Monday, July 19, 2010
How to Choose a Forex Broker Overview
Choosing a Forex Broker :
If you are thinking about becoming a Forex trader then you will need to work with a broker. There are very many brokers in existence, and it is important to work with the right one – so how do we go about choosing a good one?
We can gauge the quality of the service offered by a particular Forex Broker by examining four different criteria.
Reliability
To know whether a company is reliable or not you need to look at things like the number of years they have been in operation. If they have been around for a long time then it is likely that they have experience and a proven track record. Another good indicator of reliability is to check whether the broker is registered with the appropriate regulatory bodies in their country – in the UK it would be the FSA. If the firm is a member of a body such as the FSA then this indicates that they have to adhere to certain standards and codes of practice.
Spreads and Leverage
Take a look at how low the spreads are. If a broker has a solid and stable foundation, and is well established with the major banks then they will be able to offer much lower spreads. If a broker offers high leverage then you will have to deposit less money with them.
Tools and Resources
A good broker will have a range of research tools and information resources available for their clients. If you can see that the company has clearly invested time and money into what it offers its clients then you can have confidence in them as a serious business entity.
Technical Support
Make sure that there is constant access to help and support available to you. Bearing in mind that the Forex market is traded 24 hours a day, you want to know that if you have a software problem at any time of the day and night you can access the assistance you need.
Once you have established these basics, then it is time to dig a little deeper and ask some more specific questions about the service on offer. Examples of things you might want to know include:
Does any part of the spread go to anyone outside of the firm? Sometimes there is an agreement by the broker to pay introduction fees or affiliate sales agents a percentage of your trading activity.
Will you be subject to trading restrictions around the time of news announcements? This is the case with some firms so make sure you are aware of the policy.
Find out more about the spreads, specifically whether they are different according to the size of the ticket? Also find out whether all clients are offered the same spreads? Does the broker offer any rebates or volume discounts? What are the typical spreads for the various currency pairs?
Something else which is useful to check out is to see whether the firm has a discussion forum for their clients. If they do and the forum postings are open and uncensored this can give you an excellent indication of what it is like to be a client of this broker.
Most brokers offer a demo account facility which will enable you to try out the service without risking your own money. You need to check if it is different to the real account in terms of functionality, available spreads and execution.
If, having checked all of these points, you feel happy with the service being offered, check how much you need to open an account and go ahead! Once you have found a good broker you are well on your way to success in the Forex market
If you are thinking about becoming a Forex trader then you will need to work with a broker. There are very many brokers in existence, and it is important to work with the right one – so how do we go about choosing a good one?
We can gauge the quality of the service offered by a particular Forex Broker by examining four different criteria.
Reliability
To know whether a company is reliable or not you need to look at things like the number of years they have been in operation. If they have been around for a long time then it is likely that they have experience and a proven track record. Another good indicator of reliability is to check whether the broker is registered with the appropriate regulatory bodies in their country – in the UK it would be the FSA. If the firm is a member of a body such as the FSA then this indicates that they have to adhere to certain standards and codes of practice.
Spreads and Leverage
Take a look at how low the spreads are. If a broker has a solid and stable foundation, and is well established with the major banks then they will be able to offer much lower spreads. If a broker offers high leverage then you will have to deposit less money with them.
Tools and Resources
A good broker will have a range of research tools and information resources available for their clients. If you can see that the company has clearly invested time and money into what it offers its clients then you can have confidence in them as a serious business entity.
Technical Support
Make sure that there is constant access to help and support available to you. Bearing in mind that the Forex market is traded 24 hours a day, you want to know that if you have a software problem at any time of the day and night you can access the assistance you need.
Once you have established these basics, then it is time to dig a little deeper and ask some more specific questions about the service on offer. Examples of things you might want to know include:
Does any part of the spread go to anyone outside of the firm? Sometimes there is an agreement by the broker to pay introduction fees or affiliate sales agents a percentage of your trading activity.
Will you be subject to trading restrictions around the time of news announcements? This is the case with some firms so make sure you are aware of the policy.
Find out more about the spreads, specifically whether they are different according to the size of the ticket? Also find out whether all clients are offered the same spreads? Does the broker offer any rebates or volume discounts? What are the typical spreads for the various currency pairs?
Something else which is useful to check out is to see whether the firm has a discussion forum for their clients. If they do and the forum postings are open and uncensored this can give you an excellent indication of what it is like to be a client of this broker.
Most brokers offer a demo account facility which will enable you to try out the service without risking your own money. You need to check if it is different to the real account in terms of functionality, available spreads and execution.
If, having checked all of these points, you feel happy with the service being offered, check how much you need to open an account and go ahead! Once you have found a good broker you are well on your way to success in the Forex market
Watch Free Forex Indicators Overview
Forex Indicators :
Forex indicators are secondary to trend analysis, which means their signals should be used to trade in the direction of the prevailing trend. There are around 99 different indicators available to traders, which are divided into two main types, namely leading and lagging. It is virtually impossible for all of the indicators to agree with one another all the time, so you need to learn which ones are the most important
Leading Indicators
Leading indicators are those which are believed to change in advance of changes in the economy, giving you a preview of what is going to happen before the change actually occurs. Regardless of their accuracy, leading indicators are helpful because they give an early warning of impending trouble. These leading indicators are used to find a breakout into an upward or downward trend and are often meant to identify reversals. Although the leading indicators are useful for forecasting turns, advance warning may be short. Two of the most well-known leading indicators are the relative strength index (RSI) and the stochastic oscillator. When leading indicators are understood, they can often be used to predict and affect outcomes.
Lagging Indicators
Lagging indicators are economic indicators which don’t usually move until after the economy has moved in a certain direction. Regarded as more useful during trending periods, the most well-known lagging indicators are the moving averages and bollinger bands. Governments produce certain lagging indicators such as the unemployment rate, business expenditures, labour cost per unit, loans outstanding, bank interest rates, and book value of manufacturing and trade inventories. Also known as momentum oscillators, these lagging indicators are observed as a way of confirming trends. Because they react rather slowly to economic change, they have no predictive value. They are things that have already happened so represent the current state of affairs and can confirm and verify long term trends. The downside of lagging indicators is that they are generally quite late and have been described as being like looking in the rear-view mirror.
One of the best indicators used within forex trading are Bollinger Bands, which were invented by John Bollinger in the 1980s as a technical analysis tool. They are widely used by Forex traders as an indicator which compares volatility and relative price levels over a given period of time. Most charting systems incorporate the use of Bollinger bands and are useful when used in conjunction with other types of indicator. Based upon a simple moving average, they can capture the vast majority of price movements and are one of the most recommended indicators to utilize for forex trading. For a more in depth look at Bollinger bands, John Bollinger has written a book “Bollinger on Bollinger Bands”, which has been translated into seven languages.
Forex indicators are usually included as part of any charting software that might be available from your broker. This type of service is normally subscription based so you should establish what is included in your package before shelling out. Most brokers offer a demo account and/or trial period for the charting software so you can try out the service to see if it is for you. There are free forex indicators available on the internet, however these are often of dubious quality and are often linked with websites that want to bombard you with lots of not very useful information.
Forex indicators are secondary to trend analysis, which means their signals should be used to trade in the direction of the prevailing trend. There are around 99 different indicators available to traders, which are divided into two main types, namely leading and lagging. It is virtually impossible for all of the indicators to agree with one another all the time, so you need to learn which ones are the most important
Leading Indicators
Leading indicators are those which are believed to change in advance of changes in the economy, giving you a preview of what is going to happen before the change actually occurs. Regardless of their accuracy, leading indicators are helpful because they give an early warning of impending trouble. These leading indicators are used to find a breakout into an upward or downward trend and are often meant to identify reversals. Although the leading indicators are useful for forecasting turns, advance warning may be short. Two of the most well-known leading indicators are the relative strength index (RSI) and the stochastic oscillator. When leading indicators are understood, they can often be used to predict and affect outcomes.
Lagging Indicators
Lagging indicators are economic indicators which don’t usually move until after the economy has moved in a certain direction. Regarded as more useful during trending periods, the most well-known lagging indicators are the moving averages and bollinger bands. Governments produce certain lagging indicators such as the unemployment rate, business expenditures, labour cost per unit, loans outstanding, bank interest rates, and book value of manufacturing and trade inventories. Also known as momentum oscillators, these lagging indicators are observed as a way of confirming trends. Because they react rather slowly to economic change, they have no predictive value. They are things that have already happened so represent the current state of affairs and can confirm and verify long term trends. The downside of lagging indicators is that they are generally quite late and have been described as being like looking in the rear-view mirror.
One of the best indicators used within forex trading are Bollinger Bands, which were invented by John Bollinger in the 1980s as a technical analysis tool. They are widely used by Forex traders as an indicator which compares volatility and relative price levels over a given period of time. Most charting systems incorporate the use of Bollinger bands and are useful when used in conjunction with other types of indicator. Based upon a simple moving average, they can capture the vast majority of price movements and are one of the most recommended indicators to utilize for forex trading. For a more in depth look at Bollinger bands, John Bollinger has written a book “Bollinger on Bollinger Bands”, which has been translated into seven languages.
Forex indicators are usually included as part of any charting software that might be available from your broker. This type of service is normally subscription based so you should establish what is included in your package before shelling out. Most brokers offer a demo account and/or trial period for the charting software so you can try out the service to see if it is for you. There are free forex indicators available on the internet, however these are often of dubious quality and are often linked with websites that want to bombard you with lots of not very useful information.
Watch Forex Tips – Understanding Forex Market Overview
Forex Tips – Understanding Forex Market :
It is very important that every investor or would-be-trader who is venturing into the forex market, take some real time out in understanding the forex market as this is key to your success. Understanding the forex market adequately would result in investors making huge profits, and this requires experience and patience.
Understanding the forex market involves an understanding of some other related aspects of the forex market. To fully understand the forex market you’ll need to understand how the market works and that the market comprises of price charts, technical tools, fundamental tools, forex brokers, market regulators and other related aspects. These are some of the things you’ll need to get a grasp of in understanding the forex market.
Get a full grasp of forex charts in understanding the forex market as the charts are like the captain of your forex ship and they are sure very useful in understanding the forex market. If your forex charts are not properly used then you may be heading into some serious problems. I’ll outline some pertinent tips when using forex charts to aid in understanding the forex market:
On most forex charts you would find a number of indicators that can be displayed in predicting price movements. I do advice at all times that traders keep it simple, as a complex chart display could become very difficult to judge and the essence defeated.
Learning to use the momentum indicator is important in the business of mastering the forex market. Get a full understanding of how to use momentum indicators as they are vital forex market tools. Allow the use of objective indicators as objectivity is a key tool in the business of forex trading. Investors should rather avoid using subjective indicators.
If you are serious about making success out of forex trading then you must be ready to obey market rules. It is hopeless when you try to get in opposite directions. Discipline and patience should rather be imbibed in this trade.
In understanding the forex market we can compare it to the stock market as they share some close similarities, you buy a currency at a low price and sell at a high price or you can sell a currency at a high price and buy at a low price. In the currency market if your entry is a buy automatically this means that you would exit with a sell and vice versa.
The forex market operates on a 24 hour and 5 days a week basis, and this is possible due to round the clock market open and close. We find forex trading in Tokyo, London, New York and other locations around the world. As trading closes in one location it opens in another location and this sustains the 24 hour nature of the market.
Major currencies are traded in the forex market such as Euro, Dollar, Swiss Franc, Pound Sterling, Yen and the Australian. Prices slightly differ across locations and experienced traders can take advantage of the differences in prices
It is very important that every investor or would-be-trader who is venturing into the forex market, take some real time out in understanding the forex market as this is key to your success. Understanding the forex market adequately would result in investors making huge profits, and this requires experience and patience.
Understanding the forex market involves an understanding of some other related aspects of the forex market. To fully understand the forex market you’ll need to understand how the market works and that the market comprises of price charts, technical tools, fundamental tools, forex brokers, market regulators and other related aspects. These are some of the things you’ll need to get a grasp of in understanding the forex market.
Get a full grasp of forex charts in understanding the forex market as the charts are like the captain of your forex ship and they are sure very useful in understanding the forex market. If your forex charts are not properly used then you may be heading into some serious problems. I’ll outline some pertinent tips when using forex charts to aid in understanding the forex market:
On most forex charts you would find a number of indicators that can be displayed in predicting price movements. I do advice at all times that traders keep it simple, as a complex chart display could become very difficult to judge and the essence defeated.
Learning to use the momentum indicator is important in the business of mastering the forex market. Get a full understanding of how to use momentum indicators as they are vital forex market tools. Allow the use of objective indicators as objectivity is a key tool in the business of forex trading. Investors should rather avoid using subjective indicators.
If you are serious about making success out of forex trading then you must be ready to obey market rules. It is hopeless when you try to get in opposite directions. Discipline and patience should rather be imbibed in this trade.
In understanding the forex market we can compare it to the stock market as they share some close similarities, you buy a currency at a low price and sell at a high price or you can sell a currency at a high price and buy at a low price. In the currency market if your entry is a buy automatically this means that you would exit with a sell and vice versa.
The forex market operates on a 24 hour and 5 days a week basis, and this is possible due to round the clock market open and close. We find forex trading in Tokyo, London, New York and other locations around the world. As trading closes in one location it opens in another location and this sustains the 24 hour nature of the market.
