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Price Action vs Indicators : A Fresh PerspectivePrice Action vs Indicators: A Fresh Perspective The comparison between price action and indicator trading has been a topic of debate for a long time. In this article, I aim to debunk some popular beliefs and provide traders with a new outlook on this ongoing argument. 1. Price Action is Better Than Indicators Price action traders often claim that their method is superior. However, both price action and indicators rely on the same historical price data. The only difference lies in how this information is processed. Indicators apply a specific formula to the price data, but they do not alter what is seen on the charts. When interpreting price action, traders are essentially doing the same mental processing. 2. Indicators are Lagging – Price Action is Leading Critics argue that indicators lag behind price action, but this misconception stems from a lack of understanding. Indicators utilize past price action based on their settings and display the results after applying a formula. Similarly, traders who analyze pure price patterns also examine past price action that has already moved away from potential entry points. Both methods rely on historical data and can be considered "lagging." To minimize lag, traders can adjust the indicator's time settings or analyze fewer past candlesticks. However, it's important to note that reducing data may result in less meaningful analysis. 3. Price Action is Simple and Better for Beginners It is often believed that price action is simpler and more suitable for beginners. However, in trading, simplicity does not always equate to effectiveness. Both price action and indicator trading require a solid understanding and correct usage of the chosen tools. Personal preferences and how traders utilize their tools play a more significant role than the debate between price action and indicator trading. In conclusion, the comparison between price action and indicators should not be seen as a competition between superiority and inferiority. Both methods have their merits and can be valuable tools for traders. It is crucial to grasp the underlying principles and use them appropriately to achieve success in the dynamic world of trading. So, choose wisely. Thanks Simranjit Singh Virdi
NSE:NIFTY1!Education
by ssvirdi
What do you think of this swing trading approach?Hi TV community. This view is based on my own approach to swing trading. METHOD Select 60 PSU stocks Trade only on the Weekly Timeframe Exit trade when price hits 6.8% over entry price. (The 6.8% corresponds to one year FD interest rate of SBI) There is no concept of stop loss with this approach as we give 52 weeks time for the stock to hit TP level of 6.8%. In most cases, TP level will be hit well within that period. OPPORTUNITIES After taking out all trading holidays there are 50 weeks of opportunities every year. So, with 60 stocks you will have hundreds of opportunities in 50 weeks. I have personally experienced that this presents ample opportunities for regular trades. Since I trade only on PSUs, even if price slips for a couple of months, then also there is no stress because I know I will get dividend while waiting for price to hit my target price. RULES THAT I FOLLOW My capital is always 1,00,000 per trade. Profit target is always 6.8%. ADVANTAGES This approach ensures that trading is very organised and systematic as the universe of stocks consists of fundamentally strong ones. As trading is on weekly time-frame, it helps in relaxed trading. Trading rules ensure that reward and waiting period are known in advance - so expectations are always grounded. Because the trades are only on PSUs, bigger capital can be deployed per trade with confidence. This discipline ensures that trading is approached with a business-like mindset. So, as an ex-Banker, I always approach every trade with safety in mind and found that only trading PSUs as per the approach outlined above has helped me be profitable in the stock market. Hope this idea makes sense and appeals to some of you. All the best with your trading.
