Important Video for Trader'sTake regular breaks when you are reading or studying. Reading for short periods of time of about 20-30 minutes should be enough to really focus on the text and take in as much as possible. 7. Read in a positive environment that is comfortable and free of distractions as this will help improve your concentration.
The 60-60-50 RSI strategy is a trading strategy that generates buy/sell signals by analysing the RSI across multiple timeframes. This course will teach you the logic of the 60-60-50 strategy and how to apply it.
Niftyprediction
Journey to become a profitable traderIt starts with an examination that tests trading proficiency and encourages risk management and discipline. Upon completing the examination, the trader will join a prop trading firm, receive a trading account and then grow that account by meeting fixed objectives and withdrawing their profit.
The 1% rule demands that traders never risk more than 1% of their total account value on a single trade. In a $10,000 account, that doesn't mean you can only invest $100. It means you shouldn't lose more than $100 on a single trade.
BLUEPRINT to a SUCCESSFUL TRADERIf you want to go from Delhi to Mumbai, there are many stations that come in between. Just like that, a trader has to pass through several stages before achieving success. Knowing which stage you’re in is crucial—it helps you stay on track, avoid frustration, and progress systematically. This Post May Sound Basic, But It’s Extremely Important
Here are the 4 Stages of a Trader and how they define your journey:
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1. The Excitement Phase
- What It Feels Like:
You’ve discovered trading, and it feels like the gateway to unlimited wealth. Every win feels like a step closer to “quitting your job,” and losses are dismissed as bad luck.
- Reality Check:
This is the honeymoon phase. Without a plan or risk management, you’re trading on emotion, not skill. Big losses often serve as a wake-up call here.
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2. The Learning Phase
- What It Feels Like:
You’ve realized trading isn’t a game of luck—it’s a skill that requires discipline and study. You dive into books, watch tutorials, and experiment with strategies.
- Challenges:
- Information overload: Which indicator works best?
- Doubt: Am I even cut out for this?
- Outcome:
Progress is slow, but this is where the foundation for mastery is laid.
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3. The Frustration Phase (THIS STAGE LASTS LONGER THAN ONE CAN IMAGINE)
- What It Feels Like:
You’ve gained knowledge, but your execution isn’t consistent. Every win is wiped out by a bigger loss. Strategy-hopping becomes a vicious cycle.
- Why Most Quit Here:
The emotional toll of inconsistency is heavy. Many traders blame the market, their broker, or even themselves, concluding that trading “isn’t for them.”
- The Breakthrough:
This is a test of resilience. Traders who stick to the process and focus on discipline eventually push through.
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4. The Mastery Phase
- What It Feels Like:
Trading becomes systematic—a business, not a gamble. You’ve developed an edge, trust your strategy, and prioritize risk management.
- Key Characteristics:
- Discipline: You follow your plan without hesitation.
- Confidence: Losses don’t shake you because you know your edge works over the long term.
- Sustainability: Trading isn’t just profitable—it’s consistent.
- This Is True Success:
You understand the market isn’t a money-making machine; it’s a test of probabilities and discipline.
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Why Knowing Your Stage Matters
Understanding where you are in this journey is like knowing which station you’ve reached on the Delhi-to-Mumbai train. It helps you prepare for what’s ahead and keeps you focused on reaching the destination.
So, ask yourself: Which stage am I in?
Let us know in the comments, and tag a fellow trader who’s on this journey with you.
TradingHow do I start trading knowledge?
Here's how to do it:
Consulting A Stock Exchange Broker. ...
Read Financial Research And Articles. ...
Read Books On The Share Market. ...
Attending Lectures, Classes, Seminars. ...
Monitor The Market And Analyze It. ...
Studying The Ways Of Other Successful Investors. ...
Identify And Analyze Your Risks. ...
Reduce Costs.
Risky investments and short-term trading are often likened to gambling. But there is a difference between taking a calculated risk and simply rolling the dice. The appeal of high-risk, speculative investments is obvious. You have the chance of large, even life-changing potential returns.
NO EDGE MEANS NO LONG TERM SUCCESSWhy is Trading a Business? Every Business Needs an Edge
Trading isn’t just buying and selling; it’s running a business. Yet, many traders enter the market thinking it’s a game of luck or a quick path to riches. They often overlook the fundamental principles that make businesses succeed – planning, strategy, risk management, and most importantly, an edge.