Major currencies are traded in the forex market such as Euro, Dollar, Swiss Franc, Pound Sterling, Yen and the Australian. Prices slightly differ across locations and experienced traders can take advantage of the differences in prices
Watch Forex Free Tips for Money Management Overview
Forex Tips – Money Management:
Trading in the forex market entails a lot of risk and investors on all planes know that if you must win in this business money management is a key, as the need to protect what you have is imperative. So many traders out there do not have a n efficient money management technique in place and I bet you no matter how good the forex strategy may sound or look without this in place, you’re bound to lose it all. It is due to this singular reason that we find investors monitor positions and take necessary steps to minimize losses when they take losing positions.
When dealing with leverage, investors must try as much as possible to make it work for them as this would help traders cut losses and run their profits. Some of us who are actively trading would know that when you lose money it is even harder to get it back, hence keeping one’s equity intact is very vital. To ensure a successful money management technique, investors should try to see that they take some of the few winning trades during big trends and also take from the many small stops. Investors don’t do this and they rather insist on trading for large profits and lose sight of equity management. This is mainly because a lot of traders today want to see a losing trade turn around into a winning trade, and due to this psychology most traders don’t even have stops in place and this could be disastrous. In the currency trading business there’s nothing wrong with losing, you’ll need to accept this and keep your losses small.
Below are some tips that I have outlined to help new investors as well as advanced traders effectively practice proper money management.
Place your stop loss as soon as you initiate a trade position, and please don’t adhere to the use of mental stops as they basically don’t apply for most traders. This would ensure that you don’t lose a run on a trade and sometimes during volatile market conditions your accounts don’ get wiped out.
A lot is said in all the quarters about how much investors should risk while trading, while I would encourage large account holders to risk about 2% per trade. It’s not that practical on a small account so investors may decide to risk 5-10%, at the same time traders should be more cautious with trades.
It is very important investors know that all trades are the same and posses the same risk potentials and hence traders should not be tempted to place big trades on the premise that they have a sure trade signal.
Some trader out there make some mistakes when they place stop losses inside volatile market conditions as these is an easy way to lose money. We see random volatility during daily time frames and as such traders should focus on bigger trends and bigger profits.
If you want to stay in the business, then I’ll say that equity preservation is very vital and you can only do this via an effective money management technique in place.
Advantages of Money Management:
Money management offers investors the ability to manage and place positions with minimal risks that offers that much needed leverage for trade executions.
Money management would help investors keep a track on the percentage of his/her capital that can be risked per trade.
Not all money management techniques are effective based on your trading style. My advice is that you carefully pick out the right money management technique for your trading style
Trading in the forex market entails a lot of risk and investors on all planes know that if you must win in this business money management is a key, as the need to protect what you have is imperative. So many traders out there do not have a n efficient money management technique in place and I bet you no matter how good the forex strategy may sound or look without this in place, you’re bound to lose it all. It is due to this singular reason that we find investors monitor positions and take necessary steps to minimize losses when they take losing positions.
When dealing with leverage, investors must try as much as possible to make it work for them as this would help traders cut losses and run their profits. Some of us who are actively trading would know that when you lose money it is even harder to get it back, hence keeping one’s equity intact is very vital. To ensure a successful money management technique, investors should try to see that they take some of the few winning trades during big trends and also take from the many small stops. Investors don’t do this and they rather insist on trading for large profits and lose sight of equity management. This is mainly because a lot of traders today want to see a losing trade turn around into a winning trade, and due to this psychology most traders don’t even have stops in place and this could be disastrous. In the currency trading business there’s nothing wrong with losing, you’ll need to accept this and keep your losses small.
Below are some tips that I have outlined to help new investors as well as advanced traders effectively practice proper money management.
Place your stop loss as soon as you initiate a trade position, and please don’t adhere to the use of mental stops as they basically don’t apply for most traders. This would ensure that you don’t lose a run on a trade and sometimes during volatile market conditions your accounts don’ get wiped out.
A lot is said in all the quarters about how much investors should risk while trading, while I would encourage large account holders to risk about 2% per trade. It’s not that practical on a small account so investors may decide to risk 5-10%, at the same time traders should be more cautious with trades.
It is very important investors know that all trades are the same and posses the same risk potentials and hence traders should not be tempted to place big trades on the premise that they have a sure trade signal.
Some trader out there make some mistakes when they place stop losses inside volatile market conditions as these is an easy way to lose money. We see random volatility during daily time frames and as such traders should focus on bigger trends and bigger profits.
If you want to stay in the business, then I’ll say that equity preservation is very vital and you can only do this via an effective money management technique in place.
Advantages of Money Management:
Money management offers investors the ability to manage and place positions with minimal risks that offers that much needed leverage for trade executions.
Money management would help investors keep a track on the percentage of his/her capital that can be risked per trade.
Not all money management techniques are effective based on your trading style. My advice is that you carefully pick out the right money management technique for your trading style
Watch Forex Trading Strategies Overview
Forex Trading Strategies :
Before you start out in the world of Forex trading it is absolutely essential that you stop and think carefully about adopting a trading strategy – this is because Forex trading strategies are the far and away the best way to ensure success in currency trading. Based on market tendency, Forex trading strategies will help you to find the entry and exit points for your trades. Forex trading strategies used in conjunction with technical analysis represent a powerful way to pinpoint the most profitable points and to make quick decisions.
The idea behind having a Forex trading strategy is to help you get the most from your currency trades and to reduce your potential losses. A good strategy will help you to find a good trade in the first place and will help you determine when to buy or sell a currency pair. You should not expect a 100% success rate however. Not all trading strategies work well for everyone all of the time.
You will find numerous Forex trading strategies available on the internet. Some are free of charge and others have a cost associated with them. When it comes to choosing a strategy you have to do your research and select the one that is going to work best for you, which might take some time and effort to establish. If you have the time and inclination you could always develop your own trading strategy.
As a survival guide to the world of currency trading, Forex trading strategies are absolutely essential. A well thought out and sound strategy can remain useful for many years. Even the best strategy however, is only as good as the trader who is implementing it. If you don’t have enough discipline to implement the strategy rigidly, then it is not going to achieve maximum success for you. You must ensure that you manage your money and risk effectively to make a profit. As you trade more and more, you should take notes and analyse your performance so you can assess which trading strategies are working best for you.
Several Forex trading strategies are available and you have to select the one which suits you. They are generally divided into two categories – directional or non –directional. Trading strategies are useful whether you trade manually or whether you use an automatic system. Common strategies include the use of Support and Resistance levels, intersection of the trend lines, breaks and the choice of suitable time frames.
Based on mathematical analysis models, over the years, Forex trading strategies have become increasingly complex and sophisticated. This is not to say that the most complicated strategies are the best however. Some of the simplest systems are also the most successful. The best ones tend to be based on technical research and have a requirement for human interaction – they are not completely automated.
Forex trading strategies are not difficult to learn as long as you put the time and effort into understanding them. This is of utmost importance as there are vast amounts of money to be made I the Forex market at all times of the day and night. Taking the time out to get to grips with Forex trading strategies can mean the difference between a profit and a loss at the end of the day.
Before you start out in the world of Forex trading it is absolutely essential that you stop and think carefully about adopting a trading strategy – this is because Forex trading strategies are the far and away the best way to ensure success in currency trading. Based on market tendency, Forex trading strategies will help you to find the entry and exit points for your trades. Forex trading strategies used in conjunction with technical analysis represent a powerful way to pinpoint the most profitable points and to make quick decisions.
The idea behind having a Forex trading strategy is to help you get the most from your currency trades and to reduce your potential losses. A good strategy will help you to find a good trade in the first place and will help you determine when to buy or sell a currency pair. You should not expect a 100% success rate however. Not all trading strategies work well for everyone all of the time.
You will find numerous Forex trading strategies available on the internet. Some are free of charge and others have a cost associated with them. When it comes to choosing a strategy you have to do your research and select the one that is going to work best for you, which might take some time and effort to establish. If you have the time and inclination you could always develop your own trading strategy.
As a survival guide to the world of currency trading, Forex trading strategies are absolutely essential. A well thought out and sound strategy can remain useful for many years. Even the best strategy however, is only as good as the trader who is implementing it. If you don’t have enough discipline to implement the strategy rigidly, then it is not going to achieve maximum success for you. You must ensure that you manage your money and risk effectively to make a profit. As you trade more and more, you should take notes and analyse your performance so you can assess which trading strategies are working best for you.
Several Forex trading strategies are available and you have to select the one which suits you. They are generally divided into two categories – directional or non –directional. Trading strategies are useful whether you trade manually or whether you use an automatic system. Common strategies include the use of Support and Resistance levels, intersection of the trend lines, breaks and the choice of suitable time frames.
Based on mathematical analysis models, over the years, Forex trading strategies have become increasingly complex and sophisticated. This is not to say that the most complicated strategies are the best however. Some of the simplest systems are also the most successful. The best ones tend to be based on technical research and have a requirement for human interaction – they are not completely automated.
Forex trading strategies are not difficult to learn as long as you put the time and effort into understanding them. This is of utmost importance as there are vast amounts of money to be made I the Forex market at all times of the day and night. Taking the time out to get to grips with Forex trading strategies can mean the difference between a profit and a loss at the end of the day.
Watch Free Forex Trading Signals Overview
Forex Trading Signals :
Based on mathematical formulas, forex trading signals use sound fundamental and technical analysis to indicate market behaviour within the Forex market. Widely used, they are reliable indicators of the trends at work in the currency markets. They incorporate such factors as support and resistance levels, oscillators and Fibonacci principles and use these aspects to build recommendations. Because of their mathematical origins, they are an excellent way to ensure that probabilities are on your side whilst trading.
For a novice trader it is important to grasp that even though Forex trading signals are an incredibly handy tool to have at your disposal, they are certainly not the be all and end all of the foreign exchange market. Forex trading signals are designed to be treated as good advice on the currencies to trade at that time, however remember that there is no signal service available that can claim 100% accuracy.
There are two types of Forex trading signals – discretionary, and those that use fundamental or technical analysis. Most Forex traders use one or the other to decide whether to buy or sell a particular currency pair at a given point in time.
Forex trading signals are also known as entry and exit signals. They are simply suggested buy & sell points with price targets and stop-loss levels for a particular currency. They are usually triggered when a good opportunity for trading is indicated by technical conditions and are influenced by a number of different factors.
These buy and sell recommendations are usually delivered by a specialised Forex advisor although you can purchase software tools that you can use to generate your own signals.
Forex trading signals can form an extremely useful part of your overall Forex trading strategy. Many traders use them, but some still work the signals out for themselves by examining and analysing the charts. By using signals however, you can easily identify the important trends that will make your trades more profitable, or just as importantly they can tell you when to get out of a trade and stop you from losing too much money. This makes them an indispensable tool to the serious Forex trader.
The Forex market can change very quickly so it is important to have your finger on the pulse. Forex trading signals based on specific chart intervals which can vary, so depending on the time frame that you are working within, they are a great way to ensure that you are being instantly updated with the very latest movements in the market.
The use of Forex trading signals is very much a personal decision. They are not for everyone, and some traders choose not to work with them. It is therefore completely your choice as to whether you should invest your time and money in them or not.
There are a variety of services offering Forex trading signals. They are not usually free; however some providers will offer a limited free trial period. Services are usually available from Forex analysts and brokers and are usually payable via a monthly subscription that can vary between around $50 up to $200. You can choose to receive alerts via email, text message or desktop alert so that you can receive information quickly and can act on it immediately.
Based on mathematical formulas, forex trading signals use sound fundamental and technical analysis to indicate market behaviour within the Forex market. Widely used, they are reliable indicators of the trends at work in the currency markets. They incorporate such factors as support and resistance levels, oscillators and Fibonacci principles and use these aspects to build recommendations. Because of their mathematical origins, they are an excellent way to ensure that probabilities are on your side whilst trading.
For a novice trader it is important to grasp that even though Forex trading signals are an incredibly handy tool to have at your disposal, they are certainly not the be all and end all of the foreign exchange market. Forex trading signals are designed to be treated as good advice on the currencies to trade at that time, however remember that there is no signal service available that can claim 100% accuracy.
There are two types of Forex trading signals – discretionary, and those that use fundamental or technical analysis. Most Forex traders use one or the other to decide whether to buy or sell a particular currency pair at a given point in time.
Forex trading signals are also known as entry and exit signals. They are simply suggested buy & sell points with price targets and stop-loss levels for a particular currency. They are usually triggered when a good opportunity for trading is indicated by technical conditions and are influenced by a number of different factors.
These buy and sell recommendations are usually delivered by a specialised Forex advisor although you can purchase software tools that you can use to generate your own signals.
Forex trading signals can form an extremely useful part of your overall Forex trading strategy. Many traders use them, but some still work the signals out for themselves by examining and analysing the charts. By using signals however, you can easily identify the important trends that will make your trades more profitable, or just as importantly they can tell you when to get out of a trade and stop you from losing too much money. This makes them an indispensable tool to the serious Forex trader.
The Forex market can change very quickly so it is important to have your finger on the pulse. Forex trading signals based on specific chart intervals which can vary, so depending on the time frame that you are working within, they are a great way to ensure that you are being instantly updated with the very latest movements in the market.
The use of Forex trading signals is very much a personal decision. They are not for everyone, and some traders choose not to work with them. It is therefore completely your choice as to whether you should invest your time and money in them or not.
