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Advanced Option TradingWhen options are better. Options can be a better choice when you want to limit risk to a certain amount. Options can allow you to earn a stock-like return while investing less money, so they can be a way to limit your risk within certain bounds. Options can be a useful strategy when you're an advanced investor. Yes, profits from intraday trading are considered business income and taxed according to your income tax slab. How is intraday trading taxed? Intraday trading profits are treated as short-term capital gains, added to taxable income, and taxed based on applicable slab rates.
NSE:NIFTYEducation
by SkyTradingZone
3
Advanced TradingOptions are a type of contract that gives the buyer the right to buy or sell a security at a specified price at some point in the future. An option holder is essentially paying a premium for the right to buy or sell the security within a certain time frame. Technical analysis is a means of examining and predicting price movements in the financial markets, by using historical price charts and market statistics. It is based on the idea that if a trader can identify previous market patterns, they can form a fairly accurate prediction of future price trajectories.
NSE:BANKNIFTYEducation
by SkyTradingZone
3
Database Part-5An option chain lists data on calls and puts, underlying prices, strike prices, expiration, and moneyness. Call option data is listed to the right of the table. Put option data is listed to the left of the table. Strike prices are listed on rows in the centre of the table. Avoid options with low liquidity; verify volume at specific strike prices. calls grant the right to buy, while puts grant the right to sell an asset before expiration. Utilise different strategies based on market conditions; explore various options trading approaches.
NSE:BANKNIFTYEducation
by Optionclub
Basic to Advanced Trading Road MapRoadmap to being a successful trader Step 1: Decide on your trading pattern. ... Step 2: Select the most appropriate stock trading broker for You. ... Step 3: Choose the best stocks for your investment. ... Step 4: Determine your risk tolerance. ... Step 5: Learn to be patient. It is a high-stakes game where many are lured by the promise of quick riches but ultimately face harsh realities. One of the harsh realities of trading is the “Rule of 90,” which suggests that 90% of new traders lose 90% of their starting capital within 90 days of their first trade.
NSE:BANKNIFTYEducation
by SkyTradingZone
3
Lecture For Option Trader or Intraday TraderIntraday trading, also known as day trading, means buying and selling stocks on the same day to profit from price changes. Traders need to close their trades before the market closes. If not, the broker might automatically close them or turn them into regular trades. Yes, profits from intraday trading are considered business income and taxed according to your income tax slab. How is intraday trading taxed? Intraday trading profits are treated as short-term capital gains, added to taxable income, and taxed based on applicable slab rates.
NSE:HDFCBANKEducation
by SkyTradingZone
3
Advanced Option Trading with Professionals Let's review each part of the professional trader's mind to understand where you want to be, ideally as you develop as an online trader. Discipline and Consistency. ... Emotional Control. ... Continuous Learning. ... Fundamental Analysis. ... Technical Analysis. ... Sentiment Analysis. ... Goal Setting. ... Risk Management. When options are better. Options can be a better choice when you want to limit risk to a certain amount. Options can allow you to earn a stock-like return while investing less money, so they can be a way to limit your risk within certain bounds. Options can be a useful strategy when you're an advanced investor.
