Meet Our New Drawing Tool: Price NoteWe created Price Note to make it even easier to attach notes at specific prices. We know how important it is to keep detailed notes on your favorite charts and our new drawing tool will help.
How to create your first price note 📝
1. Select the tool from the Annotation Tools panel. This is the same place where you find the Text tool.
2. Place two anchor points. The first point sets the price, and the second one is the coordinates of the price label.
3. Add text to appear along the Price Note by opening the settings dialog by double-clicking on the note. You can also change the line and text colors from the settings dialog.
Use keyboard shortcuts when working with Price Note!
1. Press Ctrl (Windows) or command ⌘ (Mac) while placing a point so that the point is drawn to the nearest symbol value. This keyboard shortcut turns on your Magnet.
2. Press the Shift key while placing a point to set the slope of the line in multiples of 45 degrees. Pro tip: this is especially helpful for placing Price Notes at perfect angles. Perfect angles = beautiful chart. 🎨
We hope you enjoy this new drawing tool. By the way, the chart above shows Bitcoin Dominance, S&P 500 , and Tesla . We've placed price notes as examples for each symbol. Feel free share to share any charts you make with a Price Note below in the comments.
Please also share any questions or feedback below. Thanks for reading.
Beyond Technical Analysis
Education: Why you should NOT buy or trade signals!"Give a Man a Fish, and You Feed Him for a Day. Teach a Man To Fish, and You Feed Him for a Lifetime" - unknown origin*
🔴What does this quote mean, and how does it related to trading (signals)?
The quote means that you can indeed resolve an issue by providing a hungry man a fish, serving his immediate need, but if you really want to help him you should teach him to become self-sufficient.
Similarly, while providing a signal, you can provide the signal to a winning trade to someone, but if you really want to help him, you teach him how to analyze the market and become self-sufficient in trading.
🔴DISCLAIMER
This post will probably get some backlash from users who provide signals, be it paid or not, because it goes against their "business model" and might reduce their revenues in one way or the other. But that is fine by me, this is my personal opinion, and I advise every single reader of this publication to draw his own conclusions.
🔴What are trading signals?
Trading signals at a minimum constitute of an entry price and a direction. Example : buy $Gold at 1825 USD.
Some (but not all) signal providers also give you a Profit Target and/or a Stop Loss. They give you actionable information on where to open a trade, which direction you should trade and sometimes when you should close the trade.
🔴That's easy! Nothing wrong with that, it can make me money, right! Right???
Yes, it can, you are absolutely right that you can make money off a trading signal.
However, there are a couple of questions that you need to ask yourself :
How many trades, what percentage, can you expect to win?
If not provided, where should you take profit or cut your losses?
What is the reason for entering the trade?
What confidence do you have in the trade if you're just following someone elses instructions?
What if you lose 10 trades in a row, was this expected?
Who is responsible for your losses? You, or the signal provider?
What do you learn from trading signals?
What are the emotions you have to go through during the trade?
What if your signal provider stops?
🤔 Additionally the question arises why the signals are provided.
Is it altruism? Or is it conceivable that the provider does not make enough by trading and wants to top-up his gains(?) by selling signals. Income from trading is not guaranteed, when you sell signal you make your profit the moment the transaction takes place, independent of the outcome of the trade. That's guaranteed 💰.
And yes, people will be unhappy and no longer order the providers' services, but there are always new "potential buyers" coming to the financial markets.
💡 "Trading signals does not guarantee your income, it guarantees the signal providers' income."
🔴OK, fair enough, but what should I do if I don't know how to trade?
Allow me to be blunt here, if you don't know how to trade, you should either learn how to trade, either keep your money in your pockets.
Ask yourself why you want to trade? What is the end goal?
► If you say that you just want to make some extra money, then taking up a 2nd job is a much more reliable source of income than throwing your money at the markets based on something someone else said, don't you agree?
Other than that, as said earlier, if you depend on a signal provider, that income (if any) will disappear the moment the signals do.
► If you want to become a trader, become financially independent, get rid of your daytime job, get out of that hamster wheel, I strongly suggest you invest the time and effort to learn how to trade for yourself.
🔴MY ADVICE
Don't be lazy
Don't trade signals and
Learn how to trade
Hustle
Grind
Fail
Learn from your mistakes
Fail again
Don't give up
Don't expect to become rich overnight
Keep learning
Do your own research and analysis
Rinse and repeat until you succeed....
