Seven Best Trend Indicators for the Stock Market. The Lucky Seven Strategy.

What are the Seven best trend indicators for the stock market?

(Read every word till the end of blog to learn the a secret of successful traders, re-read if you are unable to fathom the secret, practice your trades when you are confirmed there is a trend and do small trades till you become a expert. Finally, ask yourself am I ready for bigger trades?)

I call it "The Lucky Seven Strategy" or TLSS

Why only Seven indicators? 

Well it is my idea, I believe these seven are optimum to get trend in a market, whether you are looking for short term trend in a minutes chart (say 10min, 15min 30min), or in hourly chart, or in a daily , weekly , monthly , yearly charts etc...

As I say it is my idea & experience and judgement some can differ from me. But if you paper trade or invest low capital amounts for a few years you will know how it will work.

1. Stochastic Indicator

The Stochastic Indicator is a popular technical analysis tool used by traders to identify potential trend reversals or overbought/oversold conditions in a market. It compares the closing price of a security to its price range over a specific time period. The indicator consists of two lines:

1. %K line: This is the main line, representing the current price relative to the range of prices over a specified period.

2. %D line: This is a moving average of the %K line, often smoothed to reduce volatility.

Traders typically interpret the Stochastic Indicator as follows:

- When the %K line crosses above the %D line and rises above a certain threshold (often 80), it suggests the security is overbought.

- Conversely, when the %K line crosses below the %D line and falls below a certain threshold (often 20), it indicates the security is oversold.

These conditions can signal potential buying or selling opportunities depending on the trader's strategy and market conditions.

2. Parabolic Stop and Reverse (PSAR)

The Parabolic Stop and Reverse (PSAR) is a technical analysis indicator used to determine potential reversals in the price direction of a security. Developed by J. Welles Wilder, the PSAR indicator helps traders set trailing stop losses and identify potential entry or exit points.

How PSAR Works

1. Dots Above and Below the Price:

   • The PSAR is plotted as dots above or below the price on a chart.
   • When the dots are below the price, it indicates a bullish trend, suggesting that the price is likely to continue rising.
   • When the dots are above the price, it indicates a bearish trend, suggesting that the price is likely to continue falling.

2. Calculation:

   • The PSAR starts with an initial point and adjusts daily based on the price movement and an acceleration factor (AF).
   • The AF starts at a low value, typically 0.02, and increases by the same amount each time the price makes a new high (in an uptrend) or a new low (in a downtrend) until it reaches a maximum value (usually 0.2).
   • The indicator's calculation uses the extreme point (EP), which is the highest high in an uptrend or the lowest low in a downtrend.

3. Trend Reversal:

   • When the price crosses the PSAR dots, the indicator switches position, suggesting a potential trend reversal.
   • For example, if the price is in an uptrend and crosses below the PSAR dots, the indicator will flip to be above the price, signaling a possible shift to a downtrend.

How to Use PSAR

• Trailing Stop Loss: Traders often use PSAR to set a trailing stop loss. As the price moves in a favorable direction, the PSAR will adjust accordingly, helping to lock in profits.
• Entry and Exit Points: The PSAR can be used to identify potential entry or exit points in the market. For instance, traders may consider entering a position when the PSAR flips below the price (indicating a bullish trend) and exiting when the PSAR flips above the price (indicating a bearish trend).
• Combining with Other Indicators: The PSAR is often used in conjunction with other technical indicators, such as moving averages or the Relative Strength Index (RSI), to confirm signals and improve accuracy.

While the PSAR can be a helpful tool for identifying trends and reversals, it's essential to consider market conditions and use it alongside other analysis methods to reduce false signals.

3. 200-day Moving Average (200 MA)

The 200-day Moving Average (200 MA) is a widely used technical analysis tool that helps traders and investors identify the overall trend of a security or market over a longer period. It represents the average closing price of a security over the last 200 trading days (approximately 40 weeks). 

How the 200 MA Works

1. Calculation

   - The 200 MA is calculated by adding up the closing prices of a security for the past 200 trading days and dividing by 200.

   - As a simple moving average (SMA), it gives equal weight to all past closing prices over this period.

2. Identifying Trends:

   - Bullish Trend: If the price of the security is consistently above the 200-day moving average, it is generally considered to be in a long-term uptrend.

   - Bearish Trend: If the price is consistently below the 200-day moving average, it is considered to be in a long-term downtrend.

3. Support and Resistance:

   - The 200 MA can act as a support or resistance level. When the price is above the 200 MA, it may act as a support level, with the price potentially finding buying interest near this average.

   - Conversely, when the price is below the 200 MA, it may act as a resistance level, with the price potentially encountering selling interest near this average.

How to Use the 200 MA

- Trend Following: Traders often use the 200-day moving average to identify the direction of the long-term trend and trade in that direction. For example, a trader may prefer to only take long positions when the price is above the 200 MA and short positions when the price is below it.

- Trend Reversal: A crossover of the price above or below the 200-day moving average can signal a potential trend reversal. For example, if a security has been trading below the 200 MA and then crosses above it, this might indicate a shift from a bearish to a bullish trend.

- Market Sentiment: The 200 MA is also used as a gauge of market sentiment. A market or security trading above the 200 MA is often seen as bullish, while trading below it is considered bearish.

