Marekt always try to remove weak hands. let it be a simple Trending move or bit Complicated structures like reversal or fake Breakouts. It'll always find a way. & It's the only thing we can rely 101% on markets to do so.
A small thread.
Kindly Share, 'RT' if u find it useful.
Apparently, these 'weak hands' like to call themselves as Conservative traders. I agree Capital Protection is utmost important. But, if a trader is getting pushed out in just a pullback or starts to panic when position goes bit out of favor, then problem is risk management. 2/n
Lot of New traders are getting attracted towards Scalping Nowadays. For obvious reasons of course. Faster moves, Faster Profits. I get it why. But, Do they really understand the implications that come with it & what it can lead to if not done right.
Scalping is a trading style that specializes in profiting off small price changes, generally after a trade is executed and becomes profitable or results in small loss.
Simply, Entering & Exiting a trade just to Encash a few points in favor.
Dec 15, 2019 • 10 tweets • 3 min read
#Thread
Hello Everyone, this is a Thread on Traps And Fake Breakouts..
Explained with most Recent Examples in BNF n TATAMOTORS.
How to Identify them..?
How to avoid Getting Trapped..?
When can Traps Occur..?
Share n RT if u find Value Addition in terms of Learning.
What's A Trap...??
A Trap is Basically a False Signal that gets generated at 'Obvious' & 'Common' levels of TA. It Happens when Price Breaks outs Above the resistance & Most traders Enter by Applying -a common TA Based strategy.
Nov 14, 2019 • 4 tweets • 2 min read
"Open Interest And Price Relation..."
Basics Of OI with Detailed Explanation in Charts.
All 4 Types Included...
Examples are Most Recent..
So, It Will Be Easier to Understand..
1) LONG Build-up
--> Increase in Price + Increase in OI.
Examples -- MUTHOOTFIN And INFRATEL.. 2) SHORT Build-up
--> Fall in Price + Increase in OI.
RT If u Find Any Value Addition to Your Trading..
Every Trader Goes through Phase of Overtrading at some point in his Career.
It's never Intentional, It's just a Psychological Reaction to a Series of Profit Or losses.
Nov 4, 2019 • 10 tweets • 2 min read
Role of Leverage in Trading.
Almost Every Trader Trades on Some form of LEVERAGE.
But, Most of the times, We fail to Understand the Nature of this Double Edged Sword.
Listing here Few Facts u should to understand If u Trade on Insane Leverage.
1) Every Broker Offers Some Leverage to trade with.
This involves lot of interest of a Broker. Bcz, The Brokerage will be Calculated for 'Total Turnover' Value of Trades. And Due to leverage, This will tend to Generate more Brokerage for the Broker.
Oct 23, 2019 • 12 tweets • 3 min read
"Stop Loss Hunting...."
Noticing So many Examples of SL Hunting Nowadays in Markets. So, Making a Thread to Explain it Best to my Abilities. Also Attaching most Recent Example in NIFTY from last week...
What Is SL Hunting...??
Stop Hunting is a trading strategy that involves triggering the SL orders of other traders in the market to trigger a 'Temporary High-Volatility Environment'.
Official Definition.
Oct 20, 2019 • 6 tweets • 1 min read
Execution is Simple. Whenever OI Unwinding Gets Started At the ATM, We'll know when OI Indicator takes a Dip and Premium Starts to rise Fast. That's Our Entry point. For Simplicity I've Added 9EMA for Chasing best Momentum Possible.
Two Parameters have to Be Fulfilled, 1) Significant OI Unwinding Should be in Lower TF. 2) Option Price should be above 9EMA. 3) Exit When Either one of Condition is Broken.
Oct 4, 2019 • 11 tweets • 4 min read
Sharing Another Strategy For 'Trading Breakouts n Breakdowns'.
Using and Back-testing this For a while. Will try to Explain it's logic simple way.
Posted for Educational Purpose. No investment advice.
This Chartink Scanner will Scan the stocks which are Trading above their previous 20 days Highs and Below previous 20 days low.
2/n
Please note, This post is for educational purpose only.
Anything written in here is not an investment advice.
3/n BNF OTM strikes of even 1000-2000 points gets traded actively just a day or 2 days before expiry. These buyers get butchered by sellers on expiry day.
Same thing happens with deep OTMs with NIFTY.
Sep 29, 2019 • 21 tweets • 7 min read
Sharing a GAPUP and GAPDOWN Strategy, which I've been Trading and back-testing for more than 6 months.
It's well known but I've made some modifications for simplicity.
I Hope it adds some value n insight to your trading.
chartink.com/screener/gap-u…
2) SHORT Build-up
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