Get started

Trading!

TRADING CHECKLIST BEFORE TAKING ANY TRADEThe trading checklist is simply summarized trading plan. It is a plan where you can check the things you require to open a new trade. It is like an entrance exam, which you should pass in order to be ready for trading. The trade checklist is a personal thing, your list works for you, but not necessarily for another trader. This happens because everyone has their own strategy that he likes and trust. The above list works well for me, create your list and follow it religiously to boost your results. The best part of having this list is that it is not complicated or difficult to remember. The list is very easy and after using it a few times, good trading habits begin to form. I have found that if you create a checklist, it will assist in having the discipline to stick to your plan.
NSE:NIFTYEducation
by PranamGhagare
5
Trading Journey - 5 Step ProcessApproach 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 trading as a business in this manner you will quickly determine what parts of your business need to be improved to achieve your business objectives. The following actions can be undertaken in the following stages for anyone new to trading : 1. Learning Phase - This will probably be a starting point for all the traders out there unless he/she are using signals to trade the markets. This is the point where you should try out different systems, attend webinars/seminars of successful traders and select a system which suits you the best, meaning some prefer to day trade, some prefer swing trading etc. Try to get your hands on books which teach technical analysis and basic risk management techniques. 2. Building Your System - No two trading plans are the same because no two traders are exactly alike. You should select a strategy and make adjustments or certain changes along the way. At this stage, you need to have a selected strategy/system for further testing. But remember, deciding on a system is less important than gaining enough skill to make trades without second-guessing or doubting the decision. Confidence is key, which will be gained in the next step. 3. Paper Trading - Successful paper trading does give the trader confidence in the system they are using if the system is generating positive results. Test your system in the live markets either by paper trading or using the reply tool on the TradingView platform, which enables you to test your strategy on the previous year's data. Try to create a watchlist of stocks that work well on your trading system. 4. Transition to Live Trading - Successful paper trading does not guarantee that you will find success when you begin trading real money. That's when emotions come into play. That is why you need to start with a small amount and gradually increase your account as you gain confidence and start seeing results. Before shifting to live trading, you should have proper risk management, trade management plans to tackle the volatility of the market. Write down details such as targets, the entry and exit of each trade, the time, support and resistance levels, daily opening range, market open and close for the day, and record comments about why you made the trade as well as the lessons learned. Maintaining a simple trading journal is one of the most important things that you can do if you want to be successful in the trading space. You should go back and analyze the profit or loss for a particular system, drawdowns, average time per trade, Risk to Reward and other important factors. Remember, this is a business and you are the accountant. You want your business to be as successful and profitable as possible. 5. Trading Psychology - I probably cannot emphasize in words, how important this part is for your trading success still it is not looked upon and given importance by the majority of traders. It is that minor difference between a highly profitable trader and a good trader. Professional traders know before they enter a trade that the odds are in their favour or they wouldn't be there. By letting their profits ride and cutting losses short, a trader may lose some battles, but they will win the war. Most traders and investors do the opposite, which is why they don't consistently make money. I have addressed some points of successful traders below, so you can get an insight into their trading mentality - 1 - They are all comfortable with taking risks. 2 - They are capable of quickly adjusting to changing market conditions. 3 - They are disciplined in their trading and can view the market objectively. 4 - They don’t give in to being excessively excited about winning trades or excessively despairing about losing trades. 5 - They make the necessary effort and take the necessary steps to be self-disciplined traders who operate with strict money and risk management rules. Trading is a difficult game to master. Very few people become highly successful at it. However, virtually anyone can become a master trader as long as they are willing to make the necessary effort.
NSE:NIFTYEducation
by PranamGhagare
5
Trading Psychology - The Cycle of Market EmotionsThe 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 psychology in trading, whilst amateurs are not aware of it or ignore it. Develop your mental framework, your psychology by reading books, attending psychology webinars, remember, trading is 70% psychology and 30% skill. If you develop your mental framework appropriate for trading, you have won half of the battle.
NSE:NIFTYEducation
by PranamGhagare
58
reliance setup buy sell level as per hourly frame Reliance in daily chart given breakdown at 1430 zne fter a consolidation from 1466 to 1430 zone from 3 days now after breakout on downside , trading at 1410 now important level to note is 1430 /1440 on upside while on downside now its open for 1350 /1340 level. Upside resistance at 1440 /1460 zones . Fresh upmove only if close above 1490 for 1650 zone. Important level downside : 1350/1340 Upside : 1445/1460 intraday tradng wise physchological level important .
NSE:RELIANCEEducation
by pratik2358
Basic of Gap theory(Common gap, Breakaway gap, Runaway, Exhaus )Gaps can offer evidence that something important has happened to the fundamentals or the psychology of the crowd that accompanies this market movement. Gaps can be subdivided into four basic categories: • Common gap • Breakaway gap • Runaway/ Continuation gap • Exhaustion gap -------------------------------------------------------------------------------------------------------------------------------- --> Common gap-: Common gaps generally occur uneventfully or when there is nervousness among the investor and has low volume , generally gap is filled in the future . --> Breakaway gap( Measuring gaps )-: A breakaway gap is those which have high Volume and the chances are more to cover the gap . The traders who have invested in the wrong side need to cover them. A new change in the market has taken place. The point of news breakout becomes support or resistance. --> Runaway gap-: runaway gap has increased in liquidation and those who are holding the position will get panic and sell/buy. the runaway gap is caused by the trading limit imposed by the exchanges. --> The exhaustion gap ( Island-cluster )-: exhaustion gap happens near the end of the movie. Mainly have a high volume and have a large difference from the previous price, in this state of panic long down move is transpire due to a feeling or belief that bad things will happen. exhaustion gap quickly fills a gap when price reverse. I will update shortly Real-Time use of Gap Trading Strategy shortly. Kindly comment, if you have any questions/suggestions for me. You can share your LOVE by giving LIKES .
