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Share Trading: Is it a Better Business ?? For Whom ???Put 10k in the market, buy stocks worth 50k or more on leverage and sell at 1k profit which is 10% profit on the investment capital..That's amazing!! Isn't it? The bad part is, the anomalies to this hypothesis adversely impacts more than 90% of time. And the so called 'better business' turns out to be a losing affair for more than 90% of our trading community. Let's first discuss about our losing 90% trading community: A beginner takes his first trade on hunch and wins.. beginners luck..builds confidence..takes second trade and wins..no fear..may be he wins a couple of more and the beginner increases the trade size..over confidence and greed..he starts losing and bursts his account in aggressive attempts to win back profits at first and regain the losses lately. What went wrong with this beginner? Greed prevailed rationality Lack of strategy or Edge in the markets Revenge attitude What about the remaining less than 10% of the trading community? The most successful ones start with a predefined strategy..primary reliance on trade management..patterns and techniques come next..backtesting the strategy..paper trading..followed by real trading..flexible approach as far as the edge in the market is concerned..no fear..no greed..just exact plan execution. So what makes these 10% better over the others? The answer is..some important traits. Let's briefly discuss some of these important traits. Trade management Pros are always ready to miss a trade not qualifying the pre defined risk to reward ratio. Normally 1:1 RRR is good, 1:2 is better and anything higher than that is the best. Not only RRR but trade management also involves trade sizing which is a subset of RRR. Suppose I want to take max. risk Rs. 1000 on a trade. On a particular set up, my stop comes out to be 2 points on a 200 Rs. stock. In this case my trade size would be 500 shares..just an example. Edge in the market OR the strategy which tells where, when and why to buy or sell. It could be a candlestick pattern or a combination of patterns. It could be an indicator buy or sell signal. The key here is to have patience for the signal. If there are multiple confirmations confluencing at the signal, it would be a high probability setup. Our Edge in the market and trade management then go hand in hand to make our day. No fear no greed According to best practitioners it's good to take some profits off the table at first predefined target. B'coz no matter how high probability the set up is, there are always some chances that it could turn out to be a loser. Remaining position can be trailed for substantial bonus gains. If a trade does not go in favor at first instance, just get out at predefined stop without extending losses. Suppressing greed would definitely improve win to loss ratio. Greed kills but fear is a psychological breakdown. Fear bores over-protection in the trader. The trader may miss several best setups due to fear of failure. A beautiful trade missed is as painful as a losing trade. It has been observed that simple breathing exercises have significant impact on our cognitive functionality, which helps in overcoming fear of taking calculated risks. So who can teach the trader the cannons of best trading practices? No one but the trader himself. Of course a good mentor can make things less difficult but it all comes with practice and experience. However, the fact is that, most of us would not learn unless we lose some or most of our hard earned money. Although I deliberately missed some concepts due to time and space constraints yet I hope the brief discussion highlighted important points concerned to share trading. Do hit Like and comment. Trade safe, be healthy. Regards Bravetotrade

Harmonic Patterns: Trade Execution Notes on the chart. I ll try to put some examples..depends on response. Do hit Like and comment. Trade Safe, Be healthy. Enjoy the weekend. Regards Bravetotrade

The Biggest Intraday Trading Myths and Realities Let's discuss.. Intraday Traders are losers Ohkay..let me mend this statement a bit. " The Indisciplined Intrday Traders Are Losers "..now it seems correct. Not just in trading but in any field of life, if one is not disciplined he will be a loser. Then why such hate for day trading..well !! we live in a free country and everyone has right to speech and expression. But don't get misguided by the false notions. It just needs learning, Time and Practice-- the LTP if you may allow me to call it. One needs time to learn and practice before the latter two make you perfect or good enough. One do not need Lakhs to enter into trading business. A handful of money would work. Its just that with very lesser funds it would take more time to build up the money-base large enough to take trades which can yield fair amount of profits. Avoid first 15-30min and last 15-30min Open any chart and you see big moves during above mentioned time only. The basis here should not be -- when to avoid, but when not to avoid. Many a times the chart patterns are formed in the last few candles of the day, in intraday charts. Due to time constraint and overnight uncertainties, the traders do not want to take risk and leave it for the next day. So the first few minutes provide an opportunity window in those cases. Of course we would not trade any random pick in the morning..right?? But if it is well researched..just do it. Always place stoploss orders Rather I would say, " NEVER PLACE HARD STOPS ". This helps in avoiding those one to two flash trades which take the stops, especially when the stop is too tight. Its not that some one is watching your stop order to be placed and he will sell off just to have 'your' shares. Its because the stop might be too small to handle stock volatility. Its better to watch the chart instead and concentrate on candle closings for deciding stops in 'mind'. Hope we can do that much as our hard earned money is involved..right?? If a trade seems too risky..just reduce the quantity. If you feel very uncomfortable without stop orders in place, have stock's daily range in mind. Volatility kills Will you buy a stock which does not move at all? I hope you would say NO, unless you want to practice how to place buy, sell and stop orders. Volatility is traders' friend. The stock should move in either direction in sufficient magnitude to make potential buy or sell trades in it. Unless the stock can't rush Adrenaline in your brain, its not volatile. I suggest drink plenty of water and do stress relieving Yoga to trade intraday volatility :D Avoid less liquid stocks Once the trader has a grip over reading charts and tape, he can take up less liquid stocks. I don't say trade any Tom, Dick and Harry category of stock; but traders' favourite. Normally highly volatile stocks are traders favourite and there are many less liquid stock which are highly volatile. Just keep in mind to trade with LIMIT orders and not MARKET orders in these stocks. Reason being the Bid-Ask spread is sometimes too wide in these stock so inorder to avoid loss trade these stocks at your KEY price. Do not Reenter after loss..its revenge trading The stopped out situation is bad for a trader and inability to enter a good setup in same stock due to fear is the worst. The only psychological condition to avoid is the revenge attitude..that's right. If one can take every trade as a fresh trade forgetting losses made in the past, without fear, then one may not miss many good setups. Many a times the worst looking trade may come out to be the best trade of the day. Do hit like and share your thoughts in the comment section. Trade safe, be healthy Regards Bravetotrade

BPCL >> HEAD & SHOULDERS >> D BPCL Had Creates head and shoulders pattern on Daily time frame. If Break and close above Yellow Line >> Buy (Before StopLoss Trigger) Good Luck!!!