NSE:GMDCLTDEducation
by PriceCatch
Want to avoid big losses in trading? Here's how:Apne Profits Ko Bachao: Pro Tips to Avoid Bade Nuksan in Indian Stock Market Trading Introduction: Stock market trading mein, profits ke sapne dekhte hue, bade nuksan ka khauf bhi hota hai. Har trader ki tamanna hoti hai ki unki kamayi badhe, lekin sachchai yeh hai ki bade nuksan sabse badi rukawat hote hain. Par ghabrao mat, dosto! Sahi strategies aur thoda sa market ka gyaan lekar, aap apne hard-earned capital ko surakshit rakh sakte hain. Aaiye, hamare saath judiye jab hum Indian stock market ke dynamic landscape ke liye practical tips aur real-world examples ka raaz kholne ja rahe hain. 1. Ride the Wave: Trend Analysis Ki Chamak Imagine karo, Aap market mein stocks ko dekh rahe hain, agle badi opportunity ke liye. Achanak, aap ek trend dekhte hain - ek strength jo stock ko dheere-dheere upar le ja rahi hai. Is upward trend mein saath chalne se, aap na keval potential profits ka maza uthate hain, balki bade nuksan ke toofano se bhi apne aap ko bachate hain. 2. Timing is Everything: Smart Entry, Smarter Exit Trading ki tej raftar duniya mein, timing hi sab kuch hoti hai. Socho Reliance Industries Limited (RIL) ko, Indian stock market ka ek titan. Jab RIL ka stock price asman se uchhalta hai, bahuton ko use lene ka mauka milta hai. Lekin samajhdaar traders sabr ka istemal karte hain. Ve sahi mauke ka intezaar karte hain - shor machaane se pehle ek temporary rukh apni entry price ki taraf ka . Aise me trade me enter hone se bade nuksan ki probability se bachte hain. 3. Stop Loss: Tumhara Kavach Trading Maidan Mein Ah, stop-loss order - ek trader ka gupt hathiyar, bade nuksan ke khilaaf. Socho ki tumne Infosys ke shares khareede hain, umeed hai ki unka stock price badhega. Magar, market ke alag iraade hain, aur Infosys ka stock ek dam neeche jaata hai. Lekin ghabrao mat! Ek achhe se lagaye gaye stop-loss order ke saath, tum gracefully trade se bahar nikal jaate ho, apne nuksan ko simit karte hue aur apna capital aane wale trade ke liye bachate hue. 4. Size Matters: Position Sizing ki Kala Imagine karo, Tum apna agla trade size karte hue, risk aur rewards ko dhyan se calculate kar rahe ho. Jab tum apne position ka size decide karte ho, toh yaad rakho: kabhi bhi ek hi trade par poora risk na lo. Chahe tum Tata Motors ya HDFC Bank ki taraf nazar daalo, apna position size apni risk tolerance aur account size ke anusaar set karo. Is important niyam ka palan karke, tum apne portfolio ko bade nuksan se bacha sakte ho aur stock market ke hamesha badalte daur mein lambi umar ke liye ashray bhi le sakte ho. Conclusion: Stock market trading ki romanchak kahani mein, safalta ki yatra mein ghoomte-ghoomte bade kathinayein aati hain. Par, trend analysis, strategic timing, stop-loss ki maharat, aur prudent position sizing ke saath, aap bhi market ke saath chal sakte hain aur apne Profit ko surakshit rakh sakte hain. Toh, dosto, is gyaan ka palan karo, trading ke bazar mein vishwas se sail karo, aur apne arthik samriddhi ki khoj mein jeet haasil karo. Trading ki duniya mein, jiske paas samajhdari hai, wahi jeetne ke laayak hota hai.
BSE:SENSEXEducation
by iamrk7
What is Swing Trading Let's Know Hi mates and friends, Here i am sharing again an educational post and this time it's all about Swing trading as you might have guessed after reading the title so sharing some insight on this topic below mates !! Swing Trading: A Strategy for Riding Market Waves Swing trading is a popular trading strategy utilized by investors seeking to profit from short-to-medium-term price movements in financial markets. Unlike day trading, which involves rapid buying and selling within a single trading session, swing trading typically spans a few days to weeks. This publication delves into the fundamentals of swing trading, its strategies, advantages, and considerations. Understanding Swing Trading: Swing trading capitalizes on "swings" or price movements within an established trend. Traders aim to identify and exploit price fluctuations, buying at low points and selling at higher points, or vice versa in a bearish market. This strategy relies on technical analysis, which involves studying price charts and indicators to forecast future price movements. Key Strategies: 1. Trend Identification: Traders analyze price charts to identify the prevailing trend, whether it's bullish (upward), bearish (downward), or ranging (sideways). Swing traders typically avoid counter-trend trading and focus on aligning their positions with the dominant trend. 2. Entry and Exit Points: Swing traders seek entry points near support levels (for buying) or resistance levels (for selling) within the trend. They often use technical indicators such as moving averages, Fibonacci retracements, and oscillators like the Relative Strength Index (RSI) or Stochastic Oscillator to pinpoint these levels. 3. Risk Management: Effective risk management is crucial in swing trading. Traders establish stop-loss orders to limit potential losses and employ position sizing techniques to manage risk exposure. The risk-reward ratio, which compares potential profit to potential loss, is carefully considered for each trade. 