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Psychology

Why you should treat trading like a businessHello everyone: Today I will go over 6 main points on why you should treat trading like a business in order to succeed in this industry. 1. Business will have busy seasons and slow seasons. But overhead expenses will remain the same. So not every month can be profitable, same with trading. -Some months you can have more wins, some months you will have more losses. It's what you do on average for the whole quarter/year. 2. Record your win/lose trades like any business that has bookkeeping to record their revenue and expenses -This is for you to keep track of your progress, results and find areas to improve. You must record your profits/losses so you can identify your result. Refusing to do so is like a business that does not record their expenses and wondering why they spend so much $ 3. In trading, YOU are the Owner/Director/CEO. If you are not putting in the time and effort like a top executive of a business, then it's unlikely you will succeed. -Top executives don't just work 8 hours a day, 5 days a week. They put in way more hours than that to keep the business running, operational, and profitable. 4. No business starts out as profitable, they are likely to be in the “red” until years later when they can recover the losses and then some. -Most businesses start up with debts, borrow money, and loans. Don't expect to pay off all those in one year. In trading you will likely incur losses at the beginning of your trading journey. Understand it’s a process all must go through in order to come up to the top. 5. Each and every year, businesses review their entire operation. Identify the mistakes they make, find solutions to their problems, create plans, visions, and goals. -Identify your mistakes by journaling your trades. Find areas to improve, whether that is your entry, SL/TP, Risk management, trading psychology, 6. 90% of small businesses fail within 3 years, acknowledge the odds are not in your favor but continue to put in time and effort. NEVER GIVE UP -90-95% of traders fail in time. You don't often hear about the traders who lose, but you often hear about the social media “guru” and scammers doing so well. Trading is not a get rich quick scheme, nor is it easy. You have to continue to put in time and effort to succeed. IT doesn't come instant, and those who can not commit to such, will not be able to continue trading consistently and sustainably. Most important is, if you fail, get right back up. NEVER GIVE UP in trading, and NEVER GIVE UP in life.
NSE:BANKNIFTY
by CA_Dindayal_PAWAR
Why Stop Loss Is Important ?? EXPLANATION : This is a 15 min time frame chart of EURGBP . It has formed Descending triangle pattern , after seeing this formation I take it early entry and Sl kissed me . Price moves in opposite direction of my Analysis , Now what can I do ?? Respect your SL , No revenge trading , No over trading , Find another opportunity , No gambling . This all things keep in your mind , If you want to be successful trader . Psychology matter :) Lesson : Trade with confirmation Ideal entry : Breakout & Retest , when support become resistance
by pranav_nanavare
1
Nifty - Intraday 09-08-2021🔰Educational Purpose Date - 09-08-2021 Nifty💚 Open flat on Friday but not abled to Breach any upper or lower level what we discussed in Last educational session. Formed higher Low which is little bit positive for Nifty, as per discussed in last session RSI is also major hurdel at 72 level. Nifty formed Bearish flag in 15min which indicates some downside on intraday basis only. 🔰 Intraday View:- Flat Opening(near closing) -If nifty opens Flat Risky traders can buy Put immediately with strict SL 16290 (5 min candle closing) for tgt 30-50 points. -For safe traders can wait for clear direction which is 5 min closing below 16220 leads nifty towards 16180 16130 -Because of bearish flag and Breakdown retesting structure we choose only 5min closing below 16220 level. -Upside need 16290 closing for 16320 16350 Gap up - above 16285 any dip towards 16220-16230 is buying opportunity check for reversal signals on candle pattern, and as per psychology the fear of bearish flag will vanish out due to gap up scenario. Gap down- If nifty opens below 16220 level then we will see some further downside till 16180 16130 Note- -Put strict SL loss -Positional view is Upside till we are sustaing above 15950-16000 level.
NSE:NIFTY
by Mahesh_Walse
INTRADAY TRADING PSYCHOLOGY (near LONG TERM SUPPORT/RESISTANCE)I come across many times when people fall in trap when they see breaking of long term support or resistance in intraday by merely seeing on small timeframe (TF) like (1-5 mins). I suggest those friends to wait for the confirmation of such breakout on higher timeframe like 15-30 minutes atleast. In this example I would like to make you understand this psychology and how you can make most of it in intraday trading. Bharatforge started falling right from the beginning and broke its long term support at smaller TF and you can see how they trapped the bears. (You can see many examples like this on this day like which I traded in PEL (Horizontal support 1300) and BPCL (Trendline support) We could have initiated a countertrend trading when it came above the support but that I will not recommend if you are not pro. Instead, bharatforge formed a beautiful double bottom at this support (bullish piercing candle pattern as well). So, this trade becomes high probable with first target to swing high. SL to be maintained below the support. So, in intraday FIND SUPPORT / RESISTANCE and FIND PATTERN. This way you can make consistence profit. Thank You. Happy Trading
NSE:BHARATFORGEducation
by Retailer_ki_dost
8
EMOTIONS & CYCLICAL ANALYSIS" History repeats itself. The only true constant in the market is the participants. Humans tend to act, react and overreact in similar ways to certain situations which are repeated over and over again, and this is really the basis on which technical analysis has built its utility. We are merely looking at emotions reflected on a chart to gain insight as to how a crowd may act in a future similar situation." BRIAN SHANNON Trade Safe, stay healthy. Happy weekend. Regards Bravetotrade
NSE:SBINEducation
by Bravetotrade
2
