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What after a heavy Loss ?Different types of emotions, questions, doubts arises in our mind when we see our capital depleting overall , we see a big portion of our capital is gone now ,we left with very less compare to initial capital. _________________________________ Different concussions made by different traders _________________________________ 1) They loss because of manipulator , operator , promoter , fraudsters etc ... This type of thinking is obvious because there are manipulators , operators , insiders who are always at advantageous position than you ... It is just like that your army trying to fight with a king where his army is equipped with better weapons. Your chances of winning is less , obviously . Am I right or wrong.? See why I took this example because in trading profession one's loss is another's profit. It is not very different with ancient war where one king use to fight with other risking the life of his soldiers for looting wealth of opponent. There are professionals, Institutions, prop desks, Fiis ,Diis , mutual funds , different portfolio managers serving their clients. Many players playing at the same time. Now main point is do we not take trades as our chances are less ? See yes big players make money but you can too make money you need to understand your strength. Now at this point you will surprise what is retailer's strength , in front of big players . Let me list it out. 1) Less capital . You do not need very much liquidity to trade efficiently. Big player cannot trade scrip which do not have very much liquid. 2) Smooth Entry and Exit : If I say you have to enter or exit 10Lac shares of Reliance today can you execute it at a small price range no , but with a small capital it is possible. 3) We can stay away from market for long time if we do not see a clear trend. But what about big players he have to trade every market condition and they trade and bear the existence cost their. 4) You can change your trading style much to get better results but they can't do much changes . This is just like small armies comparing with big armies , small armies have better less conflict within ,Management have less difficulties in handling , Less Budget. etc... See you can blame big players for your loss but introspect within is this the only reason. ? _____________________________________ 2) They lost because they do not have big capital : I remember a quote . "A trader is never under capitalised his mind is underdeveloped " First learn to grow small account. There is no guarantee that if you have a big account you will perform good. ____________________________________ 3) There is problem with their strategy . (search for holy grail) See if you think a strategy formed with mathematical calculations can alone make you rich . I do not think this business is for you ... it is harsh but true. "" It is just like the search of god outside but it is siting inside "" Work with your trading mindset will give more results than working with strategies. ___________________________________ 4) Fear for losing money again This fear is there in every trader whether you lost money made money or just starting , but what happens when you had a big loss experience this fear starts growing bigger and bigger , your decision making get affected with this fear. You get very fearful with open position when it shown some profit you just try to book ass soon as possible. You start booking small and lose big, with this derailed trading style no progress is expected. ___________________________________ 5) You think you should join expert traders. Now at this point you are thinking constructively ,but this gives opportunity for fake trainers , tip providers , brokers running their own agenda. For them to convince you for their services is very easy. They clearly know how to convince. I do not say there are only fraudsters their are genuine guys too but their percentage and willingness to help you is very very less. "It is just like in search of peace , satisfaction, god people end up in the trap of fake babas , gurus so called god messengers." I will further explore more about the possible psychological situations after a big loss and about Loss recovery strategies in my next post. Stay tinned .....