4. Trade Duration: Unlike day traders, swing traders hold positions for several days to weeks, allowing trades to develop and capture larger price movements. This approach requires patience and discipline to withstand short-term fluctuations. Advantages of Swing Trading: 1. Flexibility: Swing trading can be pursued alongside other commitments, as it doesn't require constant monitoring of the markets. 2. Profit Potential: By capturing intermediate price movements, swing traders have the potential to generate significant profits compared to day traders. 3. Reduced Noise: Swing traders focus on higher timeframes, filtering out intraday noise and false signals often encountered in shorter-term trading. Considerations and Risks: 1. Market Volatility: Swing trading carries inherent risks, particularly during periods of high volatility or sudden market reversals. Traders must adapt their strategies accordingly and be prepared for unexpected price movements. 2. Overtrading: Impulsive trading or excessive trading frequency can erode profits and increase transaction costs. Maintaining discipline and adhering to a predefined trading plan are essential to avoid overtrading. 3. Psychological Factors: Emotions such as fear, greed, and overconfidence can influence decision-making and lead to poor trading outcomes. Effective risk management and emotional discipline are critical for success in swing trading. In conclusion, swing trading offers an alternative approach for investors looking to capitalize on short-to-medium-term price movements in financial markets. By combining technical analysis with effective risk management, traders aim to profit from the ebb and flow of market trends while managing inherent risks and challenges. If you like my publication do boost my post, Thanks in advance. Best Regards-: Amit
Editors' picks
NEducation
by AMIT-RAJAN
19
Price and Volume Bonding and Conclusions Hello mates, friends and Trading community today i am sharing an Educational post on Price and Volumes relationship, The relationship between price and volume in trading is a fundamental aspect that traders analyze to gain insights into market dynamics and potential trading opportunities as volume is often used as confirmation of coming price movements, possibilities of price direction, trends and reversals. Overall, Price-Volume Theory is used by traders to analyze market dynamics and make informed trading decisions. So sharing below some key details about this relationship friends. 🚀 In trading, "price increase with volume" typically refers to a scenario where the price of a financial asset, such as a stock, increases as trading volume rises. This can signal increased buying pressure and investor & traders interest in the asset. In other words, as more shares are being bought and sold, the price tends to rise, reflecting higher demand and indicates that this uptrend is clearly supported by volume or potentially signaling a trend continuation or a breakout. (Conclusion- Good for fresh buying opportunities or can hold profitable positions for more time) 🚀 In trading, "price increase with volume decrease" When you observe a price increase accompanied by a decrease in trading volume indicates lack of conviction price increase with low volume suggests that there may not be strong conviction behind the move and It could be driven by a small number of traders or lack significant interest from the broader market. This scenario can indicate a potential reversal in the current trend. If the price is rising but fewer people are participating in the market, it could mean that the trend is losing momentum and might reverse direction soon. Overall, while a price increase alone might seem positive, when coupled with a decrease in volume, it's essential to consider the broader context and potential implications for the market trend. (Conclusion- Time to unwind long positions) 🚀 In trading, "price decrease with volume increase typically indicates Bearish Sentiments where Investors or traders may be selling off their positions and It refers a rising selling pressure with higher trading volumes with decreased price. due to negative news, poor financial performance, Traders may be taking profits after a period of price appreciation, and assuming market sentiment shift A change in market sentiment can lead to increased selling activity, causing prices to drop as more investors exit their positions. Overall, a decrease in price accompanied by a rise in trading volume typically indicates increased selling activity and could suggest a potential downtrend in the security's price. (Conclusion- Good to find out fresh selling opportunities) 🚀 In trading, "price decrease with volume decrease when you see a price decrease accompanied by a decrease in trading volume this could indicate a lack of interest or conviction in the current price trend., it could imply several things in trading for example Consolidation, weakening momentum or potential reversal and where buyers and sellers are in equilibrium, resulting in lower trading activity and potentially a sideways movement in prices or prevailing trend is losing strength, and a reversal might be imminent. (Conclusion- Good time to unwind the running short positions in market) However, Apart of price and volume analysis it's essential to consider other factors such as market conditions, news events, and fundamental analysis to understand the full picture. Regards-: Amit Happy Trading mates, Thanks for reading hope you like this publication friends. “Sheer will and determination is no substitute for something that actually works.” - Jason Klatt