Combining with Other Indicators

The 200-day moving average is frequently used with other technical indicators and moving averages (like the 50-day MA) to provide more robust trading signals. For example, a "Golden Cross" occurs when the 50-day MA crosses above the 200-day MA, indicating a potential bullish trend, while a "Death Cross" occurs when the 50-day MA crosses below the 200-day MA, suggesting a potential bearish trend.

Summary

The 200-day moving average is a simple yet powerful tool for identifying long-term trends and potential support or resistance levels. Its widespread use across various markets makes it a standard indicator for many traders and investors.

In short by known definition and literal meaning, a moving average or MA refers to the stock indicator that uses the average of previous prices as a base line to predict a trend. This maybe average of previous 20 ticks, 50 ticks, 100 ticks, 200 ticks, (where tick = 1 candle = 1 time unit) you can choose any based on how many days you beleive you need to predict the upcoming trend, its a hypothesis that the same trend might continue based on the strength of the stock which you must find out from how famous its product or srvice is in the consumer markets. Well, the main purpose of computing moving averages is to reduce the impact of short-term price fluctuations of a stock over a specific period of time.  

Traders who opt for this strategy will enter long positions when a short-term MA moves above a long-term MA. On the other hand, when the short-term MA moves below the long-term MA, traders who choose this strategy enter short positions.

4. 50-day Moving Average (50 MA)

The 50-day Moving Average (50 MA) is a popular technical analysis tool used to identify the short- to medium-term trend of a security. It calculates the average closing price of a security over the last 50 trading days, providing a smoothed line that helps traders and investors see the underlying trend by filtering out the daily price fluctuations.

How the 50 MA Works

1. Calculation:

   • The 50 MA is calculated by adding up the closing prices of a security for the past 50 trading days and dividing by 50.
   • As a simple moving average (SMA), it gives equal weight to each of the 50 past closing prices.

2. Identifying Trends:

   • Bullish Trend: If the price is consistently above the 50-day moving average, it indicates a bullish trend in the short to medium term.
   • Bearish Trend: If the price is consistently below the 50-day moving average, it suggests a bearish trend in the short to medium term.

3. Support and Resistance:

   • The 50 MA can act as a dynamic support or resistance level. When the price is above the 50 MA, the moving average may act as a support level, where the price finds buying interest.
   • Conversely, when the price is below the 50 MA, the moving average may act as a resistance level, where the price finds selling interest.

How to Use the 50 MA

• Trend Following: Traders often use the 50-day moving average to identify the short- to medium-term trend direction. For example, a trader might consider going long (buying) when the price is above the 50 MA and short (selling) when the price is below it.

• Crossovers: The 50-day moving average is often used in conjunction with longer-term moving averages, like the 200-day moving average, to identify potential trend changes:

  • Golden Cross: This occurs when the 50-day moving average crosses above the 200-day moving average. It is considered a bullish signal, indicating a potential upward trend.
  • Death Cross: This occurs when the 50-day moving average crosses below the 200-day moving average. It is considered a bearish signal, indicating a potential downward trend.

• Momentum Indicator: The slope of the 50-day moving average can also provide insights into momentum. A steep upward slope suggests strong bullish momentum, while a steep downward slope indicates strong bearish momentum.

Combining with Other Indicators

The 50-day moving average is often used alongside other technical indicators to confirm signals and enhance trading strategies. For example:

• Relative Strength Index (RSI): Using RSI with the 50 MA can help traders identify overbought or oversold conditions and align these signals with the trend direction indicated by the moving average.
• Bollinger Bands: The 50 MA can be combined with Bollinger Bands to identify periods of high or low volatility relative to the average trend.

Summary

The 50-day moving average is a versatile tool that provides a smoothed view of a security's price trend over a relatively short period. Its use in conjunction with other indicators and moving averages makes it a staple in the toolkit of many traders and investors for identifying trends, potential reversals, and key support and resistance levels.

5. ATR (Average True Range) Trailing Stop

An ATR (Average True Range) Trailing Stop is a volatility-based trailing stop that uses the Average True Range (ATR) indicator to determine the optimal stop-loss level. The ATR measures market volatility by calculating the average range between the high and low prices of a security over a specific period, usually 14 days. By using the ATR, traders can set stop-loss levels that adjust to the market's volatility, helping to protect profits and minimize losses.

How ATR Trailing Stop Works

1. Average True Range (ATR) Calculation:

   • The ATR is typically calculated using the 14-day period, but this can be adjusted based on the trader's preference.
   • The ATR provides a measure of how much a security typically moves in a given time frame, giving an idea of its volatility.

2. Setting the Trailing Stop:

   • The ATR trailing stop is set at a multiple of the ATR value away from the current price. For example, a common setting is 2 ATRs below the closing price for a long position and 2 ATRs above the closing price for a short position.
   • As the price moves in the trader's favor, the stop-loss level moves in the same direction, trailing behind the price by the set multiple of the ATR.

3. Adjusting to Market Volatility:

   • In periods of high volatility, the ATR value will increase, causing the trailing stop to be placed further from the current price, reducing the likelihood of being stopped out by normal price fluctuations.
   • In periods of low volatility, the ATR value decreases, causing the trailing stop to be closer to the current price, allowing the trader to lock in profits sooner if the price reverses.

How to Use ATR Trailing Stop

• Long Positions: For a long position, the ATR trailing stop is typically set below the current price, at a distance of "X" ATRs. If the price moves higher, the stop loss also moves higher, trailing the price at the same distance. If the price falls, the stop loss remains stationary until it is hit, triggering an exit.

