Building Strategies Archives - OneRoyal Academy

Construir a sua estratégia - Construir um diário de negociação

If there’s one habit that separates disciplined traders from the rest, is keeping an journal. Yet, despite its simplicity, most traders either ignore it altogether or use it in a way that adds no real value. A proper trader’s journal is more than a notebook full of numbers it’s a personal blueprint for progress. Why a Journal? Trading is part strategy, part psychology. A journal allows you to track both. It shows you what’s working, what’s not, and most importantly why. Patterns begin to emerge, not just in the market, but in your decision-making. And those insights can be worth far more than any single trade. What to Include A good journal isn’t about volume; it’s about relevance. Here’s a simple structure that works: • Date and Time: Helps identify market conditions (was it London open, or New York close?). • Instrument Traded: Be specific EUR/USD, NASDAQ, Bitcoin, etc. • Trade Setup: What was your reasoning? Was it a breakout, trend continuation, reversal? • Entry and Exit Points: Include price levels and screenshots if possible. • Position Size and Risk: How much did you risk? What was your target? • Result (P/L): Record the outcome but don’t obsess over it. • Emotions/Thoughts: Were you anxious? Confident? Second-guessing? This is where you find the real gold. Best Format: Digital or Manual? Both have benefits. Manual journaling (pen and paper) creates stronger memory recall. Digital tools (like Excel, Notion, or apps like Edgework or Trader Vue) offer sorting, filtering, and analytics. The best choice is the one you’ll use consistently. Review Weekly A journal isn’t just for writing it’s for reviewing. Once a week, go back through your trades. Look for recurring mistakes, overtrading, hesitation, or ignored setups. Ask yourself, “What can I improve next week?” Final Word Trading isn’t just about charts it’s about self-awareness. A well-kept journal turns every trade into a lesson, and over time, those lessons stack up. Think of it as your own personal trading coach, one entry at a

Saiba mais

Risk to Reward Ratio

In the world of trading, success isn’t just about picking winners it’s about managing risk. One of the most overlooked, yet vital, tools in a trader’s toolkit is the risk-to-reward ratio. Whether you’re new to the markets or a seasoned investor looking to tighten your strategy, this ratio is the compass that helps keep your trades on course. What is the Risk-to-Reward Ratio? At its core, the risk-to-reward ratio measures how much you stand to gain compared to how much you could lose. Let’s say you’re risking £100 on a trade with a potential profit of £300. That’s a 1:3 risk-to-reward ratio. You’re risking one unit to potentially gain three. The higher the reward compared to the risk, the better the setup in theory. Why Does it Matter? A strong ratio helps traders stay disciplined. It prevents emotional decisions and helps ensure that even if only a few trades are winners, they can still outweigh multiple small losses. Consistency is key. You might lose six out of ten trades, but if your winners return double or triple your risk, you can still come out ahead. Common Pitfalls Many traders, especially early on, focus too heavily on win rates. But a high win rate with poor risk-to-reward can still lead to losses. Conversely, a lower win rate with smart ratios can be very profitable. It’s not just about being right it’s about being profitable when you are. Putting It Into Practice The most successful traders approach every position with a plan. Before entering a trade, ask: “What am I willing to lose, and what am I aiming to gain?” Set stop-loss and take-profit levels accordingly. Tools like chart patterns, support/resistance zones, and volatility indicators can help identify sensible entry and exit points. Final Thoughts Trading without attention to the risk-to-reward ratio is like sailing without a map. It might be exciting at first, but eventually, you’ll lose your bearings. By mastering this simple yet powerful concept, traders can tilt the odds in their favour turning the unpredictable nature of markets into a game of controlled

