Educationaltrade
Why PRO takes losses and everybody else LOSESTrading isn’t just about making gains—it's about managing losses like a professional. Here are some ideas on what separates amateurs from seasoned traders and how you can elevate your mindset:
Shift from Emotion to Execution:
Pros don't get attached to trades. They let data guide decisions, not emotions. Instead of celebrating a win or stressing over a loss, they focus on consistent execution. Tip: Try setting specific exit rules before you enter a trade, so you’re never swayed by market noise.
Embrace Small Losses to Avoid Big Ones:
Losing trades are inevitable, but pros keep them small. Amateurs sometimes hold onto losses, hoping they’ll recover, while pros cut losses early. Tip: Adopt a strict risk-reward ratio and stick to it. Think of it as a way to protect your capital for future trades.
Every Loss is a Lesson:
Professionals look at every losing trade as data, not failure. They analyze it: Was there an overlooked signal? Did the market behave unexpectedly? They use losses to refine strategies. Tip: Keep a trading journal. Record wins and losses along with your thought process. Patterns will emerge over time.
See Trading as a Business:
For pros, trading isn’t gambling; it’s a business. They’re less concerned with each individual trade and more focused on their overall strategy and risk management. Tip: Calculate your monthly performance, not just individual trades. Aim for consistent, steady growth.
Stay Calm During Drawdowns:
Market conditions change, and even the best traders experience drawdowns. It’s about staying in control, sticking to your plan, and trusting your process. Tip: Take a break if emotions start taking over. Sometimes stepping away can be the best decision you make.
Remember: Trading is a journey, not a sprint. It’s not about winning every trade but about thinking long-term, focusing on learning, and developing resilience. Keep pushing forward, keep learning, and most importantly, keep trading smart!
How to find a BREAKOUT that has a high probability of success?The probability of a breakout getting failed is much higher than it's success rate.(A STOCK AT REST TRIES TO BE AT REST AND THE ONE IN MOTION TRIES TO BE IN MOTION like NEWTON's First Law Of Motion)
But breakout trades are the most rewarding trades in stock market.
So...if there was a method to find out a high probable successful breakout then it would have been a shade better to make money in the stock market.
Here I am with a tried and tested strategy to differentiate a fake breakout and a successful one: FOLLOW the below steps:
1.Choose a stock from an up-trending sector (At present sectors like ENERGY, PSUs, REALTY, FINANCIALS AND AUTO (Just started) are examples of up-trending sectors).
The reason for choosing a sector which is up-trending is that the liquidity is high in those sectors and thus increases the chance of the breakout by one shade.
2.The stock should be above 50 week EMA and above 200 EMA on a daily time frame and RSI should be above 60 (In daily time frame)
This is the reason why HEROMOTOCORP Trade is struggling a lot as it is below EMA 200.
3.The stock should breakout from a consolidation of STAGE 1 structure.
And if the stock is in prior uptrend followed by a consolidation and then a breakout again increases the chances like the recent one in RELAXO FOOTWEARS.
4.If the stock breaks out of multiple patterns like INVERTED HEAD AND SHOULDERS,TRIANGLE,STAGE,PARALLEL CHANNEL,TRENDLINE(The more the number of patterns being broken the better the breakout is) One example of this is TRIVENI ENGINEERING Trade that I shared
5.The breakout should be backed with high volumes (AT LEAST EXCEEDING 20 MA)
6.The closing of the breakout should be strong (NO long wicks)
One more example I have is of INDIAMART Trade that I shared applying most of the concepts discussed above.
NOTE: The above discussed method only increases the probability of a breakout to be successful as no strategy in the market gives 100% successful trades, so managing the risk is as important as the strategy and I will post a tutorial soon for this also.
FOLLOW me to stay updated as soon as I upload it here.
Till then,
HAPPY TRADING :)
Pattern Identification by Considering Safety in Analysis!Pattern Identification on any Timeframe!
Importance of the Factor of Safety in Projected Target To avoid the Losses!