• Short Positions: For a short position, the ATR trailing stop is set above the current price, at a distance of "X" ATRs. If the price moves lower, the stop loss moves lower, trailing the price at the same distance. If the price rises, the stop loss remains stationary until it is hit, triggering an exit.

Example of ATR Trailing Stop Calculation

1. Calculate ATR: Suppose the 14-day ATR of a stock is 1.5.
2. Determine the Multiple: Assume the trader sets the stop at 2 ATRs.
3. Set Initial Stop: If the stock is currently trading at $100 and the trader is long, the initial trailing stop would be set at $100 - (2 * 1.5) = $97.
4. Trail the Stop: If the price moves to $105, the new stop would be set at $105 - (2 * 1.5) = $102. If the price declines, the stop remains at $102 until it is hit.

Advantages of ATR Trailing Stop

• Adjusts to Volatility: The ATR trailing stop dynamically adjusts to market volatility, providing a flexible and adaptive stop-loss strategy.
• Protects Profits: By trailing the price, the ATR stop helps protect profits during a favorable move while allowing for some price fluctuation.
• Reduces Emotional Trading: Using an ATR trailing stop can help traders make more objective, rules-based decisions, reducing the emotional impact of trading.

Considerations

• Market Conditions: ATR trailing stops are more effective in trending markets. In sideways or choppy markets, they may result in frequent stop-outs.
• Parameter Settings: The chosen multiple of ATRs and the ATR period should be based on the trader's strategy and risk tolerance. A higher multiple will place the stop further away, reducing the chance of being stopped out but potentially allowing for greater losses.

Summary

The ATR trailing stop is a versatile tool that helps traders manage risk by setting a stop loss that adapts to the market's volatility. It allows for flexibility in trading strategies by providing a dynamic stop-loss level that moves with the price, helping traders to protect profits while allowing for market fluctuations.

6. MACD (Moving Average Convergence Divergence)

The MACD (Moving Average Convergence Divergence) is a popular technical analysis indicator used to identify potential buy and sell signals, trend direction, and momentum in the price of a security. It was developed by Gerald Appel in the late 1970s and is widely used in trading strategies due to its effectiveness in both trending and non-trending markets.

Components of the MACD

The MACD consists of three key components:

1. MACD Line: This is the difference between two exponential moving averages (EMAs), typically the 12-period EMA and the 26-period EMA.

   $$\text{MACD Line} = \text{EMA}_{12} - \text{EMA}_{26}$$

2. Signal Line: This is the 9-period EMA of the MACD line. It acts as a trigger for buy and sell signals.

   $$\text{Signal Line} = \text{EMA}_9 (\text{MACD Line})$$

3. Histogram: This is the difference between the MACD line and the signal line. It visually represents the distance between the two lines and indicates the strength of the trend.

   $$\text{Histogram} = \text{MACD Line} - \text{Signal Line}$$

How MACD Works

• MACD Line and Signal Line: The MACD line fluctuates above and below the zero line, which is also known as the centerline. The zero line represents the point where the two EMAs are equal. The signal line smooths out the MACD line and is used to generate buy and sell signals.

• Histogram: The histogram shows the difference between the MACD line and the signal line. When the MACD line is above the signal line, the histogram is positive, indicating bullish momentum. When the MACD line is below the signal line, the histogram is negative, indicating bearish momentum. The size of the histogram bars represents the strength of the momentum.

How to Use MACD

1. Signal Line Crossovers:

   • Bullish Crossover: A bullish crossover occurs when the MACD line crosses above the signal line. This is typically interpreted as a buy signal, indicating that the price may be gaining upward momentum.
   • Bearish Crossover: A bearish crossover occurs when the MACD line crosses below the signal line. This is typically interpreted as a sell signal, indicating that the price may be losing upward momentum or gaining downward momentum.

2. Zero Line Crossovers:

   • Bullish Zero Line Crossover: When the MACD line crosses above the zero line, it signals that the shorter-term EMA (12-period) is now greater than the longer-term EMA (26-period), suggesting that the trend may be shifting upwards.
   • Bearish Zero Line Crossover: When the MACD line crosses below the zero line, it signals that the shorter-term EMA is now less than the longer-term EMA, suggesting that the trend may be shifting downwards.

3. Divergence:

   • Bullish Divergence: This occurs when the price of a security makes a lower low, but the MACD line forms a higher low. This divergence can indicate that bearish momentum is weakening and a reversal to the upside may occur.
   • Bearish Divergence: This occurs when the price of a security makes a higher high, but the MACD line forms a lower high. This divergence can indicate that bullish momentum is weakening and a reversal to the downside may occur.

Example of MACD Calculation

Suppose a stock has the following closing prices over the last 26 days. To calculate the MACD:

1. Calculate the 12-day EMA: Average the closing prices over the past 12 days and apply an exponential smoothing factor.
2. Calculate the 26-day EMA: Average the closing prices over the past 26 days and apply an exponential smoothing factor.
3. Compute the MACD Line: Subtract the 26-day EMA from the 12-day EMA.
4. Compute the Signal Line: Calculate the 9-day EMA of the MACD line.
5. Determine the Histogram: Subtract the signal line from the MACD line.