NSE:NIFTYEducation
by TRADEWITHFUN247
27
Is pattern completed for BNF or their still some hope?Here the matter of concern is where, the complete structure is heading towards? Is it towards further complex correction or correction has now been ended? Let's find out. Here, BNF has completed, ZIGZAG correction as per Elliot's standard rules. (Till Period 08-03-2022) ZIG ZAG waves personality Patten- ABC Sub waves- A(5,3,5), B(A,B,C) & C(%,3,5) Fib retracement for wave C: Can't go beyond 61.8% of wave (A) From here, It has gone up to 38782. So, here the question is, is it the connecting wave X or it's another pattern. CASE -1: If its WAVE X: The retraced move and as per mentioned counting it could be (WAVE-1) , which has ended @ 33000 and now its the time retracement of wave 2. (Here, important point to note is (WAVE-2) can go till the start of (WAVE-1 (in some cases)), but can't go beyond origin of wave 1. In this case we have to wait we have to wait for proper price action at FIB levels starting from 61.8%. CASE-2: If it's not WAVE X: As per the price action & waves personality, it could be FLAT that might end at around the the top of the channel having sub structures as ABC (A: 3 sub waves, B: 3 sub waves & C: 5 sub waves) and if it's not FLAT the correction might go in the form of triangle. (No visual waves formation of BNF in form of triangle till now) Now time for trading plan. Expecting the retracement is impulsive in nature (could be the last leg i.e. wave C). Buy on ever dip preferred having SL below 50% FIB levels (from Sub wave 2 to expecting wave 3 in market hours)
NSE:BANKNIFTY
by ShubhamKatiyar
13
What is Fibonacci retracement?If you have been in the market for some time, you may have heard of “Fibonacci retracements” . Today we are going to share an informative write-up along with a few exhibits that may help you solidify your understanding of this concept. Table of Contents: 1. What are Fibonacci levels? 2. What is the significance of retracement levels? 3. How to find retracement levels? 4. How to use the retracement levels? Without further ado, let’s jump in! What are Fibonacci Retracement levels? The retracement levels are horizontal lines that indicate areas where the price could stall or reverse. These horizontal levels can act as potential support or resistance levels. They are based on Fibonacci numbers. Each level is associated with a percentage which means how much of a prior move the price has retraced. The retracement levels are 23.6%, 38.2%, 61.8%, and 78.6%. While 50% is not a pure Fibonacci ratio, it is still used as a support and resistance. This is because people regard it as an important level. The price won’t always bounce from these levels. They should be looked at as areas of interest. Hence, the Fibonacci retracement should be used as a confirmation tool. Significance of Fibonacci Retracement levels Different traders use this tool differently but the most common usage is as follows: Place entry orders Determine stop-loss levels Set price targets For example, A stock may be in an uptrend. After a move up, it retraces to the 61.8% level. Then, it starts to go up again. Since the bounce occurred at a retracement level during an uptrend, long positions can be initiated with an optimal stop loss. Finding Fibonacci Retracement levels In order to find the retracement levels, you have to identify the recent significant swing high and swing low and then plot the Fibonacci accordingly. For uptrend: First, select the swing low and then the swing high. For downtrend: First, select the swing high and then the swing low. Exhibit: Fibonacci retracement in an uptrend Exhibit: Fibonacci retracement in a downtrend How to use the retracement levels? If the price is approaching a Fibonacci level, you should look out for the following things at the point of interaction or in the vicinity of the level. Reversal candlestick patterns Rising volumes Moving average RSI divergence Previous support/resistance level Conclusion: Adding Fibonacci analysis with other common methods of technical analysis can be useful for adding confluence to a trade. Thanks for reading! Hope this was helpful! See you all next week. 🙂 – Team TradingView Feel free to check us out on Twitter and Instagram for more awesome content! 💘
NSE:PIDILITINDEducation
by TradingView
21
Nifty - Analysis for the coming weeksNifty | Range perspective: - The price has been moving in this range for the last 2 weeks. - The range is 650 points wide. Using the measurement objective provides us with a target of 650 points in either direction. - This means that, whenever the price moves out of this range, we can expect 17k or 15k. - I'd be looking to trade either direction with a strict SL. - Currently, the bias is bearish because the HTF structure is bearish. I'd be willing to short near 16450-16400 if the price gives me an opportunity. - In case, the price moves above 16450 and sustains, the intermediate bias will shift to bullish. Nifty - M15 These are the levels that I am looking at. - The initial supply zone is the point where the HTF sellers entered the range high and pushed the price downwards. - The secondary supply is the point where the HTF sellers dumped the price today. - The price is at the flip zone and can move either way. I am looking at 3 favourable scenarios where the HTF sellers defend their positions and push the price towards the unfilled gap. - We can also observe the formation of the Head & Shoulder pattern, which will get confirmed only after the breakdown of the neckline. - The breakdown of the H&S will also confirm the breakdown of the flip zone, in which case we can expect the price to fill the gap. - The depth of H&S is about 270 points, which also aligns with the bottom of the unfilled gap. - Hence, all of these factors are adding up for a beautiful short, either tomorrow or on Thursday. - This analysis may or may not work out. So, please do not take any random trades based on this. Nifty - M5 - Beware of the trendline breakout since there is a supply zone overhead. The breakout can be a fake breakout just to trap more longs before moving downwards. Thanks for reading! Hope this was helpful. Disclaimer : This is NOT investment advice. This post is meant for learning purposes only. Invest your capital at your own risk. Happy learning. Cheers! Rajat Kumar Singh (@johntradingwick) Community Manager (India), TradingView
