11.When to avoid the trading in stock market?
There is no doubt in that Stock market is a life
time business and we can participate in the
market five days in a week. But this is also
essential to know that we can't do trade all the
time, there is a time in market when we have to
just keep patience and have to just follow
the theory of watch and sit only.Lest
start to discuss about those scenarios
when we have to avoid the trading in stock
market. They are as follows:
1.Fundamental News:So many trader's don't
know about the fundamentals impacts, those
can be so much quicker some time and can
move the market within a very long way, as
far I know there is no correct analysis which
can be fully effective all the time on fundamental
events and that's why we have seen that trader's
start to work with Buy stop and Sell stop trading
method on news trading. But if you are a intraday
trader then better to wait for a while after the news
announcement, we can just wait for the right time,
means to say that when the high impact is already
finished then we can start to open our orders in
market, that's why I always take rest for 10 to 15
minutes when a new release in market.
2.Sideways Market:There are so many trader's who
love to follow the trend in short term time frames
but this is a market which can create so much
problem for then when they are following the trend
in short term time frames, this is mine problem also
I can't do much better trading when a sideways
market scenario is coming in front of me. I will
recommend trader's to use the technical analysis
during this time and always pay attention on
moving average indicator, because it can also
give you a very good idea about the trend market
and sideways market pattern.
3.All time high and Low breakout:This is a market
of stocks which can be called a uncertain market,
as we know that market is uncertain and some
market can cross the all time high and lower points
on charts, According to me most of time we read
that technical analysis is best to follow but in this
conditions its hard to say that which kind of result
we will get from the technical analysis, because
we are facing the first time this scene in the market
and can't say anything about the technical analysis
because there is no past to check this kind of pattern
on chart.
4.Continue Losses:Keeping patience and rest will be
also beneficial when a trader have continue losses
in account, so many time this happened to me too
but now I always close down my trades for the day
when I have 2 to 3% loss in my account. I think
this is one of the best method to control our psycho
-logy in forex market. When a trader is continue
losing then the emotion can force him to go against
the trading rules and he or she starts to work
with a revenge trading method, which is actually
not the right style of trading. But keeping ourself
away after the losses for a while will give us
a fresh mindset and planning again later to do
trade in stock market.
5.Psychology Control:Here I wand to add one more
thing that is the control of psychological aspects
in stock market. As I have discussed in earlier
post that emotion is very dangerous for trader and
it can burn our trading account very quickly if we don't
have a proper solution of its control. The main problem
is that emotion can lead to so many mistakes and
problems like greed, fear,aggresive trading, ignorance
of trading rules, etc. It can make trader blind and
make him or her worst any time here.So according
to me when we doing trading in stock market then
its important to know that we have a good control
on our emotions or not, and if we don't have than
better to forget about the earning first, and first
we should start to know and learn that how can
we control our trading psychogy in stock market.
12.How to Become a Successful Trader?
Well There is no proper answer for this
that how to become a successful trader
in stock market, but according to my
experience its depend upon our experience,
learning, practice, correction, dedication which
can make us successful trader in forex. There
are so many imporatnt factors upon which this
totally depend upon that which kind of trader
we are right now in this business. Some of them
I have already discussed above. But the main
point could be the understanding of the market.
Frankly speaking in first 4,5 years I have a very
bad experience in my life and I was feeling that
I was one of the bad trader on this earth, but
when I have started to learn things correctly
then I come to know that trading can become
easy for me if I have couple of good things in
my trading. Now I would like to discuss those
points with you they are as follows:
1.Trading Mindset:Or I can say that the
psychology control. This is really very
important to adopt the right psychology
in our business. You all can search about
it and read everywhere on the net that 80%
success come from the control of our
mindset. Shocked?
Yeah this is really true that if a trader
good trading mindset it mean he or she
have grabbed that 70% success already
in this business.Because by controlling
our psychology there will be no problem
of wrong management, fear, greed,
emotions etc in our trading.