Advantages of MACD

• Versatile: The MACD can be used in various market conditions, whether trending or ranging, making it a versatile tool for traders.
• Easy to Interpret: The MACD provides clear buy and sell signals through its crossovers and can visually show momentum strength with the histogram.
• Combines Trend and Momentum: By using moving averages and their differences, the MACD combines elements of both trend-following and momentum indicators.

Considerations

• False Signals: The MACD can sometimes produce false signals, especially in choppy or sideways markets. It’s important to use MACD in conjunction with other indicators or analysis techniques to confirm signals.
• Lagging Indicator: Since it is based on moving averages, the MACD is inherently a lagging indicator. It may not predict price movements in advance but rather confirm them after they have already begun.

Summary

The MACD is a powerful and widely used indicator for identifying changes in the strength, direction, momentum, and duration of a trend. By combining moving averages and momentum, it provides traders with a flexible tool to generate trading signals and analyze market conditions. However, as with any indicator, it is most effective when used in conjunction with other analysis methods.

7. Relative Strength Index (RSI)

The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. Developed by J. Welles Wilder in 1978, the RSI is used to identify overbought or oversold conditions in a market, helping traders determine potential reversal points.

How RSI Works

1. Calculation:

   • The RSI is calculated using the average gains and losses over a specified period, typically 14 days. The formula for the RSI is:
   $$\text{RSI} = 100 - \left( \frac{100}{1 + \frac{\text{Average Gain}}{\text{Average Loss}}} \right)$$
   • Average Gain: The average of all positive price changes over the specified period.
   • Average Loss: The average of all negative price changes over the specified period.

2. RSI Value:

   • The RSI produces a value between 0 and 100.
   • Values above 70 are generally considered to indicate that a security is overbought, potentially signaling a pullback or reversal.
   • Values below 30 are considered to indicate that a security is oversold, potentially signaling a bounce or reversal to the upside.

How to Use RSI

1. Overbought and Oversold Conditions:

   • Overbought: When the RSI is above 70, the security is generally considered overbought, meaning it may be due for a price correction or pullback. Traders might consider selling or shorting in this scenario.
   • Oversold: When the RSI is below 30, the security is considered oversold, suggesting it may be due for a price rebound or rally. Traders might consider buying in this scenario.

2. Divergence:

   • Bullish Divergence: Occurs when the price of a security makes a new low while the RSI forms a higher low. This indicates that the selling momentum is weakening, which may precede a reversal to the upside.
   • Bearish Divergence: Occurs when the price makes a new high while the RSI forms a lower high. This suggests that the buying momentum is weakening, which may precede a reversal to the downside.

3. Centerline Crossover:

   • The RSI has a centerline at 50. When the RSI moves above 50, it suggests that average gains are higher than average losses, indicating a potential bullish trend. Conversely, when the RSI moves below 50, it indicates that average losses are higher than average gains, suggesting a potential bearish trend.

Example of RSI Calculation

To calculate a 14-day RSI:

1. Determine the Gains and Losses: Calculate the daily price changes over the last 14 days. Separate the gains (positive changes) and losses (negative changes).
2. Calculate Average Gain and Average Loss:
   • Average Gain = (Sum of Gains over 14 days) / 14
   • Average Loss = (Sum of Losses over 14 days) / 14
3. Calculate the RS (Relative Strength):
   • RS = Average Gain / Average Loss
4. Calculate the RSI: $$\text{RSI} = 100 - \left( \frac{100}{1 + RS} \right)$$

Advantages of RSI

• Identifies Reversals: The RSI can effectively identify potential reversal points by highlighting overbought and oversold conditions.
• Works in Various Market Conditions: RSI can be used in both trending and ranging markets, providing insights into potential price corrections or trend continuations.
• Simple and Effective: The RSI is easy to interpret, making it accessible for traders at all experience levels.

Considerations

• False Signals: The RSI may generate false signals in very volatile or strong trending markets, where price can remain overbought or oversold for extended periods.
• Use in Conjunction with Other Indicators: To improve accuracy, RSI should be used alongside other technical indicators, such as moving averages, MACD, or support and resistance levels, to confirm trading signals.
• Adjusting Time Periods: The standard period for RSI is 14 days, but traders can adjust this period to suit different trading strategies. Shorter periods make the RSI more sensitive to price changes, while longer periods smooth out the RSI, reducing sensitivity.

Summary

The Relative Strength Index (RSI) is a versatile momentum oscillator that helps traders identify overbought or oversold conditions, potential reversals, and trends in the market. While it's a powerful tool on its own, it is most effective when combined with other indicators and analysis techniques to reduce the likelihood of false signals and enhance trading decisions.

MACD & RSI are also called Momentum Indicators

One may utilize only these two tool to determine the weaknesses and strengths of a stock’s price.  Momentum gauges the rate at which the price of a stock increases or decreases. 

Most common examples of momentum indicator are these two, the moving average convergence divergence (MACD) and relative strength index (RSI).

Making a strategy involves entering a long position when the price of a stock is moving upwards or downwards with a lot of momentum. That said, investors following the strategy having only MACD & RSI square off their long position when the shares of the company lose momentum. In most cases, traders will also use the relative strength index (RSI) when implementing this strategy.

Why use these trend indicators?

Trend indicators refer to a sequence of lines and curves that are used in technical analysis to identify price patterns. Traders can use this tool to spot support and resistance on a stock price chart. Individuals who choose this Stock Market trend indicators to form a strategy enter long positions when the equity shares of any company are trending higher highs and higher lows. Moreover, this method involves placing a stop-loss order below the resistance or support levels.