NSE:NIFTY
by johntradingwick
19
Shooting Star - Complete GuideWhat is the Shooting Star candlestick pattern? A shooting star candlestick pattern is a chart formation that occurs when an asset’s market price is pushed up quite significantly, but then rejected and closed near the open price. This creates a long upper wick, a small lower wick and a small body. The upper wick must take up at least half of the length of the candlestick for it to be considered a shooting star. And, it must appear at the top of an uptrend. As a result, the shooting star candlestick pattern is often thought to be a possible signal of bearish reversal. This means an uptrend might not continue (prices may fall). Traders should be careful not to confuse the shooting star pattern with an inverted hammer candlestick pattern. They both have a longer upper wick and small body. But the inverted hammer indicates bullish as opposed to bearish reversal. Also, the inverted hammer is often seen at the bottom of a downtrend. How to recognize it: i) Little to no lower shadow ii) The price closes at the bottom ¼ of the range iii) The upper shadow is about 2 or 3 times the length of the body What does Shooting Star tells you ? i) Shooting stars signals a potential downside reversal ii)A shooting star opens and rises strongly during the trading session, showing the same buying pressure that is seen over the last trading sessions. At the end of the trading session, the sellers push the price down near the open. or At the buying climax, huge selling pressure stepped in and pushed price lower. The selling pressure is so strong that it closed below the opening price. In short, a Shooting Star is a bearish reversal candlestick pattern that shows rejection of higher price. Before trading with the shooting star, one should remember the following points: Trade Entry: Before you enter a shooting star trade, you should confirm that the prior trend is an active bullish trend. Entry is below the Shooting Star candle low. Stop Loss: Place Stop Loss just above the high of Shooting Star candle or above recent high. Taking Profits: Minimum target is the size of the Shooting Star candle. I generally prefer 1:2 as first target. Best way to ride the move is to sit till any bullish signal is sensed. You can target previous swing lows or support zone. Examples- TATAMOTORS NIFTY NAUKRI High Probability Scenario:- i)Focus on the major Resistance levels, that’s where traders get trapped When you trade The Shooting Star candlestick pattern, you want to focus on trading the major Resistance levels (the ones which can be seen on the higher timeframe).When a level is obvious and the price breaks out of it, many traders will hop on the bandwagon and buy the breakout (hoping to catch a piece of the move).However, if the price makes a false breakout, this group of traders is trapped, and their stops will trigger strong selling pressure. Now, this is to your advantage because The Shooting Star candlestick pattern allows you to trade the false breakout and profit from “trapped” traders. So the more obvious the level, the more traders will get trapped — and you make more money. Conclusion So here’s what you’ve learned today: The Shooting Star candlestick is a bearish reversal pattern that shows rejection of higher prices. Just because you a spot a Shooting Star candlestick pattern doesn’t mean you go short immediately because you must also consider the context of the markets. Confirmation to go short is always below shooting star candle's low. Set your stop loss slightly above shooting star candle or above previous highs.
NSE:NIFTYEducation
by Omahto
8
Learning Stages in TradingIn my opinion learning in any field is connected to the "Four stages of Competence" and trading is no different. This post also answers why most traders lose in the stock market. Following are the four stages which every trader has to pass before attaining success. Unconscious Incompetence ---------------------------------- This stage belongs to the newbie traders who ignore all the knowledge part. They don't think that they need any kind of knowledge to make money. Their greatest desire is to make money in shortest possible duration so they rely on tips/news for trading. Ultimately they lose and i think more than 50% traders quit at this stage only. Conscious Incompetence -------------------------------- At this stage the trader realizes that ignorance is not a bliss. He has already lost in the markets so he thinks that may be he lacks knowledge. He starts reading books; attends online webinars; and attend courses/classes. Although he is gaining knowledge yet he confused with tons of indicators and strategies etc. He still loses because due to these confusions their is no solidarity in his plans. He has got a poor risk appetite. His ego of being right and urge to win every trade widens his losses. I think less than 30% traders survive up to this stage. Conscious Competence ------------------------------ Finally after so many losses the confusion leads to simplicity. The reader gets more systematic with setups and all, but still struggling with psychological issues like fear, greed, lack of discipline, insufficient capital etc. At this stage, I suppose 85% traders would lose their entire capital and give up scolding themselves for choosing a wrong career. Left with less than 15% traders. Unconscious Competence --------------------------------- A very few who reach at this stage and still left with funds make money from money. Trading selective setups becomes an involuntary action for them. They have realized the hardest truths of trading so psychological hurdles disappear from them. They belong to that <10% successful traders. Which stage do you belong? Do write in the comment section. Keep liking for more interesting stuff in the coming days.
