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Technical Indicators: Are they certain or probabilistic?There are three types of technical indicators that I have listed in this post- Trend, Momentum and Volatility . This is not an exhaustive but selective list of indicators. The selection is based upon the most useful and the most popular ones. 🔊 General Definitions ✔ Trend Indicators : They represent the overall direction of the market. These indicators lose their significance in a sideways market. ✔ Momentum Indicators : They represent the rate of change in price over a period of time. These indicators oscillate between a defined upper and lower limit and hence are also known as oscillators. ✔ Volatility Indicators : They represent the intensity of price swings around the mean price. These indicators are useful in identifying vital values such as stop loss and targets. 👉 Select carefully : Any indicator can be selected from a specific group but it should be avoided to select two indicators from same group. Reason being two indicators would fire signals for the same characteristic and hence one of the signals will become redundant. For using multiple indicators, it is advised to take only one signal from each group. 👉 Certainty behind indicators : Trading is probabilistic and indicators are a subset of trading, hence they cannot be certain. In simple words, indicators are derivatives of the price action so most of them are delayed. That is the reason, many a times, signals are fired too late. On the other hand indicators are good at devising strategies. 🚩It is advised to trade one strategy consistently. One advantage of indicator based strategies is that they make the trading process more mechanical and hence help in infusing discipline. In this way it may suppress the haunting psychological weaknesses in traders over a period of time. 🚩There are some traders who have used indicators and made money while most of the others have given up on indicators and made money by trading price action only. In my opinion one should always give it a try before giving up. It will surely add to one’s knowledge. I am not too much in favor of indicators but one should always try to discover new things for creativity. I hope it helped. Thanks for reading 👋
NSE:NIFTYEducation
by Bravetotrade
7
Why Most Traders Fail? Practical ReasonsAs per my personal experience the following are the most primary reasons for failure in trading - applicable to all types of new traders and all the markets. Well! this is not an exhaustive list but the most reasonable one. 🚩 No Plan of Action Trust me on this one, most traders fail to build a plan of action and fail. It is not only true for new traders but also to those who have been in this market for several years. Even if the latter have ever formulated such a plan, they would have never executed it with dedication. A couple of failures and all planning just vanishes in thin air. The trader needs answer to the following questions: What to trade? How much to trade? When to trade? Why to trade? Is it for intraday or swing trade? How much is the risk? Is risk tolerable? Is risk reward ratio favorable in this trade? Is the trade in the direction of primary trend or against it? If he answers all these questions in advance, he will not have to regret after entering the trade. This would also bring confidence 🦾 in him. 🧐 Tip Seekers New entrants would always look for tips from friends, business channels, broker or paid service providers. I don’t want to get into how this tip system works but I have never seen any tip seeker to be a successful trader. Rather I have seen many traders who lost their entire capital, even before their paid subscription was over. The harsh truth is that there is no shortcut to success in trading. Even seasoned traders have to work hard for making money. So, learning 👨‍🎓 is the first step for novice traders to approach what they seek. 🤑 Get Rich Quick Policy Everyone wants to be rich overnight so that he doesn’t have to work for the rest of his life. This attracts traders to buy penny stocks. What is more attractive than anything, with these stocks, is the quantity that can be bought. A larger number of shares with the available capital. The other thing is profit potential. Buy at 2 and sell at 4, money doubled overnight. Unfortunately, that doesn’t happen very often. Traders buy such stocks for day trade or swing trade but then they keep it for years for one simple reason that these stocks never attracted large portfolios, for some valid reason. For such traders, investment in a sound company would have been a better option 😆 Another very popular instrument which lures traders and has the potential to destroy a trader’s capital at much faster pace is 'Options', especially weekly index options. I have seen people at broker’s floor loosing millions in just few minutes. New traders should stay away from Options and always start small, may be in cash segment. 🥵 Overtrading Overtrading works like a currency shredder machine. Whatever goes in, never comes out in one piece. Its a very common practice among tape readers or those who trade on one-minute chart or less. Remember that you can either take one trade in a day or you can take 50 trades in a day. If you lose the former at tolerable risk, it would not harm your capital much. But if you make small profit after 50 trades, consider it a loss due to costs involved. If you are unable to control this habit, then just start shifting to a higher timeframe after taking the trade. It will help. 🚦 Inconsistency Say you have a plan but you are not executing it on every single trade. Your plan was to take a 1:2 risk-reward trade but sometimes you are taking 1:1 while the other times 2:1. A consistent trader would have a back-tested plan that he executes daily on every trade that he takes, no matter if that’s for a small profit every time. The trader needs to show some consistency in making small money every day/week. If he is consistent in it, then he can increase his position size for more profits and so on. All the above reasons combine together to develop indiscipline. But if you will take care of the above habits, one at a time, as discussed then rest assured that you are on the right track. Thanks for reading. I hope this was helpful 😉 Keep liking and comment for more such posts in future.
