What is the use of RSI in trading ?Successful trades often occur when the RSI crosses above 30 (indicating a buy signal) or below 70 (indicating a sell signal). Adjusting the RSI period to 9 can make it more sensitive to price changes and be suitable for more active trading strategies.
The RSI is helpful for market participants in identifying trends. In a strong uptrend, the RSI typically stays between 40 and 90, with the 40-50 range acting as support. In a strong downtrend, the RSI ranges from 10 to 60, with the 50-60 range serving as resistance.
The relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of a security's recent price changes to detect overbought or oversold conditions in the price of that security.
Cryptomarket
Important things to remember while starting trading journeyTo learn trading for beginners, the asset class with which you have the most experience is a good place to start - for most people this is shares. It can also make sense to start with assets with lower volatility, as there is less time pressure here.
The 5-3-1 strategy is especially helpful for new traders who may be overwhelmed by the dozens of currency pairs available and the 24-7 nature of the market. The numbers five, three, and one stand for: Five currency pairs to learn and trade. Three strategies to become an expert on and use with your trades.
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.
what is correction in market and how to react to it ?A correction in trading is when the price of a security drops by a meaningful amount in a relatively short period of time. Traders typically define a correction as a drop in value of 10% or more. This drop can happen over a few hours or a few days. Also, it can last for less than 24 hours or many months.
You can start by diversifying your portfolio. Spreading investments across different asset classes such as stocks, bonds, and commodities can help reduce risk and smooth out market volatility. A well-diversified portfolio is better positioned to withstand market corrections
A stock market correction describes a specific fall in value of at least 10% (but less than 20%) from a recent stock market high. Investors often use "stock market correction" to describe a drop in the market as a whole or within a specific index, like the S&P 500.
How to use indicators in trading ?Indicators do not specifically provide any buy and sell signals; a trader must interpret the signals to determine trade entry and exit points that conform to his or her own unique trading style. Several different types of indicators exist, including those that interpret trend, momentum, volatility, and volume.
Traders will plot a MACD line on a chart. This is the distance between two moving averages. A signal line, which is the moving average of the MACD line, is then added to the mix. If the MACD line cuts through the signal line from below, it can be used as a buy signal.
The strategy is named after its three key components: 5 (five currency pairs to focus on), 3 (only three trading strategies), and 1 (pick one time to trade). The main goal of this forex algo trading strategy is to maintain consistency, minimize risks, and maximize the traders' overall returns.
What is the use database trading ?An Exchange Database is a storage system used by Exchange Online Server to store email data and public folder content. It is known for its single-instance storage mechanism, which optimizes storage efficiency within the database.
A database is a collection of data that is organized so the information within can be easily accessed later. Your data will be more accurate, reliable, and easy to use if you have a database.
It provides real-time information about stock and market prices as well as historical trends for assets such as equities, fixed-income products, currencies and derivatives.
What is the use of Macd in trading ?What does MACD 12, 26, 9 mean? The 12 from the Moving Average Convergence Divergence represents a moving average of the previous 12 bars. The 26 represents a moving average of the previous 26 bars. The 9 represents a moving average of the difference between the two moving averages 12 and 26 above.
MACD above zero signals bullish momentum, while MACD below zero is signals bearish momentum. When MACD moves into the positive territory from below the zero-line on a chart, it indicates divergence between the two moving averages. This means the bullish momentum is picking pace
Muthoot Finance LtdMuthoot Finance Ltd.
weekly chart
keep on radar
Is Muthoot Finance Ltd a good buy now? The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Muthoot Finance Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.
Muthoot Fincorp Ltd is issuing Non-Convertible Debentures. These NCDs are AA-/Stable by CRISIL. The NCDs are being issued in fourteen series: yield ranges from 9.38% to 10.11% p.a. and different tenures of 18 months, 24 months, 36 months, 60 months, and 72 months. The NCDs are secured and redeemable in nature.
how to choose good stocks to buy ?How to pick stocks for long-term investing
P/E ratio. A ratio between 15 and 25 is often considered healthy. ...
P/B ratio. A good range is typically between 1 and 3, showing a fair valuation. ...