That, imho is the only way you will achieve the financial goals you have set for yourself and feel good about it...
So, let's take our initial proverb and give it a trader twist:
👉🏻👉🏻👉🏻 "Give a Man a Signal, and You Could Feed Him for a Day. Teach a Man To Trade, and You Feed Him for a Lifetime" - Nico Muselle
💥The decision is all yours, if you want it bad enough, you can do it!💥
🔴Useful information
This TradingView article gives you some additional information on the things you shouldn't do ... Give it a read before you hand out your hard earned money.
www.tradingview.com
Do you agree? What is your view on signals?
Let's open the discussion in the comments below ...
✌🏻 PEACE OUT
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Oh, and maybe you'll like the related ideas linked below as well?
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Twelve Choruses of a Market Cycle 1. The Washout: “Stocks are Going Way Down”
At the bottom of a market crash, business news is usually terrible and many authorities declare that things will probably get worse.
The public dumps stocks without regard to value.
Eventually, though, a point is reached where everybody who can be scared into selling has sold. Usually,
the final battle occurs in a few days of extremely high volume known as a “selling climax.”
2. The Early Surge: “Things look better but it’s too early to buy. Wait for a pull-back.”
The government, shocked by the decline announces public works and other stimuli which, of course, will not take effect until many months later.
So, the pundits declare that, this time, the stimulus isn’t working. “It’s like pushing on a rope,” they say.
Months go by and prices rise.
When “everybody” is waiting for a buying opportunity, there will ordinarily be no buying opportunity.
3. The Surge Continues: “Prices seem high. It’s too late to buy.”
More months pass and the market establishes an upward channel.
Higher prices pull in buying from the institutions waiting on the sidelines.
The public moves from feeling that it is too early to buy to suspecting it might be too late.
4. The Second Stage of the Rocket: “Maybe it’s okay to buy.”
After long time or so after the bottom, the public, watching from the sidelines, becomes interested.
There are a number of downward bounces, or tests, against the bottom of the market’s rising channel.
Each time, the recovery starts from a higher level.
5. Not a Cloud in the Sky: “Buy!”
More time go by, the market is way up and the public is hooked. Business news is excellent.
The “standard forecast” is optimistic.
Some particular market area becomes a market darling and is bid up to irrational levels.
We see, also the use of derivatives—on a vast scale.
6. The Blow-off: “Stocks can only go up.”
Hot Managers become famous.
7. Coasting: “The market does seem high but this time it’s different.”
As the months wear on, stocks hesitate; their upward pace slows, with only a few favourites making new highs.
The market analyst detects this by the falling ratio of advances to declines.
In a bull market,enough stock is “manufactured” to satisfy everyone. “When the ducks quack, feed ‘em.”
8. The Top: “Hold!”
The government, concerned about speculation and economic overheating, starts leaning against the wind.
Another few months pass and we see a series of vicious reactions.
The arrival of belated “second chance” buyers halts each decline and puts the list up to new highs.
9. Over the Hump: “It’s too soon to sell.”
The public remains heavily in the market but the professional investors are edging out.
A downward channel is established.
10. The Slide: “Prices are cheap but it’s too late to sell.”
After a few more months, a number of issues have fallen appreciably from their highs.
The market, sinks on bad news but fails to respond to governmental stimulation measures and bullish company announcements.
11. “It’s okay to sell.”
After a while, we may see a severe decline, with more volatile issues.
There is often a deceptive recovery, which one might call the “trap rally”.
12. The Cascade: “Sell!”
Now the river seeps over the brink, carrying everything with it.
Business news is bad and the standard forecast is for stormy weather.
The hot-fund managers have to meet redemptions but find out that illiquid securities cannot be sold and depart in disgrace.
13 (or back to 1 again). The Selling Climax: “The market’s going way down.”
The torrent crashes down the hills. Some stocks give up in a day/week all their gains for a years.
It is so sudden and so awful that, for a while, many investors cannot quite believe it.
So here we are again, years or so after we started out, half drowned, bones broken, washed out.
But if you have kept some reserves intact and know enough to recognize real value
when it is being dumped by panicky, uninformed sellers, and have the guts to act, then you can make the buys of a lifetime at these moments.
We have had many economic storms.
Each time, investors became convinced that the skies would never clear or the sun shine again. And it always does.
