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How to start a trading business

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Learning to trade stocks is like other businesses. It demands a lot of dedication as well as time and money. People take months or even years to get a grip over skill that is needed just like to be an engineer or a lawyer if you take an example. I have seen traders looking at trading as a hobby or a side project. but in reality you start thinking of it as a hobby. you will lose money continuously. Also, many traders put money earned from their job and lose , as they don't have any strategies to enter into a trade. Before making any strategies , some skills you need to develop before you actually jump into trading. I have categorized it into five parts, these are , 1.) Psychology : Trading psychology accounts for more than 90% of success , This is because people are generally programmed to do everything in a wrong  way. They have internal biases that seem to lead them to do the exact  opposite of what is required for success. In trading your beliefs , like mark...
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How to enter any trend ?

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In Trading , its often said that Trend is a Friend , in other words , you should follow the trend. So , I have a question in mind , When exactly to follow the trend  ? A trend usually starts after the completion of previous trend , or we can say when the previous trend finishes. According to my experience , its hard at the beginning to determine the exact starting point of the trend. Its not a big deal , we can follow the trend after the trend really starts. These are the two important points need to kept in mind 1.) Previous Context :  Generally, by looking at the previous context we can determine the                                        future price behavior like if the trend is strong (up , down) , very often                                        there i...
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What are pullbacks and why are they important ?

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Definition A pullback is a small pause from a previous trend in a stock or any other securities (index , commodities , futures ) etc. that occur within a continuing trend. Following is the chart , You can see initially the trend is downwards, 2 green arrow and a red arrow shows the pullbacks. Its clear that the pullbacks are in the opposite direction Importance of Pullbacks Pullbacks plays an important role in determining the future price points where the price will reach Notable Point : There are certain data points or prices that are crucial for entering into the trade , and making positions, so  data points  at the pullbacks are one of them. If you look closely to the second  green arrow ,  after this pullback , you can in future time frame around the red arrow and the two violet arrows , price follow floated around this pullback. At these points you will see some reversal of prices So its very important while you trade whene...
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How to know a trend is strong?

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Before coming to this question. Let put some light on basically what a trend is ? A trend can be considered as a series of data points that moves in a certain direction ( up , down , sideways ) over given time frame . A basic understanding of candlesticks is also needed :P A candlestick is a price chart that displays the high , low , close , open prices of a security for a specific period Now we know what are candlesticks are and what trend is , There are two conditions to determine if a trend is strong or not, 1.) The close price of previous time frame is equal to the open price of current time frame. And 2.) The body of the candlestick is bigger than the average size of the candlesticks. OPEN = CLOSE Below is the example , In the next blog , I will show where possibly the trend last or till when the trend continues. If you find my contents really interesting ,  Please follow my Youtube Channel :  https://www.youtube.com/channel/UCBlc...
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NIFTY ANALYSIS : 26th March 2020

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                                    Here is the Nifty 50 chart of 3 minute time frame. So, the first thing to needed to start analysis of charts is the opening ,closing price for tomorrow as well of today. We gonna discuss some important parts of trading that was observed today, 1.) Open Range Breakout 2,) Trading Range 3.) Fibonacci Retracement Levels OPEN RANGE BREAKOUT The opening range is the high and low of the given period and its mostly first 30 to 60  minutes. like here its 15 mins. The importance of this level is when the price breaks this range, it follows the trend for the next couple of sessions and its the best time to enter the trade. Today, the opening range was 8299 - 8468, after it broke 8468 level , reached to 8739 level. So it showed a movement of  271 points. So it was worth to enter after it broke mentioned level. TRADING RANGE Trad...
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