NSE:NIFTYEducation
by Bravetotrade
57
Part 1: Equity Derivatives - A Beginner's GuideWhat are derivatives? Basic interpretation : something which is based on another source. A derivative is a contract or product whose value derives from the value of the base asset. The base asset is called the underlying asset. i.e., Sugar prices will rise if sugarcane prices increase due to low production. It means sugarcane is the underlying asset of sugar because the value of sugar is associated with sugarcane. There is a broad range of underlying assets: Metals: lead, gold, silver, copper, zinc, nickel, tin, etc. Energy: coal, natural gas, etc. Agri commodities: corn, cotton, pulses, wheat, sugar, etc. Financial assets: Stocks, bonds, forex, etc. There are two types of derivatives: 1. Exchange-traded: A standardized derivative contract, listed and traded on an organized exchange. 2. Over-the-counter/off-exchange trading/pink sheet trading: A derivative product in which counterparties buy or sell a contract or product at a negotiated price without exchange Instruments of derivatives market: There are four instruments in the derivatives market: 1. Forward: Forward is a non-standard agreement or agreement between two parties that allows you to buy/sell the asset at the agreed price for a pre-decided date of the contract. Forwards are negotiated between two pirates, so the terms and conditions of the contract are customized. These are called over-the-counter(OTC). 2. Future: Future contracts are similar to forwarding contracts, but the deal is made through an organized and regulated exchange rather than negotiated between two counterparties. A futures contract is an exchange-traded forward contract. 3. Options: A derivative contract that gives the right but not the obligation, to buy or sell an underlying asset at a stated strike price on or before a specified date. Buyers of options- Pays the premium and buys the right Sellers of options - Receives the premium with the obligation to buy/sell underlying assets. 4. Swap: A swap is a derivative contract between two counterparties to exchange for the cash flows or liabilities from two different financial instruments. It is an introduction article. I will cover all these topics in detail. Swap helps participants manage risk associated with volatility risk interest rate, currency exchange rates, & commodity prices. Index: Index = Portfolio of securities An Index shows how investors experience the economy. Is it progressing or not? A Stock market index gathers data from a variety of companies of industries. The data forms an overall picture and helps investors compare market performance through past and current prices. Financial indices represent the price movement of bonds, shares, Treasury Bills, etc. Importance of Index: 1. An index is an indication of a specific sector or gross market. 2. It helps investors to pick the right stock 3. An index is a statistical indicator. It represents an overall change or part of a change in the economy. 4. In OTC & exchange-traded markets, It used as an underlying asset for derivatives trading 5. An index helps to measure for evaluation of portfolio performance. 6. Portfolio managers use indices as investment benchmarks. 7. Index illustrates investor sentiments. Types of index: There are four classifications for indices: Equal Weighted Index: Each company is given the same weightage in the composition of this index. Equal-weighted indexes are more diversified than market capitalization-weighted indexes. This index focuses on value investing. Free-float index: In finance, equity divides into different among various stakeholders like promoters, institutions, corporates, individuals, etc. A tradable stake for trading is called a free-float share. i.g, If XYZ company has issued 5 lakh shares with the face value of Rs 10, but of these, 2 lakh shares are owned by the promoter, then the free-float market capitalization is Rs 30 lakh. Free-float market capitalization: Free-floating shares * Price of shares Index: BSE SENSEX Market capitalization-weighted index: In this index, each stock is given weightage according to its market capitalization. High market cap = High weightage Low market cap = low weightage Market Cap= Current market price * total number of outstanding shares i. e, if XYZ company has 1,000,000 outstanding shares and a market price of 55 rs per share will have a market capitalization of 55,000,000. Index: Nifty 50 Price Weighted Index: High price = More weightage Low price = Low weightage Popular price-weighted index: Dow Jones industrial average & Nikkei 225 I will upload second part soon. Thank you :) Money_Dictators