'
#keepinvesting
#neverloosehope
#firstlearntheninvest
#learningisearning
#educationalpost
#rachanak
like if you agree
comment if there is anything to add to above
disclaimer - shared as learnt, read, followed personally
GOOD LUCK FRIENDS
Trader's Queries - Manual for trading - Part 4Query : How to over come losses and become a profitable trader?
Answer : This is Part 4. If you are new, refer Part 1, 2 & 3 for better understanding.
Step 9 :
In the earlier stage of trading, every trader goes to the “victim state” of mindset often. Try to bring your mind out of it soon.
What is the victim state of mindset?
Example : Person A feels powerless during trading because of uncertainty of the share market.
Person A's Interpretation :
Only my stop loss get hit.
Why it is me always?
Why market turns against me whenever I take a trade?
Why my strategy fails when I apply it in live market?
These interpretations trigger the following emotions.
Fear
Worry
Frustration
Confusion
Anger
How to over come it?
Person A should
Improve his technical knowledge.
Have to accept uncertainty is the certain state of share market.
Improve his trader’s mindset.
(To be continued...)
NURECA | IPO Details ....Started @ 15 / FEB /2021 ( Today) 🎯NURECA IPO REVIEW-
Introduction to NURECA-
-Incorporated on 2nd November 2016 @Delhi.
-B2C Home healthcare and wellness product company.
-95% Revenue online.
-1 manufacturing unit-@Chandigarh.
-3 Brands.
What does the company do-
-company enables people with tools to effectively monitor chronic illness and upgrade their lifestyles.
-company engaged in the business of home healthcare and wellness products, which offers quality, durability, functionality, usability, and innovative designs.
-company tries to provides the home health care sector with innovation.
-Nureca company is the first digital company wherein they sell the products through online channel partners such as e-commerce players, distributors, and retailers.
The following brands are currently used by the Company-
-Dr. Trust: they provide the users to effectively monitor chronic illness and try to upgrade their lifestyle.
-Dr. Physio: This brand provides electric massagers, wheelchairs, and walkers.
-Trump: This brand provides the Mother and Child Care category.
NURECA PRODUCTS-
-Chronic Device Products- products such as blood pressure monitors, pulse oximeters, thermometers, nebulizers, self-monitoring glucose devices, humidifier ands teamers.
-Orthopedic Products-such as wheelchairs, walkers and physiotherapy electric massagers.
-Mother and Child Products- such as breast pumps, bottle sterilizers, bottle warmers, car seats and baby carrycots.
-Nutrition Supplements- such as fish oil, multivitamins, probiotics, biotin, apple cider and vinegar.
-Lifestyle Products- such as smart scales, aroma diffusers and fitness trackers.
NURECA'S Strength-
-Most of the products of NURECA is outsourced.
-Due to this their cost of production is low comparatively.
-Asset light model.
-It increased the production capacity.
-Bring product on semi-knocked down condition.
-V-shaped recovery.
-Nureca has a strong portfolio of products and a consistent focus on quality and innovation.
Financial Analysis-
-It has grown at a CAGR of 122.49%. As for the total assets, that has grown at a CAGR of 117.12%.
-The profits after tax, the growth rate is more moderate.
-Over the past three years, the net income has grown at a CAGR of 41.42%.
-The negative net cash flow from operating activities has grown at a CAGR of above 780%.
-the increasing burden of long-term debt. From Rs. 43 lakhs in 2019 to Rs. 9.77 crores in 2020 is an increase of over 2000%.
-If this debt burden continues to increase at this rate, it will create pressure on Nureca’s balance sheet.
-It was valued at Rs. 20,757 crores in 2019. By 2025, this market is expected to grow to Rs. 38,920.70 crores.
-It has grown from $24 billion in 2017 to $84 billion in 2021.
-In India especially, at least 33% of the population resorts to online shopping as opposed to conventional shopping outlets.
-Nutritional products, Rs. 17,840 crores in 2019 and it is expected to grow to Rs. 33,368 crores in 2025.
-Coming to the market for orthopedic products, in 2019, it was sized at Rs. 682.80 crores. This is expected to grow to Rs. 1,162.90 crores by 2025. The predicted CAGR, in this case, is 9.2%. The graph below shows the growing market
size over the years.
-The demand for chronic disease products is, of course, fairly inelastic in nature.
