The majority of traders spend most of their time looking for good trades. Once they enter a trade, they lose control and either suffer stress from losses or are jubilant with pleasure. They ride along with these emotions and forget about the essential element of becoming a successful trader – keeping emotions under control. Winning traders know the importance of...
There is a big difference between successful traders and amateur traders. Successful traders know how to allocate capital, calculate their risks, and move on after losing money. Ultimately, it is not what the trader knows, but who he is. The consistently profitable traders can ignore or subvert their natural tendencies to do what feels comfortable, and instead, do...
Approach your trading as a business. I know it sounds a little cliche, but if you approach your trading in this way you will start to build in a level of accountability for not only yourself but also your time. In any business, there needs to be a breakeven point and a point at which the business starts to show a profit for it to continue. By approaching your...
NSE:NIFTY has dropped more than 10% since 03-June-19 and the sharp fall will definitely provide long term investors and institutions a buying opportunity. The chart shows the zones which the the market could potentially react from.
Technical analysis or market timing is not the only key methods to successfully trade or invest, its a combination of pre-defined...
A trading plan is your roadmap for what you are going to do in the markets. It's something that you have to create and is not optional.
1. How Many Trades will You Use to Evaluate Your Performance?
- The answer to this question is very simple. Base your evaluation period on the number of trades placed and not by the amount of time passed. Time is irrelevant in...
Its said, "Knowing risk tolerance level is the key to success in trading". Let me explain this with an example. Refer the above chart. Two traders A and B saw double top formation and decided to go short. Trader A used leverage above his risk tolerance level. Trader B took trade as per his money management.
Both traders went short. After few minutes price start...
We are seeing a divergence on the RSI and a negative weekly close when the market made a high could indicate starting of long unwinding. Hence it would be wise to be with the market, book the profits and wait for a dip to re enter.
RULES FOR ENTERING TRADE
1. No clarity, no trade.
2. Size the open.
3. Watch fair value.
4. Cover or liquidate trades in the pre- and Post-market; don’t open them.
5. Never use market orders.
6. Always use limit orders
7. Never chase stocks
8. Always look for confirmation among trading signals
9. Always know who the buyers and sellers are.
10. Survive before you...
looking at the indices and sectorial stocks kotak and hdfc dragging , while all others pulling it higher , icici still has a 10% upside left while sbi will follow and will keep on making a higher high.
yes bank may consolidATE as like axis bank .
Indusind will approAch new LTH .
and sooner or later hdfc will come into picture to keep the show GO ON !
Few of my friends here have started to think that I have forgotten Newbie's corner. I write, when I get some valid query. So here come a new question. Query : I have been trading for 4 yrs, I have learnt all technicals but still I am losing money. I dont know why.
Answer : There are two possibilities. One is not knowing/learning technicals properly. People learn...
Greetings of the day...!!!
Sharing one case where we almost paid the penalty of not listening to chart...
Some days earlier we recommended a short in idea around 78 for targets of 76 and 74
Things were going good and our 1st target was achieved within hours....
Booking partial profits when target 1 was...
All the post are on trading /technical analysis. So thought of putting something on risk management .
What is Risk Management ? Now don't look blank, if your in markets you have to know about it.
Does every trade has risk and Is quantum of profit assured ? Yes every trade comes with risk and no assurance of profit.
How much risk can you take ? ...
Continued from Weekly Educational Series - PART 1 ;
So, now we have got our risk reward ratio and winrate.
We move on to calculate the expectancy of our trading strategy.
The formula is,
Expectancy = (Probability of Win * Average Win) – (Probability of Loss * Average Loss)
So, in our scenario,