NSE:NIFTYEducation
by Bravetotrade
49
Circadian Rhythm For TradingHello traders 👋 how are you? As we know it is not just chart analysis or strategies that bring success in trading but there are other physical-psychological 🦾 factors also that silently act in the background and can enhance trading efficiency. In this post I have tried to throw some light on the daily schedules ⏰ that can help traders to improve their trading performance ✈ ✅ After-Market Slow Down 😌 >>Traders burn their veins watching every single candle and every tick on the chart. This leads to eye strain as well as brain fatigue. >>A two-hour rest after the market close is essential to rejuvenate yourself for family keeping. ✅ Evening Preparation 👀 >>Its difficult to search and plan your trades during live market. Therefore you need an hour or so to look into your charts, before supper. >>You may take help of screeners or shuffle through every chart on your watchlist to plan your trades. ✅ Deep Slumber 😴 >>Sleeping improves memory, boosts immune system, strengthens heart and increase productivity. >>For having a sound sleep of 7 hours or so, stay away for your mobile and laptop screens after 9 O'clock. Spend quality time with your family and kids. ✅ Overnight Adaptations 🙃 >>Wake up early and move out in the fresh air if possible. >>Do some jogging, stretching, exercising. >>After morning activities, watch out for any change in sentiment that happened overnight due to western markets and see if you need to modify your plans. ✅ Meditation 👼 >>Now that everything is almost done and there are still 15minutes or so in the market open, just sit in a relaxed physical state and concentrate on your breathing. >>Meditating this way for a few minutes may help for more effective execution of your plans. ✅ Plan Execution 🤺 >>The market opens and its now time to put your plan into practice. >>If your analysis was correct, there should not be any hesitation in executing your trades. >>Always mind trade management and risk management. Thanks for reading. Hope this was helpful!! Do like and comment for more such posts in the coming days 🙂 Bravetotrade
NSE:NIFTYEducation
by Bravetotrade
9
Control emotions during tradeIt is very important to control your emotions during trading, human emotions are a big hurdle in trading, you can not maintain discipline if you can not having control on your emotions. Without discipline you can make money in market but you can't retain it. Here is 5 things you can adopt to improve your trading skill and control emotions. SET ALERTS : we use to watch market continuously and during watch we see so many trades which we should not take, it disturb our trade filtration and also affect out trading phycology, we should wait for our levels and what our set strategy giving trade not to enter early or fake trades, you should set alert according to your levels,chart pattern,breakout or breakdown, any of your trading strategy you are using, there is no need to watch screen constantly in this free time you can also paly any indoor game to keep you mind refreshing and active, once your price alert hit come up on screen then you can go with your trade. VOLATILE HOUR : some time we find trades in sideways or less movementing market and it face us stop loss, no movement or very small target, it's better to took any trade in volatile hours so that trade can exactly work according to your strategy try to avoid trades which are generating in less market movement. Generally Indian market movement is 9:15 to 9:30 very volatile 9:30 to 10:00 volatile market 10:00 to 11:30 stable market 12:00 to 2:00 correction/stable/new/global market 2:30 to 3:00 volatile 3:00 to 3:30 last volatility NEVER WATCH YOUR PROFIT & LOSS DURING TRADE : when we see running profit loss in dmat it automatically affect psychology of trade and we start convening our self for exit, same side in profit and and loss also some time we more think to hold that trade either to exit. we should took trade and either to see p&L we should watch only price and exactly exit according to our strategy do not exit too early do not exit too late if you took that trade according to your pattern, technical any strategy then you should also exit according to that strategy. watching price in compare of P&L helps a lot for long run. STOP AFTER THREE CONSECUTIVE WINS OR LOSSES : it is very important to stop at a point every day in trading, if you did 3 trades either continuously wining trade or loosing trade, at this point you should stop your trading for the day. market is not for one day it will open again next day with same things. do not excited in profit and also in loss, if it was bad day not a problem close your terminal come again next day with fresh mind do not influence your fresh trade with old one . TAKE BREAKS : taking break in trading is very important to keep your mind happy active and fresh every time, as just we do keep our personal and professional life separate, do not mass up one with other. take your self out on weekend do not think about your regular profit and loss take proper break that you need.