NSE:NIFTYEducation
by AMIT-RAJAN
8
Stay Ahead: Essential Tips to Avoid Trading PitfallsHello TradingView Community! I'm excited to share some valuable insights on trading pitfalls and how to navigate them effectively. Trading in financial markets can be a challenging journey, but understanding common pitfalls and methods to avoid them can significantly enhance your success. Here are 10 pitfalls traders often encounter and actionable strategies to help you steer clear of them: Having No Trading Plan: Entering trades without a plan can lead to impulsive decisions. Develop a clear trading plan outlining your goals, strategies, entry and exit points, and risk management. Using Strategies That Don't Match Your Personality: Align your trading strategies with your personality, risk tolerance, and lifestyle. A good match helps you stay consistent and focused. Having Unrealistic Expectations: Set realistic goals based on your initial capital and risk tolerance. Trading is not a quick path to wealth, so be patient and persistent. Taking Too Much Risk: Avoid over-leveraging and using excessive position sizes. Implement risk management techniques like stop-loss orders and diversification. Not Having Rules to Follow: Create a set of trading rules to guide your decisions. These rules provide structure and help you stay disciplined. Not Being Flexible to Market Conditions: Adaptability is key in trading. Monitor the markets and adjust your strategies as conditions change. Failing to Take Responsibility for Your Results: Own your successes and mistakes. This mindset empowers you to learn, grow, and improve your trading. Being Addicted to Volatility: While volatility can be exciting, avoid chasing it for thrills. Focus on making well-reasoned decisions based on your plan. Not Having a Process to Keep Track of Your Performance: Maintain detailed records of your trades and their outcomes. Analyze this data to identify patterns and refine your strategies. Not Dealing with Your Emotional Risk: Emotions can cloud your judgment in trading. Practice emotional intelligence and techniques like meditation or journaling to stay composed. Neglecting Proper Research and Due Diligence: Relying solely on tips or rumors can lead to poor decisions. Conduct thorough research and due diligence on potential trades and investments. Overcomplicating Your Trading Strategy: Complex strategies may not always lead to better results. Simplify your approach to focus on proven methods and avoid overanalyzing the market. Ignoring the Importance of Continuous Learning: The markets evolve, and so should your knowledge and strategies. Stay updated on market trends and continuously educate yourself to stay ahead. There is no trade without a stop-loss: This point emphasizes the importance of having a stop-loss in place before entering any trade. It highlights risk management as a fundamental part of trading, ensuring that you have a clear exit strategy to limit potential losses. If you have to re-analyze charts after being in a trade, you might be going in the wrong direction: This point underscores the importance of trusting your initial analysis and trading plan. It warns against second-guessing or changing your plan mid-trade, which could indicate you may be heading in the wrong direction. By implementing these strategies, you can enhance your trading experience and improve your performance over time. Remember, successful trading is a journey that requires discipline, patience, and continuous learning. I hope you find these insights helpful. Feel free to share your thoughts and experiences in the comments. Let's continue to support each other and grow as a community! Happy trading! RK💕 I am not Sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses. Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Disclaimer and Risk Warning. The analysis and discussion provided on in.tradingview.com/u/RK_Charts/ is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
Editors' picks
NSE:NIFTYEducation
by RK_Chaarts
13
Stock Selection Based on ATH/52 Week Stock and Relative strengthHello community Here I will be talking about the process for picking up the stocks based upon the All Time High (ATH)/52 Week BO Stock and RSI . As this is known to everyone but only few are getting benefited by applying it in real trading. The stock represents strength if it breaks its ATH Level and comes from Weekly BO Base. Most of the gains are made with the stocks breaking its ATH and Coming from Weekly Base BO and once it is combined with the RSI and Price Volume this can do wonders and improve trading style.  In my earlier write up i also talked about the use of RSI with Screener from Tradingview only. Since i used this as my repository so save all my write up here only and can be viewed.