SURVIVA : Need of the Hour !Hey Guys, Happy Weekend & this weekend is pretty long one too. Enjoy the weekend to core & try more charting which makes you better at trading. So What should be your basic expectation from Trading ?! To be Billionaire overnight ? yeah guys, millionaire not in our list anymore, too much of crowd in that zone (or) To make every trade right ? (or) To become professional trader ? (or) To make decent money everymonth ? Not yet, don't choose your options too soon because the right perception/choice : SURVIVA... Not just beginners even for those who are in trading for sometime, your main aim should be : To Survive in Trading field. Why Surviva became most important factor here ? Take a moment away from your charts, come fly with an Eagle's perception over trading world what do you see there ? Institutions, Hedge Funds, proprietary trading firms with money overflowing in their coffers,Big Sharks with deep pockets, Banks & Broking firms with best brains in the world. Not over yet, sharpen your sight, the best brains in the world compunded with advanced codes, HFT strategies which executes trade in fractional seconds, perfect analytical reports on their desk & highly productive team on demand anyday,anytime. That's an exponential combo you can't even imagine of... What does a beginner/rookie have ? An intel inside PC or Apple maybe, with non-buffering hi-speed internet for you-tubing. No, Don't land on the ground, Be the eagle...Weigh their probability of success if they face (Firms vs Rookie) against each other, watch the battle between former & later, do you think some common'er with no survival instincts or tactics, can survive this battle & come out unscathed ?? The odds are same as someone jumping out of plane without parachute & surviving. So, You or Me or Someone else can't survive here ? Only if there is Survival Instinct within you. It's broader topic : You should have a Plan, You should have discipline, You should be ruthless against your emotions - kill them, You should have the capital & Most of all you should stop your bleeding in battlefield which is losing capital gradually over time. Stop Trading till you find that way for consistent wins. A simple question friends, will you play a game if odds are stacked against you ? Will you go in for some battle knowing that you don't have plan ? Finally, will you wage a losing war ??? None will do that DOT Have a Plan n Discipline.Our aim is not to take hedge funds or bigsharks head on, we are not interested to take sides with them also. Then,what else ? We will just wait for the right opportunity to evolve in the Market & We seize them with utmost discipline. That's how SURVIVA works... We will have our part of losing trades, but we will eventually get more consistent winners than losers overtime. Don't just aim at generating profits in the Markets, SURVIVA is the mantra to sustain here... Open Discussion's most welcomed...
NSE:NIFTYEducation
by InsiderB
38
The Bear Market Psychology-Price Volume Analysis As this post is merely for educational purpose, let the stock remain anonymous for the time being. The analysis would not only be applicable to long term charts but also to smaller time frames. I have found two important phases of Panic Sell-off in a bear market. One in the beginning and one in the end. The former phase is good for sellers and the latter is good for buyers. As can be seen on the colored bars on left of chart, there is maximum erosion of capital (32%) in first phase (red bar). Then the downthrust reduces in successive breakdowns (10% and 9%) till the last phase (just assuming that its the last phase..read full post to understand this point) where it increased to 13%. The correction started with the break of Level 1, an important swing point low of the last leg of the bull move. At this level, big fund houses, swing traders and smart medium term traders are the first one to move out. On the same day a major swing low of the larger bull run was broken at 918. Majority of the long term investors would have sold their positions this point. You can notice huge volumes on this day. The sell-off In Candle ‘b’ might have been from investors who wait for confirmations. Candle 'a' and 'b' represent the ‘Panic Sell-off’ by traders and investors. Stock rallied from 'b' but the bear run continued. The stock consolidated at Level 2 for some time and broke that level too in candle 'c'. Candles 'c to e' made successive lows but look at the volume, there is dearth of supply. Stock made a nice rally form 'e'. Some optimism is seen in this rally as stock started to rally above Level 2 support. At this point a general conception would have been that the downmove was merely a correction and stock would rally. The areas marked with rectangle are where new traders and investors got trapped. Their stops might have been under Level 3. And then came the moment..Boom!! A gap down opening at 'f'. Level 3 lows are broken. All those who were trapped just sold off, and everybody agrees that the stock is in a bear market. Volume on that day was the heaviest so far in this bear run. Next day there was no continuation of downtrend. Heavy support came back at 'g' resulting passive rally. Buyers have less confidence in the stock. But still some buyers got trapped as stock consolidated for a considerable time above Level 4. The volume was bleak during this consolidation—which according to books is a good sign. But no one knew that its not over yet. Whooop!! Level 4 is also broken in candle 'h' and made successive lows in i, j and k. May be those who bought above level 4 sold in this move. But just look at the volume and compare to volume at a, b, c, d, e and f. Notice that there is very less supply now means buyers are not interested in selling at this price. They want to hold and sell high. At 'l' stock made a lower low but rebounded with increase in volume. Huge overhead supply came at 'm' but this supply is absorbed by the buyers resulting into a v-shaped rally. The volume at this stage are still average because buyers are waiting for confirmations and strength. It is the long term investors who are buying again at this stage. What next? Nobody knows yet if bear market is over. But minimum supply in last fall below Level4 and the absorption in the recent rally is the first sign of relief. However, there might be pull backs, shallow rallies, retest of lows or consolidation before the stock comes under ‘scanners’. Although I could not cover the whole chart bar by bar in my analysis (covered most important candles only) yet this brief summary of a bear market psychology would help investors and traders in future. Please hit 'like', follow and share if you found it interesting. #This is DivisLbs daily chart.
NSE:DIVISLAB
by Bravetotrade
23