Saiba mais

Recognizing the Battle of Hope and Fear

Every trader from the wide-eyed beginner to the grizzled veteran faces a daily internal struggle. It’s not just about timing the market or spotting patterns. It’s something deeper. A silent, constant tug-of-war between two of the most powerful emotions in trading: hope and fear. They’re not in your charting software, and you won’t see them in your economic calendar, but they influence your trading decisions more than any indicator ever could. Hope: The Dangerous Optimist Hope can be a wonderful thing. It gets you started in trading, fuels your ambition, and keeps you going after a tough loss. But in the wrong moment, it becomes your worst enemy. Imagine you’ve entered a trade. It moves against you. Your stop-loss is approaching, but instead of exiting, you think, “It’ll bounce back. It must.” That’s hope talking and it’s lying to you. You ignore the red flags. You hold on, adjust your stop, maybe even double down. Before you know it, what should’ve been a manageable loss becomes a portfolio-draining mistake. Hope has a sneaky way of turning a trader into a gambler. Fear: The Profit Killer Fear, on the other hand, doesn’t wait. It strikes early. You’ve done your analysis. You enter the trade. But then a bit of volatility, a red candle, a headline. Your gut tightens. You close out for a small gain, or worse, a premature loss. Then you watch, helpless, as the trade hits your original target. Fear doesn’t just cause bad trades it prevents good ones from reaching their potential. It convinces you to avoid risk, even when it’s calculated and justified. It whispers, “What if you’re wrong?” And often, you listen. Recognizing the Battle The hardest part? Both emotions feel reasonable in the moment. Hope can look like confidence. Fear can feel like caution. But when either takes control, your trading becomes reactive not strategic. Here’s what I’ve learned over the years: you can’t eliminate these emotions, but you can manage them. Taming Hope and Fear So how do you stay in control when emotions flare? 1. Have a solid trading plan A detailed plan with entry rules, exit strategies, risk limits, and position sizes is your foundation. Stick to it. No matter what. 2. Use stop-losses religiously They’re not optional. A stop-loss isn’t just protection it’s discipline in digital form. 3. Keep a trading journal Track your trades but also track your thoughts. What were you feeling? Why did you deviate from your plan? Patterns will emerge, and that awareness is invaluable. 4. Accept losses as part of the process No strategy wins 100% of the time. Your job isn’t to avoid losses it’s to manage them. 5. Check your ego at the door The market isn’t personal. It doesn’t care about your hopes, your fears, or your latest hot take. Treat every trade objectively. Final Thoughts The real battle in trading isn’t with the markets it’s with yourself. Hope will keep you holding when you should let go. Fear will make you flee when you should stay the course. But the trader who consistently wins isn’t the smartest or the luckiest it’s the one who master’s their mind. Control your emotions, and you control your

Saiba mais

Qual é o seu estilo de negociação?

One of the first things I ask new traders is this: “What kind of trader do you think you are?” Cue the blank stares. It’s not their fault when you’re new to trading, you’re bombarded with strategies, indicators, timeframes, and buzzwords. But here’s the truth: Knowing your trading style is as important as knowing the market itself. It’s about matching your personality, your lifestyle, and your mindset to a method that actually works for you. So let’s break down the main trading styles. You might spot yourself in one or maybe a mix. Either way, by the end of this, you’ll have a clearer picture. Scalping – The Speed Demon If you’re the kind of person who gets bored after two minutes of silence, scalping might be your game. The vibe: Ultra-short-term trades. In and out of the market within seconds or minutes. The tools: Fast execution, tight spreads, quick decision-making. The catch: You need laser focus, rock-solid discipline, and no fear of staring at screens for hours. Ask yourself: Do I enjoy high-speed, high-pressure environments? Can I handle dozens of trades in a session without burning out? Scalping might be for you if you’re fast, focused, and thrive on adrenaline. Day Trading – The Active Hustler You’re not into overnight risk. You want to start the day with opportunities and finish flat. The vibe: All positions opened and closed within the same trading day. The tools: Economic calendars, technical analysis, intraday charts. The goal: Grab the moves, avoid the news bombs overnight. Ask yourself: Can I commit a few hours each day to watch the markets? Do I want full control and no surprises when I sleep? Day trading might be your thing if you’re active, strategic, and like to end the day knowing exactly where you stand. Swing Trading – The Cool, Calm, and Collected You’re in it for the slightly longer haul. You want to catch those juicy moves over a few days or weeks—without babysitting every candle. The vibe: Trade setups that play out over several days. The tools: Technical setups, trend analysis, fundamental catalysts. The lifestyle: Great for people who work full-time or want less screen time. Ask yourself: Am I patient enough to let trades breathe? Do I trust my analysis to ride out a few bumps? Swing trading might suit you if you’re strategic, calm under pressure, and prefer a “set it and monitor” approach. Position Trading – The Long-Term Visionary Now we’re talking big picture. You’re not here for quick wins you want to ride major trends, like a market monk. The vibe: Holding positions for weeks, months, even years. The tools: Macro analysis, fundamentals, interest rate trends. The mindset: Think investor more than trader. Ask yourself: Can I stay in a trade for weeks without panicking over a pullback? Do I have the patience to trust the long-term process? Position trading is for the thinkers, the planners, the macro buffs. So… Which Style Is Your Style? There’s no one-size-fits-all in trading. The best strategy in the world is useless if it doesn’t fit you. Ask yourself: How much time can I dedicate to trading? Do I like fast decisions or slow analysis? Am I emotionally wired for rapid wins—or long-term growth? The sweet spot? When your trading style matches your personality. Final Word From the Pulpit Whether you’re scalping EUR/USD or holding gold long-term, consistency comes from self-awareness. Try different styles. Track your results. Learn where you thrive and where you struggle. And most importantly: Don’t copy someone else’s strategy just because it worked for them. Trading is personal. Make it yours. Now go on pick a style, test it, tweak it. See what clicks. Because the markets aren’t going anywhere… but your success might, if you find your