NSE:BANKNIFTYEducation
by SkyTradingZone
3
Chart says everything itself: Educational post Please check all snaps shared here Educational post I am not Sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses. Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Hope this post is helpful to community Thanks RK💕 Disclaimer and Risk Warning. The analysis and discussion provided on in.tradingview.com/u/RK_Charts/ is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
NSE:TATACONSUMEducation
by RK_Chaarts
4
Why does market do OPPOSITE of what you THINK ?Cognitive Biases and Heuristics in Trading: How Our Minds Impede Sound Decision Making Trading is often seen as a rational, data-driven activity, where success hinges on analysis, strategy, and execution. But, in reality, it is not just technical indicators and chart patterns that affect a trader’s performance. The human mind, with its biases and heuristics, plays a critical role in shaping our decisions — often in ways that undermine our trading success. Understanding how cognitive biases and heuristics affect our decision-making can help traders improve their strategies, minimize errors, and gain a psychological edge. Let’s dive into some of the most common cognitive traps in the trading world and explore how they can hinder rational decision-making. 1. **Confirmation Bias** Confirmation bias occurs when traders seek out information or interpret data in a way that confirms their preexisting beliefs or positions, rather than objectively considering all available evidence. **Example in Trading**: A trader who believes that a stock will rise may only pay attention to news or technical indicators that support this belief, while ignoring signals that suggest a downturn. This can lead to poor decision-making and missed opportunities for risk management. **How to Overcome It**: Traders can counter confirmation bias by deliberately seeking out opposing viewpoints, considering alternative scenarios, and challenging their assumptions regularly. --- 2. **Anchoring Bias** Anchoring bias occurs when traders rely too heavily on an initial piece of information (the “anchor”) when making decisions, even if it’s irrelevant or outdated. **Example in Trading**: A trader might base their decision to enter a trade on a stock’s price at a specific point in time, such as the price at the previous high. Even if market conditions have changed significantly, the trader may become anchored to that original price level, influencing their decision to buy or sell at suboptimal levels. **How to Overcome It**: Avoid clinging to arbitrary price levels and continuously reassess market conditions and fundamentals. Create flexible trading rules that consider the latest data. --- 3. **Overconfidence Bias** Overconfidence bias is when traders overestimate their knowledge or ability to predict market movements, leading to excessive risk-taking. **Example in Trading**: A trader who has experienced a few profitable trades may believe they can consistently predict market trends with high accuracy, causing them to take larger positions or use high leverage — which often results in significant losses. **How to Overcome It**: Traders should regularly assess their performance, acknowledge uncertainty, and be realistic about their capabilities. A strategy based on proper risk management, including stop-losses and position sizing, can help mitigate overconfidence. --- 4. **Loss Aversion** Loss aversion is a key concept in behavioral economics, referring to the tendency for individuals to prefer avoiding losses over acquiring equivalent gains. In trading, this manifests as an unwillingness to cut losses, leading traders to hold onto losing positions in the hopes that the market will turn around. **Example in Trading**: A trader may refuse to exit a losing position because they fear realizing a loss. This often results in the position bleeding out further, accumulating larger losses. **How to Overcome It**: Set predefined exit points or stop-loss orders to enforce discipline. Accept that losses are a natural part of trading, and focus on maintaining a balanced risk-to-reward ratio. --- 5. **Herding Bias** Herding bias refers to the tendency to follow the crowd and make decisions based on what others are doing, rather than relying on individual analysis. **Example in Trading**: A trader may buy into a stock simply because others are buying or because of social media hype, without understanding the fundamentals or technical indicators that might suggest otherwise. **How to Overcome It**: It’s important to have a clear strategy and stick to it, even when market sentiment is against you. Independent research and analysis should guide decisions, rather than the actions of others. --- 6. **Recency Bias** Recency bias is the tendency to give undue weight to recent events and to assume that they will continue in the future. In trading, this often leads to overreaction to short-term market movements. **Example in Trading**: After a stock has made a significant upward move, a trader may believe that the trend will continue simply because it has been recent, ignoring historical patterns or broader market conditions. **How to Overcome It**: Traders should look at long-term trends, not just recent price action. Implementing a comprehensive strategy based on multiple timeframes can help reduce the impact of recency bias. --- 7. **Endowment Effect** The endowment effect describes the tendency for people to place higher value on things they own simply because they own them. In trading, this leads to an irrational attachment to assets and positions. **Example in Trading**: A trader may be reluctant to sell a losing position because of the emotional attachment to the trade, leading them to hold onto it far too long. **How to Overcome It**: Approach each trade with a level of detachment. Regularly assess the value of your holdings based on current market conditions, not emotional attachment. --- 8. **Availability Heuristic** The availability heuristic is when people make decisions based on what information is most readily available to them, rather than evaluating all possible data. **Example in Trading**: A trader may recall a recent news story about a company and make a trading decision based on that single piece of information, without considering a broader range of data. **How to Overcome It**: Take a holistic approach to trading. Gather data from a wide variety of sources, including fundamental analysis, technical indicators, and macroeconomic trends, to ensure well-rounded decision-making. --- 9. **Gambler’s Fallacy** The gambler’s fallacy is the belief that past events can influence future outcomes in random events, even when the events are statistically independent. **Example in Trading**: A trader might think that after a series of consecutive losses, a win is “due,” leading them to take larger, riskier trades based on this false assumption. **How to Overcome It**: Recognize that markets operate based on probabilities, not patterns that guarantee outcomes. Stick to your strategy and avoid trying to “chase” losses with larger, riskier trades. --- 10. **Framing Effect** The framing effect occurs when people react to a particular choice depending on how it is presented, rather than based on the actual content or value of the choice. **Example in Trading**: A trader may interpret a "loss of $100" as less severe if it's framed as a “small drawdown” compared to a “significant loss,” even if the monetary impact is the same. **How to Overcome It**: Always focus on the underlying value and impact of the decision itself. Avoid letting the framing of information distort your judgment. --- Conclusion: Navigating the Cognitive Minefield Trading is inherently psychological. While there’s no way to fully eliminate biases, understanding these cognitive traps can provide traders with the tools they need to make more rational decisions. By incorporating strategies that mitigate the influence of cognitive biases — such as disciplined risk management, regular self-assessment, and an adherence to a structured trading plan — traders can enhance their decision-making processes and improve their overall performance. Awareness is key, and the more we understand about how our minds work in trading, the better we can optimize our actions for success. The markets may be unpredictable, but by reducing the noise created by our biases, we can gain greater clarity in our decision-making.