NSE:NIFTYEducation
by ProfitPicks
3
Learning Stages in TradingIn my opinion learning in any field is connected to the "Four stages of Competence" and trading is no different. This post also answers why most traders lose in the stock market. Following are the four stages which every trader has to pass before attaining success. Unconscious Incompetence ---------------------------------- This stage belongs to the newbie traders who ignore all the knowledge part. They don't think that they need any kind of knowledge to make money. Their greatest desire is to make money in shortest possible duration so they rely on tips/news for trading. Ultimately they lose and i think more than 50% traders quit at this stage only. Conscious Incompetence -------------------------------- At this stage the trader realizes that ignorance is not a bliss. He has already lost in the markets so he thinks that may be he lacks knowledge. He starts reading books; attends online webinars; and attend courses/classes. Although he is gaining knowledge yet he confused with tons of indicators and strategies etc. He still loses because due to these confusions their is no solidarity in his plans. He has got a poor risk appetite. His ego of being right and urge to win every trade widens his losses. I think less than 30% traders survive up to this stage. Conscious Competence ------------------------------ Finally after so many losses the confusion leads to simplicity. The reader gets more systematic with setups and all, but still struggling with psychological issues like fear, greed, lack of discipline, insufficient capital etc. At this stage, I suppose 85% traders would lose their entire capital and give up scolding themselves for choosing a wrong career. Left with less than 15% traders. Unconscious Competence --------------------------------- A very few who reach at this stage and still left with funds make money from money. Trading selective setups becomes an involuntary action for them. They have realized the hardest truths of trading so psychological hurdles disappear from them. They belong to that <10% successful traders. Which stage do you belong? Do write in the comment section. Keep liking for more interesting stuff in the coming days.
NSE:NIFTYEducation
by Bravetotrade
57
LIFE OF A NOOB TRADERHello !! Welcome to the trading psychology of a noob trader. We all know most people lose money in stocks as they do not have a proper idea about investing and invest randomly in any stock without looking technically or fundamentally. In order to stay in the market, one needs to be patient and hold the horses when the market dumps as nothing goes down forever. Most of the new traders buy stocks that are overhyped and when it starts dumping they sell them rather than accumulate more of them. In the long term, the market eventually goes up and one needs to know the law of compounding and invest more when the market dumps but the opposite happens and they lose out on their capital. The poorer get poor and the richer get richer as they have mastered the secret of long-term compounding. Invest Early and slowly !!
