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Showing posts with the label Technical Analysis

The Early Morning Intraday Trading Strategy -1

  Everyday a very similar pattern I have observed in the stock market, while market opening time. Generally, I follow a 2 min candle chart pattern. This is a bullish market pattern. If you can master this pattern, you can take a few trades and can make a lot of money. One more information I would like to provide you that it is an intraday trading pattern with a gap up stocks. You can trade in future, cash and option, which ever financial instrument you are comfortable with. As you know the key factor of any business is demand and supply, in this pattern we will try to observe that demand and supply zone after the first candle and with a gap up stocks. Criteria of the strategy:  The stock has to be a gap up stock. There will be a Hugh buying need to be observed during the first candle. The volume of the first 2 min candle has to be absurd (example: 3 million, 6 million, 1000k or higher but it should not be in 100k or 200k.) the stock should be shown up about more th...

Important Money management Concept for Traders

All profitable trader follows a strong money management rule. Nowadays most of the traders think that money management means Risk to reward ratio only. But money management actually having a lot of components including Risk to reward ratio. If a trader does not follow a strong money management rule, he cannot grow his money in a significant way. Money management have the following components. 1. Capital allocation for different type of trading (intraday, swing and investment) 2. Account size or Total capital.  3. Risk per trade. 4. Position sizing. 5. Increasing the position sizing. 6. Incremental buying or selling (Pyramiding) 7.  Leverage for the Trading system. If you understand the above seven money management rules, and if you can implement it correctly, I think you will become profitable sooner or later and which will make you wealthy eventually. 1. Capital allocation for different type of trading (intraday, swing and investment):   Many traders th...

Grab easy Money from stock market

The easiest way to make money from trading is easy money capturing strategy. You may already know that the market is mostly volatile, unpredictive and sometime trending in nature. Most of the traders try to capture money form the market most frequently and without doing the analysis, that’s actually makes them too loose more money in the market. However, trading is all about waiting for the right time to take the right trade. 80% of the time you just have to seat calm and just to watch the market so that when you get any opportunity, you can capture that and make as much as money you can. Most of the Traders try to capture money from all kinds of market, in my opinion it is not correct. Firstly, you need to understand the nature of the market first and the day (if you are doing an intraday trading). The nature of the market depends on the geo political situation and the financial stability and last year/month and days performance as well. All the markets are connected from investors ...

Time bounded movement

The most important aspect of day trading is time. If you have knowledge on correct market timing and correct trading hours according to your personality, you will become successful eventually. Most of the traders do not give value to time and think that they can make money all day. Sitting long hours in front of computer screen (stock market) will make you exhausted and impatient. You are bound to take wrong trade if you do not understand the nature of the market, as per your preferred and suitable time. You need to wait for the right moment and for the right trade. If you are able to do so.......Bang on..... Let just slice the timings of the markets in few pieces. Pre-market:   Pre market starts at 9:00 AM and ends at 9:07AM. Experienced players puts their bets on pre-market. at 9:08 AM. You will be able to see all the opening prices, sectoral and index movement after the pre market. You will also be able to know if the market will flat, gap up or gap down. Next 7 minutes mark...

Timeframe , Chart set up and Trend duration

Chart set up is one of the important aspect of trading. You can be an Intraday trader, Swing trader, Future or Option trader, but setting up the correct chart is the key to your success. In broader spectrum, it has been seen that traders generally follow, 1min, 2min, 5 min, 15 min, 1 hour, 4 hours, 1day, 1week and one-month candlesticks charts. However, the current market price is same for all of the charts, but the position of the price is different in different timeframe. Traders try to find out the value of the price in different timeframe. Trend of the price plays an important role for profitable trade in this aspect.  Generally intraday traders and scalpers follow 1min, 2min, 5 min, 15 min, 1 hour candlesticks chart pattern and Swing Traders follow 1 hour, 4 hours, 1day, 1week and one-month candlesticks charts. Traders also uses indicators on top of these charts to get a perfect indication about buying and selling. As we all know that all the indicators are visual effects of...