Every successful business operates with a clear competitive advantage. It could be a unique product, better customer service, cost efficiency, or a strong brand. Similarly, in trading, your edge is the unique factor that tilts the odds in your favor, ensuring consistent profitability over time.
Let’s break this down further.
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Trading as a Business
Imagine opening a store without knowing what to sell, who your customers are, or how to price your products. Sounds like a recipe for disaster, right? Trading without an edge is no different. Here’s how trading mirrors a business:
1. Capital Investment:
Like any business, trading starts with capital. You invest money to make money. The goal? Protect your investment while growing it sustainably.
2. Risk and Reward:
Every trade is a calculated risk, much like any business decision. Smart businesses don’t gamble; they assess risks and aim for favorable outcomes. Traders must do the same.
3. Operating Costs:
Spreads, commissions, data subscriptions, and even your time – these are the costs of running your "trading business." Without careful management, these costs can eat into profits.
4. Strategy and Execution:
Just as businesses need clear strategies to attract customers, traders need precise plans for when to enter, exit, and manage trades.
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The Role of an Edge in Business and Trading
In business, an edge is what keeps you ahead of competitors. It could be your pricing strategy, innovative products, or superior supply chain. In trading, your edge is the reason you consistently make money while others lose. Without it, you're just another player in the market, relying on hope rather than skill.
Here’s how an edge works in trading:
- Better Knowledge: Maybe you’ve mastered chart patterns or have insights into how specific news events impact prices.
- Superior Execution: Perhaps you can execute trades faster, capitalizing on small price inefficiencies.
- Emotional Discipline: Your ability to stick to a plan when others panic can itself be an edge.
- Risk Management: Knowing when to cut losses or ride a trend is critical.
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What Happens Without an Edge?
Businesses without a competitive advantage struggle to survive. They either burn through their resources or get outperformed by competitors. Similarly, traders without an edge lose consistently, blaming the market, brokers, or even bad luck.
Remember, trading is a zero-sum game. For every winner, there’s a loser. If you don’t have an edge, you’re likely on the losing side over the long term.
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Developing Your Trading Edge
Creating an edge is not about finding shortcuts; it’s about building a system that works for you. Here’s how to start:
1. Understand Your Market:
Just like businesses study their industry, traders need to specialize. Are you trading stocks, forex, or options? Focus on a niche and learn it deeply.
2. Create a Strategy:
Develop a trading plan based on proven setups, market conditions, and your personal strengths. Backtest this plan with historical data to ensure it has a statistical edge.
3. Monitor and Adapt:
Businesses adapt to market trends, and so should traders. Regularly review your trading performance and refine your strategy.
4. Risk Management:
A business would never invest all its funds into one risky venture. As a trader, never bet your entire capital on a single trade.
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Conclusion: Trading is a Business with Unlimited Potential
Trading offers the freedom to be your own boss, but it comes with responsibilities. Treat it as a business, and respect its demands. Your trading edge is your competitive advantage, the key to surviving and thriving in the markets.
Whether it’s through a unique strategy, superior risk management, or emotional discipline, every trader must find their edge. Without it, the market becomes a casino where the odds are stacked against you.
So ask yourself: what’s your trading edge? If you don’t have one yet, it’s time to start building it. Because in trading, as in business, those without an edge rarely last.
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Till then,
HAPPY TRADING :)
What People Think About Management In summary, trade risk refers to the potential for financial loss or negative consequences arising from fluctuations in the value of goods or services traded between different countries.
Basically money management in trading is a defensive strategy that is meant to preserve capital. It is a way to decide how many shares or lots to trade at any given time based on your available capital. Successful money management can save you from draining your account when you hit a bad streak of losing trades.
Navigating the Bullish Surge: A Cautious Approach to InvestingThe Indian markets are experiencing an extraordinary rally, with major indices soaring to unprecedented heights. This surge is undoubtedly enticing for retail traders and investors eager to capitalize on the momentum. However, the pressing question remains: Are these elevated levels truly the right time to enter the market? Perhaps not.
To gain insight, we can turn to a diagram by Dr. Jean-Paul Rodrigue that illustrates the typical stages of a market bubble. When we overlay this framework onto the current landscape of Indian indices, it becomes apparent that we may be on the brink of significant market movement—potentially in the coming weeks.
