysis: I evaluate company financials, including earnings, debt, and market capitalization, to assess their true value and growth prospects.

Diversification: I invest in a mix of stocks, ETFs, and bonds to spread risk and stabilize returns.

Risk Management: Setting stop-loss orders and adhering to capital management rules help minimize losses.

Forex Trading: Alongside stocks, I trade currencies, leveraging the unique aspects of the Australian dollar.

Automation: Implementing automated strategies with algorithmic trading enhances efficiency and reduces emotional decision-making.

Stock trading in Australia has its ups and downs, like riding a wave. But with careful planning, patience, and a bit of guts, it can be a rewarding journey.And dont be scare to mistaken(while its not a big money...).

First of all, let's understand what a volume indicator is. 

The algorithm of such an indicator is based on a simple principle, the calculation is based on the volume of traded money on the market for a particular trading instrument. From what it is possible to observe its changes and draw conclusions. Volumes are calculated for a specified period of time, usually it is a daily chart. But for the last 20 years the situation has changed a lot. More and more traders are inclined to short-term trading. This is especially true for the forex market. Accordingly, with the growth of short-term turnover there appeared the indicator of the volume of purchases and sales to be used on small timeframes. This is a simple and convenient tool, which is most often well suited for beginners, allowing to assess the situation inside the trading day. 

The main points:

The beginning of a new trading session. New participants come to the market, volumes can show us the current balance of power and give us an idea of what to expect in the near future;

The release of macroeconomic news. As a rule, it is followed by a violent market reaction, volumes will allow us to understand how much it corresponds to the volumes and whether such a movement is not just the action of a limited amount of money in conditions of extremely low liquidity.

The algorithm calculates how much was sold and how much was bought. This data is offered for evaluation both in absolute values and as part of a simple comparison with previous performance. Indicators differ considerably from each other, each of the individual methods of analyzing volumes involves evaluating volumes in terms of some aspect of the market. For example, indicators can be calculated in different ways, and volumes can be evaluated on a time-based or fixed-price basis. 

We see volumes in the form of bars, which can be arranged vertically or horizontally. As a rule, the numerical value is also available to traders, but it is practically not used in any way. The ratio with the nearest bars is of the greatest interest. If the current indicator is several times higher than the previous one, it means that money is actively coming to the market. Usually this happens at times when very important events take place. It is also necessary to distinguish periods with high activity, this is one of the main signals of this type of indicators. For example, high volumes during 2 weeks after several weeks of low trading turnover. But it is important to remember that all volume analysis is carried out only taking into account the situation in the economy, geopolitics and other important directions.

Trading View example of volume on charts

Tamap example of volume indicator

In trading, there is no such method of analysis or tool that would give a correct forecast in 100% of cases. One way or another, all algorithms make mistakes. It is important to take into account the strengths and weaknesses in order to properly navigate in trading and not to make typical mistakes. 

Indicator advantages

The main advantage of volumetric analysis with the help of indicators is the possibility to adequately assess the market and build a forecast based on simple data. This applies to different states - trend movement and simple flat. That is, volume indicators in trading have universality:

They give signals for the development or completion of a trend;

Show the probability of level breakdown or rebound, as well as the possibility of a sharp reversal.

It should also be noted that volumes are quite simple to use. Despite the apparent complexity, in fact, you only need to know typical volume patterns. We see a typical situation on the indicator = we understand what is happening with the market. There are a limited number of scenarios and signals, which will be described below.

Minuses of the indicator

The disadvantages include unstable operation in periods of economic volatility during recessions and crises, as well as a significant decrease in efficiency on small timeframes. In the first case, we are talking about the fact that the indicator of the volume of purchases and sales will show high values throughout the acute period for the markets and it is difficult to find really noteworthy signals. The point is that in conditions of high volatility a trader has only two options to reduce risks - either to reduce the working lot or to put a short stop. A close loss limit leads to frequent triggering, and a small working lot significantly reduces profit. That is, it turns out that you can earn as much on powerful movements as in calm periods.

As for small periods of the chart, everything is quite logical here. Let's consider a simple example. Suppose we have some average value of trading volume within a month. One day may be particularly active, it may signal, for example, a local trend reversal. But it will be a significant event and the volume data give a qualitative signal. If we consider the same situation in the context of a trading day, we can see such a frequent pattern:

-After a flat Asian session, there is a dynamic opening of trading in Europe and the price actively moves upwards;

-After the American opening, the opposite happens - the price falls.