2.Good management:A good use of risk
managemetn and money management are
also so much important to maintain a good
level of accuracy of earnings in our trading
account. You can see that when we don't
have the right management then most of
time risk can go higher and 99% of time
we have losses in account. But a good
management can lead to the margin money
and it can reduce the big loss in account
3.Strategy:Here is the last thing Our trading
strategy, 20% success is also depend upon
our trading strategy if we don't have a good
trading strategy then so many things can go
wrong. Like wrong entry and exit points, wrong
trading analysis, Regular losses and higher
drawdown etc. Using a good trading strategy
is really important to make a good use of
trading patterns in stock market.
Now this is the time so Share my Personal
trading strategy with all of you. I am sure
that most of you don't have any idea of these
strartegies because they are the hidden
ones and only a few percentage of traders
know about these strategies.I am working
with some of these strategies and getting
good success rate in my trading account
so far, last 2,3 year's I have a good consis
-tent gains in my account from these
strategies. Lets start to discuss some
of them.
1.Moving average Trading Method:
Moving average trading method is one
of my favorite trading method, in this
trading strategy I use SMA 8,SMA20
and SMA 200 moving average.
This is a trend following trading strategy
in which we have to follow the trend, even
this can be used for scalping, short term
trading and long term trading.
SMA8: This is helpful to know the short
term trend reversal on chart and can be
used to exit from the market during the
trading when a reversal shown on chart
SMA20:SMA 20 is one of the my favorite
moving average and very important and helpful
to know about the trend of the market. When
Market is above 20 SMA then I go for the buy
Now you all think that its simple like others
but no, here I am using so many other tactis
which making this strategy so much interesting
like Elephant bar, One single Red Bar, One
Single Green Bar, Three to Five Bar method,
Twin Tower method, Breakout method, VBS
and VSS trading Method, Climate Trading
Method, etc.The Same thing I am doing when
there is a sell call on chart.
SMA200: The Grand Daddy, SMA 200
is one of the powerful moving average to know
about the intra day major support and resistance
areas SMA 200 moving average help me a lot
to understand the Daily reversal, Daily high
impact zone area, etc.
So these three moving average are major parts of
my trading strategy, but as I have said earlier that
I am using so many other trading methods to make
a complete trading method for the right validation of
my signals. Now its time to show that how to use
SMA8,SMA20 and SMA 200 combination.Screen
short is Given below:
There is no doubt in that Stock market is a life
time business and we can participate in the
market five days in a week. But this is also
essential to know that we can't do trade all the
time, there is a time in market when we have to
just keep patience and have to just follow
the theory of watch and sit only.Lest
start to discuss about those scenarios
when we have to avoid the trading in stock
market. They are as follows:
1.Fundamental News:So many trader's don't
know about the fundamentals impacts, those
can be so much quicker some time and can
move the market within a very long way, as
far I know there is no correct analysis which
can be fully effective all the time on fundamental
events and that's why we have seen that trader's
start to work with Buy stop and Sell stop trading
method on news trading. But if you are a intraday
trader then better to wait for a while after the news
announcement, we can just wait for the right time,
means to say that when the high impact is already
finished then we can start to open our orders in
market, that's why I always take rest for 10 to 15
minutes when a new release in market.
2.Sideways Market:There are so many trader's who
love to follow the trend in short term time frames
but this is a market which can create so much
problem for then when they are following the trend
in short term time frames, this is mine problem also
I can't do much better trading when a sideways
market scenario is coming in front of me. I will
recommend trader's to use the technical analysis
during this time and always pay attention on
moving average indicator, because it can also
give you a very good idea about the trend market
and sideways market pattern.
3.All time high and Low breakout:This is a market
of stocks which can be called a uncertain market,
as we know that market is uncertain and some
market can cross the all time high and lower points
on charts, According to me most of time we read
that technical analysis is best to follow but in this
conditions its hard to say that which kind of result
we will get from the technical analysis, because
we are facing the first time this scene in the market
and can't say anything about the technical analysis
because there is no past to check this kind of pattern
on chart.
4.Continue Losses:Keeping patience and rest will be
also beneficial when a trader have continue losses
in account, so many time this happened to me too
but now I always close down my trades for the day
when I have 2 to 3% loss in my account. I think
this is one of the best method to control our psycho
-logy in forex market. When a trader is continue
losing then the emotion can force him to go against
the trading rules and he or she starts to work
with a revenge trading method, which is actually
not the right style of trading. But keeping ourself
away after the losses for a while will give us
a fresh mindset and planning again later to do
trade in stock market.