NSE:BANKNIFTYEducation
by Trade-Technique
72
IRCTC – Stellar Debut -The Next Station Please?Last Price@718.50 - 15th Oct 2019 IRCTC which is a very common name across India because of their strong brand placement offering online bookings for Indian Railways got a stellar opening on the domestic exchanges yesterday. Similar to an experience of products like Colgate, Amul, etc– I still remember childhood days when we used to ask shopkeepers, not toothpaste- “Colgate Dena please” & “Amul butter hai kya”. You being a tech-savvy & use the internet for everyday use, you are most likely to refer IRCTC for rail ticket bookings. IRCTC also provides catering services and packaged drinking water in railway stations and trains apart from selling rail tickets online. Given, a stellar opening for the stock on domestic exchanges, Investors would be interested to know the next stop for IRCTC. Technical Outlook Technically, stock post listing made Intraday high of 746 & doing sideways between 700-750 zone. Holding 700 or slightly below on downside, the stock is expected to travel to new highs above 750. We look to book profits in 825-850 zone & above 850, upside extension could be 950-1000 levels. Don’t ignore the downside of the stock which is 700 – dropping below key level & failing to bounce above the level of 700, can push stock lower to 650 & more on downside. Have a safe & happy journey!!!
NSE:IRCTCEducation
by WaveTalks
16
10 LESSONS IN TRADING PSYCHOLOGYBecoming a better day trader requires that you not only focus on textbook knowledge but also yourself. This is why it is so important to put some focus on trading psychology. 1. Know Your Strengths – Knowing your strengths is a crucial part of trading. It’s important to focus on what you are good at so that you may focus your attention in that area. 2. Develop Confidence – Developing confidence not only removes some of the stress from trading, but it also allows you to become more competent. 3. Know when you need to take a break – Day trading can be stressful at times. It’s okay to take a break now and then. This gives you time to refresh and come back to the market with a better mental state. 4. Become self-aware – The ultimate goal of all of these lessons in trading psychology is to help you become more self-aware. If you are not self-aware, you cannot make the changes necessary to improve. 5. Learn to change – Oftentimes, changing requires that you leave your comfort zone. That being said, if you want different results, you have to make changes. 6. Control your environment – Both physical and mental cues within your environment can have a profound effect on your trading. Focus on finding the ideal environment for trading. 7. Think in Probabilities - This is by far the most important part of trading psychology that is not taught anywhere. Successful traders think in probabilities before taking every trade, they do not commit to the market fully, they accept the loses if the trade did not go their way and take the next trade without any hesitation. 8. Deal with stress – Trading under stressful conditions is a recipe for disaster. You should find a way to deal with stress so you can avoid trading under less than ideal conditions. 9. Pinpoint your emotions – A big part of the trading process is understanding the emotions that trigger your actions. For example, let’s say you stop out of a move early even though your initial prediction ended up being correct in the long run. What caused this? Did you make this decision out of fear? Did you buy too many shares? Did you lack the self-confidence to follow through with your plan? Figure out the emotion that triggered your behaviour and look for a way to combat this emotion in the future. 10. Develop a routine – Develop a routine and stick to it. The repetitiveness of this routine will create a sense of stability and increase your trading performance.
NSE:NIFTYEducation
by PranamGhagare
7
TOP 10 Trading Plan EssentialsA 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 the world of trading. 2. Identify Your Key Performance Metrics. - This can be your Risk to Reward Ratio for each trade. 3. What Time of Day Will You Trade? - For day traders, It is highly recommended you limit your trading activity. 4. Define Your Trading Edge. - Similar to the times of day you will trade; keep your trading edge down to one or two setups when starting. The more strategies you hope to master, the more difficult it will become to consistently make money in the market. 5. Identify Stocks to Trade. - Have specific stocks to trade for the day or the week ahead. It can be in terms of news, technical analysis, backtesting results etc. 6. Place Your Stop Loss. - Stop losses are not a negative thing, they are what keep you in trading business over the long run. 7. When to Exit - The exit strategy should be as simple as when the stock crosses below a moving average or a trendline, it depends on your trading style. 8. How Much Money Can I Use per Trade? - Without money management, you will not stand a chance of making it in the business of trading. For me, the amount of money I can use per trade is fixed. All the best trading plans have a limited risk of 1-2% per trade. 9. Trade Management - Trade management is a crucial element that needs to be addressed in your trading plan. You must know your initial risk for each trade as determined by your initial stop loss before you risk any money on the market. You must plan when you will add to your winning positions and how you plan to exit your winning trades. 10. Take Breaks. - Taking breaks is essential in trading, which is not discussed a lot anywhere. Taking a break for days or a week can help you to relax and gain more focus for days to come because trading is a mental game.
NSE:NIFTYEducation
by PranamGhagare
3