NSE:RELIANCEEducation
by ScramblerG
Trading -- Five Common Psycho-HurdlesFear of Missing Out ------------------------ You missed a great opportunity yesterday. You take it as a mistake and don’t want to repeat it. So, today you enter in a hurry, deviating from your edge/strategy thinking that you will nail it this time. But that might not be the case. Missing an opportunity, because it was not in-line with your back tested strategy, was perfectly fine. You were still following the right path. But after missing a couple of rallies, you decided not to miss the next one. This leads to disaster. If you are missing too many opportunities and want to deal with it, then think of modifying and back testing your strategy. Revenge Trading --------------------- You take a long trade in the morning and stopped out in the just 15 minutes. You don’t digest this loss and want to recover quickly. So, you not just reverse your position but also double it. In the next candle market again stops you out, multiplying your losses. Your first loss was still ok to bear with. But reversing and doubling was an absolute blunder. If you enter into a position as, per your edge, and got stopped out then consider it as a drawdown that one can face in any strategies. There are no peak without a valley. If you miss a valley, you will surely miss the peak too. Greed Entering your Mind -------------------------------- “If you do not book profits, you will book loss.” You need to define two things while trading: risk involved and potential gain. If you have taken a trade and its not in favor, just do not average to bring down the cost. This oversize your position and eventually multiplies the risk. Also, if you have set targets (price target or profit amount target), just exit (at least partially) there. Taking out profit from the market is of utmost importance as this is the prime objective of this business. Waiting for too long, when in profit, may bring you back to breakeven in a volatile event. But if your strategy says to trail a profitable position, its perfectly fine to do so as you will be locking your profits. Paper loss is Not Real --------------------------- Suppose you entered a trade at 500 and your stop loss is 490. The stock starts turning down and your PnL is in red. The stock is at 492 but your brain says its loss. This impression is so powerful that you could not stop yourself from closing the trade. You placed the SL as per your plan. Any loss that you see before your SL hits is just a paper loss. You SL defines your real loss. Lack of Discipline ---------------------- All the above hurdles result into lack of discipline, which stops you from being profitable. You have to have a strategy/edge in the market with some back testing. Then you need to strictly follow that edge. You may tinker a bit with your edge if it is needed. Discipline is nothing more than religiously following your plan of action. Putting efforts to train your brain against all the above psychological hurdles can make you a disciplined trader over a period of time. There might be more psychological hurdles but I think these are the crucial ones to deal with. Do like and share for such posts in future.
NSE:NIFTYEducation
by Bravetotrade
48
The Rising Wedge PatternA rising wedge is a bearish pattern when it appears at the top of a mature uptrend. It signifies that a potential top might be in the offing. The duration (short/medium/long term) of the top depends upon the timeframe on which it appears. Preconditions ------------------ > A strong mature (multi-day/week)trend in the background > Wave HH1 to be extremely smaller than H > HH2 should be smaller than HH1 > HH-HL structure results into a rising wedge or arrowhead > It should appear at the potential top of a rally > Wave LL has to be snappier/abrupt/faster than wave HL & L Volume characteristics ---------------------------- > The volume in HH1 is generally less than volume in wave H > Volume in HH2 is less than volume in HH1 > Volume in wave LL should be higher than volume in wave HL and L Confirmation ----------------- > Wave LL breaks the low of wave HL Psychology -------------- > Weak character of waves HH1 & HH2 with shortening of length and lesser volume means buyers are not interested at these levels > Breakout buyers trapped above H and HH1 > Sharp wave LL with increasing volume suggest that sellers are taking over and a potential medium to long term top may be in place Trading --------- > Book profits full/partial, in any long position, at the break of HL > Risk takers short at the break of HL but risk in may be large as stop loss (above HH2) could be wide > Other may wait for a pullback on the upside (after break of HL); price often reverts back to average prices where short position can be taken > Always try to minimize risk, either by reducing position size or otherwise Do not forget to like/comment/share for more updates in future. Thanks for reading
NSE:NIFTYEducation
by Bravetotrade
28
TRADING A GAME OF PROBABILITYTRADING A GAME OF PROBABILITY We know that market has random movements; the pattern behaved in the past cannot behave exactly the same next time so in a random market environment there are so many external factors that can affect the outcome of the trade, a trader cannot know all those factors. What you know is your EDGE (your strategy) which is certain in an uncertain market environment, If your edge has a positive outcome you can produce a consistent result in a random environment. HOW TO PRODUCE CONSISTENT RESULT IN A RANDOM ENVIRONMENT An event that has a probable outcome can produce consistent results if you have the odds in your favor and there is a large enough sample size. (a series of trades generated by your edge). You have to think in probabilities and take every single trade which meets the criteria of your system (your edge); you don’t know the outcome of any trade before taking the trades (you don’t know which trade is going to be a winner or loser) unless you know a way to travel in time so, you cannot select between the trades you have to play all. Every event is independent of the previous one. If your last 2 trades are loser doesn’t mean next will also be a loser, because markets are random and you can make consistent result if you have odds in your favor.