How to identify Patterns and Project the Target on the chart!
I have selected NVDA weekly chart for Technical Analysis. Here the Head and Shoulder pattern formed on the Top. We can see the previous trend of NVDA was an Uptrend so the probability of high that trend will get reversed after the neckline breakdown and the price has given breakdown to the neckline and it went down.
I have projected the downside target by projecting the head to neckline length below the neckline. But we all know that, the things which are given in a theory doesn't work 100% all the time. So to avoid the buffer between Theory and Practical I have projected the line parallel to the neckline from the projected taregt so we should exit our position without waiting for the Theoretical projected target. This is my personal view to exit from our existing position without waiting till the end. Most of the time what happens is price reversed before our projected target. That's the reason i am sahring this Educational Idea to achieve maximum profit by considering Factor of Safety or You can exit your trade by achieving 80% - 90% of your projected profit.
If you like this Educational Idea then Comment Below!
Thank you!
Technical Market Indicatorslet us understand what the different types of
TECHNICAL MARKET INDICATORS in brief
😎Trend indicators are stronger than any other technical market indicator:-
A market trend is a tendency of a stock market to move in a particular direction over time
These trends are classified as secular trends for long time frames, primary trends for medium time frames, and secondary trends
lasting short times
Trend indicators are always lagging indicators as a trend has to establish first, before it can be measured
😎 Breadth indicators are designed to confirm a price action or an existing trend
Breadth indicators are measuring the overall strength of a price action or an existing trend by analyzing the proportion of the
overall stocks or volume that are participating in the market’s up or down move
Some measures of market breadth involve the volume of rising stocks compared to the volume of falling stocks
😎 Measure the investing behavior of certain trader groups
Contrarian market indicators attempt to measure the overall bullish or bearish attitude towards the market among traders and
investors (market sentiment) or tracking down the investing behavior of smart money and dumb money
Those indicators lead and/or confirm price actions
Somehow they are a mixture between trend- and breadth indicators and oscillators
😎 Oscillators are leading indicators as they lead a price move
Oscillators are leading indicators as they lead a price move
They move above and below a centerline (center oscillators) or are banded (banded oscillators) between two extreme values
The banded oscillators are designed for discovering shortterm overbought or oversold conditions. As the value of the
oscillator approaches the upper extreme band the stock market is deemed to be overbought, and as it approaches the lower
extreme it is deemed to be oversold
ALL THESE INDICATORS HAVE THEIR OWN ADVANTAGES AND COMPLICACY
I have tried to share details in bried
hope you enjoyed reading it
disclaimer - shared as read
TRADE PULLBACKS LIKE A PROAn Uptrending stock gives many opportunities to enter in it.
But...we miss many of them assuming it as a reversal or before we enter the stock moves much higher again and Risk/Reward ratio is unfavourable for our trade.
Here I am with another tried and tested strategy to find whether it's a pullback or trend reversal and the most IMPORTANT...enter before the stock moves much higher.
So let's discuss Step by Step from STOCK SELECTION to ENTRY,STOPLOSS,EXIT.
I will also be discussing about the candlestick patterns and indicators for better accuracy.
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1.STOCK SELECTION:
.Broader market has to be in a uptrend (BULL MARKET)
.The stock should be from an uptrending sector
.The stock has to be in a STAGE 2 uptrending structure to QUALIFY as a stock for pullback.
For detail explanation of STAGES I have linked a post below:
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2.MOMENTUM INDICATORS
.RSI-- It has to be above 50 to increase the accuracy of the trade
.EMA 50--Slope of EMA 50 has to be positive
.MOMENTUM--If it is positive then it's icing on the cake
.ADX--While the stock is falling ADX should also fall to give a shade better trade.
.VOLUME--Should be low when the stock is falling as compared to Going up
Keeping things simple : IF THE STOCK QUALIFIES ALL THE ABOVE CRITERIA OF SELECTION AND INDICATORS THEN IT IS NOT A TREND REVERSAL
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3.CANDLESTICK PATTERNS
.Low body red candles are a very good sign
.Long wick rejection from the bottom
.Very less big body red candle (NOT MORE THAN 2)
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4.ENTRY
The most important part of pullback trading is to enter before the stock moves very high and also not wait for months for it to move.