-Owing to the steadily increasing wave of chronic diseases, this demand is expected to rise in the future.
-By 2026, 12.5% of the population is expected to be geriatric in nature i.e. they will be above the age of 60. This means the demand for health-care products will only increase.
Business model-
-Nureca is a B2C company engaged in the business of home healthcare and wellness products,
-it offers quality, durability, functionality, usability and innovative designs.
-Voltas enables their customers with tools to help them monitor chronic illness and other diseases, to upgrade their lifestyle.
Risk-
-it faces stiff competition from organized and unorganized players, which leads to pricing pressure.
-it reduced margins and lower profitability.
-Home-health products are considered consumer-grade, due to concerns regarding the accuracy measures of products.
-The company does not enter into long-term contracts for the manufacturing of its products and any manufacturing-related disruption could seriously impact its business
-The company also depends heavily on its channel partners such as third-party e-commerce players, distributors, and retailers. Any failure to manage the distribution network efficiently will adversely affect its performance.
IPO details-
IPO Date February 15, 2021 to February 17, 2021
Issue Type Book Built Issue IPO
Issue Size Rs.100 Crore
Fresh Issue Rs.100 Crore
Face Value Rs.10 per equity share
IPO Price Rs.396 to Rs.400 per equity share
Market Lot 35 shares
MinOQ 35 shares
Listing At BSE, NSE
Promoter's holding-
-Saurabh Goyal 46.67%
-Payal Goyal 46.67%
Object of the issue-
-To meet the working capital requirements of the business.
-To meet the general corporate purpose.
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3 Phases of a trendEvery stock, index, commodity etc goes through these 3 phases.
Increased volumes in accumulation phase.
This can be also a good swing trade.
The 90-90-90 rule - Why do traders fail?"Many are called, but few are chosen". Ever heard this proverb?
This is certainly true for trading, in fact, there is even a rule in trading about this, the 90-90-90 rule. So what does this rule say?
"90% of traders lose 90% of their money in 90 days"
😱😱😱
That's right, statistics show that 90% of people who start trading lose the majority of their money in less than 3 months. But why is that so? In this post I will try to lay out the reasons for failure, if you are a new or struggling trader, I'm sure you'll find this useful. Let's get into it ...
🤯 EXPECTATIONS
•
Many start trading because they've seen or read about success stories, people becoming rich overnight, they might even have a friend who has been successful in trading and they think (to say it in Jeremy Clarckson's famous words) "How hard can it be?. With this approach, failure is imminent...
📐 NOT HAVING A PLAN
•
"If you fail to plan, you are planning to fail - Benjamin Franklin . Trading without a plan results almost certainly in failure. Your trading plan should include the definition of your setup, entry, stop loss, profit taking, trade management, risk management and money management.
🔄 NOT TESTING YOUR PLAN
•
OK, you have determined how you will trade, what defines your entries and exits, how much of your capital you will risk and how you will manage your trades. But do you know what is the expectancy of that plan? Do you know how much trades you will win on average, and how many you will lose? How much money can you expect to make?
Backtesting your plan, executing it flawlessly time after time on historical data will give you that information and the confidence to execute your plan time and time again without hesitation.
😱 EMOTIONS - THIS IS THE BIG ONE!
•
If did not take the time to create a trading plan and backtest it, you don't really know what you are doing and emotions will have the best of you.
Fear, greed, hope, excitement, anxiousness, boredom and frustration will drive your hard earned capital away from you.
Results of these emotions are : trading too much, letting your losers run and cutting winners short, revenge trading, overleveraging etc...
I could write an entire post about each of the emotions and how they can affect you while trading, but it would make this post too lengthy. Just know that emotions are your biggest enemy when trading, for best results you should be in a stoic state when trading.
🕺 EGO
•
"The market can remain irrational longer than you can remain solvent.". If you want to prove the market that you are right, you are doomed to fail. The market is always right, no matter what happens, so you better learn to accept that your analysis or prediction of what would happen was wrong and cut your losses. Fast!
📚 LACK OF EDUCATION
•
It takes many years to learn a skill or a profession, trading is no different. If you think about making lots of money without putting the time in to learn and test, you pretty much guarantee yourself to fail.
You wouldn't want a lawyer without education to defend you in court, or a self-proclaimed surgeon who learned on YouTube to operate on you, would you?