NSE:BANKNIFTYEducation
by SANJAYPATIDAR_
2
POSITION TAKING TECHNIQUESScale In: means buy more shares as the stock progresses in your direction. Its better to buy 50% position initially and then buy 33% and 17% as the trade favors us. One may also buy in three equal parts of 33% each. Scale Out: means exiting from a profitable position in pieces. Its better to sell 17%, 33% and then 50% to take the full profit potential of a trade. Some traders prefer to sell in three equal parts of 33% each which is perfectly fine. Average In: means adding more shares into a losing position. All In - All Out: means buy all shares in a single trade and then sell all of them in one trade while taking profit. Its a good practice to trail stop loss as the first part of profit is booked. Generally its not preferred to average in a losing position but its still a very common practice among retail traders. I hope this information will be useful for some traders/investors. Regards
NSE:NIFTYEducation
by Bravetotrade
6
HOW TO DIVERSIFY | WHY ITS IMPORTANT NASDAQ:NATI WHAT IS DIVERSIFICATION ? WHY ITS IMPORTANT Diversification means distribution of your capital and investments in different assets classes. Why its important you ask ! 1. It reduces of Risk of overall Portfolio. 2. It provides you option to invest in multiple opportunities. It is very much possible that what you invest might not work and what you not selected makes big returns. So If you diversify you can catch broader market opportunities. 3. It helps you to bet small. Reduce the changes of 1 Big loss or 1 bad decision to Ruin your overall Portfolio or damage your returns badly. 4. Small Size helps you make calculated risk and return decision. You are most likely to make right decisions cut losses small and thus keeping drawdown with in recovery limits. Overall it helps you to make good returns with good decisions not just luck or gamble. Keeping you safe and building you safe solid trading practices especially when you are new in the markets. So if its so important then. HOW TO DIVERSIFY PROPERLY How do we do it. It depends on your few factors you can consider before investing. 1. 1st of all on your Risk Tolerance and Reward expectations. Decide if you are high risk taker or keep it safe guy. Decide accordingly. But generally Keep your open risk less and 10-20% max at any time. 2. Invest in safe asset class for safety and some in High Risk Reward assets like stocks crypto and other opportunities . 1 Rule is Decide according to your age. if you are 20 invest 20% in Debt and 80% in Equity. 3. Keep your High Risk unregulated investments less than 5%-10% max. Dont go all in in Crypto. 5% -10% in Enough. But thats my opinion. Decide yourself for you. So thats it for this Education Blog #4. Comment your thoughts. whats your experience. Thanks for Reading.
NEducation
by PRINCE-10
Trying to catch an ITC breakoutI tried multiple times to catch a breakout on ITC and it has had it's ups and downs. 1st position I built was on 1st June. I tried to be a little greedy with the possibility of a reward, chose Options. Bought 220 CE and ITC being ITC promptly retraced back below resistance, and pretty much wiped out the money in the position. The 2nd time I tried a month later when the pullback looked promising, and this time I went with a Future contract instead. It again fizzled out and I had to exit early as the Future position was naked and had started to bleed losses. The 3rd time I built the position the right way. I hedged my futures with just OTM puts, thereby capping the loss possibility. With the hedge margin benefit, I could open double the position and that offset the "loss" due to hedge. Once that was done, I was free to maintain and hold the position for as long as needed till a breakout did occur. Why was I confident about a breakout? Well ITC has been forming a multi year symmetrical wedge - with Lower Highs, and Higher Lows. Though this has an equal chance to break both sides, at a price point near 200-215 ITC is very fairly priced even for a consolidating market - and given the bullish market sentiment, quite underpriced comparatively. For now I am continuing to trail SL on ITC and for the medium term expect it to make an up move to catch up with the rest of the market. Learnings : 1. Stay away from naked options no matter how attractive they look . Though the rewards on Options looks awesome on paper, it is very very difficult to time a larger move correctly. More often than not, with a reversal you will quickly erode capital. Better avoid them to gain longer term rewards. 2. Always hedge your futures. You can in fact make more returns on a hedged position with twice the buildup, than you could with a naked single position - and you will still spend only half the margin requirement. 3. Be patient with your trades. Many a time we're looking for quick returns, especially if we're new in the market. The trick is to slow things down and look at the bigger picture. Make sure you limit your losses, and ride your winners for long - till they turn around decisively.