STEP-1: Mark the candle of previous high as '0' in daily time frame.
STEP-2:Keep counting the candles from 1-20 as shown in the below figure: (MIN 8 has to be there)
STEP-3: Now when the count is completed mark the lowest price of the stock within the pullback range as 'PIVOT'
STEP-4:Now switch the chart to 1hr time frame as shown on the chart of HDFC Ltd.
NOTE: Candle 0's high has to be the high within these candles (MIN 8)...if not then this strategy might not work well.
STEP 5:Draw a stage structure (BASE) and our entry will be the breakout of this range (50%) and pullback to this STAGE (50%)
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5.STOPLOSS AND EXIT
STOPLOSS: The pivot point will be our stoploss
EXIT: After the stock has broken out of the stage EXIT after 20 counts (It sounds theoritical and funny...but it do works most of the time
Look at the EXAMPLE OF RELIANCE with the concepts mentioned above:
You can also see the EXAMPLE OF AIRTEL's previous pullback
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NOTE: Like all other strategies even this strategy is not 100% accurate.
I hope you liked this strategy of pullback trading and it might increase your chances to make profits in the market.If you have any doubts do let me know in the comment section below.
I will be posting a lot more strategies for trading/risk management in this channel ahead.
FOLLOW this channel to stay updated as soon as I upload it.
Till then,
HAPPY TRADING :)
FINDING BREAKOUTS SIMPLIFIED!! BREAKOUT IN HINDUSTAN UNILEVERNSE:HINDUNILVR
Hindustan unilever was stuck in a long consolidation phase from many days
and was under performing.
in last few days it gained a bullish momentum as the whole FMCG Sector or CNX FMCG is currently most performing sector or index
Currently as of all details given in the chart it has given a very strong breakout with strong bullish volumes and candle.
It has closed above the last high of 2614 which is more than enough for a good breakout trade opportunity.
Also in addition Call Unwinding from ITM has Started soon ATM Call Unwinding would start.
2600 would act like a minor support for now.
If more PUT writing comes then would become stronger.
A short retracement can be considered near a Range of 2600-2560 and we shall accumulate it on it
a Good candidate for Swing.
Traders can consider 2500 Can be considered on day closing basis.
All the conditions for finding a good trade are given in the chart
Please Read Carefully it is much educational DATA
NOTE- THIS IDEA IS ONLY FOR EDUCATIONAL PURPOSE WE ARE/WOULD NOT BE RESPONSIBLE FOR ANY PROFIT OR LOSS
Happy Investing..!!
Breakdown in APOLLOTYRE, How to go Short on a Stock!!!NSE:APOLLOTYRE
APOLLOTYRE which was Trading in a down channel has gone bearish and gave a breakout on downside of the channel
below 207.5 the stock has high chances to fall till 200 and if 200 breaks which has most PUT writing then more fall is expected
Currently Selling pressure in Major indices and fear mood of market would Help us going short on it.
Also PUT Unwinding has started in ATMs and ITMs
Conditions for going short
1. we need a breakout on a Support or a supply zone and closing below it
2. Trade would be more accurate if the breakout is on higher time frames such as 1D Time Frame
3. Selling Volumes must be higher, which would indicate a Heavy selling
4. If the selected Stock Contributes to any Index with good weightage then we must also consider
the Index performance and mood too for additional Assurance.
5. If the Stock has FnO then we must see that is any PUT Unwinding.
6.See if the Stock goes below 50dma.
TATA POWER - No Target Enjoy AnalysisI can interpret an upcoming breakout in this chart is so many ways. This is why technical Analysis isn't difficult. One just needs to have an eye and correlate.
I'm not giving any Stop loss or Targets here. This is for you guys to interpret it the way you like and take your decisions. If it fails, this chart would tell you why it failed as well.
