Trading in shares is a century plus old phenomenon. Initially, the number of investors comprised only a particular section of the society and this segment was not as crowd-pulling as it is today. The intricacies involved in trading in a share and the duration taken for transactions further hindered the growth of the Indian share market during those initial days. Besides, the paperwork involved and finding the right brokers added to the...more
In this article I will try to answer this question honestly. What you find may suprise you.The fact of the matter is; success at this "trading lark" is 90% dependent on the frame of mind you are in when you approach it. The methods of trading you use account for probably the other 10%. I use these figures loosely. There's no doubt that you need a good "system" of indicators and trading rules before you start but the final test, once...more
One of the things that you need to make sure is choose the right indicators. Without the right set of indicators it is highly likely that you would consistently be picking the wrong stocks to invest in and that in turn would make your loses more than your profits. Choosing your own indicators makes trading an easy process. Day trading indicators can help you add or reduce the impact of other traders at a particular point in time. Unless or until you are familiar with the techniques that other traders use you are not going to do well in the market. In order to be able to know about these techniques you need to be familiar with how the trade market works and what different types of day trading indicators to choose from. One way to increase the knowledge about the market is to study as much as you can from the material available in the market. You need to have a system that caters to your needs. You may come across information that is good for somebody else but not for you. This usually happens because your tools and day trading indictors would work different in your system as compared to the systems of other people. In order to be successful in this trading, you need...more
Securities trading in India is set to witness a sea change with the Securities and Exchange Board of India (SEBI) giving a nod to registered brokers, currently providing internet-based trading, for providing securities trading using wireless technology.Once implemented, the new form of transaction will give the investors the option to access a...more
In today's article we'll be exploring another dimension to risk while trading options. Most people only consider the mathematical probability of a trade, but as an option trader myself I always consider the "Comfort Zone." You may ask what is this so called Comfort Zone?The Comfort Zone is a place where I can relax knowing that my option position...more
In Mr. Arthur Koestler's book, The Act of Creation, he discusses the logic of laughter. I have recently written about Mr. John Cleese and his thoughts regarding humor and what is needed in order to be creative. Both men share similar ideas which can be applied to trading models and trading systems. Mr. Koestler states that humor occurs when there is, "the perceiving of an idea…in two self-consistent but habitually incompatible frames of reference." The "idea" here is similar to the main idea of our trading model and the frames of reference underlying the trading system. Successful and robust trading systems usually operate within various frames of reference, for example, two or more time frames, markets, or events. When we "get" a joke, we are usually relating the idea of the joke to two or more frames of reference. When we trade, we use various frames of reference for the trade to setup. But when we trade we always seem to use time as one of those frames of reference. It may be the time frame we choose to trade in, or the use of two or more time frames to setup the trade. I wonder if there is any way we can avoid the concept of time when we...more
I was recently scanning some performance databases of various trading systems and CTAs and noticed that almost all the tracking services have some form of a hot list. These were usually a list of the best performing systems or CTAs over a given...more
What is the oscillator?An oscillator is a technical indicator that tells at a glance whether a security currently trades in an "overbought" or "oversold" condition.What are the meaning of "overbought" and "oversold"?Overbought means the...more
Swing Trading is known as an approach which consists of the process of day trading. Stock traders currency departments and futures utilize this kind of method to make surplus amounts of revenue.Should you discover day trading quite...more
Having a trading plan is not going to make you a sudden millionaire. I mean, there are a dozen things that can possible be go wrong in the market, even with a plan, that a profit isn't exactly guaranteed. But then, it would be a lot easier if you can...more
Doji candlestick trading is most likely 1 with the simplest methods to make money with either stock or foreign exchange buying and selling. Trading systems based on candlestick charts could be simple to implement and yet extremely efficient.Doji...more
There is a natural desire, especially by beginning traders, to want to trade excessively. This is not difficult to understand. A day trader cannot make money unless he or she is in a trade; this is the general outlook of most novice day traders. But...more