💰 STARTING CAPITAL TOO LOW
•
If you're starting with a low capital, you will tend to try and make it grow fast, resulting in taking too many trades, too high of a risk, too high leverage. If you start with a low capital, you'll have to be OK with the fact that it will grow slowly and that it will take (a lot of) time to build up a sizeable account.
🚦 BUYING OR FOLLOWING SIGNALS
•
"There is no such thing as easy money." You might think that you don't have the time to learn about trading, making and backtesting a trading plan. So why not follow signals?
Ask yourself what you know about this service? How profitable is it (and don't just go from the claims they make)? Do you know anything about the reason for a signal, why was it triggered?
Have you talked to other users who used the service, what do they think about it? Why is this person/company selling signals if they are so successful as they claim? Philanthropy ? 🤔
📉 INDICATORS OVERLOAD
•
Indicators can help you make decisions for trading, but too many indicators can and will lead to opposite signals or "analysis paralysis.
Most indicators are derived from price, so it makes sense to learn how to read price action and discover the story behind the candles.
🆕 THE NEXT SHINY OBJECT SYNDROME
•
You took the time to develop a trading plan and even tested it, but you run into a drawdown... Rather than counting on your experience and the expectancy that you know is there, you look for a new shiny method of trading, until the same thing happens again with this new method ... Rinse & repeat, never giving the chance for your original method, which you know was working when you tested it, to prove its worth ...
Alright, I think I have provided the main reasons why new or inexperienced traders fail. Knowing why they (or you) fail is one thing, doing something about it is not a small feat. But with enough dedication, persistance and the right mindset, you can prove these statistics wrong!
Feel like reasons are missing, let me know in the comments below.
So what is your story?
Are you a successful trader now but recognize these reasons for failure?
Are you a new trader? Was this helpful?
What did/will you do to overcome this?
What did/do you struggle most with?
Help the TradingView community by commenting below.
"Trading is a ruthless business that does not take any hostages, so you better come prepared." - Nico Muselle
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Process Of Value Investing EXPLAINED with chart 🎯 Understanding the process of value investing is easy. But it is not as easy to implement
The process starts with screening stocks based on its history.
-----Stock History:
Value investing is about picking blue chip stocks at discounted price. They represent established companies which has a long history trail. Example: stock analysis worksheet does not accept stocks which has less than 10 years financial data. Warren Buffett will probably look at, at least last 15 years data of a company to estimate its intrinsic value.
----Business Fundamentals:
Stock’s 10 years financial data should be checked to estimate the financial health of a company. Idea is to shortlist those stocks which are fundamentally strong. Value investors will invariably invest in only those companies which are fundamental power houses.
---Price Valuation:
This is the ultimate screener. No matter how established is the company, no matter how strong are its business, it is not enough. Value investors will not rest till it calculates the intrinsic value. To be more sure of the calculation, they will also apply a suitable margin of safety. Once this is done, comparing current price with intrinsic value value will highlight if the stocks is undervalued or overvalued. Undervalued stocks becomes a good buy.
Example
..Consider the case of Tata Steel & Tata Motors. These are the flagship companies of the Tata Group. Probably they will not cease to do business in next 100 years. But it is facing hard times since last 5-6 years.
..The company is doing everything to maintain the shareholders value. Today (in 2020), Tata Steel has takeover Bhushan Steel. Tata Motors has launched new premium cars. This is a hint of their competence.
..A common man must always be in look-out of such business to buy stocks. When we see the past 10 years performance of these companies, it is hard to estimate their intrinsic value. It is because, in the last 10 years, the company has not performed as well. They have been making low sales and lower profits.
..But looking ahead in future, the prospects looks more promising.
CONCLUSION :-
If you want to invest in stock market, you must learn to practice value investing. The investor must at least know how to value stocks of companies. This way he/she will at least not invest blindly.
There are two main ways of valuing stocks. One is done using financial ratios, and other is through intrinsic value calculation.
For people who do not want to go into the hassle of intrinsic value calculation can follow the financial ratio approach. But it is not as reliable.
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DISCIPLINE - The core of Trading...Today i took this Intraday Trade in Bajaj Finance; and there were some psychological and Discipline aspects that were related to this trade. So i thought why not to share those key points that could transform you’re trading style completely:-
Always Trust your gut and analysis, Never Ever Doubt It.
Always keep a Sl and a Target; and keep on trailing the Sl rather than booking the profit before it has even reached your target.