History has shown us that markets can swing from euphoric bullishness to sharp corrections. Notable examples include the catastrophic crash of 2008 and the rapid declines during the COVID-19 pandemic in 2020. While we may not face declines as drastic as those events, it’s essential for retail traders to be proactive in safeguarding their investments.
One effective strategy to mitigate downside risk is to consider purchasing long dated put option. A put option provides the holder with the right to sell the underlying asset without the obligation to do so. This means that if the market experiences a downturn—whether in the immediate future or after a few weeks or months—the put option can yield significant profits during a substantial decline. On the flip side, if the market continues its upward trajectory, the put option will gradually lose value and may eventually become worthless as indices continue to set new records.
The key takeaway here is to keep your investment strategy straightforward and avoid unnecessary complexity. This is merely one of many strategies available for investors looking to protect their portfolios.
Final Thoughts: As we navigate these exciting yet unpredictable market conditions, it’s crucial to remain vigilant and informed. While the allure of all-time highs is compelling, prudent risk management is essential for long-term success in investing.
Disclaimer: All investments carry inherent market risks. This article is not a recommendation; please conduct your own analysis before making any trading or investment decisions.
What Is India VIX & Its impact on the Market Q: What is India VIX?
Ans) India VIX, or India Volatility Index, measures the market's expectation of volatility
over the near term. It is often referred to as the "Fear Gauge" as it indicates
the level of fear or risk in the market.
Higher VIX values indicate higher expected volatility,
while lower values suggest lower expected Volatility.
Q: What does a High India VIX indicate?
Ans) A High India VIX indicates that traders expect significant volatility
in the market. This often corresponds with market uncertainty or fear,
possibly due to Economic Events, Political instability, or other factors that
might cause large price swings.
Q: What does a L ow India VIX indicate?
Ans) Low India VIX suggests that traders expect the market to be relatively
stable in the near term. This typically corresponds with periods of market
confidence and lower perceived risk.
Q: How do major events affect India VIX?
Ans) Major Events such as Elections, Economic Announcements, Geopolitical Tensions,
or Natural Disasters can significantly impact India VIX. These events often lead to increased uncertainty and Fear, causing India VIX to spike as traders anticipate greater market volatility.
These are some of the Basic information about the India VIX and its impact on the Market
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NIFTY DESCENDING triangle formationHere is my overview of descending triangle forming in the price levels.
WHAT IS DESCENDING TRIANGLE??
Formation: A descending triangle pattern begins to take shape after a prolonged downtrend. Traders and analysts notice a series of lower highs forming as the price of an asset consistently makes lower peaks. These lower highs are often seen as a sign of weakening bullish momentum.
Support Level: Simultaneously, a horizontal support level emerges as the price bounces off a particular price point multiple times, creating a horizontal line. This support level represents a significant area of demand, where buyers are willing to step in and prevent the price from falling below that level.
Triangle Shape: The pattern takes the form of a triangle as the descending trendline connecting the lower highs and the horizontal support line intersect. The descending trendline acts as a resistance level that keeps pushing the price down.
Bearish Bias: The descending triangle pattern suggests a strong bearish bias. As the price continues to make lower highs, it indicates that sellers are in control, and buyers are less willing to bid the price up. The horizontal support level becomes increasingly crucial as a decisive point where traders expect the price to either break down or reverse.
Volume Analysis: Volume analysis is essential when considering a descending triangle pattern. Typically, during the formation of this pattern, the trading volume tends to decrease. Lower volume indicates decreased interest in the asset and often precedes a significant price move. Traders often look for an increase in volume when the price breaks below the horizontal support, signaling a stronger confirmation of the bearish trend.
Confirmation and Entry Points: The descending triangle pattern is confirmed when the price breaks below the horizontal support level. This breakdown is a bearish signal, and traders often look for this event to initiate short positions or to exit long positions. Entry points are typically just below the support level, and stop-loss orders are usually set just above the horizontal support or the descending trendline.
Price Target: To estimate the potential price target after a breakdown, measure the height of the triangle from the highest point (the first lower high) to the horizontal support. Then, subtract this measurement from the breakdown point. This gives you an approximate price target for the downward move.
Trend is your friend & the fallacy of catching reversalsHere in this video, I discuss with you a losing trade which I took today and what we can learn from it.
I also share with you important things regarding gaps , and how a beginner is always trapped in reversals and why it's profitable to stay on the current side of the trend.
Follow @piyushrawtani if you find this video helpful .