Saiba mais

A viagem do comerciante: Do caos à clareza

Trading isn’t just a skill. It’s a journey and like all journeys, the destination isn’t always where we expect it to be. Some arrive swiftly, others take the scenic route, and many find themselves looping back before moving forward. But if you’re truly committed to becoming a successful trader, there’s a path that every trader must walk a path defined by growth, failure, self-awareness, and eventually, mastery. Here are the six essential stages every trader must pass through. Miss a step, and you’ll find yourself stuck in a loop. Embrace each one, and you just might evolve into the trader you were meant to be. 1. Unconscious Incompetence: The Blissful Beginning This is where it all begins. The charts look like opportunity. The market seems simple. You hit “buy” and “sell” with the confidence of someone who doesn’t yet know what they don’t know. In this stage, traders leap into the market with enthusiasm but without understanding. They dismiss the need for skill or education, mistaking luck for talent. Sometimes, they even see early profits — a cruel twist, because it reinforces bad habits. Eventually, reality hits. The account depletes. Confidence shatters. And the trader is faced with a choice: walk away or step up and begin learning. 2. Conscious Incompetence: The Harsh Realisation This is the toughest stage but also the most powerful. Here, the trader finally realises: “I don’t know what I’m doing.” They begin to explore strategies, read charts, and study the markets. They dive into technicals, fundamentals, and indicators. But despite all the learning, they’re still losing. Why? Because they haven’t yet built a plan. Emotion drives their trades. Impulse overrides logic. Losses feel personal. And in frustration, they may even start blaming the market or the broker instead of looking in the mirror. Want to know if you’re still in this stage? Ask yourself: Do you still let emotions drive your trades? Do you take full responsibility for your losses? Do you blame external forces when things go wrong? Do you have a written, structured trading plan? If any answer is uncomfortable you’re likely still here. But that’s okay. Awareness is the gateway to progress. 3. The Awakening Moment: Seeing the Light This is the turning point. The trader, now humbled and educated, finally gets it. The charts haven’t changed they have. They begin to understand that trading isn’t about knowing everything it’s about knowing yourself. They realise that without discipline, no strategy can save them. They learn to take full accountability. And above all, they discover the necessity of a plan a real, structured, and repeatable approach. It’s not enlightenment. It’s responsibility. And it’s the beginning of true change. 4. Conscious Competence: Trading with Awareness Now, the trader becomes deliberate. They have a plan perhaps not perfect, but it’s theirs. Every trade is calculated. Every move is part of a process. It’s no longer about instinct, but about consistency. They follow rules. They journal trades. They reflect. And they know that if they stray from the path, they’ll slip back into old habits. This stage requires effort. Focus. And patience. But for those who persist, something magical begins to happen. 5. Unconscious Competence: Flow State This is the destination every trader dreams of not riches, not glory, but effortless execution. The plan is second nature. Emotion is no longer a threat. Trades are taken without hesitation, not because of arrogance, but because of clarity. The trader becomes the strategy. Like a seasoned athlete or a concert pianist, they no longer think they simply do. This is mastery. But it’s not an endpoint. Even here, vigilance is required. The market evolves, and so must the trader. But now, they have the tools and the mindset to adapt. Final Thoughts: Know the Road, Respect the Journey No trader is born a master. Every expert has walked through failure, doubt, and frustration. The difference is they didn’t quit they learned. Understand where you are on this path. Be honest with yourself. And most importantly, don’t rush the process. Each stage has its lessons. And every lesson, no matter how painful, brings you one step closer to becoming the trader you deserve to be. Because in the end, trading isn’t just about profits. It’s about growth. And the real destination? It’s you, at your

Saiba mais