Never look at your P&L once you’ve entered the Trade
Always remember that trading is 20% buying 20% selling and rest 80% patience, so always be patient market will definitely reward your for it.
Lastly, large trading positions can punish you more than they reward you, so positioning your quantity and managing R:R is very Important.
Shorted @ 5180
Sl was @ 5210
Later Trailed the Sl to 5170
Though i could have booked a good profit @ 5120 but i stayed disciplined and didn’t book it cause my target of 5080 wasn’t achieved, this is what market has taught me and this is what it takes to become a profitable trader (Controlling Your Emotions).
—- Nevertheless i still ended up in a small profit —-
How to find a stock with the strong fundamentals?Before investing in stocks you should know the fundamentals....
All of the mentioned criteria should be fulfilled before investing in a particular stock....
NOTE: This analysis is not eligible for Banking and NBFC stocks...
DISCLAIMER : This is just for educational purpose. Do your own analysis....
Cheat Sheet : Investment products at a Glance 🎯1) Cryptocurrencies: Highest Risk, Highest Return :-
There are 3 main types of Cryptocurrencies in the market now which are the most actively traded – Bitcoin, Ethereum, and Litecoin. Think of this as a new version of a stock, where the underlying thesis is the idea of decentralized ownership and value. For any other currencies in the market, for eg. USD , it is debt-based and backed by the respective monetary authorities. This also means that they are free to increase or decrease the supply to implement their policies on the market. For cryptocurrencies, they are limited in supply, hence the free market is completely at play here (demand and supply).
2) Stocks: High Risk, Highest Return:-
A stock (also called a share) is a part of ownership in a company. It represents a claim on the company’s assets and earnings and what that entitles you to do is to attend the Annual General Meetings (AGMs) and dividends payout if declared by the company. So essentially by buying into this company, you are betting that the management team and company fundamentals are able to get you more returns.
Total Returns = Capital Appreciation (price increases) + Dividend Payout (cash payouts)
3) Exchange Traded Funds (ETF): High Risk, High Return
Think of ETFs as an investment fund which is traded on a stock market. Essentially when you buy a stock of an ETF, you are buying into a basket of weighted shares. – diversification. Being actively traded also brings many benefits, namely, efficiency as well as liquidity compared to funds where often you would need to go through a long process to buy and sell the holdings. You can get a rather efficient price for your holdings at almost any time.
4) Unit Trust (Mutual Funds): High Risk, High Return
An instrument whereby you pay fund managers a fee of between 0.5% to 2% yearly to manage a pool of money (fund). Essentially their main goal is to outperform the benchmark return Where it is justified if they can outperform the market, they should indeed earn that fee because they know how to navigate and invest in the market better than you.
5) Bonds: Moderate Risk, Moderate Return
A bond is a type of debt instrument where an investor loans money to an entity. The entity can either be a corporate or more commonly government body. The purposes vary but it is mainly to raise funds for a defined period of time at a defined variable or fixed interest rate.
if you loan the amount for a longer period of time, the % interest increases towards the maturity date. As a bondholder, you reserve the right to the future payout at the maturity date. Something interesting about bonds is that they come in various types such as a Bond ETF (where it is a diversified basket of various bonds traded on the market) or a Bond Fund (where it is an actively managed basket of bonds with a purpose to beat the bond index)
6) Endowment: Low Risk, Low Return
An endowment policy is actually dressed up as a life insurance contract designed to pay a lump sum after a specific term (on its ‘maturity’) or on death. Usually, the structure is one which involves regular payments into this endowment fund held by your insurance company which then decides to invest and bring in some returns. Therefore it is a mix of some protection and forced savings plan (with a little better interest than a regular savings account normally)
7) Savings: No Risk, Negative Return
This is the most straightforward of all the different options. Actually, this is not an investment option but it is planted in the illustration above to show you how much you could be losing if you put your money in a normal savings account and not touch it. I think it is clear that the main goal is to have enough rainy day/opportunity funds of about 6 months of monthly expenses in this account. Next, by optimizing for an account which gives you the highest interest rates (although usually ranging from 1.5-2.0%). We actually did a useful comparison of which accounts make the most sense for you.
Guys check out the related ideas as well, it will work for you !
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Trader's Queries - Manual for trading - Part 3Query : How to over come losses and become a profitable trader?