These market trend indicator based strategies assist traders in simplifying stock price information. Moreover, they help to find reversal signals, helping in buy or sell trades. Individuals may choose to combine these trend indicators and then adjust them according to their own preference. 

Experts believe that traders should use a combination of trend indicators for surity of trend and develop their own strategies. Trader would be able to clearly identify the entry and exit points when they become confident and expert at this.

Now below is a chart for your reference:- QUESTION is Can you identify the indicators that are on it??

Now below is a chart for your reference:- It has partly answered my question to you above. Now can you identify the indicators that are on it??

Now below is the final chart for your reference:- It fully answers my question to you above. The indicators on it are numbered as per the numbers of indicators with their explanations listed above. Can you guess why Stochastic is numbered 1. by me and why I like to put on the top of chart?

Did you guess why Stochastic is numbered 1. by me and why I like to put on the top of chart?

Stochastic is such a beutiful trend indicator that most of the times it is 1st one to predict the trend.

Finaly, last but not the least one more indicator is there on left bottom of the chart by default and it says Chg. 32.98 % This percentage may either increase or decrease by either zooming in or zooming out the chart , its upto you as to how you will use it !!!

HAPPY TRADING

HOPE YOU WILL BECOME A BILLIONAIRE FOR SURE

GOOD DAY

Trading on levels given by others v/s trading by self

Never trade on tips provided by others if you can avoid it ....

those who provide tips are making following all types of excuses ...

Various types of Disclosures / Disclaimers

 You will be subscribing with us knowing fully the risk of the stock market.

No legal or otherwise liability will be fixed on us under any circumstances.

Calls generated by this system are purely based on artificial intelligence & not a professionally
qualified and expertise view.

You shall alone be responsible for trades carried out on the basis of calls generated by this
system resulting in the losses or gains, as the case may be.

These Recommendations are based on some formula.

Due care has been taken while generating these calls, no responsibility will be
assumed by the author / developer of this system for the consequences what so ever,
resulting out of acting on these recommendations / calls.

The information is derived from source
that are deemed to be reliable but its accuracy and completeness are not guaranteed.

The author does not accept any liability for the use of this system.

Users of this system who buy or sell securities based on the information in this system are
solely responsible for their action.

The calls generated by this system are based on formulas and these are not recommendation
to any person to buy or sell any securities.

We may or may not have any position in given stock.

All prices relate to the NSE, unless otherwise mentioned.

If you don't accept this responsibility for yourself,
then you should not use this system.

If any other entity, individual or service provider also giving the same system
and recommendation than we are not responsible for that.

We advise users to check
with certified experts before taking any investment decisions. You are responsible for your own
investment decisions.

We encourage all investors to use the information in this article as a resource only
to further their own research on all featured companies, stocks, sectors,
markets and information presented on the article.

It's not an offer to buy or sell.

Nothing written on this article should
be considered as an investment advice.

We disclaims any and all liability, current or future, for any error made or omission
committed with respect to the transmission of such data, information or material
available on this system.

The user waives his or her right to any claim based on the detrimental
effects or results of any reliance placed by the user on any information or data available on this  system.

The information and material contained in these pages and the terms, conditions,
and descriptions that appear are subject to change without prior notice.

Investments  in equity shares, debentures etc, are not obligations of or guaranteed and
are subject to investment risks.

The information contained in this text, graphics, links or other
items are provided on an 'as is', 'as available' basis.

We do not warrant the accuracy, adequacy
or completeness of this information and material and expressly disclaims liability for errors or omissions in this information and material.

No warranty of any kind, implied, express or statutory, including but not limited to the warranties of non-infringement of third party rights, title, merchanta, fitness for a particular purpose and freedom from computer virus, is given in conjunction with the information and Materials.

In no event will we be liable for any damages, including without limitation direct or indirect, special,
incidental, or consequential damages, losses or expenses arising in connection with this system
 or use thereof or inability to use by any party, or in connection with any failure of performance,
error, omission, interruption, defect, delay in operation or transmission, computer virus
or line or system failure.

So, there is no end to excuses made by people who are giving you levels for trading. This is because the market is so unpredictable and also because after you receive the levels to trade your terminal to trade may be slower - so you maybe entering the wrong trade and market may already be aiming for different levels by the time you enter it.

So it is always better to learn to trade on your own , if you want to trade. It takes only 6 months to 1 year to learn to trade and become profitable, once you have tested a strategy on any equity , derivative , index or commodity. Now stick to your strategy and keep on improving on it. Note that you have to keep on improving , improvising , time to time again back-testing your strategy. Avoid trading when any kind of strong sentiment hits the market like a earthquake, war, cyclone, bacteria or virus etc. hits any part of world causing large scale damage. Relax and try to understand the situation and re-time your trades.

Now, I will also make a disclaimer.
Once you have learnt to trade, kindly do not give your levels to others as you will make another couple of thousand people to enter market at your level and the market may not then behave as you would expect it too. Quite possible no??

Life is simple, so you just keep it simple, dont complicate it.

Dear Friends,

I like discount brokerages not just because it helps save money but because its also a great innovative concept based on foundation called honesty ...