Those who want to learn can learn many things from this chart.
SEYA INDUSTRIES- Learning to catch Explosive stocksThis stock has a Market cap of just 159 cr.
I just happened to see the stock with a HUGE volume bar.
I drew the line from the top connecting the resistances and found it to be a BREAKOUT.
Then, I spotted another squeeze and connected the supports and resistances after which I spotted the same pattern on the RSI as well.
Next I plotted the 50 & 20 DMA and found it to be just above the breakout area of the squeeze.
The MACD also is on the verge of a crossover.
Lets observe and see if this stock turns Explosive or not ? If yes, Analysis is working great and we will spot more explosive stocks this way. If not , we will learn what went wrong.
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Ascending Triangle Definition:
An ascending triangle is a type of triangle chart pattern that occurs when there is a resistance level and a slope of higher lows.
It is defined by two lines:
. A horizontal resistance line running through peaks.
. An uptrend line drawn through the bottoms.
The higher lows indicate more buyers are gradually entering the market and buying pressure increases as price consolidates moving further towards the apex.
An ascending triangle is classified as a continuation chart pattern.
If price can break through the resistance level, that level will now act as a support level.
Breakouts can also happen in both directions. Statistically, upward breakouts are more likely to occur, but downward ones seem to be more reliable.
In most cases, the buyers will win this battle and the price will break out past the resistance. But Sometimes the resistance level is too strong, and there is simply not enough buying power to push it through. Therefore you should be ready for movement in EITHER direction.
ENTRY:
We would set an entry order above the resistance line and below the slope of the higher lows.
TARGET:
Target is approximately the same distance as the height of the triangle formation.
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FLAG pattern Definition:
A FLAG pattern is a continuation chart pattern, named due to its similarity to a flag on a flagpole.
A flag is a relatively rapid chart formation that appears as a small channel after a steep trend, which develops in the opposite direction.
After an uptrend, it has a downward slope. After a downtrend, it has an upward slope.
IMPULSE Definition:
A “flag” is composed of an explosive strong price move forming a nearly vertical line.
This is known as the "IMPULSE" or ”flagpole”.
The sharper the spike on the flagpole, the more powerful the bull flag can be.
Corrective Wave Definition:
After an uptrend, it has a downward slope. After a downtrend, it has an upward slope.
This downward or upward slop known as "Corrective Wave".
Flag patterns can be bullish or bearish:
A bullish flag is known as a Bull Flag.
A bearish flag is known as a Bear Flag.
How to Trade FLAG Patterns:
When the trend line resistance on the flag breaks, it triggers the next leg of the trend move, and the price proceeds ahead.
Breakouts happen in both directions but almost all flags are continuation patterns.
This means that Flags in an uptrend are expected to break out upward and Flags in a downtrend, are expected to break out downward.
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After a significant drop in Bitcoin price , the price is in a correction wave.
What makes the chart interesting today is that:
. Bitcoin is likely to challenge the 18042 ~ 18227 resistance area.
. A break above 18227 could push the pair to the 19487 area .
. A resistance rejection , however could lead to another retest of the lower supports.
Will the Bitcoin see a rejection from the resistance area or an upside breakout?
No one knows it! We have to wait and see!
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📚 💰 Descending Triangle in GBPNZD - "Learn More Earn More"📚 LEARN MORE
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Descending Triangle Definition:
A Descending Triangle is a type of triangle chart pattern that occurs when there is a support level and a slope of lower high.
It is defined by two lines:
. A horizontal support line running through valleys.
. A Downtrend line drawn through the peaks.
The lower highs indicate more sellers are gradually entering the market and selling pressure increases as price consolidates moving further towards the apex.
A Descending Triangle is classified as a continuation chart pattern .
If price can break through the support level, that level will now act as a resistance level.
Breakouts can also happen in both directions. Statistically, downward breakouts are more likely to occur, but upward ones seem to be more reliable.