Answer : This is Part 3. I have attached the links for Part 1 & 2. If you are new, read those and then continue Part 3.
Step 6 : Develop self awareness. Knowing what type of trading suits you give an edge in trading.
Example
Swing trade
Intraday trade
Momentum trade
Break out trade
Once you start gaining experience, your trading style start to change. Self awareness helps you to understand whether the change in trading style is good or not. As your knowledge evolves, your trading style also evolves.
Step 7 : Align your personality with your mind and brain. “Trading in zone” happens when your personality is in alignment with your mind and brain. It needs a lot of training to reach that level.
Step 8 : Check whether you are having “analysis paralysis”. In live market we get data from so many things like indicators, software etc. If the information/data is too much, then the brain goes to the overwhelming state and its function slows down. Whenever you are trying to change bad trading habits, if your new trading habit has too many data gathering points, then your brain will struggle to take decision and go to the old routine(bad trading habit).
What to do to overcome it?
Use less number of indicators.
Keep your analysis simple.
Keep your trading plan simple.
Keep your thinking process simple.
(To be continued...)
Homing pigeon, patternIdea just to identify the pattern.
Homing pigeon, is a pattern where a small body candle is formed inside a big candle. It indicates weakening of the down trend. Wait for confirmation candle.
STOP-LOSS Trailing method in detail !! 🎯Conclusion :-
1. Trailing stop loss is an order that locks in profits as the price moves in your favor.
2.You can trail your stop loss using: Moving Average, Average True Range, percentage change, market structure, and weekly high/low as well .
3. Investors uses above way to ride the trend till the last, & enjoys profits
4. as a investor you can ride it with trailing stop-loss by shifting it on phases wise / market structures
5.Read the important points mentioned on the charts
6.Refer chart for more information
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The Perfect Trade Trading Plan !! 🎯Points to be remembered !!!
ENTRY :-
* Wait for your signals
* Avoid FOMO
* Do not revenge trade
* Use correct size
* Do not chase price
EXITS :-
* Let winners run
* Cut losses quickly
* Do not add to a loss
* Accept losses and move on
* Use targets but stay flexible
OTHERS :-
* Take trades with a good RRR
* Think long term
* Establish clear rules for your system
* Process oriented > Results oriented
* Accept responsibility for your actions
* journal your trades
Trader's Queries - Manual for trading - Part 2Query : How to over come losses and become a profitable trader?
Answer can be written as a book. So I am posting it in parts. This is part 1. I have the link of part one below in case you missed it.
Step 5 : Understand why you hesitate or unable to make any change related to your trading habits.
Example : Person A knows he is gambling, but continue to do that. His reasoning for the behaviour is he thinks there are two outcomes.
Scenario 1 : I will continue to lose money if I did not take any step.
Scenario 2 : There is no guarantee that after taking efforts, I will start to make consistent money.
Why to take any effort when there is no guarantee?
Interpretation of scenario 1 :
I will be in a familiar situation.
I will be within my comfort zone.
I feel safe with familiarity, even though I am getting loss.
I am very passionate about trading(OH YEAH).
Emotions for scenario 1
Getting used to the emotions mentioned in step 3.
Starting to like the familiarity with the emotions mentioned in step 3.
Getting pleasure as it is the starting stage of addiction towards gambling.
Interpretation of scenario 2
I have to work hard to change my trading behaviours.
I have to learn new things.
I have to adapt new things.
I have to develop flexibility.
I have to accept change.
Emotions for scenario 2
Uncertainty
Uncomfortable
Possibility of disappointment
Unexpected outcome.
Now the question is why people prefer to trade or gamble. Does it mean they don’t like their job?
Everybody likes to get the feeling that they are in control. Even though they like their job, like the salary, it has its demand of completing the work in time, reporting to the superior and they get the feeling that they are compelled to do the job against their wish.
Now in trading to whom you report to?
Who is your boss in trading?
Answer is “YOU”. Thats why YOU like trading. “YOU” means your “EGO”.
(To be continued...)
Team Selection (Stocks to Own)Selection of stocks by dynamically adding and removing based on their Relative Strength with respect to Benchmark , may be a very disciplined way to Do-It-Yourself rule based Equity Portfolio management.
Trading Style - Types Of Traders - What Type Of Trader Are You?Scalping
Scalping is a very rapid trading style. Scalpers often make trades within just a few seconds of each other, and often in opposite directions (i.e., they are long one minute, but short the next).