(Stock Selection Based on Relative StrengthEDUCATION) Screener for Stock Selection in Trading View:- - Go to Stock Screener Tab at bottom in the Tradingview. - Go to Filters - Symbol Type - Common Stock - Select New 52 Week High- - Select New All Time High - Select Relative Strength Index (14) >=75 The above will filter out stocks based on ATH and 52 Week High stocks and RSI. You can add more filters according to your requirements and make your stock list more refine and Make a list and look for opportunities. I use the above filter to filter out stocks every weekend and mix it with Price and Volume to get Maximum Benefit.  As I am a Price Action trader I mix Price/Volume,Trend and ride the momentum. You can try it and submit your feedback to me. Also, Tell me if you find something else which can be useful to the community. Together we can help each other in Learning and excel in our profession. Remember: I am a Price Action Trader and use Price and Volume together with different Timeframes, including RSI, and market conditions. To get the best result, always wait for confirmation. Focus on Risk Management and Position sizing. Treat trading like a business and it will pay you like a business…..!! Hope this post is helpful to community Thanks RastogiG Disclaimer and Risk Warning. I am not a Sebi registered analyst. The analysis and discussion provided on in.tradingview.com intended for educational purposes only and should not berelied upon for trading decisions. RastogiG is not an investment adviser andthe information provided here should not be taken as professional investmentadvice. Before buying or selling any investments, securities, or preciousmetals, it is recommended that you conduct your own due diligence. RastogiGdoes not share in your profits and will not take responsibility for any lossesyou may incur. So Please Consult your financial advisor before trading or investing.
Editors' picks
NSE:SIGACHIEducation
by RastogiG
15
You Don't Need More Capital...Success in the stock market isn't just about having money. Follow these steps: 1. Learn: Understand the basics and how stocks work. 2. Develop skills: Sharpen your Technical analysis and decision-making abilities. 3. Find your fit: Explore different Trading strategies and find what works best for you. 4. Plan : Make a clear plan for what you want to achieve with specific rules to follow. 5. Stay consistent: Stick to your plan and put in the hard work required. 6. Improve daily: Aim to become one percent better each day and learn from your mistakes. 7. Stay focused: Don't let emotions guide you; stay committed to your goals. 8. Be safe: Know when to cut losses. 9. Add more capital: When you're ready, consider adding more funds to grow your investments further. 10. Keep improving: Continuously learn and adapt to changes in the market.
BSE:SENSEXEducation
by iamrk7
2
Falling Knife stocks-How to identify them?I have discussed in previous post about what exactly falling knife stock is with a case study. The next question would be how would an investor know that stock is a part of falling knife category? To identify such stocks, I feel you should know about 2 concepts/indicators which are Moving averages and Fibonacci retracement. I will try to make you understand these concepts and also the levels where averaging/investing can be started. 1. Fibonacci(Fib) is a mathematical concept which governs the entire universe, even our stock markets. I can't explain the entire scientific concept here so just sticking to stock market. Fib retracements help investors identify support and resistance for stock. There are 2 golden ratios which every investor must know, 38.2%(0.382) and 61.8%(0.618). When a stock is in uptrend, 38.2% is the level where most stocks retrace upto. 61.8% is considered as last ray of hope for bounce in retracement. Any stock which has fallen below 61.8% is considered weak. 2. Moving averages(MA) are indicators which are continuously changing with moving stock market. These are an average of prices over a time period, hence Time frame is important. There are many types of moving average, we use mostly simple and exponential. When I say 20 Day EMA, it is Exponential average of 20 days of closing price of stock or when I say 200 week SMA, it is simple average of 200 weeks closing price. Exponential is more used than Simple moving average which has scientific reason behind it so if you are curious, you can search for it. 200 Week moving average is considered as last ray of hope for investment. A fall below 200 Week moving average or 50 Month EMA indicates strong bearishness. 