Nifty Future - Educational This Nifty Future Chart i have used in this Educational Tutorial is to summarize how many parameters keep playing in disguise on Daily Charts which is possible to track properly only in Short Term Trades .
The Trade Setups for Longs / Shorts are those which i have personally Taken in markets in recent times for short term setups . The Overall Risk Reward is positive till date but not as expected due to high Volatile Markets in last 1 year
XABCD Patterns used in this chart is a casual approach to show how things start making sense once the pattern is completed :)
ABCD Pattern used is to Project Nifty Future Probable Target in coming days
Ongoing Long Setup :
Reason 1 : The Last Long Entry which was made around 15th of July is a case of Trend Change Expectation as per Time Cycle , If u notice the projected path of ABCD Pattern (from weekly chart) hasn't moved as expected but there was a price decay instead of time so this trade made a lot of sense
Reason 2 : First Entered this trade around 15th of July which was clearly a Buy and i have published this idea under my profile during the day, but with following days Nifty Future hasn't even shown a single day of weakness on Daily Charts on closing basis.
How i Projected Targets in advance:
All Targets Projected in advance are Fibonacci levels of last swings i personally use 1.27 & 1.61 (to Project Initial & Profit Targets respectively) but if market keeps rolling without correction then i am happy to hold with trailing Stops.
This is my First Educational Content for my friends/followers , Tried my best to explain the rational on chart which you can practice by urself using Bar Replays and can find my Entry Reasons which are mostly retracements of last swings .
Intraday Trade Setups are totally different as most of these patterns goes unnoticed due to scarcity of time ( attaching few NIFTY ideas i shared in last few days). I will try to make another tutorial for Intraday Trade setups which i mostly trade
The downside is as you start trading lower time frames our/your success rate too keep diminishing but the game is to win only via Proper Risk Reward Management in each and every single trade :) which is the hardest task but not an impossible one
Do Comment , share and "LIKE" if you find this info valuable to use .
Attached below few Related Ideas posted under my profile in recent time.
Happy Hunting ,
Chintamani
Disclaimer.
I am not SEBI registered analyst.
My studies are for educational & General purpose only.
Please Consult your financial advisor if you have plans of trading or investing.
You yourself hold sole responsibility of profits and your losses arising of above shared info
MANIPULATION IN NIFTY INDEX (Search And Destroy)This idea is inspired by a strategy often used by market manipulators called Search And Destroy from the book named " How To Triple Your Money Every Year with Stock Index Futures " (1984) .
In this book, According to Author George Angell's Search and Destroy day is "...When both previous time high and Low would be taken out..." (p.217)
In our analysis we will understand this strategy used by market manipulators with very good example of NIFTY 50 Index .
In the above chart market on 19th March market opened Gap Down by around 100 points and created a low at 14350 and from that point and it went bullish and made a good support at that level. One can consider 14350 level as a good support because market was bearish at the time of opening and it went bullish from that particular point.
Now from 14350 , market went upside and came back to that same level after taking strong resistance at physiological level of 14900
from the upside.
So if we think from the point of view of retail traders who deals in intraday trades they certainly consider that point as an support level and put their stop loss at that level for taking long trades.
But here Market Manipulators enters in the market and aggressively take price down by around 100 points and what happens next is stop loss of all the retail players were triggered at that point and now Manipulators have that enough liquidity for execution of their big trades.
At last because of big lots were bought in the market by those manipulators Automatic Rally happens and as we can see in the chart there were two Gap Ups in two days in continuation. DO you think retail traders can do this ? Definitely Not.
The term Automatic Rally means when heavy selling occurs in the market at same point to catch that liquidity high amount of buying also happens in the market and as a result of that prices goes upside.
There is a also term called Wake- off Trading . You can also relate some steps above with the phases of that concept also.
Happy Trading. :-)
Note :
Trading foreign exchange and stocks on margin carry a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange or stocks you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss in excess of your initial investment. You should be aware of all risks associated with stock and foreign exchange trading and seek advice from an independent financial divisor if you have any doubts. I am not a licensed financial advisor and this content is not financial advice.
Nifty 50 Bullish Reversal Harmonic Pattern Nifty 50 in its all-time high and has started a sideways movement which has supported by Shark harmonic pattern in the hourly chart.
The expected move could be until D point i.e. 12878 to 13010 level downwards. We can find quality support on that price point.
Please create your strategy accoudingly.