Stocks
Top 5 Common Trading Mistakes and How to Avoid ThemHow to Avoid Common Trading Mistakes
1. Chasing Trades Due to FOMO
Here’s what happens:
• Fear of Missing Out (FOMO) often leads traders to jump into impulsive trades without proper analysis, resulting in poor entry points and unnecessary losses.
What does it mean?
• Jumping into trades without proper analysis increases risk and can cause emotional decisions.
Outcome:
• Stick to your trading plan.
• Wait for confirmation signals like moving averages or RSI before entering a trade.
2. Ignoring Risk Management
Here’s what happens:
• Traders focus too much on profits while neglecting risk controls, leading to major losses.
What does it mean?
• Without proper risk management, a single bad trade can wipe out your portfolio.
Outcome:
• Always set a stop-loss to protect your trades.
• Limit your risk to no more than 2% of your portfolio per trade.
3. Overtrading
Here’s what happens:
• Traders try to capture every market move, often leading to exhaustion and poor decision-making.
What does it mean?
• Overtrading reduces focus and increases emotional mistakes.
Outcome:
• Focus on high-probability setups that align with your strategy.
• Remember, quality over quantity always wins.
4. Trading Without a Clear Plan
Here’s what happens:
• Entering trades without a defined strategy is like gambling—it relies on luck, not skill.
What does it mean?
• A lack of planning results in inconsistent performance and increased risk.
Outcome:
• Develop a trading plan that includes your entry, exit, and risk management rules.
• Stick to your plan, even during volatile market conditions.
5. Letting Emotions Drive Decisions
Here’s what happens:
• Fear, greed, or frustration often leads to impulsive trading and poor outcomes.
What does it mean?
• Emotional decisions cloud judgment and lead to inconsistent performance.
Outcome:
• Journal your trades to identify emotional patterns.
• Focus on data-driven strategies to maintain objectivity.
Final Thoughts
Trading is not about avoiding losses entirely but managing them effectively. By addressing these common mistakes, you can build a strong foundation for long-term success.
What trading challenges have you faced? Share your experiences below—we can all learn and grow together!
option trading Options are a type of contract that gives the buyer the right to buy or sell a security at a specified price at some point in the future. An option holder is essentially paying a premium for the right to buy or sell the security within a certain time frame.
When options are better. Options can be a better choice when you want to limit risk to a certain amount. Options can allow you to earn a stock-like return while investing less money, so they can be a way to limit your risk within certain bounds. Options can be a useful strategy when you're an advanced investor.
Option and database trading ow Options Trading Is Different.
Relative Strength Index (RSI)
Bollinger Bands.
Intraday Momentum Index (IMI)
Money Flow Index (MFI)
Put-Call Ratio (PCR) Indicator.
Open Interest (OI)
FAQs.
An option chain, sometimes referred to as an option matrix, is a fundamental tool in the world of options trading. It provides traders and investors with a comprehensive view of available options for a particular underlying asset, such as stocks, indices, or commodities.
ADX Advance ClassKey takeaways. Average directional index (ADX) is a short-term chart indicator. It can be used to help you evaluate the market or an investment's strength. ADX currently suggests the short-term momentum behind stocks may be strong, with a caveat.
The ADX provides the dominant decision-making criteria—allowing you to see whether there is a trend or not and how strong it may be. The RSI provides the secondary evidence—real-time analysis of whether that investment is in overbought or oversold territory.
Shakti Pumps (india) Limited - Breakout Setup, Move is ON...#SHAKTIPUMP trading above Resistance of 965.85
Next Resistance is at 1306
Support is at 741
Here are previous charts:
Chart is self explanatory. Levels of breakout, possible up-moves (where stock may find resistances) and support (close below which, setup will be invalidated) are clearly defined.
Disclaimer: This is for demonstration and educational purpose only. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial advisor before taking any trade.
Tembo Global Industries Ltd - Breakout Setup, Move is ON...#TEMBO trading above Resistance of 789
Next Resistance is at 1099
Support is at 672
Here are previous charts:
Chart is self explanatory. Levels of breakout, possible up-moves (where stock may find resistances) and support (close below which, setup will be invalidated) are clearly defined.
Disclaimer: This is for demonstration and educational purpose only. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial advisor before taking any trade.
ICICI Bank was incorporated in 1994 as a part of the ICICI ICICI Bank was incorporated in 1994 as a part of the ICICI group. In 1999, ICICI became the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the New York Stock Exchange.
The objective of ICICI bank is to meet the needs of the private industry for long and medium-term funds in the private sector. In general terms, the main functions are: Assistance in the formation, development, and modernization of business in the non-public sector.
Shakti Pumps (india) Limited - Breakout Setup, Move is ON...#SHAKTIPUMP trading above Resistance of 4923
Next Resistance is at 5795
Support is at 3880
Here are previous charts:
Chart is self explanatory. Levels of breakout, possible up-moves (where stock may find resistances) and support (close below which, setup will be invalidated) are clearly defined.
Disclaimer: This is for demonstration and educational purpose only. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial advisor before taking any trade.
Learn Option ChainTo study an option chain, focus on the current market price, displayed in the centre. Analyse the built-up data to understand market direction based on recent changes in open interest and price. ITM call options are typically highlighted in yellow, making it easier to distinguish them from other options.