NSE:NIFTYEducation
by keshevdugar
HOW I GOT TRAPPED IN GOLD JAN 22 2025In a strongly uptrending market, nearing its all-time high (ATH), I planned a high-probability buy setup. The trade was based on clear confirmation signals, with my take-profit (TP) placed strategically at the buy-side liquidity level. The expectation was that price action would attract sellers at the Fair Value Gap (FVG), facilitating a move upward to reach the liquidity zone and fill my TP. However, the market deviated from this anticipated behavior. Instead of filling the FVG on the 5-minute timeframe, price took resistance at the FVG, reversed downward, and ultimately hit my stop-loss (SL). This unexpected reaction highlights a situation where the price action did not align with the strong uptrend narrative. Despite the robust setup, the rejection at the FVG and failure to fill it resulted in a downside move, invalidating the trade.
OANDA:XAUUSDEducation
by priceactiongold1
Profitable Trading The defining feature of day trading is that traders do not hold positions overnight; instead, they seek to profit from short-term price movements occurring during the trading session.It can be considered one of the most profitable trading methods available to investors. The Rule of 90 is a grim statistic that serves as a sobering reminder of the difficulty of trading. According to this rule, 90% of novice traders will experience significant losses within their first 90 days of trading, ultimately wiping out 90% of their initial capital.
NSE:KOTAKBANKEducation
by SkyTradingZone
4
Advance divergence Strong divergence is the most reliable type of divergence, often signaling a significant reversal. It occurs when the price makes a new high or low, but the indicator fails to do so, indicating weakening momentum. Traders use divergence to assess the underlying momentum in the price of an asset, and for assessing the likelihood of a price reversal. For example, investors can plot oscillators, like the Relative Strength Index (RSI), on a price chart.
NSE:KOTAKBANKEducation
by SkyTradingZone
Lecture for option trader Hammer & Hanging Man Patterns + Examples. 5min video. Put Options: Buying vs. Selling. 3min video. "Bread & Butter" Iron Condor Rules, POPs and Visuals. 4min video. Instruments to trade Volatility. 10min video. Strike Price - ITM ATM OTM. 7min video. You can get started trading options by opening an account, choosing to buy or sell puts or calls, and choosing an appropriate strike price and timeframe. Generally speaking, call buyers and put sellers profit when the underlying stock rises in value. Put buyers and call sellers profit when it falls.
NSE:NIFTYEducation
by SkyTradingZone
Database tradingThere are four types of trading: day trading, position trading, swing trading, and scalping. Traders should pick one that suits them and figure out the risks and costs to trade safely. What is stock market trading? Deutsche Bank in association with Sharekhan Ltd brings to you db TradePro, a unique platform for trading in shares online. A superior trading platform and multi-channel access are just two of the many benefits that Deutsche Bank customers enjoy by trading through db TradePro*.
NSE:NIFTYEducation
by SkyTradingZone
market analysis in tradingThe goal of a market analysis is to determine the attractiveness of a market, both now and in the future. Organizations evaluate the future attractiveness of a market by gaining an understanding of evolving opportunities and threats as they relate to that organization's own strengths and weaknesses. Market analysis refers to the process of analyzing financial markets. This process encompasses various types of analysis, often assigned to two categories, technical analysis and fundamental analysis.
NSE:KOTAKBANKEducation
by SkyTradingZone