5.Psychology Control:Here I wand to add one more
thing that is the control of psychological aspects
in stock market. As I have discussed in earlier
post that emotion is very dangerous for trader and
it can burn our trading account very quickly if we don't
have a proper solution of its control. The main problem
is that emotion can lead to so many mistakes and
problems like greed, fear,aggresive trading, ignorance
of trading rules, etc. It can make trader blind and
make him or her worst any time here.So according
to me when we doing trading in stock market then
its important to know that we have a good control
on our emotions or not, and if we don't have than
better to forget about the earning first, and first
we should start to know and learn that how can
we control our trading psychogy in stock market.
12.How to Become a Successful Trader?
Well There is no proper answer for this
that how to become a successful trader
in stock market, but according to my
experience its depend upon our experience,
learning, practice, correction, dedication which
can make us successful trader in forex. There
are so many imporatnt factors upon which this
totally depend upon that which kind of trader
we are right now in this business. Some of them
I have already discussed above. But the main
point could be the understanding of the market.
Frankly speaking in first 4,5 years I have a very
bad experience in my life and I was feeling that
I was one of the bad trader on this earth, but
when I have started to learn things correctly
then I come to know that trading can become
easy for me if I have couple of good things in
my trading. Now I would like to discuss those
points with you they are as follows:
1.Trading Mindset:Or I can say that the
psychology control. This is really very
important to adopt the right psychology
in our business. You all can search about
it and read everywhere on the net that 80%
success come from the control of our
mindset. Shocked?
Yeah this is really true that if a trader
good trading mindset it mean he or she
have grabbed that 70% success already
in this business.Because by controlling
our psychology there will be no problem
of wrong management, fear, greed,
emotions etc in our trading.
2.Good management:A good use of risk
managemetn and money management are
also so much important to maintain a good
level of accuracy of earnings in our trading
account. You can see that when we don't
have the right management then most of
time risk can go higher and 99% of time
we have losses in account. But a good
management can lead to the margin money
and it can reduce the big loss in account
3.Strategy:Here is the last thing Our trading
strategy, 20% success is also depend upon
our trading strategy if we don't have a good
trading strategy then so many things can go
wrong. Like wrong entry and exit points, wrong
trading analysis, Regular losses and higher
drawdown etc. Using a good trading strategy
is really important to make a good use of
trading patterns in stock market.
Now this is the time so Share my Personal
trading strategy with all of you. I am sure
that most of you don't have any idea of these
strartegies because they are the hidden
ones and only a few percentage of traders
know about these strategies.I am working
with some of these strategies and getting
good success rate in my trading account
so far, last 2,3 year's I have a good consis
-tent gains in my account from these
strategies. Lets start to discuss some
of them.
1.Moving average Trading Method:
Moving average trading method is one
of my favorite trading method, in this
trading strategy I use SMA 8,SMA20
and SMA 200 moving average.
This is a trend following trading strategy
in which we have to follow the trend, even
this can be used for scalping, short term
trading and long term trading.
SMA8: This is helpful to know the short
term trend reversal on chart and can be
used to exit from the market during the
trading when a reversal shown on chart
SMA20:SMA 20 is one of the my favorite
moving average and very important and helpful
to know about the trend of the market. When
Market is above 20 SMA then I go for the buy
Now you all think that its simple like others
but no, here I am using so many other tactis
which making this strategy so much interesting
like Elephant bar, One single Red Bar, One
Single Green Bar, Three to Five Bar method,
Twin Tower method, Breakout method, VBS
and VSS trading Method, Climate Trading
Method, etc.The Same thing I am doing when
there is a sell call on chart.
SMA200: The Grand Daddy, SMA 200
is one of the powerful moving average to know
about the intra day major support and resistance
areas SMA 200 moving average help me a lot
to understand the Daily reversal, Daily high
impact zone area, etc.
So these three moving average are major parts of
my trading strategy, but as I have said earlier that
I am using so many other trading methods to make
a complete trading method for the right validation of
my signals. Now its time to show that how to use
SMA8,SMA20 and SMA 200 combination.Screen
short is Given below:
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