There are a variety of services offering Forex trading signals. They are not usually free; however some providers will offer a limited free trial period. Services are usually available from Forex analysts and brokers and are usually payable via a monthly subscription that can vary between around $50 up to $200. You can choose to receive alerts via email, text message or desktop alert so that you can receive information quickly and can act on it immediately.
Sunday, July 11, 2010
Watch Free Intraday Cash Tips from 12th Jul 2010 Overview
Free Intraday Cash Tips from Tipz.in for 12th Jul 2010
Indiabulls Financial Services Limited
Buy INDIABULLS above 163 with target of Rs. 166.5, 171.5 and stoploss of Rs. 159
Sel Below 158 with target of Rs. 155, 148 and stoploss of Rs. 160
Bharti Airtel Limited
Buy BHARTIARTL above 311 with target of Rs. 318, 328 and stop loss of Rs. 300
Sel Below 297 with target of Rs. 291, 275 and stop loss of Rs. 303
Monnet Ispat Ltd
Buy MONNETISPA above 502 with target of Rs. 515, 534 and stop loss of Rs. 484
Sel Below 482 with target of Rs. 470, 440 and stop loss of Rs. 488
Indiabulls Financial Services Limited
Buy INDIABULLS above 163 with target of Rs. 166.5, 171.5 and stoploss of Rs. 159
Sel Below 158 with target of Rs. 155, 148 and stoploss of Rs. 160
Bharti Airtel Limited
Buy BHARTIARTL above 311 with target of Rs. 318, 328 and stop loss of Rs. 300
Sel Below 297 with target of Rs. 291, 275 and stop loss of Rs. 303
Monnet Ispat Ltd
Buy MONNETISPA above 502 with target of Rs. 515, 534 and stop loss of Rs. 484
Sel Below 482 with target of Rs. 470, 440 and stop loss of Rs. 488
Thursday, July 8, 2010
Monday, July 5, 2010
Watch Free Intraday Cash Tips for 6th July 2010 Overview
Free Intraday Cash Tips from Tipz.in for 6th Jul 2010
Fiem Industries Limited
Buy FIEMIND above 176 with target of Rs. 185.5, 196.5 and stoploss of Rs. 168
Sel Below 167 with target of Rs. 159, 144 and stoploss of Rs. 170
VIP Industries Limited
Buy VIPIND above 370 with target of Rs. 377, 388 and stop loss of Rs. 359
Sel Below 357 with target of Rs. 350, 333 and stop loss of Rs. 363
Edserv Softsystems Limited
Buy EDSERV above 220 with target of Rs. 230, 240 and stop loss of Rs. 214
Sel Below 212 with target of Rs. 204, 192 and stop loss of Rs. 216
Fiem Industries Limited
Buy FIEMIND above 176 with target of Rs. 185.5, 196.5 and stoploss of Rs. 168
Sel Below 167 with target of Rs. 159, 144 and stoploss of Rs. 170
VIP Industries Limited
Buy VIPIND above 370 with target of Rs. 377, 388 and stop loss of Rs. 359
Sel Below 357 with target of Rs. 350, 333 and stop loss of Rs. 363
Edserv Softsystems Limited
Buy EDSERV above 220 with target of Rs. 230, 240 and stop loss of Rs. 214
Sel Below 212 with target of Rs. 204, 192 and stop loss of Rs. 216
Sunday, July 4, 2010
Watch Free Intraday Cash Tips From 5th Jul 2010 Overview
Free Intraday Cash Tips from Tipz.in for 5th Jul 2010
VIP Industries Limited
Buy VIPIND above 361 with target of Rs. 370, 382 and stoploss of Rs. 350
Sel Below 347 with target of Rs. 340, 325 and stoploss of Rs. 352
Indraprastha Gas Ltd
Buy IGL above 285 with target of Rs. 294, 308 and stop loss of Rs. 281
Sel Below 278 with target of Rs. 272, 260 and stop loss of Rs. 282
Engineers India Ltd
ENGINERSIN Buy above 363 with target of Rs. 375, 390 and stop loss of Rs. 349
Sel Below 347 with target of Rs. 337, 312 and stop loss of Rs. 352
BANK BARODA
Buy above 725 with target of Rs. 732, 735 and stop loss of Rs. 720
VIP Industries Limited
Buy VIPIND above 361 with target of Rs. 370, 382 and stoploss of Rs. 350
Sel Below 347 with target of Rs. 340, 325 and stoploss of Rs. 352
Indraprastha Gas Ltd
Buy IGL above 285 with target of Rs. 294, 308 and stop loss of Rs. 281
Sel Below 278 with target of Rs. 272, 260 and stop loss of Rs. 282
Engineers India Ltd
ENGINERSIN Buy above 363 with target of Rs. 375, 390 and stop loss of Rs. 349
Sel Below 347 with target of Rs. 337, 312 and stop loss of Rs. 352
BANK BARODA
Buy above 725 with target of Rs. 732, 735 and stop loss of Rs. 720
Monday, June 28, 2010
Sunday, June 27, 2010
Watch Free Intraday Cash Tips for 28th Jun 2010 Overview
Free Intraday Cash Tips from Tipz.in for 28th Jun 2010
Core Projects And Technologies Limited
Buy COREPROTEC above 233 with target of Rs. 236, 241 and stoploss of Rs. 229
Sel Below 227 with target of Rs. 224, 218 and stoploss of Rs. 231
Hindustan Petroleum Corp
HINDPETRO Buy above 405 with target of Rs. 426, 450 and stop loss of Rs. 386
Sel Below 383 with target of Rs. 365, 330 and stop loss of Rs. 390
Reliance Communications Limited
RCOM Buy above 193 with target of Rs. 195, 198 and stop loss of Rs. 191
Sel Below 190 with target of Rs. 189, 186 and stop loss of Rs. 192.5
Orbit Corp
Buy above 275 with target of Rs. 280, 282 and stop loss of Rs. 272
Core Projects And Technologies Limited
Buy COREPROTEC above 233 with target of Rs. 236, 241 and stoploss of Rs. 229
Sel Below 227 with target of Rs. 224, 218 and stoploss of Rs. 231
Hindustan Petroleum Corp
HINDPETRO Buy above 405 with target of Rs. 426, 450 and stop loss of Rs. 386
Sel Below 383 with target of Rs. 365, 330 and stop loss of Rs. 390
Reliance Communications Limited
RCOM Buy above 193 with target of Rs. 195, 198 and stop loss of Rs. 191
Sel Below 190 with target of Rs. 189, 186 and stop loss of Rs. 192.5
Orbit Corp
Buy above 275 with target of Rs. 280, 282 and stop loss of Rs. 272
Watch Nifty Charts Overview - Resistance and Support Level
Watch Nifty Charts Overview:
Support................................. Resistance
5246 .........................................5306
5222 .........................................5344
5185..........................................5382
Saturday, June 26, 2010
Watch How to Trade the Dow Jones Index Overview
How to Trade the Dow Jones Index :
The Dow Jones Industrial Average is a price weighted average of 30 well known stocks. The average is commonly used as a gauge for the health of the economy. While there are several other types of indexes, the Dow Jones Industrial Average, or simply the "Dow", is the most popular. The best way to trade the Dow Jones Index is through an Exchange-Traded Fund (ETF).
Instructions :
Step 1
Review the definition of an ETF. An ETF is an exchange traded fund that is used to track assets or indexes, including the Dow. ETFs trade exactly like stocks.
Step 2
Look up ETFs that track the Dow. The Dow Jones maintains a site with information about ETFs that track the Dow (See Resources). Choose the one which best suits your interests. The website also has information on each ETF, including its components, historical index values, a fact sheet and methodology for computation.
Step 3
Take down the ticker symbol in which the ETF is traded under. This is found in the right most column under the word Symbol. It is usually a three- to five-letter word.
Step 4
Decide how much you would like to invest. To estimate the number of shares you can afford to invest, divide the amount you can invest by the current market price of a share.
Step 5
Contact your broker and place an order. You will need the ticker symbol, the number of shares you wish to purchase and the price you wish to purchase the shares.
Modulated Volume analysis delivers consistently profitable trading signals
+8.1% on the Nasdaq 100 in 3 weeks
Large Institutional Money creates significant Surges in market volume when it BUYs or SELLs.
Such Volume surges always precede price trend Reversals. Our Indicators track these surges.
Using these Indicators, you can pick your BUY and SELL points
Large Institutional Money creates significant Surges in market volume when it BUYs or SELLs.
Such Volume surges always precede price trend Reversals. Our Indicators track these surges.
Using these Indicators, you can pick your BUY and SELL points
Friday, June 25, 2010
Forex Market Analysis - Technical and Fundamental Analysis Overview
Forex Market Analysis - Technical and Fundamental :
If you are looking into foreign exchange (forex) as a venture you want to take to make good money online, you may have heard or read somewhere else that one of the keys towards succeeding in the foreign exchange market is forex market analysis - analyzing trends and factors that affect the movement of currency values.
There is more to foreign exchange than buying when the price is low and selling when the price is up. Forex traders use forex market analysis to be able to predict possible movements of the price. If you are a forex investor who can correctly predict the rise of the price of the currency that you are trading, then you can gain profit, and on the other hand, if you fail with your predictions, you can lose money as well.
In foreign exchange, two types of forex market analysis are usually done to be able to predict the future movements of a currency's price. The technical analysis digs into the value of the currency for over a period of time and analyzes the trend or common patterns of the rise and fall of a currency's value, which can be a basis of your buying and selling.
In technical analysis, you will be needing charts on price trends as well as data on currency values, algorithms and basically numbers or quantitative data of currency movements. In charting, you have to identify and analyze the peaks and troughs in the trend of the prices. You have to identify patterns as well that can help you predict a shift of the trend. With this, you will be able to determine the currency's general direction and base your trading strategy on it.
However, price trends and patterns are not just the only indicator of a possible rise or fall of the currency's value. In fact, economic and political factors greatly affect the value of the currency, thus aside from these quantitative data, forex market analysis may also dig into the social and economic factors that influence the price of the currency. It may involve analyzing the country's economic status, current political situation as well as government policies.
In the fundamental analysis, there are several concepts that are taken into consideration to analyze the currency market. Inflation or the rise in the general prices of commodities, for example, is one of the elements of the economy that can affect the value of the currency. If the economy also has high interest rates, this will also mean a higher value of the currency as the investors will come in and try to gain high returns.
Most importantly, the GDP or gross domestic product of a country is one of the key indicators of the country's economic performance and a rise and fall in the GDP can also lead to a rise and fall of the interest rates which in turn affect the change in the value of the currency.
Keep in mind that these two methods in forex market analysis is necessary if you want to be successful in the currency market. With the help of technology, you can also automate technical analysis by using a software that you can run in your computer and provide you with quantitative data on market trends as well. This will free more of your time and allow you to make wise decisions in your trading.
There is more to foreign exchange than buying when the price is low and selling when the price is up. Forex traders use forex market analysis to be able to predict possible movements of the price. If you are a forex investor who can correctly predict the rise of the price of the currency that you are trading, then you can gain profit, and on the other hand, if you fail with your predictions, you can lose money as well.
In foreign exchange, two types of forex market analysis are usually done to be able to predict the future movements of a currency's price. The technical analysis digs into the value of the currency for over a period of time and analyzes the trend or common patterns of the rise and fall of a currency's value, which can be a basis of your buying and selling.
In technical analysis, you will be needing charts on price trends as well as data on currency values, algorithms and basically numbers or quantitative data of currency movements. In charting, you have to identify and analyze the peaks and troughs in the trend of the prices. You have to identify patterns as well that can help you predict a shift of the trend. With this, you will be able to determine the currency's general direction and base your trading strategy on it.
However, price trends and patterns are not just the only indicator of a possible rise or fall of the currency's value. In fact, economic and political factors greatly affect the value of the currency, thus aside from these quantitative data, forex market analysis may also dig into the social and economic factors that influence the price of the currency. It may involve analyzing the country's economic status, current political situation as well as government policies.
In the fundamental analysis, there are several concepts that are taken into consideration to analyze the currency market. Inflation or the rise in the general prices of commodities, for example, is one of the elements of the economy that can affect the value of the currency. If the economy also has high interest rates, this will also mean a higher value of the currency as the investors will come in and try to gain high returns.
Most importantly, the GDP or gross domestic product of a country is one of the key indicators of the country's economic performance and a rise and fall in the GDP can also lead to a rise and fall of the interest rates which in turn affect the change in the value of the currency.
Keep in mind that these two methods in forex market analysis is necessary if you want to be successful in the currency market. With the help of technology, you can also automate technical analysis by using a software that you can run in your computer and provide you with quantitative data on market trends as well. This will free more of your time and allow you to make wise decisions in your trading.