Both events take place on high volumes, which decrease some time after the start of trading in each region. Analysts each time find explanations why this time it happened this way and not otherwise. But these explanations always come after the event itself. In general, the effectiveness of the volume indicator inside the candle depends very much on the working timeframe. The higher the period, the better the results will be, as in the work with any other indicators. To fully understand the relevance of the period, let's just say that, for example, the Ishimoku indicator was originally developed for a weekly period. And this is not rare, most of the classical analysis algorithms are designed for the daily period and higher. Volumetric indicators are not an exception. On small charts, a significant volume can pass and the price will move. But this does not mean that the opposite will not happen after a short period of time.

*for educational purposes only, this post is not an advice to sell or buy, only my teachers ambition

Emotions make our daily life brighter, it is a fact, but a trader should open successful deals in the state of a Buddhist monk (complete calmness and harmony with oneself).

How to achieve this without disappearing from the material world?

1. Realize that losses in trading are inevitable, as well as any negative emotion. Change your attitude to this phenomenon. The market is a living system. It is impossible to be fully confident in something that cannot be controlled. Trading is risk. And risk is loss. Learn to accept them.

"Learn to let go of suffering. The most important thing on the path to enlightenment is not to let your suffering control you." Master Dogen, Japanese Buddhist monk, founder of the Soto Zen school.

Set stop losses and close a position if the price reaches its level. It is painful, but it helps to stop in time and save money and nerves. Discipline is an important tool of a successful trader.

"When I practice meditation, I create an inner mood in advance. This is the only way to find peace. Before I start meditating, I know where my thoughts should stop. The amount of effort is determined by the depth of mindfulness, and mindfulness is determined by daily practice." Thich Nhat Hanh, Vietnamese Buddhist monk, poet, writer and peacemaker.

Discipline is also important when closing profitable trades. Greed often prevents you from taking profits in time. Observance of emotional discipline is a reason for pride. After losses, do not give in to the desire to win back. Take a break to reduce the emotional heat.

Do not forget to rest after a few losing trades. This is necessary to see the market with fresh eyes. Make the next trade when there is a good opportunity. Focus on technical aspects, do not rush. Write down important details of the trade. Keep a diary to plan and analyze your trades. This reduces anxiety as you can explain your actions. 

"Don't get attached to success. It's okay if you lose a little. If conditions are not favorable, let it go and start looking for the next moment." Dalai Lama, Spiritual Leader of Tibetan Buddhism.

2. Analyze the market, open a new position, set any necessary stops - and distract yourself. Exercise, take a walk, socialize with loved ones. Constantly watching the screen will not affect the price.

Follow trading discipline, make checklists It is very difficult to deal with emotions and follow a trading strategy. A trading system is born from your observations, notes and conclusions. To work on mistakes in trades means to optimize your trading system. 

1. Do you have a trading system? 
2. Can you stop trading in time? 
3. Check your last actions on the checklist: are you satisfied with everything?
4. Why did some of the trades turn out to be unprofitable?
5. Could your emotions have influenced the result?

The most effective way to protect yourself from the influence of emotions is to strictly follow a pre-designed trading algorithm and scenario. They should be designed to leave no room for emotions in your trading decisions. 

"Be deliberate in your actions. Attention and awareness are the keys to freedom from suffering and delusion." Thich Nhat Hanh, Vietnamese Buddhist monk, poet, writer and peacemaker.

It is very helpful to make step-by-step instructions for transactions. Checklists help you turn off your emotions and look at the deal only from a technical perspective. This promotes emotional discipline.

3. Do not transfer failures to your own personality. 

Any trader is a lifelong learner. He makes mistakes and loses money. 

(Read success stories of famous traders: they will surprise you.)

The market is never boring, so a trader should never be bored. Your self-esteem should not depend on its unpredictability. 

"Don't hold on to your mistakes. They don't define you. Mistakes are an opportunity for growth and understanding." Dalai Lama, Spiritual Leader of Tibetan Buddhism. 

You must be prepared for the fact that the chances of success do not depend on your education, experience and professional skills.

The main thing is to prepare yourself psychologically for trading. Take failures as a way of learning. This will help you become a disciplined trader.

"Be like water. Flexibility and calmness are your best allies on the path to enlightenment." Master Dogen, Japanese Buddhist monk, founder of the Soto Zen school. 

Trading losses happen to all traders, regardless of their level of capital, experience, education. Develop emotional discipline and follow your trading system without giving in to your emotions. 

"Awareness is the key to true understanding. Without awareness, your actions will lack depth and meaning." Shunryu Suzuki, Japanese Buddhist monk, author of The Beginner's Mind: Instructions for Zen Meditation. 

Books in the language of traders: 

D. Cohen "The psychology of the stock market - fear, greed and panic".

M. Bellafiore "One Good Trade".

M. Douglas "Zone Trading."

Psychology in trading is as important a tool as trading technique. Be patient, and success will not keep you waiting.