3. I have seen stocks reach from top to bottom and top again. Tata motors, HDFCAMC being few famous examples. Even, Most of real estate, PSU banks stocks are reversing. So, equity is beautiful, wild and highly unpredictable. However, A stuck investor should wait for monthly closing above 61.8% to start averaging in such stocks. Also, a closing above 200 Week EMA will slightly indicate return of bullishness and that's where reversal traders should think of investing I feel this much knowledge is enough for now. If you have got some enlightenment from above information, lets apply this knowledge on one stock where I know many many investors are stuck, Rajesh Exports. How do I know? I saw the shareholding pattern and that's where I was shocked to see the number of shareholders increase from 45000 odd to over 2 lakhs in the past 9 months! Starting with fundamentals, Rajesh Exports Ltd is 4 decade old manufacturer of Gold and Gold Products available at a PE of around 9 and sales growth of 20% in last 3 years. All the ratios feel nice to me except the operating margin which is below 2% consistently which has led to drop in EPS which is major concern in the stock. Technically, stock had a 52 week high of 1030 in Feb 2023 and it is now available at 360 odd which is more than 60% wealth destroyed. And as I said, the number of shareholders have grown 5x in the same time. (Note that FII, DII holding has reduced in same period). If i see now from a non-investors perspective(psychology explains that investor can never see the bearishness), the stock has formed a beautiful double top and broken its neckline which was 61.8% of fib retracement all ready for a further fall and I see no support till 270-300 zone(sorry investors). It is also below 200 week moving average-red wavy line(if you check monthly chart, it is below 200 month moving average as well). A perfect example of Falling knife. What next? If I were an investor, My last SL would have been 525 which is 50% retracement. Since, the stock is below 61.8% retracement , there is no chance of averaging at this moment. Hence, I feel investors should wait & watch until stock moves above 440 before averaging/entering. Don't jump in it. Wait for a big bullish monthly candle before averaging. Also.... As promised,, I am sharing you names of stock which i have identified to be part of this unloved category. As an homework, do check fundamentals and reversal levels based on what we have discussed above. The stocks are GRINFRA, TCNSClothing, Metropolis, Luxindustries, Polyplex, HLEGlasscoat, Deltacorp, Barbequenation. If you are a curious investor, even you can find such stocks and do let me know in the comments below. I would like to discuss any doubts regarding the concepts, idea or anything related to stock market so feel free to comment. Keep investing, keep minting. India has a very big future ahead so these are the best few years to invest in India.Be a smart investor because it is important that you choose the right stock to meet your financial goals.
NSE:RAJESHEXPOEducation
by chartistamey
10
Expensive Mistakes in Trading and how to Clear Them !Hello Trading community, Today i brought an educational publication for sharing with all of you mates in which most of the experiences are mine too that what are the expensive mistakes we are doing and how can we improve that mistakes i am trying to share below mates. But before i start i want to say a big Thanks to Trading view and entire team for adding index and stock Options chart in the system and with this integration we no longer need to go any other platform to view those charts. Trading in financial markets comes with risks, and mistakes can be costly. Some of the most expensive mistakes in trading include: ⚡Lack of Risk Management: Failure to set stop-loss orders or not adhering to risk management principles can lead to significant losses. Traders who expose themselves to excessive risk without a safety net often suffer severe financial consequences. ⚡Overleveraging: Using excessive leverage amplifies both gains and losses. While it can increase potential profits, it also magnifies the impact of market fluctuations. Traders who overleverage their positions may find themselves facing margin calls and significant losses. ⚡Ignoring Fundamental Analysis: Neglecting to conduct thorough fundamental analysis and relying solely on technical analysis or market trends can lead to poor investment decisions. Changes in economic indicators, company financials, or geopolitical events can have a profound impact on asset prices. ⚡Chasing Losses: Trying to recover losses quickly by making impulsive and high-risk trades can exacerbate the problem. Emotional decision-making driven by a desire to recoup losses often results in further financial setbacks. ⚡Lack of Discipline: Traders who deviate from their established trading plans or strategies due to emotions, fear, or greed may make poor decisions. Maintaining discipline is crucial to successful trading. ⚡Insufficient Research: Inadequate research before entering a trade can lead to unexpected surprises. Traders should thoroughly understand the assets they are trading, market conditions, and relevant news that might impact their positions. ⚡Falling for Hype and Speculation: Investing based on market hype or speculative trends without proper due diligence can result in losses. Relying solely on the opinions of others or following the crowd can be detrimental to a trader's financial health. ⚡Market Timing Errors: Attempting to time the market perfectly is challenging and often leads to losses. Traders who consistently mistime market entries and exits may miss out on profitable opportunities or incur substantial losses. ⚡Not Diversifying: Putting all funds into a single asset class or market increases vulnerability to downturns. Lack of diversification can