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why risk management is important in tradingWithout appropriate risk management, events like this can lead to: Loss of all your trading capital or more. Losses that are too large given your overall financial position. ​Having to close positions in your account at the wrong time because you don't have enough liquid funds available to cover margin. Key Takeaways: #Trading can be exciting and even profitable if you are able to stay focused, do due diligence, and keep emotions at bay. #Still, the best traders need to incorporate risk management practices to prevent losses from getting out of control. #Having a strategic and objective approach to cutting losses through stop orders, profit taking, and protective puts is a smart way to stay in the game.
NSE:BANKNIFTYEducation
by SkyTradingZone
1
Option chain and Database Trading Nature of analysis. Option chain: An option chain primarily focuses on options contracts associated with an underlying asset, such as stocks, commodities, or indices. It provides information about the available options, their strike prices, expiration dates, bid-ask prices, and other contract-specific data. An option chain, also known as option matrix, is a list of all the option contracts available for a given security. It shows all listed puts, calls, expiry dates, strike prices, and volume and pricing information for a single underlying asset and within a given maturity period.
NSE:BANKNIFTYEducation
by SkyTradingZone
1
Bitcoin, looking Back!There are always, and I mean ALWAYS, warnings about the trend before it starts manifesting. Looking at this recent Bitcoin crash, was no different. There were like 5 warnings before it nuked to the goblin town. But we, being silly emotional creatures are always busy thinking what we want it to do and get delusional and miss the clear evidences, which later on comes to bite us bad. We are left in emotional and financial turmoil. Thinking of quitting where we should've been buying had we paid attention. It it quite natural. I am not blaming anyone. Even to this day, I fall for these fallacies. Key is to evaluate it, look back, see what you could have done differently. Facing your fears and mess ups' is the first step in a hero's journey. One must not quit because of this. Its just too silly a reason for that. If you think you can make it here, you will. Don't quit. Learn. Get better. Don't worship Twitter Gurus, VCs, Hype, etc. you get the drill. Path to success is a lonely one. And rightly so. Charts never lie, people do. Godspeed!
by Degengambleh
1
HOW TO INVEST PROPERLY IN STOCKS | 3 Steps | Market MagicNSE:ZENSARTECH INVESTMENT OF THE WEEK | HOW TO INVEST PROPERLY | with MARKET MAGIC & Tradingview stocks. Step 1. Diversify. Divide your capital in parts. Use different Demat accounts for investment. Dont put all your eggs in 1 basket. In TradeWorld1 | Market Magic Portfolio We diivde capital in 3 parts least. 50% Long term investments 40% Short term swing trades shared daily on Tradingview. and 10% you can keep cash or invest like in crypto or gold or any new opportunities. Step 2. Bet Small. Dont invest more than 2% in 1 stock . Small Size Big Returns our style of working. Small size helps you be in focus and controlled state of mind .You make more logical decisions and less emotional mistakes. Step 3. Lose less. Cut your losses quick. Small Size helps you do that. In heavy position size trades it becomes difficult to cut big losses. so Never let it be big in 1st place. Trade small Lose small. Be logical in markets. Focus on process not on profits. Our investment / trade philosophy is less about strategies and win rate and more about money management and position management . Normal and simple investment setups can make you sufficinet income if you focus on process . Money management and position management are real keys of success in markets. Whats your view. share your thoughts in comment box. This is 2nd Blog of Earning with Learning. Education Series . If you like this initiative we might continue it every week. Happy Investing. Keep Earning and Learning. TradeWorld1 | Market Magic.
NSE:ZENSARTECHEducation
by PRINCE-10
2
BSV - Is it going higher or will it retrace?Remember about a week ago, I drew those lines. Like I always say be prepared for both scenarios. There are only two scenarios Up or Down. Find a management system that allows you to profit from both scenarios. I bought at the dip and sold 25% at the current prices. I think It will retrace to 170$, I could be wrong but I am okay because my system allows me to manage my positions and if i miss something, I'll be able to get it next time. Trade with probability not feelings. The only time feelings come in play is, 'Is majority having the same feelings as me?'. If yes, do the opposite, if no maintain course. haha. 1% of people make money in the markets, so that is the thought processes.
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by JacobTrader100
Manage Greed And Fear with Simple TechniquesTwo serious problems in trading, which each one of us has faced at one stage or the other -- Greed and Fear. Most of us are still struggling with these issues. According to Wikipedia Greed is an inordinate or insatiable longing for unneeded excess, especially for excess wealth, status, power, or food. Simply put when the trader do not take profits at predefined targets and wait for more, he is getting greedy. Many a times such trades reverse and either the whole profit is gone or the trade becomes negative. Once burnt twice shy, besides other factors, greed also breeds fear. According to Wikipedia Fear is a feeling induced by perceived danger or threat... which may cause an ultimate change behavior. In trading it is the fear of loss which hampers performance. Many a times best opportunities are missed due to fear and sometimes fear induce us to get out of a trade too early. As the stock approaches the stop loss, the fear factor orders our brain to get out before (that carefully predefined) stop loss level is hit. It is said that practice makes us perfect and there is nothing wrong in it. But it would need years of practice before we are perfect in managing greed and fear. I am hereby giving very simple techniques which we may practice every day without even getting into a real trade. Basically these techniques are brain exercises which may improve our cognitive functionality. We may call this technique TRAIN YOU BRAIN . The basic idea behind these exercises is that the motivation to think stimulates motivation to do . The Exercises: First we should sit in any relaxed position in a quite environment and do simple breathing. Close your eyes and just concentrate on your breathing as you inhale and exhale. It's important not just to breath but to feel it too. Do the above exercise for 3 to 5 minutes (or higher if you want to). This exercise will prepare the ground for the next main step of the exercise. Now keep your eyes closed and imagine your favorite setup on your favorite time frame. It could be triangle setup; a flag; a moving average setup or any other which you think can be reliable for trading. I would suggest not to imagine more than two setups. Imagine a stock has made your favorite set up and you are ready to trade it. You know your profit targets and stop loss. In the first attempt let the trade go in your favor. Always and always take profits at targets or trail as you like. When this imaginary trade is finished, repeat this process with the second setup. Do not go too far with your imaginations, I mean do not imagine that you took a stock at 200 and sold it at 500 on same day. I don't know why but It reminds me of the Inception movie :D When we say a setup, there is a fixed target to that set up and there is a fixed stop too. So dun let your imagination make you a millionaire on the same day. Repeat the above exercise, in which trade goes in favor, four times..two times with each setup. The advantage of this exercise will be that the brain will be trained to take profits at predefined targets and you will be able to manage a profitable trade in real life. When it's done, on fifth attempt let your favorite setup trade go against you. Let it ultimately hit the stop loss and you suffer the loss. Remember not to exit the trade before that setup stop is hit. Repeat it with your second setup. Repeat the above process 6 times, means 3 times with each setup. This exercise will help in managing fear of loss, which is perhaps a greater enemy than greed. The combination of these two brain exercises will surely help you in overpowering greed and fear and hence improve trading in real life. I suggest you not perform these exercises during market hours. For better results, do these exercises in the evenings or in the morning. Rome was not built in a day so do not expect extraordinary results overnight.
NSE:NIFTYEducation
by Bravetotrade
10