EPS. Look for companies with consistent or growing EPS over time. ...
ROE. A good ROE falls in the 10-20% range.
The 7% rule is a straightforward guideline for cutting losses in stock trading. It suggests that investors should exit a position if the stock price falls 7% below the purchase price.
The rule stipulates investing 90% of one's investment capital toward low-cost stock-based index funds and the remainder 10% to short-term government bonds.
Sbicard long#Bullish setup for 14-Feb-2025
#SBICARD BUY ABOVE 870
SL 855
TGT 885 912
SBI Cards and Payment Services Ltd. has an average target of 785.20. The consensus estimate represents a downside of -4.52% from the last price of 822.40. View 10 reports from 6 analysts offering long-term price targets for SBI Cards and Payment Services Ltd..
Growth Ratio: In the last 6 years, the revenues of SBI card have grown at a CAGR of 36% and profits have grown at a CAGR of 27%. That's phenomenal performance. Hence, on growth ratio, I would rate it 10/10.
HINDALCO#HINDALCO - Building Up Strength!
Entry: 605
Stop-Loss: 595
Target: 625
Support solid as concrete-next stop, sky!
The prognosis for HINDALCO stock looks promising. Five years down the line, the stock should be somewhere around the Rs. 900 figure or more. If you position yourself for a five-year investment, you could see your stock increase with growth touted to be close to 135%.
How to become a succesfull trader ?Become a successful trader
Risk management
Develop a trading plan
Choose your trading style
Protect your trading capital
Review your trades
Risk only what you can afford
Understand trading psychology
Always use a stop loss
Choose a trading strategy
Comparing brokerage firms
Keep a trading journal
Stay disciplined
Develop trading techniques
Developing a risk reward ratio
Emotional control
Find the right pairs to trade
Find your market
Adapt to the market
Be flexible
Cut losses with limit orders
Gain trading experience
Patience
Set goals
Study the markets
#BAJFINANCEBajaj Finance breaks out of a multi-year consolidation!
May see a Bullish momentum ahead.
The Bajaj Finance FD has one of the highest AAA(Stable) and CRISIL AAA/STABLE ratings to ensure that your deposits are secured with us and safely invested.
Bajaj Finance Ltd. has an average target of 8511.82. The consensus estimate represents an upside of 0.44% from the last price of 8474.25. View 40 reports from 13 analysts offering long-term price targets for Bajaj Finance Ltd.. Reco - This broker has downgraded this stock from it's previous report.
how to use AI in trading ?In stock trading, AI algorithms can process millions of transactions and analyze this historical data to predict stock market behavior based on previous scenarios. Investors can leverage this knowledge to plan accordingly while taking market volatility into account.
Best AI Tools for Stock Market Trading
Upstox (AI-Powered Trading Tools) Overview. ...
Zerodha Streak (AI-Powered Algorithmic Trading) ...
Sensibull (AI-Driven Options Trading) ...
Fyers One (AI and Real-Time Data) ...
Trade Brains (AI for Stock Screening) ...
MarketX (AI-Driven Market Insights) ...
AlgoTrader (AI for Algorithmic Trading)
How to do risk management in trading ?Five Steps of the Risk Management Process 2025
Risk Management Process. ...
Here Are The Five Essential Steps of A Risk Management Process. ...
Step 1: Identify the Risk. ...
Step 2: Analyze the Risk. ...
Step 3: Evaluate the Risk or Risk Assessment. ...
Step 4: Treat the Risk. ...
Step 5: Monitor and Review the Risk.
One popular method is the 2% Rule, which means you never put more than 2% of your account equity at risk (Table 1). For example, if you are trading a $50,000 account, and you choose a risk management stop loss of 2%, you could risk up to $1,000 on any given trade.
How to make a diverse portfolio in the stock market?How to create a diversified stock portfolio?