I used Zerodha Trading Platform Now? You'll love it to :-

Join Zerodha trade on their simple kite platform.
To join click on my referral link here
https://zerodha.com?c=ZK8607

I quote this site "That said, we also realized there is this small community of traders who are extremely talented and passionate. But, the biggest problem they face are: Not enough trading capital. A client with Rs 1lk returns 10% in a month which is brilliant, but that is just Rs 10,000, which in today’s world, is  not enough to survive trading full time (more than 90% of our traders have less than Rs 1lk in their account). To earn more, he starts over trading taking bigger risks, and eventually ends up making a loss. Most of the times before blossoming into a great trader, the career ends."

Read more at

https://zerodha.com/z-connect/zerodha/why-zerodha/opentrade-learn-following-star-traders


So, if my blogs help you and if you wish to join Zerodha do it by using my link below it will be of help ...

https://zerodha.com?c=ZK8607

Beginners Lesson for Intraday Trade - 4

What is Day Trading?

Day Trading can be defined as the process of buying and selling stocks or assets within the same day. This can happen in any marketplace, but it is most common in "Stock Exchange" (NSE or BSE) and "Foreign Exchange Market" (Forex).

Investing money can be an aggressive and frightening task for the beginners. Traders buy and sell securities within the same day in order earn a profit on small price variances. It is one of the risky methods of placing your money into resources like foreign currency and shares.

Day Trading can be defined as the method of earning a quick profit with a higher risk. The joy of this type of trading is that the benefit can be incomparably more considerable than the traditional forms of investments.

Day Trading can be a risky task for those people who are new or have less experience in the investment industry.

It can be performed in any commercial centre like Foreign Exchange Market and Stock Market, or, can be done online by having an online trading account that use modern approaches and leverages to benefit from a small price in the marketplace.

Not everybody is able to day trade and of those who lose money may stay in the game and not recognise that they are not able to win.

Human life is full of experiences and learning. Similarly, the investor tends to learn every day. However, when it comes to investors, the main question is how they learn.

Types of Day Trader:

Unlike financial advisors, there are two divisions of day traders: one consists of traders who work alone, and other consists of traders who work for some organization.

INSTITUTIONAL TRADERS:

Day traders who work for a large institution have access to various resources like leverage, capital and dealing desk. These day traders can make benefit by using computer-assisted trading opportunities. The assets to which they have access allows them to benefit from less unstable trades.

Large organisation traders manage dealing desk and use technical analysis to produce a high profit. Day traders expect to purchase stocks at low price and sell at high price.

INDIVIDUAL TRADERS (OR RETAIL TRADERS):

Individual traders work for themselves, or in a partnership. They usually operate with their own money. They can also borrow money from other people and may use that money for trading. Retail traders mainly spend the whole day trading online.

Requirements for Day Trading:

Here are some essential requirements for day trading:

Market Knowledge: One should have sufficient knowledge and information of the market. A person who wishes to go for day trading without any understanding of the market frequently results in losing cash.

Adequate Capital: In trading, risk capital has vital importance. Day trading is mostly accomplished by using risk capital. Loss of risk capital can be bear by the investor.

A Great Strategy: Day Trading requires a grand strategy and a present mind. There are many unique techniques that informal investors can take advantage of, like trading news, swing or long-term trading and computer-assisted trading, etc. These approaches are refined until they are compatible for financial benefits and prevent losses.

Characteristics of a Day Trader:-

REAL-TIME ANALYTICAL CAPABILITY:

To be an active Day trader, you must have the capacity to explore the market rapidly, and when a high rate presents, you should perform exchange of stocks with speed and certainty.

Day Traders must have the capacity to deal with trade and manage risk and reward accordingly. It can be more enthusiastic than different sorts of exchanges.

RESOURCES:

Day traders need to have specific characteristics and should have access to particular resources, information and involvement in the business sectors. They must be familiar with market essentials.

TRADING PLAN & STRATEGY:

Day Trading requires a trading plan and a great strategy for success. Most business plans address short and long-term objectives, capital reinvestment, matrices and reporting. Traders should isolate themselves from their sentiments and should never act excitedly.

ELECTRONIC COMMUNICATION SYSTEMS:

Day Trading requires modern electronic communication systems. High-Speed Networks and fast computers. Numerous informal investors utilise analytical software to look for stock rates, execute the trades and oversee accounts.

Institutional traders work with different traders and PC loaded exchanging rooms. Retail traders work from home or their workplaces.

Day Trading is a full-time job. As a part-time job, it is conceivable, yet it is a worrying and risky task because one cannot update himself from the current market situation and rates.

Day Trading Strategies

Day Trading is one of the most challenging tasks which require perfect trading plans and methodologies. Success in day trading demands mental focus, analysis and technical precision. The key points for making continuous progress demands a lot of planning and constant analysis of graphs, charts and price movements.

Most of the time people try to follow many different strategies at the same time which results in loss of money. Day Trading demands close attention on the stock market. Attempting to process huge pieces of data is hard, and will divert your attention from your methodology. Your strategy wouldn’t remain effective.

While you want to implement a strategy that works for you, try to follow the same planning throughout the day without any modifications. Most of the time beginners lose money when they try to put together their own approach.

Following are best trading strategies which are used by most of the day traders:

1. SCALPING:

In Scalping, a trader or a scalper buys or sells stocks more than once, or sometimes even hundreds of times a day. A trader using a scalping method usually deals with very large volumes of shares.

These types of traders stay very active, and the reason is that they aim to make multiple small profits of a large amount of trades and that these small profits sum up to big profit at the end of the day.