NSE:ITCEducation
by libinbond
1
TRIANGLE PATTERN BREAKOUT- HOW DOES IT WORK? NAVIN FLUORINE - A beautiful triangle pattern breakout. A symmetrical triangle had formed between the support and resistance trendlines. A minimum of 2 peaks and 2 troughs are needed for a triangle formation. A bullish breakout occurs when the resistance line is broken upwards by a green candle closing above the line. This is also confirmed by good volumes of stock traded. After the breakout, the script price usually retraces ( a setback before the rally). The previous resistance line for the script will now act as a support line. The maximum height of the triangle will usually be the first target. Fibonacci extensions to 2.618, and 3.618 can be 2nd and 3rd targets respectively. All the best! Happy trading...
NSE:NAVINFLUOREducation
by Stock-Holmes
3
THE JOURNEY OF A TRADER🎯 THE JOURNEY OF A SUCCESSFUL TRADER 📌This is very important to understand that a traders journey is not a pretty one. 📌It's filled with stress, highs, lots of lows and a lot of hours spent analyzing charts. 1️⃣ The start : HE/SHE Starts trading with the capital 2️⃣ Initial win / Euphoria : Beginning of an excitement for initial win without knowing what has actually happened, even though made some profit luckily or unlikely. 3️⃣ Losses / Slowing down / Low traction : After making some profit started betting all the money without having an idea of proper risk management and losing all. And started complaining about the market. 4️⃣ Pivoting / Drifting and Starts learning (The actual Journey) : Its never too late to start learning. Starts learning the art of trading and doing it properly this time. 5️⃣ Quit or continue : Confused whether to quit or continue. 6️⃣ Start working : Decided to not to give up and starts working harder this time. 7️⃣ Gaining Momentum : Every thing goes good and started to know about the market. Gradually getting to know the tricks, institutional behaviors, where to buy where to sell and when to exit. 8️⃣ Breakeven : Almost there. This is where traders will be in the line of no profit no loss point. 9️⃣ Consistency and Maturity in Trading : Following discipline with the perfection of trading, Traders starting to gain consistency. Even gaining few a bucks consistently over a period of time what is matters the most. 🔟 Success : Now success is not that simple for a trader, He / She had to go through all the struggles, obstacles, Ups and Downs and with the passion for trading.