A diversified portfolio starts with the understanding that you'll have a variety of asset classes. The percentage you invest in each asset class depends on your risk tolerance, time horizon, and goals. A common guideline is a 60/40 split between stocks and bonds, but other model allocations include: Aggressive.The 5% rule of diversification states that one stock should not make up more than 5% of the investor's overall portfolio. Every investor's financial goals will differ as well as their analysis, so this rule may not matter to certain investors and in fact, some investors may want a large concentration in one stock.
what is the use of candlestick patterns in trading ?What is a candlestick? A candlestick is a way of displaying information about an asset's price movement. Candlestick charts are one of the most popular components of technical analysis, enabling traders to interpret price information quickly and from just a few price bars.
Traders use candlestick charts to determine possible price movement based on past patterns. Candlesticks are useful when trading as they show four price points - open, close, high, and low - throughout the period the trader specifies. Many algorithms are based on the price information shown in candlestick charts.
how to trade profitably in volitaile market ?Common strategies to trade volatility include going long puts, shorting calls, shorting straddles or strangles, ratio writing, and iron condors.
When volatility spikes, you have the opportunity to generate an above-average profit, but you also run the risk of losing a great deal of capital in a relatively short period of time. With a disciplined approach, you can learn to manage volatility for your benefit—while minimizing risks.
There are two main methods for trading:
Contracts for Difference (CFDs): This is like predicting whether the price will go up or down. You don't actually own the index, you're just speculating on its movements. ...
Options: Options let you speculate on price movements without risking more than your initial stake.
Best Statergies to do Database trading ?9 data-driven strategies for improved trading decisions
Volatility graphs. Volatility surface mapping is one method that helps decide the best approach in any given market. ...
Moving averages and regression analysis. ...
Machine learning. ...
Computer simulations. ...
The Bollinger Bands. ...
AI investing. ...
Unconventional data. ...
Using new data.
A trader needs to collect three types of market data for algo trading; real-time data, delayed data, and historical data. Real-time data is used while a trader executes an order, it is taken into account at the time of the trade.
How to Use chart patterns in technical analysis ?Setting Entry and Exit Points: Chart patterns enable day traders to set precise entry and exit points. For example, a trader might enter a long position when the price breaks above the upper trendline of a symmetrical triangle and set a stop-loss order below the pattern's lower trendline.
The 123 pattern reversal strategy is a three-swing price formation indicating a potential trend reversal. It consists of three price swings with three swing points, suggesting a change in market direction.
How to use technical analysis in trading ?How to perform technical analysis
Identifying the trend. This is the first step in technical analysis for traders because trading strategies can either follow the trend or go against the trend. ...
Drawing support and resistance levels. ...
Establishing entry and exit points. ...
Position sizing and risk management.
Technical analysis seeks to predict price movements by examining historical data, mainly price and volume. It helps traders and investors navigate the gap between intrinsic value and market price by leveraging techniques like statistical analysis and behavioral economics
Option chain pcr and its relevanceThe Put-Call Ratio (PCR) is a popular technical indicator used by investors to assess market sentiment. It is calculated by dividing the volume or open interest of put options by call options over a specific time period. A higher PCR suggests bearish sentiment, while a lower PCR indicates bullish sentiment.
The Put-Call Ratio (PCR) is a useful indicator to understand the market sentiment at any given time. A high PCR suggests a bearish market, while a low PCR signals bullish tendencies. It helps investors assess whether the market is leaning towards optimism or pessimism, which can shape investment strategies.
How to become a profitable trader ?8 Trading Tips to Help You Increase Your Net Profitability
Avoid Overtrading. Traders are ambitious, sometimes too much so. ...
Avoid Under-trading. ...
Take Control of Your Losses. ...
Simplify Your Approach. ...
Trade Robotically. ...
Learn Your Strengths and Weaknesses. ...
Double Down on What's Working. ...
Don't be Afraid to Go Back to Square One.
What is macd and how to use it in trading ?Moving average convergence/divergence (MACD) is a technical indicator to help investors identify entry points for buying or selling. The MACD line is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. The signal line is a nine-period EMA of the MACD line.
Key Tips for Using the MACD Histogram:
Rising Bars Above Zero: Strong bullish momentum.
Falling Bars Above Zero: Weakening bullish momentum.
Rising Bars Below Zero: Momentum is still bearish but weakening.
Falling Bars Below Zero: Strong bearish momentum.