expose traders to significant losses if a particular sector or asset class underperforms. ⚡Ignoring Transaction Costs: Neglecting to consider transaction costs, such as commissions and fees, can erode profits. Frequent trading without accounting for these costs can significantly impact overall returns. Successful traders often learn from their mistakes, adapt their strategies, and prioritize risk management to minimize the impact of errors in the future. It's essential for traders to continually educate themselves, stay informed about market conditions, and remain disciplined in their approach. Now we will talk that how we can take control on these above mentioned mistakes-: Avoiding costly mistakes in trading requires a combination of education, discipline, and a well-thought-out trading plan. Here are some of the most expensive mistakes in trading and tips on how to avoid them, Understand the financial markets, trading instruments, and the factors that influence prices. Stay informed about economic indicators, market trends, and news that may impact your trades. 🚀Have a Trading Plan: Develop a clear and well-defined trading plan that includes your goals, risk tolerance, and strategies. Outline entry and exit points, risk management rules, and position sizing guidelines. 🚀Risk Management: Never risk more than you can afford to lose on a single trade. Use stop-loss orders to limit potential losses and protect your capital. Diversify your investments to spread risk across different assets. 🚀Control Emotions: Emotional decisions often lead to trading mistakes. Stay disciplined and stick to your trading plan. Avoid making impulsive decisions based on fear, greed, or overconfidence. 🚀Start with a Demo Account: Practice your trading strategies with a demo account before using real money. This allows you to refine your approach and gain experience without risking your capital. 🚀Continuous Learning: Stay updated on market trends, new trading strategies, and evolving market conditions. Learn from both successful and unsuccessful trades, and use that knowledge to refine your approach. 🚀Monitor Positions: Regularly review your open positions and adapt your strategy as market conditions change. Set realistic profit targets and be willing to take profits when your goals are met. 🚀Stay Informed: Keep abreast of global economic and political events that may impact the markets. Be aware of scheduled economic reports, earnings announcements, and other events that can cause volatility. 🚀Avoid Overtrading: Resist the urge to trade excessively. Quality over quantity is key. Focus on high-probability setups and wait for the right opportunities. 🚀Stay Flexible: Markets can be unpredictable. Be willing to adjust your strategy if conditions change. Avoid being overly attached to a specific trade or outcome. 🚀Review and Analyze: Regularly review your trades, both successful and unsuccessful. Identify patterns in your decision-making process and learn from past mistakes. 🚀Seek Professional Advice: Consider consulting with financial advisors or experienced traders for insights and guidance. Joining trading communities or forums can also provide valuable perspectives. Remember, trading involves risk, and there are no guarantees of profit. By following these guidelines and maintaining a disciplined approach, you can increase your chances of making informed decisions and avoiding common trading mistakes. Regards-: Amit Happy Trading mates, Thanks for reading hope you like this publication friends. “If most traders would learn to sit on their hands 50 percent of the time, they would make a lot more money.” - Bill Lipschutz
Editors' picks
NSE:NIFTYEducation
by AMIT-RAJAN
23
Price-Time Correlation: Through WavesPrice reflection through Waves We all know that price does not moves in a straight line, it moves in waves. A graphical representation of price with respect to time always gives us a wavy structure. If you notice carefully, on any chart, these waves reflect different characteristics. Some will be longer and quicker than the others while some will be smaller and slow. The behavior of these waves could help us in identifying strength and weakness in price and hence rational decision making. Waves Reflect Momentum The quick or slow action of a wave with respect to time indicates its momentum. A longer wave in a small duration of time is said to have more momentum than a wave of same length in a larger time duration. It should be noted that in trading, momentum of a wave is a relative term. It means that momentum of one wave doesn't make much sense unless it is compared with the momentum of another wave(s). It is through this comparison that we can discover strength and weakness in price action. Momentum or Human Behavior? Please do remember that when I say strength and weakness, that means the strength and weakness of market participants. Ultimately it is the human action and psychology that is playing in the background. In the foreground what we see are the waves on Price and Time axis. So, a weaker up wave would mean that buyers were not very strong in that up move. Or a stronger down wave would mean that sellers were stronger in that wave and so on. This