Thursday, June 24, 2010
Watch Free Intraday Cash Tips for 25th June 2010 Overview
Free Intraday Cash Tips from Tipz.in for 25th Jun 2010
Hindustan Oil Exploration Co. Ltd
Buy HINDOILEXP above 225 with target of Rs. 231, 240 and stoploss of Rs. 216
Sel Below 214 with target of Rs. 210, 196 and stoploss of Rs. 218
Godrej Industries Ltd
GODREJIND Buy above 171.5 with target of Rs. 175, 180 and stop loss of Rs. 167
Sel Below 166 with target of Rs. 163, 155 and stop loss of Rs. 168
Bombay Rayon Fashions Ltd
BRFL Buy above 257 with target of Rs. 261, 268 and stop loss of Rs. 251
Sel Below 250 with target of Rs. 247,238 and stop loss of Rs. 254
Hindustan Oil Exploration Co. Ltd
Buy HINDOILEXP above 225 with target of Rs. 231, 240 and stoploss of Rs. 216
Sel Below 214 with target of Rs. 210, 196 and stoploss of Rs. 218
Godrej Industries Ltd
GODREJIND Buy above 171.5 with target of Rs. 175, 180 and stop loss of Rs. 167
Sel Below 166 with target of Rs. 163, 155 and stop loss of Rs. 168
Bombay Rayon Fashions Ltd
BRFL Buy above 257 with target of Rs. 261, 268 and stop loss of Rs. 251
Sel Below 250 with target of Rs. 247,238 and stop loss of Rs. 254
Watch Technical analysis Chart for INDEX CASH Nifty Overview
Technical analysis Chart for INDEX CASH Nifty
Wednesday, June 23, 2010
Watch Free Intraday Cash Tips for 24th Jun 2010 Overview
Free Intraday Cash Tips from Tipz.in for 24th Jun 2010
AMTEK AUTO LTD
Buy AMTEKAUTO above 170 with target of Rs. 173.5, 178 and stoploss of Rs. 164.5
Sel Below 164 with target of Rs. 161,153 and stoploss of Rs. 166
TECH MAHINDRA LIMITED
TECHM Buy above 754 with target of Rs. 764,779 and stop loss of Rs.737
Sel Below 735 with target of Rs.727,700 and stop loss of Rs. 742
FORTIS HEALTHCARE LTD
FORTIS Buy above 153 with target of Rs. 154.5,157.5 and stop loss of Rs. 150
Sel Below 149.5 with target of Rs. 148.5, 144 and stop loss of Rs. 151
AMTEK AUTO LTD
Buy AMTEKAUTO above 170 with target of Rs. 173.5, 178 and stoploss of Rs. 164.5
Sel Below 164 with target of Rs. 161,153 and stoploss of Rs. 166
TECH MAHINDRA LIMITED
TECHM Buy above 754 with target of Rs. 764,779 and stop loss of Rs.737
Sel Below 735 with target of Rs.727,700 and stop loss of Rs. 742
FORTIS HEALTHCARE LTD
FORTIS Buy above 153 with target of Rs. 154.5,157.5 and stop loss of Rs. 150
Sel Below 149.5 with target of Rs. 148.5, 144 and stop loss of Rs. 151
Watch Today's Nifty Charts Overview - Resistance and Support Level
Watch Today's Nifty Charts Overview
Spot Nifty 5323.15 ( 0.12 % )
Nifty SUPPORT .........................Nifty RESISTANCE
5300 ..................................................5343
5284 ...................................................5369
5257 ....................................................5397
Tuesday, June 22, 2010
Free Intraday Cash Tips from Tipz.in for 23rd Jun 2010
Free Intraday Cash Tips from Tipz.in for 23rd Jun 2010
OPTOCIRCUI
Action ................Trigger Price.............Stop Loss............... Target-1...........Target-2
BUY ABOVE....................237.........................234.5.............................241...................243
OPTOCIRCUI
Action ................Trigger Price.............Stop Loss............... Target-1...........Target-2
BUY ABOVE....................237.........................234.5.............................241...................243
Watch Daily Foreign Market Update Overview
Daily Market Update
On Wall St overnight, US stocks gave up early gains as excitement over the news from China waned and a downgrade of French banking giant BNP Paribas thrust European concerns back into focus.
The S&P 500 had been up as much as 1.2% earlier before reversing to close lower by 0.4%. The Nasdaq was the worst performer, down 0.9%, while the Dow Jones Industrial Average closed down a modest 0.1%.
US markets had opened strongly with the S&P trading to an intra-day high of 1131, a gain of 1.2%. However as the euro pulled back to the low 1.23 level, equity markets reacted negatively. Importantly for the UK open, the S&P dropped 1.2% from the FTSE close, hence we should see a weaker open.
There had been analysts suggesting the positive response to the news from China was an over-reaction, with traders buying risk assets in Asia. After participants decided to actually take a closer look at the announcement, the market realised that the revaluation was still going to be gradual and very much on China terms. At the end of day, it looks like it was an emotional reaction to the news, with traders quickly selling the rally after the strong US open.
Overnight, early in the Asian trading session we saw the PBOC increase the yuan fix by 0.43%, to 6.7980 from 6.8275. This was what currency and equity traders would have ideally liked yesterday, however even though the Chinese had compromised under pressure from US and other G20 nations to revalue the yuan, they sent an indirect message that they would not get it all one way. There are still those who see the revaluation of the yuan as a PR exercise and the muted reaction to buying in risk currencies may be testament to the fact we may see a gradual approach to the appreciation. Australian miners Rio Tinto and BHP Billiton did have a positive reaction to the news so this may provide some support for the UK listing.
In Asia, regional markets are mostly lower this Tuesday, the first fall in 9 sessions following the weaker leads from the US and a downgrade from Fitch to French banking giant BNP Paribas. Standard & Poors also said Spanish lenders face years ahead because of the nation’s slow growth. As at 06:00 the Nikkei is the heaviest faller, down 1.1% while the Hang Seng is flat. In China, the Shanghai Composite is firmer by 0.2%.
Given these leads from the US and Asia, the expectations are for major European markets to open markedly lower, although traders are likely to find fresh economic data to be working with very quickly. The German IFO survey will be released at 9am (BST), whilst the UK emergency budget report is also set to carry some significant news in the shape of tax changes and cutbacks on a number of public spending projects. Arguably this could see movement in either direction if too much downside has already been factored in, but the detail could well take some hours to digest in full. There's an interim management statement due from Whitbread this morning ahead of the company's AGM but elsewhere the corporate calendar remains quiet. Again, BP will be one to watch after the stock’s ADR tumbled almost 5% in US trade last night.
Ahead of the open we're calling the FTSE down 48 at 5251, the DAX down 38 at 6255 and the CAC down 39 at 3697.
On Wall St overnight, US stocks gave up early gains as excitement over the news from China waned and a downgrade of French banking giant BNP Paribas thrust European concerns back into focus.
The S&P 500 had been up as much as 1.2% earlier before reversing to close lower by 0.4%. The Nasdaq was the worst performer, down 0.9%, while the Dow Jones Industrial Average closed down a modest 0.1%.
US markets had opened strongly with the S&P trading to an intra-day high of 1131, a gain of 1.2%. However as the euro pulled back to the low 1.23 level, equity markets reacted negatively. Importantly for the UK open, the S&P dropped 1.2% from the FTSE close, hence we should see a weaker open.
There had been analysts suggesting the positive response to the news from China was an over-reaction, with traders buying risk assets in Asia. After participants decided to actually take a closer look at the announcement, the market realised that the revaluation was still going to be gradual and very much on China terms. At the end of day, it looks like it was an emotional reaction to the news, with traders quickly selling the rally after the strong US open.
Overnight, early in the Asian trading session we saw the PBOC increase the yuan fix by 0.43%, to 6.7980 from 6.8275. This was what currency and equity traders would have ideally liked yesterday, however even though the Chinese had compromised under pressure from US and other G20 nations to revalue the yuan, they sent an indirect message that they would not get it all one way. There are still those who see the revaluation of the yuan as a PR exercise and the muted reaction to buying in risk currencies may be testament to the fact we may see a gradual approach to the appreciation. Australian miners Rio Tinto and BHP Billiton did have a positive reaction to the news so this may provide some support for the UK listing.
In Asia, regional markets are mostly lower this Tuesday, the first fall in 9 sessions following the weaker leads from the US and a downgrade from Fitch to French banking giant BNP Paribas. Standard & Poors also said Spanish lenders face years ahead because of the nation’s slow growth. As at 06:00 the Nikkei is the heaviest faller, down 1.1% while the Hang Seng is flat. In China, the Shanghai Composite is firmer by 0.2%.
Given these leads from the US and Asia, the expectations are for major European markets to open markedly lower, although traders are likely to find fresh economic data to be working with very quickly. The German IFO survey will be released at 9am (BST), whilst the UK emergency budget report is also set to carry some significant news in the shape of tax changes and cutbacks on a number of public spending projects. Arguably this could see movement in either direction if too much downside has already been factored in, but the detail could well take some hours to digest in full. There's an interim management statement due from Whitbread this morning ahead of the company's AGM but elsewhere the corporate calendar remains quiet. Again, BP will be one to watch after the stock’s ADR tumbled almost 5% in US trade last night.
Ahead of the open we're calling the FTSE down 48 at 5251, the DAX down 38 at 6255 and the CAC down 39 at 3697.
Monday, June 21, 2010
Watch Today's Market Overview for Nifty Level
NIFTY TRENDS FOR 21ST-JUNE-2010
Today all the stockS in nifty started with the positive bias. It can be said that Nifty is likely to consolidate between 5230-5300. Today it will be better to target on the largecap and midcap stocks. Today the resistance for nifty can be at the level of 5350 and the strong support can be seen at the level of 5230. At the selling of nifty future traders can sell nifty future at 5270 with target of 5290 and the stop loss of 5230. Traders can buy nifty future with the target of 5400 and the stop loss at 5250.
Today all the stockS in nifty started with the positive bias. It can be said that Nifty is likely to consolidate between 5230-5300. Today it will be better to target on the largecap and midcap stocks. Today the resistance for nifty can be at the level of 5350 and the strong support can be seen at the level of 5230. At the selling of nifty future traders can sell nifty future at 5270 with target of 5290 and the stop loss of 5230. Traders can buy nifty future with the target of 5400 and the stop loss at 5250.
Sunday, June 20, 2010
Watch Free Intraday Cash Tips from Tipz.in for 21st Jun 2010 Overview
Free Intraday Cash Tips from Tipz.in for 21st Jun 2010
Voltas
Action ...................Trigger Price..............Stop Loss........... Target-1.............Target-2
BUY ABOVE...................... 193 .......................190......................196.50......................198
UBL ( United Breweries Limited )
Action .................Trigger Price.......... ....Stop Loss........... Target-1..............Target-2
BUY ABOVE....................... 238 .......................229......................248......................260
S.SELL BELOW.................226........................232.....................218......................200
IDFC ( Infrastructure Development Finance Company Limited )
Action ...................Trigger Price............ Stop Loss........... Target-1..............Target-2
BUY ABOVE...................... 170 .........................167......................171.5......................174
S.SELL BELOW...............166.............................168.....................165......................161
HANUNG ( Hanung Toys And Tex Ltd )
Action ..................Trigger Price.............Stop Loss........... Target-1..............Target-2
BUY ABOVE........................ 233 ........................231......................235......................240
S.SELL BELOW...................230.........................232.....................227......................225
Voltas
Action ...................Trigger Price..............Stop Loss........... Target-1.............Target-2
BUY ABOVE...................... 193 .......................190......................196.50......................198
UBL ( United Breweries Limited )
Action .................Trigger Price.......... ....Stop Loss........... Target-1..............Target-2
BUY ABOVE....................... 238 .......................229......................248......................260
S.SELL BELOW.................226........................232.....................218......................200
IDFC ( Infrastructure Development Finance Company Limited )
Action ...................Trigger Price............ Stop Loss........... Target-1..............Target-2
BUY ABOVE...................... 170 .........................167......................171.5......................174
S.SELL BELOW...............166.............................168.....................165......................161
HANUNG ( Hanung Toys And Tex Ltd )
Action ..................Trigger Price.............Stop Loss........... Target-1..............Target-2
BUY ABOVE........................ 233 ........................231......................235......................240
S.SELL BELOW...................230.........................232.....................227......................225
Watch Reliance in Slow transition towards Bull Market Overview
Reliance in Slow transition towards Bull Market
If you had looked either into the Daily or Weekly charts of Reliance there is too much noise in the charts. The another way to filter out the noise from the system is by choosing the higher timeframe to know about the exact information about the trend. So when we look into the montly charts of reliance along with the Ichimoku charts we could find that reliance after testing the montly resistance zone Since the start of June, 2009 to till date it is moving sideways fashion with a slow transition from Bear to the Bull market. And currently its trading above the montly resistance cloud by bulding a strong base near 980 levels.
If you had looked either into the Daily or Weekly charts of Reliance there is too much noise in the charts. The another way to filter out the noise from the system is by choosing the higher timeframe to know about the exact information about the trend. So when we look into the montly charts of reliance along with the Ichimoku charts we could find that reliance after testing the montly resistance zone Since the start of June, 2009 to till date it is moving sideways fashion with a slow transition from Bear to the Bull market. And currently its trading above the montly resistance cloud by bulding a strong base near 980 levels.