NSE:BANKNIFTYEducation
by PriceAct-fugazitrader
6
📚 Leveraged & Margin Trading Guide + Examples ⚖️ Leveraged trading allows even small retail traders to make money trading different financial markets. With a borrowed capital from your broker, you can empower your trading positions. The broker gives you a multiplier x10, x50, x100 (or other) referring to the number of times your trading positions are enhanced. Brokers offer leverage at a cost based on the amount of borrowed funds you’re using and they charge you per each day that you maintain a leveraged position open. For example, let's take EURUSD pair. Let's buy Euro against the Dollar with the hope that the exchange rate will rise. Buying that on spot with 1.195 ask price and selling that on 1.23 price we can make a profit by selling the same amount of EURUSD back to the broker. With x50 leverage, our return will be 50 times scaled. With the leverage, we can benefit even on small price fluctuations not having a huge margin. ❗️Remember that leverage will also multiply the potential downside risk in case if the trade does not play out. In case of a bearish continuation on EURUSD , the leveraged loss will be paid from our margin to the broker. For that reason, it is so important to set a stop loss and calculate the risks before the trading position is opened. ❤️Please, support this idea with a like and comment!❤️
OANDA:XAUUSDEducation
by VasilyTrader
3
CONFLUENCE TRADING | YOUR KEY TO ACCURATE ENTRIES 🥇 If you are struggling with the identification of accurate trading entries, you definitely should try confluence zones . Note: there are hundreds of variations of confluence elements. In this example, we will discuss trend lines and Fibonacci. ❗️To identify a confluence zone, the price must follow a trend line (it should match higher lows if the market is bullish; it should match lower highs if the market is bearish). Once the trend line is confirmed by at least two touches and consequent reactions , you can look for a confluence zone. 1️⃣Project a trend line and identify the next POTENTIAL touchpoint of the market with a trend line. 2️⃣Take the last impulse in the direction of the trend. Draw a fib retracement based on it (swing low to swing high in case if the market is bullish, swing high to swing low in case if the market is bearish). 3️⃣Take the previous impulse (it must be in the same direction as the initial one). Draw a fib retracement based on it. 4️⃣Look for a match of retracement levels of the last two impulses and a projected trend line. In case if two retracement fib.levels & trend line match, you found a confluence point. 5️⃣ Apply it as a safe entry point. You will get a perfect trend following opportunity. ❤️ Please, support this idea with a like and comment! ❤️ ⬇️ Subscribe to my social networks! ⬇️
Education
by VasilyTrader
2
AN ADVICE TO THE BEGINNERS IN TRADING FROM A HARD WAY LEARNERLEARNING IS A PROCESS JUST WE ALL HAVE GONE THROUGH OUR SCHOOL DAYS. THANKS TO THE PARENTS WHO GIVE THEIR STUDENTS A TUTOR TO GUIDE. ELSE IF WE ALL HAD NOT TAKEN HELP FROM THE TUTOR . I DOUBT WE HAD LEARNT ANYTHING. TUTOR IN THE SENSE CAN BE SCHOOL TEACHERS, PRIVATE TUTION TEACHERS, OUR OWN PARENTS TOO. HENCE WE NEED AN ADVISORY HELP JUST LIKE A TUTOR TO HELP US IN ORDER TO SURVIVE THE MARKET IN THE BEGINNING DAYS. ELSE THERE IS A HARD WAY TO LEARN EVERYTHING. TILL THAT HARD TIME OVERS AND YOU SURVIVE THEN YOU CAN APPLY YOUR LEARNINGS IN YOUR PRACTICAL LIFE. I MEAN TO BUILD A SETUP OF YOUR OWN AND WHAT'S ITS WINNING PROBABILITY IS WHAT A BEGINNER OR AN INTERMEDIATE TRADER FAILS TO DEVELOP. IN THE EARLY DAYS, A BEGINNER TRADES AND LOSE THE MONEY ON A CONSTANT AND IN A REGULAR BASIS. BEFORE THAT I THINK THEY MUST FIND A MENTOR AND THEN GET INTO THE TRADING FLOOR. THERE ARE SO MANY ADVISORY WHO GIVES OR PROVIDES TRADE CALLS. DO YOU REALLY THINK THE ARE BOTHERED ABOUT YOUR LOSS OR PROFIT? DO YOU REALLY GET TO LEARN ANYTHING ? PROFIT OR LOSS SCREENSHOT DOESNOT MATTER HERE . WHAT