NSE:NIFTYEducation
by Money_Dictators
12
How to add multiple charts in Tradingview ideas?Hey everyone! 👋 If you are new or have recently started posting ideas, you may have noticed that a lot of people put multiple charts in their posts. This makes their ideas more thorough and resourceful. So, the question arises, how do you put multiple charts in a single idea? Don’t worry, we’ve got you covered. This short visual guide will help you in understanding the complete process of creating exhaustive ideas containing multiple charts. 1. When you are on the idea publishing interface, you will notice a chart-like icon. This option is used to insert ideas and chart snapshots in your post. 2. If you click on this icon, it will open up a blank field with an option labeled “insert”. All you have to do is, insert the links to your secondary charts in this field. 3. To get the link to your charts, click on the “camera icon” at the top right-hand of the screen, and then click on “copy link to the chart image”. 4. Then come back to the field mentioned in point 2. Paste your link and click insert. 5. Your chart will automatically get inserted into the post along with relevant syntax. You can repeat the process as many times as you need to insert the charts. Thanks for reading! Hope this was helpful! See you all next week. 🙂 – Team TradingView Feel free to check us out on Twitter and Instagram for more awesome content! 💘
LEducation
by TradingView
3
WHAT IS OPTION GREEKS ?NSE:BANKNIFTY Introduction Option trading is an exciting process and almost every market participant has at least experienced the thrill of trading options, almost all the time with unsatisfactory results. To avoid such accidents an option trader seeks different tools to trade sucssessfully, The most important of tools are the Option Greeks and they are usually the first metric looked upon by option traders. What are Option Greeks? Options are derivatives of underlying assets ( curd is a derivative of milk, so the change in the quality of milk will result in a change in the quality of the curd derived ) similarly, Greeks are a way to measure the sensitivity of the price of the option to various factors. The price of the option premium does not always move in conjunction with the price of the underlying asset and it is important to understand the different factors that affect the change in the price of the premium. With the help of the option greeks, a trader will be able to measure the rate of change of different factors affecting the option premium. # You can check the option greeks by using zerodha option chain or any other trading platform What is DELTA? The first Greek is Delta, which quantifies how much an option's price is projected to fluctuate for every $1 that the underlying securities or index changes in price. For example,A Delta of 0.50 indicates that the option's price will fluctuate 50 point for every 100 point movement in the price of the underlying stock or index. #Delta for call option ranges between 0 to 1 and for put option ranges between -1 to 0. >ATM options have a delta of 0.5 >ITM option have a delta of close to 1 >OTM options have a delta of close to 0. Delta = Change in option premium/ Unit change in the price of the underlying asset. #The following example should help you understand this better – Nifty is currently trading at 16000 Option Strike = 15900 Call Option Premium = 150 Delta of the option = + 0.60 Nifty is expected to reach 16200 What is the likely option premium value at 16200 ? Well, this is fairly easy to calculate. We know the Delta of the option is 0.60, which means for every 1 point change in the underlying the premium is expected to change by 0.60 points. We are expecting the underlying to change by 200 points (16200 – 16000), hence the premium is supposed to increase by = 200*0.60 = 120 the new option premium is expected to trade around 150 + 120 = 270 What ia gamma? Gamma is used to measure the delta’s change relative to the changes in the price of the underlying asset. If the price of the underlying asset increases by 1point, the option’s delta will change by the gamma amount. The gamma value will also range between 0 and 1. Gamma = Change in an options delta / Unit change in the price of the underlying asset. What is Theta? The Theta or time decay factor is the rate at which an option loses value as time passes. Theta is expressed in points lost per day when all other conditions remain the same. theta is always shown as negative number because option value is depriciating as the time is passing. Theta is the biggest enemy of option buyer cause it reduces the favourable outcome of option buyer by depriciating the