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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
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
NSE:NIFTYEducation
by Bravetotrade
14
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
Idea: Important Lessons to be learntGreetings 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 achieved was good but there after... There were some elementary mistakes that we should have taken care of and should have avoided... Here were some mistakes that we made... sharing so that one can learn and avoid those mistakes and make himself/herself a better trader .... 1. Should have trailed SL to 78.30 instead of keeping it at 79.60 Looking at the charts will suggest the importance of 78.30 The stock came out of the falling channel.... The message was clear....Chart was telling us loud and clear.... EXIT EXIT EXIT There was a clear indication and ample time to exit from short position at cost itself for balance position... but we did not obey what charts were telling us... Even at 79.60 we should have exited but were adamant and expecting the stock to fall because of bias of our postion may be & We almost paid the penalty as the stock went up to 83 thereafter but luckily for us, again charts were at rescue and suggested not to panic but add short position again and we did so around 82.25 And today we were able to book profit at 79.70 and 78.80 respectively (our avg cost of open position was 80.125) Lesson to be learnt If we are looking at charts for our trade we should Listen to charts completely... and not let our will / expectation / ego to come in between, beacuse our expectation always has a desire attached to it and we become bias which is not good .... ------------------------------------------------------------------------------------------------------------------------------------------------------------------ So yes, Although the trade has given good profits overall ...we r not happy with the way we earned but I sign off thanking and respecting charts for helping and bailing us out this time... Regards & Take care...!!!
NSE:IDEAEducation
by indiamarketoutlook
2