contrasting behavior may help us in understanding the market behavior more accurately and taking prudent trading decisions. Also remember that Price-Time correlation does not focus on bottom picking but it provides additional confirmation that the correction/consolidation has been terminated and the larger trend has resumed. Secondly, while the market may behave differently in different geo-political environments, one should not expect identical outcomes all the time. Let's go through the Example in Chart Normally after a strong trend we see a correction/consolidation. A correction can be of any type but for the sake of simplicity I have taken the more popular 'abc' type structure. Wave A Very strong momentum up wave. Generally, very strong moves lead to consolidations. Wave B Strong momentum corrective wave Wave C 🚀Momentum is weaker than both waves A and B. 🚀From A to B, the price corrected in one go whereas C is a 3-wave sub structure in itself. 🚀Also, C took more time compared to B but could not reach the high of A. Inference- Buyers are not very strong at this stage so not a very good place for fresh buyers. Wave D 🚀Momentum is even weaker than C. 🚀5-wave sub structure and huge time taken by the wave to reach the low of B reflects that sellers were not strong enough to push the market down. Inference- Buyers could try for a low-risk trade. Wave E 🚀Price breached the high of C and A in a smaller duration of time. So huge momentum. Inference- Good to keep holding long positions and for fresh entry into small pullbacks. For measuring time one can count the number of candles in a wave with the help of DateRange tool provided in ForecastingandMeasurementTools Tab on the left pane of Tradingview chart page OR sometimes simply eyeballing a chart would serve the purpose. Disclaimer: This is a very simple but strong concept, and I am not the sole follower or proponent of it. Hope it added to your knowledge. Do hit the 🚀 button and share your experiences regarding momentum trading in the comment 💬 section below. Thanks.
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OANDA:XAUUSDEducation
by Bravetotrade
16
A 50-day moving average (50 DMA/SMA/EMA)A 50-day moving average (50 DMA) is a technical indicator that shows the average closing price of a security over the last 50 days. It's a popular indicator because it's realistic and effective at showing historical price movement trends. Concept of 50 Moving Average 1. Entry - Candle crossover 50 MA: This refers to a situation where the closing price of a candle crosses above the 50-period moving average line. When the candle's closing price moves from below the 50 MA to above it, it indicates potential upward momentum in the price action. This could signal a bullish trend or a potential buying opportunity. 2. Exit: - Distance between 50 MA and Candle: This involves monitoring the distance between the closing price of the candle and the 50-period moving average. If the distance becomes significantly large, it may indicate an overextended market and a potential reversal. Traders might consider taking profits or preparing for a reversal signal. - Candle crossunder 50 MA: This occurs when the closing price of a candle crosses below the 50-period moving average line. It suggests potential downward momentum in the price action. This could signal a bearish trend or a potential selling opportunity. 3. No Trade Zone (Sideways): - Use Box Breakout Strategy: In a sideways or ranging market where the price moves within a defined range, a breakout strategy can be employed. A box breakout strategy involves identifying a range-bound market where the price oscillates between a support and resistance level (forming a box-like pattern). Traders look for breakouts above the resistance or below the support level to initiate trades. This helps avoid trading during periods of low volatility and indecision, typical of sideways markets, and instead focuses on capturing potential momentum during breakout movements.
NSE:NIFTYEducation
by NaveenTTR
Index Trading-Follow EMA Crossover strategyI have been following the simple technique of Daily EMA Crossover for my long & short trades-especially for Trading NIFTY& BANK NIFTY -Choose 15 Min Timeline -Plot 4EMA viz 10/20/50/100 -Initiate long Trade when 10DEMA decisively crosses above all other DEMA Viz 20/50/100-which is known as Golden cross over -Similarly initiate short trades while the 10DEMA cuts below all other moving averages viz.20/50/100-Death Cross over By following the above simple technique we will be able to make good profits as well exit at the optimum levels. If you go thru the recent NIFTY Chart its quite evident that even when NIFTY was trading at 22400 levels,10DEMA Cross over below other DEMAs on 11th March generated the 1st sell signal. Decisive 10DEMA Cross over below 20/50/100 DEMA on 13th March,2024 while NIFTY was trading at 22340 levels confirmed the downfall.Had you initiated a sell signal at this signal its an easy 500 Points profits within a span of 5 days-Isnt it a decent profits ?Trade with levels and follow the trend always.If you feel its of use may send a thank note.Happy Trading(ONLY FOR EDUCATIONAL PURPOSE ONLY)
NSE:NIFTYEducation
by CSB68
5