option price. for example,A Theta of -15 indicates that the option premium will lose -15 points for every day that passes by. if an option is trading at Rs.290/- with a theta of -15 then it will trade at Rs.275/- the following day when other factors remain constant. Theta = Change in an option premium / Change in time to expiry. This is the graph of how premium erodes as a time to expiry approaches. This is also called the ‘Time Decay’ graph. What is Vega ? It is intended to tell you how much an option’s price should move when the volatility of the underlying security or index increases or decreases. It is the change of an option premium for a given change (typically 1%) in the underlying volatility. 1. Vega measures how the implied volatility (IV) of a stock affects the price of the options on that stock. 2. Volatility is one of the most important factors affecting the value of options. 3.A drop in Vega will typically cause both calls and puts to lose value. 4. An increase in Vega will typically cause both calls and puts to gain value. Vega = Change in an option premium / Change in volatility. What can option Greeks do for you? 1.Help you measure the possibility that an option will expire in the money (Delta). 2.Estimate how much the Delta will change when the stock price changes (Gamma). 3.Get a feel for how much value your option might lose each day as it approaches expiration (Theta). 4.Understand how sensitive an option might be to large price swings in the underlying stock (Vega). “With the help of Greeks, an options trader can make more analyzed decisions about which options to trade, which strike price to trade and when to trade. Since there are a variety of market factors that can affect the price of an option in some way, assuming all other factors remain unchanged, we can use Greeks and determine the impact of each factor when its value changes.” I Hope you found this helpful. Please like and comment. Happy Trading!
NSE:BANKNIFTYEducation
by SANJAYPATIDAR_
28
#Nifty's route=map till weekly expiryPlease have a look into the chart to get all details, I have tried to draw everything as much i found according to my study. This Analysis has Based on Harmonic Pattern, Fibo & Price action. Note:- Any of the mentioned levels will be considered for LONG or SHORT, when a fresh candle starts forming above or below the level respectively. If agree with the Analysis, Then Please LIKE....As well as can Follow me to getting my future analysis. HAVE A GOOD GREEN TRADE
NSE:NIFTY
by TradeInKey
23
Head and Shoulders at PIDILITINDBe Cautious #headandshoulders #pattern (trend reversal) at #PIDILITIND (Pidilite Industries Ltd) weekly chart. The head and shoulders pattern is believed to be one of the most reliable trend reversal patterns. It is one of several top patterns that signal, with varying degrees of accuracy, that an upward trend is nearing its end. ONLY FOR #educational NOT SEBI REGISTERED. #LEARNEARN (DONT TRUST ANYONE) #nifty50 #sharemarket #BREAKOUTSTOCKS #Multibagger #sharemarket #sharemarketindia #sensex #technicalanalysis #kukiinvest #Chartanalysis #headandshoulders #breakdown
NSE:PIDILITIND
by Usemerr
8
How to use the heatmap on TradingView? Hey everyone! 👋 You may have already seen plenty of cool TradingView heatmaps floating around social media. In case you haven’t, here is what a heatmap looks like: This short visual guide will help you in accessing and customizing our awesome heatmap feature. 1. When you open TradingView, you will see a toolbar at the top with various options, including “Screeners”. 2. If you hover over it, you will see 5 options, namely: - Stock screener - Forex screener - Crypto screener - Stock heatmap - Crypto heatmap You can choose the heatmap as per your preference. 3. Let’s assume you want to check the “Stock heatmap”. So, you just click on it and it will display the heatmap of the US market by default. There is an option at the top-left corner to change the “source” of the heatmap. 4. When you click on the source option, it will open a list from which you can select your desired source. 5. As soon as you change the source, the heatmap will automatically get updated. You can customize the heatmap by change %, sectors, market capitalization, or performance. 6. Last but not least, you can also save and share your heatmap directly from the social sharing button. 7. If you need more help, you can check out this short video tutorial - How to use the heatmap on TradingView? Thanks for reading! Hope this was helpful! See you all next week. 🙂 – Team TradingView Feel free to check us out on Twitter and Instagram for more awesome content! 💘
NSE:NIFTYEducation
by TradingView
20