MATTERS IS THE KNOWLEDGE OF THE MARKET. HOW MUCH YOU ARE LEARNING FROM YOUR MISTAKE. HOW CAN YOU CONTROL YOUR GREED AFTER CONSECUTIVE PROFITS. HOW YOU TACKLE YOURSELF AFTER 10 CONSECUTIVE PROFITS AND THEN A LOSS OF YOUR 5 DAYS PROFIT IN A DAY. CHANNELS SHOWING YOU PROFIT SCREENSHOT IS BASICALLY DOING THERE ADVERTISING AND EVENTUALLY YOU BECOME GREEDY. ITS A NICE TRICK TO ATTRACT CUSTOMERS. AS YOU ALL KNOW STOCK MARKET IS A BUSINESS NOT A CASINO. SO IF YOU SEE A SCREENSHOT OF 30 LAKH PROFIT THAT MEANS THE CAPITAL OF THAT PERSON IS NOT 50 THOUSAND OR HE IS NOT A RETAIL TRADER LIKE US. BASICALLY BE REALISTIC WITH YOUR GAINS . THERE IS A TERM CALLED PERCENTAGE. BANKS NOW GIVE YOU 5% (JUST AN APPROX) AS INTEREST IN A FIXED DEPOSIT SCEME SO WHY ARE YOU THINKING OF GETTING 100% OF YOUR CAPITAL FROM STOCK MARKET . MINDSET IS EVERYTHING. AS MR. RAMESH DAMANI ONCE SAID GIVE ME 1 CRORE AND I WILL GIVE YOU 10 LAKHS PROFIT. LOOK I THINK 10 LAKH IS A LOT SUM OF MONEY TO ME BUT WHAT HE TRIES TO SAY IS CALCULATE THE PERCENTAGE OF YOUR PROFIT TO THAT OF YOUR CAPITAL. I GUESS IT WILL BE FAR MORE THAT THE BANKS INTEREST WHICH THEY OFFER YOU. SO IF YOU APPROACH THE MARKET IN THAT WAY THEN YOUR PROBABILITY OF SURVIVAL IN THE MARKET INCREASES AND YOU HAVE A CONTROL OF YOUR GREED AND EVENTUALLY YOU WILL BE THE ULTIMATE GAINER. AFTERALL EVERYTHING IS A PROBABILTY GAME AND THERE IS A SURVIVAL OF THE FITTEST. LAST BUT NOT THE LEAST , THE GAME IS TO SURVIVE AND NOT WINNING EVERYTIME OR MAKING PROFIT. AT THE END REMEMBER ONE THING THE MORE YOU SURVIVE THE MORE MONEY YOU MAKE.
NSE:NIFTYEducation
by Shruti_Advisory
1
MARKEY CYCLES PSYCHOLOGY | EMOTIONS & COGNITIVE BIASES All markets go through cycles of expansion and contraction. 📈When a market is in an expansion phase (an uptrend), there is a sentiment of optimism, belief, and greed. Typically, these are the main emotions that lead to a strong buying activity. Sometimes, a strong sense of greed and belief overtakes the market in such a way that a financial bubble can form. In such a scenario, many investors become irrational, losing sight of the actual value and buying an asset only because they believe the market will continue to rise. They get greedy and irrational by the impressive bullish movement, expecting to make huge profits. As the market gets heavily overbought, the local top is created. In general, this is considered to be the point of the highest risk. In some cases, the market will start a sideways movement while smart money steadily sells the asset. This is also called the distribution stage. However, some markets don't present a clear distribution stage, and the downtrend starts sharply after the top is reached. ➖➖➖➖➖➖➖➖➖ 📉 When the market starts reversing, the euphoric mood can quickly turn into complacency, as many traders refuse to admit that the uptrend came to an end. As prices continue to fall, the market sentiment quickly moves to the bearish side. It often includes feelings of anxiety, denial, and panic. In this context, by the anxiety we mean the moment when bullish biased market participants start to question why the price is falling, which soon leads to the denial stage. The denial period is marked by a sense of unacceptance. Many investors keep holding their losing positions, either because "it's too late to sell" or because they want still believe that "the market will come back soon." But as the prices drop even lower, the selling wave gets stronger. At this point, fear and panic often lead to what is called a market capitulation (when holders give up and sell their assets close to the local bottom). Eventually, the downtrend stops as the volatility decreases and the market stabilizes. Typically, the market experiences sideways movements before feelings of hope and optimism start arising again. Such a sideways period is called the accumulation stage. ❤️Please, support this idea with a like and comment!❤️ ⬇️Subscribe to my social networks!⬇️
OANDA:XAUUSDEducation
by VasilyTrader
2