Scalping is best suited to active traders that can make immediate decisions and act on those decisions without hesitation. Impatient people often make the best scalpers because they expect their trades to become profitable immediately, and will exit the trade promptly if it goes against them.
Being a successful scalper requires focus and concentration. So, it is not a suitable trading style for people who are easily distracted or who often find themselves daydreaming, so if you've been thinking about something else while reading this, then scalping is not for you.
Day Trading
Day trading as a style is more suitable for traders that prefer starting and completing a task on the same day. For example, if you were painting your kitchen, and you would not go to bed until the kitchen was finished, even if that meant staying up until 3:00 AM.
Many day traders would not consider making swing or position trades because they would not be able to sleep at night knowing that they had an active trade that could be affected by price movements during the night (such as those that cause opening gaps).
Swing Trading
Swing trading is compatible with people that have the patience to wait for a trade, but once they have entered a trade, they want it to become profitable quite quickly. Swing traders almost always hold their trades overnight, so it is not suitable for people that would be nervous holding a trade while they were away from their computer. Swing trading generally requires a larger stop loss than day trading, so the ability to keep calm when a trade is against you is a necessity.
Position Trading
Position trading is the longest term trading of all and often has trades that last for several years. Therefore, position trading is only suitable for the most patient and least excitable traders. Position trading targets are often several thousand ticks, so if your heart starts beating fast when a trade is 25 ticks in profit, position trading is probably not suitable for you.
Position trading also requires the ability to ignore popular opinion because a single position trade will often hold through both bull and bear markets. For example, a long position trade may need to be held through an entire year when the general public is convinced that the economy is in a recession. If other people easily sway you, then position trading is going to be difficult for you.
Being Faithful to Your Trading Style
Choosing a trading style requires the flexibility to know when a trading style is not working for you, but also requires the consistency to stick with the right trading style even when it is not performing optimally.
One of the biggest mistakes that new traders often make is to change trading styles (and trading systems) at the first sign of trouble. Constantly changing your trading style or trading system is a sure way to catch every losing streak. Once you are comfortable with a particular trading style, remain faithful to it, and it will reward you for your loyalty in the long run.
Trader's Queries - Manual for trading - Part 1Query : How to over come losses and become a profitable trader?
Answer can be written as a book. So I am posting it in parts.
Trading is a journey like life. You have to learn from each and everything happening to you and grow. Like life trading do not have any manual to give instructions about how to handle it. That is why people got struck in trading.
Let us say “person A” was making consistent losses, or making capital zero more than once and get enrolled automatically in to the state of “feeling struck”. At some point every trader “feel struck”. Now the question is what to do next.
When we feel struck we “over dramatize” things. We do not see the big picture. We get confused and feel there is no way of coming out of it.
Step 1 : Accept the situation. Do not resist it. Do not create stories dwelling on it.
Step 2 : Stop criticizing yourself or external circumstances like market movement, big players etc.
Step 3 : Separate the facts, your interpretations about it and the corresponding emotions.
Example : Person A lost money in trading today.
Fact : Lost money
Interpretation : I did not pre plan my trade as I did not have time.
I did not have discipline.
I did not understand market movement.
I did not have enough technical knowledge.
It was not my fault.
I did not manage emotions during trading.
These interpretations result in creating emotion like
Guilt
Fear
Depression
Anger
Frustration
Sadness
Step 4 : Repeatedly worrying about the same situation would not help you. Consult with a person who is trading better than you, so that they can uplift you.
(To be continued...)
India VixThe volatility index tends to rise usually contra to Nifty. Currently at 21 has caused large red candles in hourly time frame today, further upside could be more lethal. A daily close above 22.50 will move it towards 24 and above that towards 30. A rising VIX suggests intra day moves get vertical with gap openings. Getting caught on the wrong side can cause massive m2m damage. It usually cools off after a correction or at an event - since we are into Q3 results - large cap noes and Budget on Feb 1 are some factors to be kept in mind.
PS: This is not a suggestion to go bearish, just a suggestion to cut down on exposure
BTCUSD- Do not jump on Parabolic Move (Support-9825)Last - 30350
For Educational Purpose -
Jumping on parabolic move such as yesterday where BTCUSD touched highs of 34800 can be extremely risky when the moves end.
Not A Trading Call