Thursday, June 17, 2010
Watch Free Intraday Cash Tips from 18th Jun 2010 Overview
Free Intraday Cash Tips from Tipz.in for 18th Jun 2010
ASTEC ( Astec Lifesciences Limited )
Action ...................Trigger Price........ Stop Loss........... Target-1..............Target-2
BUY ABOVE....................... 68 ..........................66......................69.5......................71
S.SELL BELOW.................65.5.......................66.5.....................64.6......................62
IFBIND ( IFB Industries Ltd )
Action ...................Trigger Price........ Stop Loss........... Target-1..............Target-2
BUY ABOVE...................... 139 .....................136......................142.5......................147
S.SELL BELOW...............135.5.......................137.....................133......................126
BANCOINDIA ( Banco Products (I) Ltd )
Action ...................Trigger Price........ Stop Loss........... Target-1..............Target-2
BUY ABOVE........................ 114 .....................112.5......................118......................123
S.SELL BELOW...................112.......................113.5.....................108.5......................103
ASTEC ( Astec Lifesciences Limited )
Action ...................Trigger Price........ Stop Loss........... Target-1..............Target-2
BUY ABOVE....................... 68 ..........................66......................69.5......................71
S.SELL BELOW.................65.5.......................66.5.....................64.6......................62
IFBIND ( IFB Industries Ltd )
Action ...................Trigger Price........ Stop Loss........... Target-1..............Target-2
BUY ABOVE...................... 139 .....................136......................142.5......................147
S.SELL BELOW...............135.5.......................137.....................133......................126
BANCOINDIA ( Banco Products (I) Ltd )
Action ...................Trigger Price........ Stop Loss........... Target-1..............Target-2
BUY ABOVE........................ 114 .....................112.5......................118......................123
S.SELL BELOW...................112.......................113.5.....................108.5......................103
Wednesday, June 16, 2010
How to Invest in the Forex Market | Forex Market Tips Overview
Why invest in the Forex market?
The answer is simple – for many different reasons, which we will examine, Forex Market is thought by many to be a perfect market.
Forex is short for foreign exchange and is the world’s largest market. Completely virtual, its size makes it less open to outside influence and less volatile than other markets. Forex Market generates over $3 trillion in revenues every day as a result of exploiting small fluctuations in the value of foreign currencies. It is a very dynamic business and there are significant opportunities to make a hefty profit, however, although there are a huge number of people now involved in forex trading it is still something that remains relatively unknown to the majority of people.
Forex is accessible – you don’t need a great deal of money to get involved so it provides an excellent opportunity for small investors to make money. One of the benefits of Forex is the option to pay only a small proportion of the purchase price in advance, it is also free of commission and is not subject to exchange fees, instead the trading cost is incorporated within the bid/ask spread offered by the market maker. This makes it an excellent prospect for those who wish to trade frequently.
Learning how to trade Forex is a skill that is almost guaranteed to pay once you have mastered it. Forex is not easy, so you will need some knowledge to make good investment choices. Forex is not something that can be mastered in a single day, so it does take some study to become good at it. You need to see it as a long term investment in your financial future.
Unlike other markets such as futures, Forex is available to trade 24 hours a day, 7 days a week. This is because trading hours overlap each other in the various countries around the world, meaning that the market is almost always open. There are major forex trading centres in London, New York and Tokyo as well as other cities such as Sydney. With the different time zones in operation, you can trade at any time of the day or night, and day of the week; including Sunday.
Forex is known as a leveraged market. This can work for or against you, and means that, for example, if your broker offers you leverage of 100:1 leverage, for every 1 unit in your account, you are able to control 100 units. If you can manage this correctly then there is the possibility of making lots of money quickly. By treating Forex as your own business and taking responsibility for it, you can find yourself in a very lucrative market indeed.
It has been said that “not trading forex is like leaving it there for someone else to pick up” and that “trading forex is like having an a.t.m. machine on your own computer”. Forex can be an extremely lucrative business independent of your location and time of day. It is the most liquid market in the world of trading and is all about freedom – some have said that trading forex is like picking money up off the floor! Clearly with the number of private and corporate investors investing in this market, it would seem to be an incredibly lucrative opportunity to get involved in.
Unlike the London Stock Exchange or the American Stock Exchange, Forex is not a physical market. Instead it can be described as a worldwide network of banks, investment firms, hedge fund, currency traders, and other financial and banking entities. Forex operates as an over-the-counter (OTC) market also known as an off-exchange market. The Forex market is constantly fluctuating, which means that if the rate of exchange on a particular currency is not good enough today, then you can certainly expect some difference in the coming weeks. Forex trading happens by phone, on the internet or via a broker.
Changes in the currency market happen fast and these changes are affected by many different factors. The Forex market is also continually growing as the number of individuals participating in the market increases.
Trading Forex is absolutely not a game, however many people feel that it is more like gambling, and consequently don’t treat it seriously. Forex is a serious way to make money, and it is possible to get involved at ground level. Trading forex is perfectly legal and is based on probabilities, provided you can accurately weigh up the associated risks and rewards, you should do well!
Common Mistakes Made When Investing in the Forex Market
Learning to trade Forex is a learning curve and every trader is bound to make mistakes no matter how experienced they are. The important thing to remember is that you should treat any mistake as an opportunity to learn from it and remember that tomorrow is another trading day, so you can just start all over again. Here we take a look at some of the most common mistakes made by Forex traders, and how we can try to avoid them.
One of the biggest and commonest mistakes is to become overconfident. It often happens after making a few successful trades, when the trader stops reacting and starts predicting instead. Rather than reading the market and following the trends, the trader starts to try and guess what the market will do. A good trader will identify the existing patterns in the currency market, carrying out extensive research and then placing a trade that will enable them to cash in on it. Not doing this is a big mistake – experienced traders have a saying “the trend is your friend”, which is well worth remembering.
Another mistake that can occur as a result of overconfidence is that of adding to losing positions. If you start to see that the market is going against your position, you should not add to it any more – this is the time to close that position. You will lose trades, don’t try and correct them by predicting the market will change. You need to get out as soon as you can and move on to the next one.
Don’t set your leverage too high. Aim to use a maximum of 1% to 2% of your trading capital on a position. Insufficient capitalization occurs when you use too much leverage – also known as margin. This is effectively money borrowed from the broker, and if you are caught up in a loss situation, you can find yourself with a high interest margin debt to your broker to worry about. Forex brokers normally have a set maximum allowed for margin debts – this typically 50% of the value of the trading account. If the debt goes above this, the broker can make a margin call – this is a request for you to add some more money to your account as collateral. Inexperienced traders should try and avoid margin debt until they are more familiar with the system.
It is important not to overtrade. If you make too many trades you are spreading yourself too thinly, and are putting yourself at risk of receiving a margin call. You can also lose focus by trading in this way, so stay in control and limit the number of trades you are making.
You should always use stop-loss orders apart from in a few very specific situations. Stop-loss orders do exactly what their name suggests – they stop you making too much of a loss on your trades. The stop-loss order is a pre-determined point at which you will close your position on that trade so as to avoid losses that you cannot afford. Make sure you use them correctly!
Do not treat Forex trading as a hobby – it is a serious business and should be treated as such. Hobbies such as golf, travelling and eating out always cost you money, whereas the purpose of a business is to make money. This is what you want from your Forex trading so you should approach it in a businesslike manner which means having a plan and keeping records.
Always do your research. Don’t take information or “tips” at face value – you should always make your own enquiries and seek second or third opinions before putting your own money in.
Don’t invest in a currency for the sole reason that it is cheap. Many traders believe that because a currency rate is cheap that they can later reap fantastic profits but this is not always the case. Always do your research to see if you can establish why that particular currency is so cheap and look at its trend history. This will give you the information you need to decide whether to make the trade.
Make a plan. If Forex trading is your business then you should have a business plan in place. Your plan will help you avoid making some of the most typical trading mistakes and save you money. Your plan should include some established entry and exit rules which should form the basis of your trading strategy.
By being aware of these pitfalls and the potential mistakes that a Forex trader can make, you will go a long way towards making sure that you finish up with a profit
The answer is simple – for many different reasons, which we will examine, Forex Market is thought by many to be a perfect market.
Forex is short for foreign exchange and is the world’s largest market. Completely virtual, its size makes it less open to outside influence and less volatile than other markets. Forex Market generates over $3 trillion in revenues every day as a result of exploiting small fluctuations in the value of foreign currencies. It is a very dynamic business and there are significant opportunities to make a hefty profit, however, although there are a huge number of people now involved in forex trading it is still something that remains relatively unknown to the majority of people.
Forex is accessible – you don’t need a great deal of money to get involved so it provides an excellent opportunity for small investors to make money. One of the benefits of Forex is the option to pay only a small proportion of the purchase price in advance, it is also free of commission and is not subject to exchange fees, instead the trading cost is incorporated within the bid/ask spread offered by the market maker. This makes it an excellent prospect for those who wish to trade frequently.
Learning how to trade Forex is a skill that is almost guaranteed to pay once you have mastered it. Forex is not easy, so you will need some knowledge to make good investment choices. Forex is not something that can be mastered in a single day, so it does take some study to become good at it. You need to see it as a long term investment in your financial future.
Unlike other markets such as futures, Forex is available to trade 24 hours a day, 7 days a week. This is because trading hours overlap each other in the various countries around the world, meaning that the market is almost always open. There are major forex trading centres in London, New York and Tokyo as well as other cities such as Sydney. With the different time zones in operation, you can trade at any time of the day or night, and day of the week; including Sunday.
Forex is known as a leveraged market. This can work for or against you, and means that, for example, if your broker offers you leverage of 100:1 leverage, for every 1 unit in your account, you are able to control 100 units. If you can manage this correctly then there is the possibility of making lots of money quickly. By treating Forex as your own business and taking responsibility for it, you can find yourself in a very lucrative market indeed.
It has been said that “not trading forex is like leaving it there for someone else to pick up” and that “trading forex is like having an a.t.m. machine on your own computer”. Forex can be an extremely lucrative business independent of your location and time of day. It is the most liquid market in the world of trading and is all about freedom – some have said that trading forex is like picking money up off the floor! Clearly with the number of private and corporate investors investing in this market, it would seem to be an incredibly lucrative opportunity to get involved in.
Unlike the London Stock Exchange or the American Stock Exchange, Forex is not a physical market. Instead it can be described as a worldwide network of banks, investment firms, hedge fund, currency traders, and other financial and banking entities. Forex operates as an over-the-counter (OTC) market also known as an off-exchange market. The Forex market is constantly fluctuating, which means that if the rate of exchange on a particular currency is not good enough today, then you can certainly expect some difference in the coming weeks. Forex trading happens by phone, on the internet or via a broker.
Changes in the currency market happen fast and these changes are affected by many different factors. The Forex market is also continually growing as the number of individuals participating in the market increases.
Trading Forex is absolutely not a game, however many people feel that it is more like gambling, and consequently don’t treat it seriously. Forex is a serious way to make money, and it is possible to get involved at ground level. Trading forex is perfectly legal and is based on probabilities, provided you can accurately weigh up the associated risks and rewards, you should do well!
Common Mistakes Made When Investing in the Forex Market
Learning to trade Forex is a learning curve and every trader is bound to make mistakes no matter how experienced they are. The important thing to remember is that you should treat any mistake as an opportunity to learn from it and remember that tomorrow is another trading day, so you can just start all over again. Here we take a look at some of the most common mistakes made by Forex traders, and how we can try to avoid them.
One of the biggest and commonest mistakes is to become overconfident. It often happens after making a few successful trades, when the trader stops reacting and starts predicting instead. Rather than reading the market and following the trends, the trader starts to try and guess what the market will do. A good trader will identify the existing patterns in the currency market, carrying out extensive research and then placing a trade that will enable them to cash in on it. Not doing this is a big mistake – experienced traders have a saying “the trend is your friend”, which is well worth remembering.
Another mistake that can occur as a result of overconfidence is that of adding to losing positions. If you start to see that the market is going against your position, you should not add to it any more – this is the time to close that position. You will lose trades, don’t try and correct them by predicting the market will change. You need to get out as soon as you can and move on to the next one.
Don’t set your leverage too high. Aim to use a maximum of 1% to 2% of your trading capital on a position. Insufficient capitalization occurs when you use too much leverage – also known as margin. This is effectively money borrowed from the broker, and if you are caught up in a loss situation, you can find yourself with a high interest margin debt to your broker to worry about. Forex brokers normally have a set maximum allowed for margin debts – this typically 50% of the value of the trading account. If the debt goes above this, the broker can make a margin call – this is a request for you to add some more money to your account as collateral. Inexperienced traders should try and avoid margin debt until they are more familiar with the system.
It is important not to overtrade. If you make too many trades you are spreading yourself too thinly, and are putting yourself at risk of receiving a margin call. You can also lose focus by trading in this way, so stay in control and limit the number of trades you are making.
You should always use stop-loss orders apart from in a few very specific situations. Stop-loss orders do exactly what their name suggests – they stop you making too much of a loss on your trades. The stop-loss order is a pre-determined point at which you will close your position on that trade so as to avoid losses that you cannot afford. Make sure you use them correctly!
Do not treat Forex trading as a hobby – it is a serious business and should be treated as such. Hobbies such as golf, travelling and eating out always cost you money, whereas the purpose of a business is to make money. This is what you want from your Forex trading so you should approach it in a businesslike manner which means having a plan and keeping records.
Always do your research. Don’t take information or “tips” at face value – you should always make your own enquiries and seek second or third opinions before putting your own money in.
Don’t invest in a currency for the sole reason that it is cheap. Many traders believe that because a currency rate is cheap that they can later reap fantastic profits but this is not always the case. Always do your research to see if you can establish why that particular currency is so cheap and look at its trend history. This will give you the information you need to decide whether to make the trade.
Make a plan. If Forex trading is your business then you should have a business plan in place. Your plan will help you avoid making some of the most typical trading mistakes and save you money. Your plan should include some established entry and exit rules which should form the basis of your trading strategy.