2. DAILY PIVOTS:

Daily Pivots is most commonly used trading strategy. Pivot points are used to determine the support and resistance level. The Pivots points are important to determine the trend of the overall market, the entry point by analysing graphs, tables and previous records. Pivot Point is calculated using the following formula:

Central Pivot Point (P) = (High + Low + Close) / 3

The high, low and closing prices are taken from the previous trading day.

3. FADING:

Fading is a counter-trend trading approach in which the trader will be buying when the prices are falling, and selling when the prices are rising. This investment strategy requires the trader to go completely against the trend.

This methodology can be beneficial for day traders, but this strategy is based on some insights which are as follows:
Overbuy of shares in the market.
Early buyers those want to gain maximum profit.

4. ANALYZING, TWEAKING TRADING STRATEGIES:

In the beginning, new day trader thinks that he can make the profit with insignificant efforts and strategies, but in reality, day trading is very complicated. By implementing consistent and well-defined methods they can increase the chance of success. In this strategy, the trader analyses the profit and loss rates.

Evaluation of tweaking performance in day trading is quite challenging. Most informal investors study the rates of profit and losses and draw their result on the graph. By analysing the graphs statistics, they make their decisions about the market.

5. MOMENTUM REVERSAL TRADING STRATEGY:

The strategy works by examining the combination of technical analysis and market fundamentals. It requires a broker to examine traded currency to build up mid to long haul trend.

This mechanism uses the information of price moves and values of market reversals. The system permits the trader to enter the market when the price is low and gives a considerable benefit potential through money management.

All exchanges are planned and decided in advance. The system functions admirably on all significant US Dollar crosses. It creates between 1-5 signals in each month. All exchanges are entered and held for several weeks. The Momentum Reversal Trading Strategy has been adopted for the many years.

This methodology utilises a couple of indicators which are as follows:

Fibonacci retracements
Stochastic Oscillator (multi-time span)

After building your potentiality and long-haul drift through commitments of traders report, charts, diagrams and search for price inversion stage.

To define the price reversal status trader has to cut apart the price on diagrams first and answer some straightforward questions like:

Is the market price falling or not?
Is the graph showing over-bought or over-sold?

6. HEIKIN-ASHI CANDLES:

Heikin-Ashi candles is somewhat an extraordinary method for reviewing the business sectors. Heikin-Ashi policy uses the concepts of the candle in which the value of candle is ascertained by analysing previous candle chart patterns. The price action of each candle is influenced by the earlier candle value. This chart is somewhat slower as compared to candle outline chart.

On the diagram below; bullish candles are shown in green and bearish candles in red.

7. FOREX TRADING TECHNIQUE:

Forex trading techniques are mostly based on technical analysis, chart patterns, fundamental analysis or news based to plot whether to buy or sell a currency pair at the given time frame. These strategies can be either automated or be created manually for trading signals that will initiate the buying and selling.

Manual buying and selling will require the forex trader to sit continuously in front of the computer and watch for trading opportunities whereas in automation he can develop a particular algorithm which will automatically find trading signals and execute the trade in the forex market.

Some of the essential components of an effective forex trading strategy are Position sizing, Selecting the correct currency pair, Entry and Exits points & good tactics.

Pros of Day Trading

The significant advantage of Day Trading is that one can earn a large amount of money but the risk factors cannot be ignored.

One can make a profit before the day gets over. For earning hyped profit one has to envision the internal workings of the market. Having a well-developed methodology and trading capabilities one can build profits through leverage.

It takes capital to make a profit. Utilizing a lot of money to make smaller exchanges expands potential returns.

Cons of Day Trading:

Day traders play a huge role in the commercial market. Day Trading has a high-risk factor. There is never an assurance that you will make profit.

According to the U.S. Securities and Exchange Commission, Day traders normally endure great monetary losses in their initial months of trading.

Day Trading is costly. They requires expensive software, tools and the high-end PCs to recognise the price fluctuation and get the essential money related data.

Another negative side of day trading is that your profit is dependent on the present market condition.

At the point when the market is in an unsettling period, no upward or downward fluctuation of money takes place, then the chances of losing money increases.

It is a high-weight, distressing task that takes training and experience.

The greatest disadvantage is that it requires minute-to-minute details of the market. One has to analyse the market and has to make decisions rapidly. It’s troublesome for a beginner, that’s why most informal investors lose cash. It’s difficult because their timetable doesn't permit it. It requires split-second planning and execution. It doesn't oblige those people who are moderate in settling on choices and commitments.

Day Trading can be exceptionally exhausting! When the prices of stocks are moving quickly, Day trader has to make quick choices. The greater part of their time is spent sitting and simply watching the market position doing nothing significant. One of the drastic facts about day trading is that you see your benefit and loss proclamation, fluctuating up or down rapidly, and have the brutality of the time barriers.

To understand the logic behind this statement, let’s take an example. Suppose every year there are 21 or more new traders trading stocks. Out of those 21 traders, only 1 is skilled which means 20 investors are unskilled.

The unskilled traders work for almost a year and after losing money, they decide to quit. On the other hand, the skilled experienced traders continue to trade for nearly 10 years, making low losses try to improve profits slowly every year and then never quits.

Trading Tips from Professionals

If you are a stock trading beginner and want to try your luck in Day Trading (however, we do not recommend it because you will probably lose money) you should ensure that you use stop-loss feature and also trade only products which you understand and are traded on real exchanges like BSE & NSE.