In most cases, the sellers will win this battle and the price will break out past the support. But Sometimes the support level is too strong, and there is simply not enough selling power to push it through. Therefore you should be ready for movement in EITHER direction.
ENTRY:
We would set an entry order below the support line and above the slope of the lower highs.
TARGET:
Target is approximately the same distance as the height of the triangle formation.
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Ascending Triangle Definition:
An ascending triangle is a type of triangle chart pattern that occurs when there is a resistance level and a slope of higher lows.
It is defined by two lines:
. A horizontal resistance line running through peaks.
. An uptrend line drawn through the bottoms.
The higher lows indicate more buyers are gradually entering the market and buying pressure increases as price consolidates moving further towards the apex.
An ascending triangle is classified as a continuation chart pattern.
If price can break through the resistance level, that level will now act as a support level.
Breakouts can also happen in both directions. Statistically, upward breakouts are more likely to occur, but downward ones seem to be more reliable.
In most cases, the buyers will win this battle and the price will break out past the resistance. But Sometimes the resistance level is too strong, and there is simply not enough buying power to push it through. Therefore you should be ready for movement in EITHER direction.
ENTRY:
We would set an entry order above the resistance line and below the slope of the higher lows.
TARGET:
Target is approximately the same distance as the height of the triangle formation.
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📚💰Head and Shoulders in GBPCAD - Learn More Earn More with US📚 LEARN MORE
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Head and Shoulders Definition:
A head and shoulders pattern is also a trend reversal formation.
It is formed by a peak (left shoulder), followed by a higher peak (head), and then another lower peak (right shoulder).
A “ Neckline ” is drawn by connecting the lowest points of the two troughs. Neckline support does not need to be strictly horizontal.
. This illustrates that the upward trend is coming to an end.
. When a Head and Shoulders formation is seen in an uptrend, it signifies a major reversal.
. The pattern is confirmed once the price breaches the neckline support
In this example, we can easily see the head and shoulders pattern.
How to Trade the Head and Shoulders Pattern:
ENTRY:
we put an entry order below the neckline.
TARGET:
We can also calculate a target by measuring the highest point of the head to the neckline.
This distance is approximately how far the price will move after it breaks the neckline.
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Inverted Head and Shoulders Definition:
A head and shoulders pattern is also a trend reversal formation.
It is formed by a Valley (left shoulder), followed by a Lower Valley (head), and then another Higher Valley (right shoulder).
A “ Neckline ” is drawn by connecting the highest points of the two Peaks. Neckline resistance does not need to be strictly horizontal.
This illustrates that the downward trend is coming to an end.
When a Head and Shoulders formation is seen in a downtrend, it signifies a major reversal.
The pattern is confirmed once the price breaches the neckline resistance.
In this example, we can easily see the head and shoulders pattern.
How to Trade the Head and Shoulders Pattern:
ENTRY:
we put an entry order above the neckline.
TARGET:
We can also calculate a target by measuring the lowest point of the head to the neckline.
This distance is approximately how far the price will move after it breaks the neckline.
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📚 💰 Descending Triangle in ETHBTC - "Learn More Earn More" 📚 LEARN MORE
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Descending Triangle Definition:
An Descending Triangle is a type of triangle chart pattern that occurs when there is a support level and a slope of lower high .
It is defined by two lines:
. A horizontal support line running through valleys.
. A Downtrend line drawn through the peaks.
The lower highs indicate more sellers are gradually entering the market and selling pressure increases as price consolidates moving further towards the apex.
An Descending Triangle is classified as a continuation chart pattern.
If price can break through the support level, that level will now act as a resistance level.
Breakouts can also happen in both directions. Statistically, downward breakouts are more likely to occur, but upward ones seem to be more reliable.
In most cases, the sellers will win this battle and the price will break out past the support. But Sometimes the support level is too strong, and there is simply not enough selling power to push it through. Therefore you should be ready for movement in EITHER direction.
ENTRY:
We would set an entry order bellow the support line and above the slope of the lower highs.
TARGET:
Target is approximately the same distance as the height of the triangle formation.
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