By being aware of these pitfalls and the potential mistakes that a Forex trader can make, you will go a long way towards making sure that you finish up with a profit
Monday, June 14, 2010
Free Intraday Cash Tips for 15th June 2010 Overview
Free Intraday Cash Tips from Tipz.in for 15th Jun 2010
ENIL
Action ...................Trigger Price........ Stop Loss........... Target-1..............Target-2
BUY ABOVE............... 250 .....................242......................262......................280
S.SELL BELOW..........240.......................246.....................230......................210
JAI CORP LTD
Action ...................Trigger Price........ Stop Loss........... Target-1..............Target-2
BUY ABOVE............... 264 .....................251......................277......................292
S.SELL BELOW..........249.......................253.....................238......................212
IRB
Action ...................Trigger Price........ Stop Loss........... Target-1..............Target-2
BUY ABOVE............... 291 .....................285......................294......................299
S.SELL BELOW..........283.......................287.....................278......................272
ENIL
Action ...................Trigger Price........ Stop Loss........... Target-1..............Target-2
BUY ABOVE............... 250 .....................242......................262......................280
S.SELL BELOW..........240.......................246.....................230......................210
JAI CORP LTD
Action ...................Trigger Price........ Stop Loss........... Target-1..............Target-2
BUY ABOVE............... 264 .....................251......................277......................292
S.SELL BELOW..........249.......................253.....................238......................212
IRB
Action ...................Trigger Price........ Stop Loss........... Target-1..............Target-2
BUY ABOVE............... 291 .....................285......................294......................299
S.SELL BELOW..........283.......................287.....................278......................272
Watch Nifty Inverse Head & Shoulders Overview
Nifty Inverse Head & Shoulders
Nifty has breakout from Inverse Head & Shoulder with Neckline at 5130.
Height of the head is 380 points thus giving the target of approx 5500.
An attempt towards neckline should be bought with SL around 5080.
closing below neckline will invalidate the above chart
Nifty has breakout from Inverse Head & Shoulder with Neckline at 5130.
Height of the head is 380 points thus giving the target of approx 5500.
An attempt towards neckline should be bought with SL around 5080.
closing below neckline will invalidate the above chart
General Market Advice - Trading Tricks Overview
General Market Advice:
1. Never chase a stock.
2. Buy when markets are in the grip of panic.
3. Only buy fundamentally strong stocks, which are undervalued.
4. Buy stocks grown in top line and bottom line over the past years.
5. Invest in companies with proven management.
6. Avoid loss-making companies.
7. PE Ratio and Growth in earnings per share are the key.
8. Look for the dividend paying record.
9. Invest in stocks for sure returns.
10. Stocks have been the high yielding asset class over the past.
11. Stocks are an asset class.
12. The basic property of any asset class is to grow.
13. Buy when everyone is selling and sell when everyone buys.
14. Invest a fixed amount each month.
Last But not least Trust our tips and then invest to earn huge profit
1. Never chase a stock.
2. Buy when markets are in the grip of panic.
3. Only buy fundamentally strong stocks, which are undervalued.
4. Buy stocks grown in top line and bottom line over the past years.
5. Invest in companies with proven management.
6. Avoid loss-making companies.
7. PE Ratio and Growth in earnings per share are the key.
8. Look for the dividend paying record.
9. Invest in stocks for sure returns.
10. Stocks have been the high yielding asset class over the past.
11. Stocks are an asset class.
12. The basic property of any asset class is to grow.
13. Buy when everyone is selling and sell when everyone buys.
14. Invest a fixed amount each month.
Last But not least Trust our tips and then invest to earn huge profit
Wednesday, June 9, 2010
Watch Nifty Intraday Update - II Overview
Above "5005" (as per PreMarket view) and broken above of the falling channel now.
Sunday, June 6, 2010
Watch Weekend Analysis Overview
Weekend Analysis
We should revisit our week end analysis when ever complacency sets in with a sense of knowing all about the markets. Our initial analysis is often the "intuitive one" and markets bring in the "emotional content" with its moves, which were anyway expected, but adds rainbows to it while it unfolds on the monitor screens and sways you away from the path.
Nifty moved right into the middle of that "5110-5165" and poised to go towards "4935" again. A close below that or a fall below 4885 may eliminate the "larger pull back" and Nifty will make new lows.
Grey:(Bullish with immediate short term bearish) - This one has completed "a" of the "2/ B" and has started the 'b" from the high of "5147" , can stretch upto 4960, 4935, 4885. If it holds any of the three levels, it could start a bullish "C" wave up targeting 5200 - 5260.
Red: (More Bearish in the short term) - After the "X" wave at "5213", "a" wave fell to 4786 and a "b" wave completed @ 5147 on Friday and the "C" wave may unfold in either "abc" or "12345" fashion. Here too "4885-4935" may act as an inflection point whether "Grey" or "Red" is playing out.
Being down with fever, I am not able to answer my mail this week end but for those who found it difficult to trade the recent times, I wish to remind you just a simple fact: "Have you done your home work before trading and are you confident enough to act on it and have you stuck to this plan of yours..?".
For the easiest of trading strategies, I reemphasize here to "Trade only the divergences" and you will hit more than 80% success rate with a relaxed approach. And there are many divergences to choose from.
Nifty moved right into the middle of that "5110-5165" and poised to go towards "4935" again. A close below that or a fall below 4885 may eliminate the "larger pull back" and Nifty will make new lows.
Grey:(Bullish with immediate short term bearish) - This one has completed "a" of the "2/ B" and has started the 'b" from the high of "5147" , can stretch upto 4960, 4935, 4885. If it holds any of the three levels, it could start a bullish "C" wave up targeting 5200 - 5260.
Red: (More Bearish in the short term) - After the "X" wave at "5213", "a" wave fell to 4786 and a "b" wave completed @ 5147 on Friday and the "C" wave may unfold in either "abc" or "12345" fashion. Here too "4885-4935" may act as an inflection point whether "Grey" or "Red" is playing out.
Being down with fever, I am not able to answer my mail this week end but for those who found it difficult to trade the recent times, I wish to remind you just a simple fact: "Have you done your home work before trading and are you confident enough to act on it and have you stuck to this plan of yours..?".
For the easiest of trading strategies, I reemphasize here to "Trade only the divergences" and you will hit more than 80% success rate with a relaxed approach. And there are many divergences to choose from.
Friday, June 4, 2010
Watch Nifty Rising Wedge in Line Chart Overview
1) Around 5150 nifty has to face resistance. More buying only above this trend line.
2) One hour candle at least should close above this trend line.
3) The index may move above that to 5180 but it may frustrate the bulls before doing that.
Watch Nifty Intraday Update
There is some negative divergence in 5- minute as well as in Hourly too. Caution @ 5160-5200 band or on a close below "Day High ema".As mentioned in the comments section, larger trend remains up.(Day - up; week: most likely to turn up with today's close above 5077)
Wednesday, June 2, 2010
Watch Nifty Triangle Formation in Yahoo 5 Days Chart Overview
Watch Nifty Triangle Formation in Yahoo 5 Days Chart
1) NIFTY Triangle formation in yahoo 5 days chart.
2) If it breaks above which i am expecting 5030 can be seen.
3) If the low around 4960 is taken out then nifty will plunge to 4920 levels.
1) NIFTY Triangle formation in yahoo 5 days chart.
2) If it breaks above which i am expecting 5030 can be seen.
3) If the low around 4960 is taken out then nifty will plunge to 4920 levels.
Watch Nifty Bearish Flag a Continuation Pattern
BEARISH FLAG WHICH TURNED OUT TO BE BULLISH
1) The triangle gave a false break out.
2) Lets hope at least the bearish continuation pattern works well after break out.
UPDATED CHART - I
1) The triangle gave a false break out.
2) Lets hope at least the bearish continuation pattern works well after break out.
Tuesday, June 1, 2010
Watch Nifty PreMarket Overview
A correction is on - Use ORB for confirmation only.
Many are asking whether a mechanical system can be made out of the "Tech. table" ?? - May be. I never tried it. I use the tech table as a reference point only...a confirmatory tool as I do with indicators and others. I have the time to study the market in its complexity and try to feel its pulse.
But for those who can not afford so much time, there are "Swing system" based on "n" period of high/ low breach play (Eg: 5 day swing, 10 day swing, 20 day swimg)or a Follow the macd or a tech.table based "Long on a close above 5-ema (Some swear by 3/7 ema) and so on.
What ever you choose, back test for a period of 2 years spending some time on that research with long trades initiated, whipsawed, etc and the returns and combine the same with some "Profit taking methods". Only when you are convinced, should you put them to trade/ invest.
Many are asking whether a mechanical system can be made out of the "Tech. table" ?? - May be. I never tried it. I use the tech table as a reference point only...a confirmatory tool as I do with indicators and others. I have the time to study the market in its complexity and try to feel its pulse.
But for those who can not afford so much time, there are "Swing system" based on "n" period of high/ low breach play (Eg: 5 day swing, 10 day swing, 20 day swimg)or a Follow the macd or a tech.table based "Long on a close above 5-ema (Some swear by 3/7 ema) and so on.
What ever you choose, back test for a period of 2 years spending some time on that research with long trades initiated, whipsawed, etc and the returns and combine the same with some "Profit taking methods". Only when you are convinced, should you put them to trade/ invest.
Why do I have both "Buy" & "Sell" suggestions - because Nifty is at another inflection point. There is a clear possibility of moving higher post this correction. Monthly charts of many stocks too give such an indication.
A correction is on and it may resume the downtrend for one more new low.
In sum, you sell first and then buy - Ohhhhh- that is trading..you got it.
Watch NIFTY 5 MINUTES PATTERN (Diamond)
Yesterday nifty formed a diamond pattern in 5 minutes. The pattern was not perfect but was very effective.
Saturday, May 29, 2010
Watch Nifty Technical Analysis for the Last Week
- NIFTY TECHNICAL ANALYSIS FOR LAST WEEK
1) NIFTY HAS MADE A REVERSAL FROM CHANNEL BOTTOM. MACD HAS NOT GIVEN A BUY YET.
2) AS YOU CAN SEE THE LAST TWO TIMES WHEN NIFTY CAME CLOSE TO THE CHANNEL BOTTOM IT COMBINED WITH MACD CROSSOVER TO GIVE A GOOD REVERSAL
3) I AM EXPECTING IT TO HAPPEN AGAIN. BUT HAS RESISTANCE AROUND 5080.
4) IT MAY GO DOWN A BIT FROM CURRENT LEVELS.
5) BUT THE CORRECTION FROM HERE MAY NOT BE TOO LARGE AND AN UP MOVE FOLLOWED BY THE BREAKING OF 5080 WILL TAKE NIFTY TO NEW HIGH'S
Watch Nifty Reversal not Changed the Weekly Down Trend
Inspite of a 300 point rise, Nifty could not close above 5-wk sma. But just squeezed into the rising channel - Can it keep up with the rising channel in the coming weeks..?
Nifty managed to close above this falling "Daily channel" suggesting upside possibility. The next pivot high of 5105 coincides with the "Monthly ema" and Monday is the monthly close - Can it close above that after failing the weekly close (Closed below 5077)..??
Nifty , in the past, risen sharply (once from 3900 & another from 4500) - But this time the higher time frame TA is down and a crucial monthly close is awaited on Monday.
Nifty managed to close above this falling "Daily channel" suggesting upside possibility. The next pivot high of 5105 coincides with the "Monthly ema" and Monday is the monthly close - Can it close above that after failing the weekly close (Closed below 5077)..?? Nifty , in the past, risen sharply (once from 3900 & another from 4500) - But this time the higher time frame TA is down and a crucial monthly close is awaited on Monday.
Tips for How to Earn Minimum 30% Profit in One Month
How much profit you will make in a month? Will you believe, if we say 30%?
If you follow a simple strategy which is called as “Take small profits and do multiple trades” which is explained in following example
Let’s see the following example
Please note - Currently our intraday brokerage charges are 0.03% for buying and 0.03% for selling,
Taxes to pay for intraday trading :
1. The Service tax is 10.36% only on brokerage.(Update Mar 09- The service tax is reduced to 10.30% including education cess )
2. The STT (Security Transaction Tax) is 0.025% only on selling amount.
3. The Stamp duty on total turnover for a day which is 0.002%.
4. and finally you have to pay Regulatory charges on total turnover for a day which is 0.004%
No need to worry about these taxes as all these taxes will add up to very small amount at the end of the day compared to intraday profits.
Example -
Suppose you have bought the shares of Bharati Airtel at Rs.315 and quantity 100 so the total amount you have to pay is Rs.315 x 100 = Rs.31,500.
Let’s see how to calculate the brokerage and taxes.
Your buying amount is
Rs.31500 (Rs.315x100 Qty shares)
Brokerage charges
0.03% as brokerage (It’s our brokerage rates) on 31,500 comes to Rs.9.45
Service Tax
The service tax is 10.36% only on brokerage amount, so 10.36 % on Rs.9.45 comes to Rs 0.98.
Total charges you have to pay on buying amount is :
The total brokerage + service tax which come to Rs.9.45 + Rs.0.98 = Rs.10.43
Now let’s calculate the Brokerage and Taxes on selling amount :
Your selling amount
Suppose you sold Bharati Airtel shares at Rs.316 (you took profit of only Rs 1), Qty - 100 so the amount comes to Rs.31,600 (Rs.316 x 100 Qty shares). Your profit is Rs 100.