Nifty option chain is considered to be the best advance warning system of sharp moves or break outs in the index.
MACD In Trading The Moving Average Convergence/Divergence indicator is a momentum oscillator primarily used to trade trends. Although it is an oscillator, it is not typically used to identify over bought or oversold conditions. It appears on the chart as two lines which oscillate without boundaries.
Traders often use MACD with longer-term moving averages like the 50-day or 200-day moving average. If the price is above these averages and MACD signals a buy, it reinforces the bullish trend. On the flip side, if the price is below the moving averages and MACD signals a sell, it indicates a strong bearish trend.
How to draw support and resistance The most reliable source for identifying support and resistance levels is historical prices, making them invaluable to traders. The key is to familiarise yourself with past patterns – sometimes from very recent activity – so you can recognise them if they appear again.
Simply mark visible highs and lows on your chart; the higher highs and lower highs will serve as resistance levels, whereas the lower lows and higher lows will serve as support levels. It is always recommended that these lines are marked on longer timeframes to have reliable support and resistance levels.
Option chain in tradingAn option chain lists all option contracts, including put and call option for given security. However, several traders focus on net change,' 'bid,' 'last price,' and 'ask,' columns to assess current market conditions. Option chain is also called the option matrix.
How does an option chain work? An option chain displays available call and put options for a specific underlying asset, with their strike prices, premiums, and open interest. It provides a snapshot of market sentiment and potential price movements.
3 Amazing swing trading idea for 26 December MarketsI daily make educational content videos for swing / positional trading
Gulf oil trade idea: This idea is about a breakout trade that went sideways at the breakout point and is currently in a no-trading zone, pink zones tell you about what to do next
Axiscades trade idea: This idea is about the weekly time frame breakout, its at a strong resistance area of a hidden parallel channel, needs a strong closing for the same
Indigo trade idea: This idea is also a breakout idea on Daily time frame but needs to follow a set of market structure from here on and price action to give a nice trade activation
Technical trading for traderTechnical trading is the practice of using price-based trading strategies to make short-term trades. It relies heavily on technical analysis, which uses past and current data to identify trends in the market.
Technical trading is a broader style that is not necessarily limited to trading. Generally, a technician uses historical patterns of trading data to predict what might happen to stocks in the future. This is the same method practiced by economists and meteorologists: looking to the past for insight into the future.
MTAR Technologies Ltd view for Intraday 23rd Dec #MTARTECH
MTAR Technologies Ltd view for Intraday 23rd Dec #MTARTECH
Resistance 1740 Watching above 1744 for upside movement...
Support area 1700 Below 1720 ignoring upside momentum for intraday
Support 1700 Watching below 1695 or downside movement...
Resistance area 1740
Above 1720 ignoring downside move for intraday
Charts for Educational purposes only.
Please follow strict stop loss and risk reward if you follow the level.
Thanks,
2 Potential Swing trading stocks for 23 December MarketsI daily make educational content videos for swing / positional trading
Both are Potential swing trading ideas that are not active yet. I have explained the setup, pattern, and line-making behind them with a solid plan. Let's see if the plan gets activated.
KFin Technologies Ltd - Breakout Setup, Move is ON...#KFINTECH trading above Resistance of 1337
Next Resistance is at 1847
Support is at 921
Here are previous charts:
Chart is self explanatory. Levels of breakout, possible up-moves (where stock may find resistances) and support (close below which, setup will be invalidated) are clearly defined.
Disclaimer: This is for demonstration and educational purpose only. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial advisor before taking any trade.
Kalyani Steels Limited - Breakout Setup, Move is ON...#KSL trading above Resistance of 1079
Next Resistance is at 1678
Support is at 702
Here are previous charts:
Chart is self explanatory. Levels of breakout, possible up-moves (where stock may find resistances) and support (close below which, setup will be invalidated) are clearly defined.
Disclaimer: This is for demonstration and educational purpose only. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial advisor before taking any trade.
Capacite Infraprojects Ltd - Breakout Setup, Move is ON...#CAPACITE trading above Resistance of 437
Next Resistance is at 664
Support is at 297
Here are previous charts:
Chart is self explanatory. Levels of breakout, possible up-moves (where stock may find resistances) and support (close below which, setup will be invalidated) are clearly defined.
Disclaimer: This is for demonstration and educational purpose only. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial advisor before taking any trade.
GICRE - Breakout Setup, Move is ON...#GICRE trading above Resistance of 449
Next Resistance is at 676
Support is at 347
Here are previous charts:
Chart is self explanatory. Levels of breakout, possible up-moves (where stock may find resistances) and support (close below which, setup will be invalidated) are clearly defined.
Disclaimer: This is for demonstration and educational purpose only. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial advisor before taking any trade.
Pricol Ltd - Breakout Setup, Move is ON...#PRICOLLTD trading above Resistance of 545
Next Resistance is at 721
Support is at 432
Here are previous charts:
Chart is self explanatory. Levels of breakout, possible up-moves (where stock may find resistances) and support (close below which, setup will be invalidated) are clearly defined.
Disclaimer: This is for demonstration and educational purpose only. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial advisor before taking any trade.