Brokerage charge
0.03% brokerage on 31,600, comes to Rs.9.48
Service Tax
The service tax is 10.36% only on brokerage amount, so 10.36 % on Rs.9.48 comes to Rs 0.99.
STT (Service Transaction Tax) is only on selling amount
The STT (Service Transaction Tax) is 0.025% on selling amount (the selling amount is 31,600) which comes to Rs.6.32.
Total charges you have to pay on selling amount is = Brokerage + service tax + STT
= Rs.9.48 + Rs.0.99 + Rs.6.32
= Rs.16.79
Total amount you have to pay on buying and selling is (including Brokerage and taxes) :
= Rs.10.43 (buying) + Rs.16.79 (selling)
= Rs.27.22
Also you have to pay stamp duty and regulatory charges on total turnover:
Rate - The stamp duty on total turnover for a day is 0.002% and Regulatory charges are 0.004%.
Stamp duty and regulatory charges are applied on total turnover of a day.
The total turn over is calculated by adding the buying and selling amount happened through out the day.
In above example the Buying amount is 31500 and selling amount is 31600 which adds up to Rs. 61300
Stamp duty is 0.002% and Regulatory charges are 0.004% which adds up to 0.006%
So on total turnover amount of Rs. 61300 and the stamp duty and regulatory charges on that comes to Rs 3.8.
So the total amount you have to pay for the trade of buying 100 shares of Bharati Airtel at Rs 315 and selling them at Rs 316 comes to = Rs 27.22 + 3.8 (stamp and regulatory charges) = 31.02 which includes brokerage rates and various taxes
Conclusion :
So now the conclusion is you paid Rs.31.02 (brokerage and taxes) while you earned the profit of Rs.100.
So your Net profit is Rs 69 [Rs 100 - Rs 31 (brokerage and taxes) ]
So don’t you think 69% profit in single trade is quite enough to do thousands per day?
If you continue doing such small trades with small profits then you will end up with big amount at the end of the day.
Let’s see how it will add up to thousands :
Suppose if you do only 10 trades in a day by taking only Rs 1 as profit then it will add
up to Rs 690 (Rs 69 x 10 trades in a day).
Please note - One rupee movement in share price of Rs 300 happens very easily and for many times in a day.
So if possible select higher prices share for day trading so that you can take small profits and do multiple trades.
How to make thousands in a day? :
Now let’s see how to do thousands with same strategy as mentioned above.
Its simple, you just have to increase your quantity of shares.
In above example you have bought only 100 quantities, if you just make it double then your profit will also get doubled.
How much will you make in a month?
Rs.69 per trade as net profit (as per above example).
10 trades per day (how much trades are possible, you will come to know by doing paper trading practice, which we already explained in day trading section, and according to our analysis 10 trades in a day are very easily possible)
Total Rs.69x10 trades = Rs.690 per day.
Total approximate 20 trading days in a month.
So Rs.690x20 = Rs.13,800.
Please note - You can also do 5 trades in a day and earn good amount in a day and adding it with thousands at the end of the month.
Let’s consider some losses while trading :
Trading without losses is not possible for any trader, but trader has to reduce the losses and maximize the profits.
(Please visit our different day trading sections to read about reducing the losses in day trading)
Now let’s suppose you made loss on some days or due to some reason you are not able to trade on some days, so let’s consider 5 days as compensation as loss in a month.
So 5 days losses comes to Rs 3450 (Rs 690 per day x 5 days).
So the compensation for losses for 5 days in a month comes to is Rs.3450.
Final Total Net Profit
You are making profit of Rs 10350 (Rs13,800 - 3450) profit per month.
Your investment is Rs 35,000 and you are getting profit of Rs 10,350 per month so in just 3 to 4 months you are making your money double.
Trading on Margin Amount :
In the above example the margin amount is not used but only the investment amount Rs 35000 is used.
Margin amount is the extra amount given by the broker to trade for a day.
Margin amount varies from broker to broker but generally they provide 3 to 4 times.
Big Disadvantage of Margin amount - If you use the margin amount then you have to square off your trades before market closes. Whether you are in profit or loss you have to square off your trades before market closes or else heavy penalty will apply.
Important Precaution - In margin amount the risk is very high. You have to square off your trades on same day.
We generally advice to not to use margin amount for new comers to trading.
If you dont use margin amount then you can hold your positions for next day or as long as you want because you are using your own money and not broker's money (margin amount).
New comers to day trading :
You can invest small amount like Rs 5000 or 10,000 and earn profits in a month and once you gain experience then you can invest big amount.
The conclusion is forgetting the "Greed Factor and Taking Small Profits" will make miracle to your Trading.
If you follow a simple strategy which is called as “Take small profits and do multiple trades” which is explained in following example
Let’s see the following example
Please note - Currently our intraday brokerage charges are 0.03% for buying and 0.03% for selling,
Taxes to pay for intraday trading :
1. The Service tax is 10.36% only on brokerage.(Update Mar 09- The service tax is reduced to 10.30% including education cess )
2. The STT (Security Transaction Tax) is 0.025% only on selling amount.
3. The Stamp duty on total turnover for a day which is 0.002%.
4. and finally you have to pay Regulatory charges on total turnover for a day which is 0.004%
No need to worry about these taxes as all these taxes will add up to very small amount at the end of the day compared to intraday profits.
Example -
Suppose you have bought the shares of Bharati Airtel at Rs.315 and quantity 100 so the total amount you have to pay is Rs.315 x 100 = Rs.31,500.
Let’s see how to calculate the brokerage and taxes.
Your buying amount is
Rs.31500 (Rs.315x100 Qty shares)
Brokerage charges
0.03% as brokerage (It’s our brokerage rates) on 31,500 comes to Rs.9.45
Service Tax
The service tax is 10.36% only on brokerage amount, so 10.36 % on Rs.9.45 comes to Rs 0.98.
Total charges you have to pay on buying amount is :
The total brokerage + service tax which come to Rs.9.45 + Rs.0.98 = Rs.10.43
Now let’s calculate the Brokerage and Taxes on selling amount :
Your selling amount
Suppose you sold Bharati Airtel shares at Rs.316 (you took profit of only Rs 1), Qty - 100 so the amount comes to Rs.31,600 (Rs.316 x 100 Qty shares). Your profit is Rs 100.
Brokerage charge
0.03% brokerage on 31,600, comes to Rs.9.48
Service Tax
The service tax is 10.36% only on brokerage amount, so 10.36 % on Rs.9.48 comes to Rs 0.99.
STT (Service Transaction Tax) is only on selling amount
The STT (Service Transaction Tax) is 0.025% on selling amount (the selling amount is 31,600) which comes to Rs.6.32.
Total charges you have to pay on selling amount is = Brokerage + service tax + STT
= Rs.9.48 + Rs.0.99 + Rs.6.32
= Rs.16.79
Total amount you have to pay on buying and selling is (including Brokerage and taxes) :
= Rs.10.43 (buying) + Rs.16.79 (selling)
= Rs.27.22
Also you have to pay stamp duty and regulatory charges on total turnover:
Rate - The stamp duty on total turnover for a day is 0.002% and Regulatory charges are 0.004%.
Stamp duty and regulatory charges are applied on total turnover of a day.
The total turn over is calculated by adding the buying and selling amount happened through out the day.
In above example the Buying amount is 31500 and selling amount is 31600 which adds up to Rs. 61300
Stamp duty is 0.002% and Regulatory charges are 0.004% which adds up to 0.006%
So on total turnover amount of Rs. 61300 and the stamp duty and regulatory charges on that comes to Rs 3.8.
So the total amount you have to pay for the trade of buying 100 shares of Bharati Airtel at Rs 315 and selling them at Rs 316 comes to = Rs 27.22 + 3.8 (stamp and regulatory charges) = 31.02 which includes brokerage rates and various taxes
Conclusion :
So now the conclusion is you paid Rs.31.02 (brokerage and taxes) while you earned the profit of Rs.100.
So your Net profit is Rs 69 [Rs 100 - Rs 31 (brokerage and taxes) ]
So don’t you think 69% profit in single trade is quite enough to do thousands per day?
If you continue doing such small trades with small profits then you will end up with big amount at the end of the day.
Let’s see how it will add up to thousands :
Suppose if you do only 10 trades in a day by taking only Rs 1 as profit then it will add
up to Rs 690 (Rs 69 x 10 trades in a day).
Please note - One rupee movement in share price of Rs 300 happens very easily and for many times in a day.
So if possible select higher prices share for day trading so that you can take small profits and do multiple trades.
How to make thousands in a day? :
Now let’s see how to do thousands with same strategy as mentioned above.
Its simple, you just have to increase your quantity of shares.
In above example you have bought only 100 quantities, if you just make it double then your profit will also get doubled.
How much will you make in a month?
Rs.69 per trade as net profit (as per above example).
10 trades per day (how much trades are possible, you will come to know by doing paper trading practice, which we already explained in day trading section, and according to our analysis 10 trades in a day are very easily possible)
Total Rs.69x10 trades = Rs.690 per day.
Total approximate 20 trading days in a month.
So Rs.690x20 = Rs.13,800.
Please note - You can also do 5 trades in a day and earn good amount in a day and adding it with thousands at the end of the month.
Let’s consider some losses while trading :
Trading without losses is not possible for any trader, but trader has to reduce the losses and maximize the profits.
(Please visit our different day trading sections to read about reducing the losses in day trading)
Now let’s suppose you made loss on some days or due to some reason you are not able to trade on some days, so let’s consider 5 days as compensation as loss in a month.
So 5 days losses comes to Rs 3450 (Rs 690 per day x 5 days).
So the compensation for losses for 5 days in a month comes to is Rs.3450.
Final Total Net Profit
You are making profit of Rs 10350 (Rs13,800 - 3450) profit per month.
Your investment is Rs 35,000 and you are getting profit of Rs 10,350 per month so in just 3 to 4 months you are making your money double.
Trading on Margin Amount :
In the above example the margin amount is not used but only the investment amount Rs 35000 is used.
Margin amount is the extra amount given by the broker to trade for a day.
Margin amount varies from broker to broker but generally they provide 3 to 4 times.
Big Disadvantage of Margin amount - If you use the margin amount then you have to square off your trades before market closes. Whether you are in profit or loss you have to square off your trades before market closes or else heavy penalty will apply.
Important Precaution - In margin amount the risk is very high. You have to square off your trades on same day.
We generally advice to not to use margin amount for new comers to trading.
If you dont use margin amount then you can hold your positions for next day or as long as you want because you are using your own money and not broker's money (margin amount).
New comers to day trading :
You can invest small amount like Rs 5000 or 10,000 and earn profits in a month and once you gain experience then you can invest big amount.
The conclusion is forgetting the "Greed Factor and Taking Small Profits" will make miracle to your Trading.
Some Important Tips for Day Trading
Emotions in day trading :
In order to be a successful day trader as you need to have the right tools, right market direction, and the right trading systems in the same you also need to have control on your emotions because the buy and sell orders initialize from your emotions.
It is totally true that it is not possible to get rid of your emotions completely but managing at some extent will prove beneficial.
According to our experience emotions pals a major role in day trading.
If you have bad or sad mood then your trading may not be too successful.
If you are happy and cheerful then your trading will see its positive effects.
Following are few emotions which play a major role during taking decisions :
Fear and greed
Increasing Targets
Moving from Paper Trading to Live Trading
Patience and Discipline
Patience, Decisiveness, and Calmness
Recognizing and Overcoming Stubbornness
Fear and Greed :
The two main emotions that day traders experience are fear and greed, and while you will probably not be able to remove these emotions completely, you will need to manage them for some extent.
Fear :
Fear is the emotion that stops us from doing things that might be too risky. In the right quantity, fear is obviously an emotion that we need, but when fear becomes too great then we can be prevented from doing things that might be necessary.
In day trading, the main fear a trader has is that they are going to lose money. This is a normal fear as no trader wants to lose money, but it is illogical if it prevents the trader from taking any trades.
As an example, a trader might make loose an initial trade, and then be too fearful to make the next trade which should not happen in day trading.
The emotion of fear can be overcome by acknowledging that all day traders have losing trades occasionally, but as long as they are less frequent than the winning trades, there is nothing to be afraid of as there will still be in a net profit.
Greed :
Greed is the opposite emotion to fear.
The right amount of greed is necessary because it gives us the motivation to work at something, but when we are too greedy we will start doing things even when we know that we should not.
In day trading, greed can make traders to make unnecessary trades, or hold on to positions which are in loss, wait for big profit in single trade and so on.
The emotion of greed can be overcome by following the “Analyze, wait, watch and trade” principle which is mention in our next subsections
Increasing Targets :
Day traders should put their exit (square off) order which is nothing but limit order once they buy or short sell their trade.
This is the right method for winning strategy.
Because traders keep increasing the targets once the share price start moving in their favor but this can be risky. This happens due to greed factor to get more and more profit in single trade.
So book your profits on your already decided targets.
While shifting from paper trading to Live Trading :
When you are planning to start actual day trading, once you successfully complete the paper trading practice, then you may get fear while trading because you are using you actual money
Fear of Losing Money :
The reason that your trading system suddenly stops working because the additional emotion that comes while using own real money. The fear of losing one's own money is a very strong emotion, and can cause even experienced traders to make mistakes. Hesitating before entering a trade, moving their stop loss to break even too early, or taking a smaller profit than they would normally, are all common mistakes that are made because of the emotion of fear.
Overcoming the Fear :
If you are experiencing these problems then you have keep faith in practice trading practice what you did before doing your actual day trading.
If you would have made profits consistently in paper trading then you need to have faith in your trading system, and follow it exactly and on the other side still if you are not feeling confident then you should go back to paper trading practice.
Patience and Discipline :
Professional traders know that their emotions are going to affect their trading whether they like it or not. As a result, they develop personalities that allow them to overcome their emotions and trade profitably. Two of the most important personality traits are patience and discipline, because they allow you to handle one of the most difficult aspects of trading.
Possibly the most emotional time for a trader is when their profit / loss is negative, and they are waiting for their next trade to come along. During this time they will be impatient and anxious, and they will be desperate to take their next trade in order to make back the money that they have lost. Most new traders (and also many experienced traders) will start taking trades that are not part of their trading system. As soon as this happens, their loss will increase, and will continue to do so until they realize what they are doing and correct their behavior.
By developing a personality that counteracts your emotions you will be able to continue making logical decisions.
Patience and discipline are vital personality characters for professional traders.
Being patient allows you to wait for your next trade regardless of your current profit / loss, and being disciplined allows you to take only trades that are part of your trading system and not making unnecessary trades.
Maintain trading Log :
One method of learning how to be patient and discipline is to keep a detailed log of every trade that you take. At the end of the day (or week, or month), replay every trade, and compare the replayed trades to your trading log. If there are any differences, you should be able to determine what caused them, and hopefully know what you need to avoid the next time.
Another method of becoming patient and disciplined is to have absolute confidence in your trading system. Knowing that your trading system will make money over the long term can be enough to overcome the negative emotions that occur when you are experiencing a negative profit / loss. The only way to build confidence is to test your trades repeatedly in paper trading. If you have tested your trading system over a significant length of time, and it is consistently profitable, there is no reason to question that it will continue to be profitable
Patience, Decisiveness, and Calmness :
The idea of making a living as a day trader appeals to a large number of people, but not everybody has a personality suitable for day trading. Even people that are successful in other fields (even related fields), often find that they are not compatible with day trading.
Day trading is a flexible profession but there are few qualities that all day traders need to have in their personalities, in order to be successful (profitable) and those are
Patience
Decisiveness
Calmness
Patience :
Day trading is performed by sitting quietly in front of a computer, waiting anywhere from a few minutes, to several hours for the trade to come along.
Being able to wait patiently is a necessity; otherwise you will find yourself taking trades that are not part of your trading system and most likely losing money on them.
Decisiveness :
Deciding when to enter and exit trades is one of the most basic functions of a day trader, and it is important that these decisions are made as efficiently as possible. Being decisive is vital to successful day trading, otherwise you will only sit and watch trades that you should have actually taken. Being decisive does not mean being bold, and taking trades that you are not sure about, but it does mean acting promptly when a trade does come along.
Calmness :
Remaining calm during trading is one of the most important personality character for a day trader, but it is also one of the most difficult to obtain and practice.
As humans, the natural reactions to a winning trade are excitement and joy, and the natural reactions to a losing trade are panic and sadness, but day traders need to control these emotions, otherwise they will adversely affect their trading decisions (particularly the negative emotions).
For example, the panic that occurs after a losing trade might make you take a new trade almost immediately in an attempt to make the money back, even though there was no trade according to your trading system.
Paper trading practice :
It is a good way to practice your patience, decisiveness, and calmness during trading, without risking any real money.
After many hours, days, or weeks of practice you will have a good idea of how your personality and your emotions will affect your day trading, but even then, there will still be an emotional response when you start trading live.
Recognizing and Overcoming Stubbornness :
A large part of being a successful day trader is having the right personality character, or if not, at least being able to control the opposing personality traits. Human traders will always be influenced by their personalities and their resulting emotions, but professional traders have learned to overcome the emotions that are counter productive to their trading.
Stubbornness (inflexibility) :
One such personality characteristic is stubbornness.
Stubbornness (inflexibility) causes people to become attached to their decisions regardless of the consequences.
Day traders need to be decisive in order to make their trading decisions promptly, and then act upon those decisions without any hesitation, but they also need to be flexible and able to react when a decision was incorrect.
In order to be successful, day traders need to find the right combination of decisiveness and flexibility for their personality
Overcoming Stubbornness :
Stubborn people usually refuse to admit that they are stubborn, so recognizing that stubbornness is causing problems with their trading can be difficult. Stubbornness usually causes several different trading mistakes, with the following mistakes being the most common. If you are making any of these mistakes in your trading, it is probable that you have some degree of stubbornness in your personality, and that it is affecting your day trading:
Refusing to use targets and stop losses, and certainly refusing to actually place target and stop loss orders
Choosing not to follow a trading system, because you know what the market is going to do
Holding losing trades until the pain is just too much to bear (or even until your brokerage exits the trade for you, because you no longer cover the required margin)
For any other reason, these mistakes are actually easy to overcome, but not when they are being caused by stubbornness. In order to overcome these mistakes, stubborn traders first need to recognize that the mistakes are being caused by a natural human emotion, and that there is nothing wrong with admitting this. As being stubborn is a form of control, it may help to think that by recognizing the cause, you can have more control over yourself, and hence over your trading.
Once the cause has been recognized, trading in simulation will provide time to correct the trading mistakes without risking any real money. Trade in simulation until you are consistently profitable (by consistently, I mean several weeks, not just one day), and then move to live trading.
In order to be a successful day trader as you need to have the right tools, right market direction, and the right trading systems in the same you also need to have control on your emotions because the buy and sell orders initialize from your emotions.
It is totally true that it is not possible to get rid of your emotions completely but managing at some extent will prove beneficial.
According to our experience emotions pals a major role in day trading.
If you have bad or sad mood then your trading may not be too successful.
If you are happy and cheerful then your trading will see its positive effects.
Following are few emotions which play a major role during taking decisions :
Fear and greed
Increasing Targets
Moving from Paper Trading to Live Trading
Patience and Discipline
Patience, Decisiveness, and Calmness
Recognizing and Overcoming Stubbornness
Fear and Greed :
The two main emotions that day traders experience are fear and greed, and while you will probably not be able to remove these emotions completely, you will need to manage them for some extent.
Fear :
Fear is the emotion that stops us from doing things that might be too risky. In the right quantity, fear is obviously an emotion that we need, but when fear becomes too great then we can be prevented from doing things that might be necessary.
In day trading, the main fear a trader has is that they are going to lose money. This is a normal fear as no trader wants to lose money, but it is illogical if it prevents the trader from taking any trades.
As an example, a trader might make loose an initial trade, and then be too fearful to make the next trade which should not happen in day trading.
The emotion of fear can be overcome by acknowledging that all day traders have losing trades occasionally, but as long as they are less frequent than the winning trades, there is nothing to be afraid of as there will still be in a net profit.
Greed :
Greed is the opposite emotion to fear.
The right amount of greed is necessary because it gives us the motivation to work at something, but when we are too greedy we will start doing things even when we know that we should not.
In day trading, greed can make traders to make unnecessary trades, or hold on to positions which are in loss, wait for big profit in single trade and so on.
The emotion of greed can be overcome by following the “Analyze, wait, watch and trade” principle which is mention in our next subsections
Increasing Targets :
Day traders should put their exit (square off) order which is nothing but limit order once they buy or short sell their trade.
This is the right method for winning strategy.
Because traders keep increasing the targets once the share price start moving in their favor but this can be risky. This happens due to greed factor to get more and more profit in single trade.
So book your profits on your already decided targets.
While shifting from paper trading to Live Trading :
When you are planning to start actual day trading, once you successfully complete the paper trading practice, then you may get fear while trading because you are using you actual money
Fear of Losing Money :
The reason that your trading system suddenly stops working because the additional emotion that comes while using own real money. The fear of losing one's own money is a very strong emotion, and can cause even experienced traders to make mistakes. Hesitating before entering a trade, moving their stop loss to break even too early, or taking a smaller profit than they would normally, are all common mistakes that are made because of the emotion of fear.
Overcoming the Fear :
If you are experiencing these problems then you have keep faith in practice trading practice what you did before doing your actual day trading.
If you would have made profits consistently in paper trading then you need to have faith in your trading system, and follow it exactly and on the other side still if you are not feeling confident then you should go back to paper trading practice.
Patience and Discipline :
Professional traders know that their emotions are going to affect their trading whether they like it or not. As a result, they develop personalities that allow them to overcome their emotions and trade profitably. Two of the most important personality traits are patience and discipline, because they allow you to handle one of the most difficult aspects of trading.
Possibly the most emotional time for a trader is when their profit / loss is negative, and they are waiting for their next trade to come along. During this time they will be impatient and anxious, and they will be desperate to take their next trade in order to make back the money that they have lost. Most new traders (and also many experienced traders) will start taking trades that are not part of their trading system. As soon as this happens, their loss will increase, and will continue to do so until they realize what they are doing and correct their behavior.
By developing a personality that counteracts your emotions you will be able to continue making logical decisions.
Patience and discipline are vital personality characters for professional traders.
Being patient allows you to wait for your next trade regardless of your current profit / loss, and being disciplined allows you to take only trades that are part of your trading system and not making unnecessary trades.
Maintain trading Log :
One method of learning how to be patient and discipline is to keep a detailed log of every trade that you take. At the end of the day (or week, or month), replay every trade, and compare the replayed trades to your trading log. If there are any differences, you should be able to determine what caused them, and hopefully know what you need to avoid the next time.
Another method of becoming patient and disciplined is to have absolute confidence in your trading system. Knowing that your trading system will make money over the long term can be enough to overcome the negative emotions that occur when you are experiencing a negative profit / loss. The only way to build confidence is to test your trades repeatedly in paper trading. If you have tested your trading system over a significant length of time, and it is consistently profitable, there is no reason to question that it will continue to be profitable
Patience, Decisiveness, and Calmness :
The idea of making a living as a day trader appeals to a large number of people, but not everybody has a personality suitable for day trading. Even people that are successful in other fields (even related fields), often find that they are not compatible with day trading.
Day trading is a flexible profession but there are few qualities that all day traders need to have in their personalities, in order to be successful (profitable) and those are
Patience
Decisiveness
Calmness
Patience :
Day trading is performed by sitting quietly in front of a computer, waiting anywhere from a few minutes, to several hours for the trade to come along.
Being able to wait patiently is a necessity; otherwise you will find yourself taking trades that are not part of your trading system and most likely losing money on them.
Decisiveness :
Deciding when to enter and exit trades is one of the most basic functions of a day trader, and it is important that these decisions are made as efficiently as possible. Being decisive is vital to successful day trading, otherwise you will only sit and watch trades that you should have actually taken. Being decisive does not mean being bold, and taking trades that you are not sure about, but it does mean acting promptly when a trade does come along.
Calmness :
Remaining calm during trading is one of the most important personality character for a day trader, but it is also one of the most difficult to obtain and practice.
As humans, the natural reactions to a winning trade are excitement and joy, and the natural reactions to a losing trade are panic and sadness, but day traders need to control these emotions, otherwise they will adversely affect their trading decisions (particularly the negative emotions).
For example, the panic that occurs after a losing trade might make you take a new trade almost immediately in an attempt to make the money back, even though there was no trade according to your trading system.
Paper trading practice :
It is a good way to practice your patience, decisiveness, and calmness during trading, without risking any real money.
After many hours, days, or weeks of practice you will have a good idea of how your personality and your emotions will affect your day trading, but even then, there will still be an emotional response when you start trading live.
Recognizing and Overcoming Stubbornness :
A large part of being a successful day trader is having the right personality character, or if not, at least being able to control the opposing personality traits. Human traders will always be influenced by their personalities and their resulting emotions, but professional traders have learned to overcome the emotions that are counter productive to their trading.
Stubbornness (inflexibility) :
One such personality characteristic is stubbornness.
Stubbornness (inflexibility) causes people to become attached to their decisions regardless of the consequences.
Day traders need to be decisive in order to make their trading decisions promptly, and then act upon those decisions without any hesitation, but they also need to be flexible and able to react when a decision was incorrect.
In order to be successful, day traders need to find the right combination of decisiveness and flexibility for their personality
Overcoming Stubbornness :
Stubborn people usually refuse to admit that they are stubborn, so recognizing that stubbornness is causing problems with their trading can be difficult. Stubbornness usually causes several different trading mistakes, with the following mistakes being the most common. If you are making any of these mistakes in your trading, it is probable that you have some degree of stubbornness in your personality, and that it is affecting your day trading:
Refusing to use targets and stop losses, and certainly refusing to actually place target and stop loss orders
Choosing not to follow a trading system, because you know what the market is going to do
Holding losing trades until the pain is just too much to bear (or even until your brokerage exits the trade for you, because you no longer cover the required margin)
For any other reason, these mistakes are actually easy to overcome, but not when they are being caused by stubbornness. In order to overcome these mistakes, stubborn traders first need to recognize that the mistakes are being caused by a natural human emotion, and that there is nothing wrong with admitting this. As being stubborn is a form of control, it may help to think that by recognizing the cause, you can have more control over yourself, and hence over your trading.
Once the cause has been recognized, trading in simulation will provide time to correct the trading mistakes without risking any real money. Trade in simulation until you are consistently profitable (by consistently, I mean several weeks, not just one day), and then move to live trading.
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