You should only invest in products which you completely understand and with established rules like Stocks, Bonds, Futures or Plain Vanilla Options. Special products which can only be traded with the party who has issued the product (and only traded for the price set by the issuing party) are not in favour of the trader.

On non-exchange regulated trading products (this is common for FX, Binary Options or CFD) the opposite party can ask any price for the product. For example, when the real Futures Gold Contract trades at 1399/1400, the opposing party in the non-regulated market will give a similar price but a so-called "dealer" or "backend plugin" will change the price to any price against the favour of the trader.

In a non-regulated environment, the stock broker might change the Gold price to 1398 precisely in the second when you sell and to 1402 just in the second when you buy (against the 1399/1400 in our example). It will be hard for you to understand this because the price movements are fast and you would need a detailed analysis to understand this.

Be careful and cautious , learn before you trade intraday.

Life is simple, so you just keep it simple, dont complicate it.

Dear Friends,

I like discount brokerages not just because it helps save money but because its also a great innovative concept based on foundation called honesty ...

I used Zerodha Trading Platform Now? You'll love it to :-

Join Zerodha trade on their simple kite platform.
To join click on my referral link here
https://zerodha.com?c=ZK8607

I quote this site "That said, we also realized there is this small community of traders who are extremely talented and passionate. But, the biggest problem they face are: Not enough trading capital. A client with Rs 1lk returns 10% in a month which is brilliant, but that is just Rs 10,000, which in today’s world, is  not enough to survive trading full time (more than 90% of our traders have less than Rs 1lk in their account). To earn more, he starts over trading taking bigger risks, and eventually ends up making a loss. Most of the times before blossoming into a great trader, the career ends."

Read more at

https://zerodha.com/z-connect/zerodha/why-zerodha/opentrade-learn-following-star-traders


So, if my blogs help you and if you wish to join Zerodha do it by using my link below it will be of help ...

https://zerodha.com?c=ZK8607

Beginners Lesson for Intraday Trade - 3

Choosing the right stocks is the most important thing for intraday trading.

You should choose stocks which atleast moves up or down 3.5–4% on intraday basis and our aim as a day trader is to catch atleast 1%, then only we can be profitable in the long run.

Here are some important factors which I look while choosing stocks for intraday trading:

Stock should be listed in Futures & Options segment. This ensures that there is enough liquidity in the stock and you can get in and out of the stock whenever you want.

The stock should have high Beta value. Generally I choose stocks with Beta greater than or equal to 1.5.

The stock should satisfy the criteria of NR4 or NR7 i.e. the range of the stock (High - Low) is the smallest on fourth day for NR4 and smallest on seventh day of NR7.

Upper Band of Keltner Channel should be above Upper Bollinger Band till closing or Lower Band of Keltner Channel should be below Lower Bollinger Band till closing. If any stock satisfies both the criteria then is very good.

The trend of the stock can be found using the combination of Hekin Ashin Candles of 15min and Stochastic RSI. If you the getting in uptrend sign then buy the stock when it break it’s first 15min High or if you are getting downtrend sign then sell the stock when it is breaking its first 15min Low.

If all the steps are done using proper discipline and risk management then it can give good results.

Life is simple, so you just keep it simple, dont complicate it.

Dear Friends,

I like discount brokerages not just because it helps save money but because its also a great innovative concept based on foundation called honesty ...

I used Zerodha Trading Platform Now? You'll love it to :-

Join Zerodha trade on their simple kite platform.
To join click on my referral link here
https://zerodha.com?c=ZK8607

I quote this site "That said, we also realized there is this small community of traders who are extremely talented and passionate. But, the biggest problem they face are: Not enough trading capital. A client with Rs 1lk returns 10% in a month which is brilliant, but that is just Rs 10,000, which in today’s world, is  not enough to survive trading full time (more than 90% of our traders have less than Rs 1lk in their account). To earn more, he starts over trading taking bigger risks, and eventually ends up making a loss. Most of the times before blossoming into a great trader, the career ends."

Read more at

https://zerodha.com/z-connect/zerodha/why-zerodha/opentrade-learn-following-star-traders


So, if my blogs help you and if you wish to join Zerodha do it by using my link below it will be of help ...

https://zerodha.com?c=ZK8607

Beginners Lesson for Intraday Trading - 2

How do I choose stocks for intraday trading?

I am sharing one successful and reliable strategy in intraday trading which can definitely help you to improve your intraday trading.

Well I started trading in this market from 2017 so I have grabbed much knowledge after spending lot of time in trading. I learnt few things from Intraday trading which I am mentioning below:

Intraday trading is completely risky so if any person is coming with only profit expectations or with sentiments, he/she should not trade because market will never understand your emotions.

Intraday trading is a technique which can be learnt and improved day by day so you have to keep on learning everyday.

Stock selection is most important part in intraday trading so you have to choose stock very wisely.

Intraday trading involves high risk which can give complete or partial capital loss so there should be risk calculation like 1% to 2.5% of risk of entire capital in a single trade. Because if your trade goes in to loss, you don’t loose more than that.

Never ever trade in stock market with anybody’s money. Yes this is most important while trading because I have seen many people who takes personal loan or borrow money from someone and regret after loosing that money. You should trade with your own spare money only.

Now I am sharing winning strategy which is not complicated for new comers and can generate good profit in intraday.

First of all choose less volatile and liquid stocks for trading in intraday. I don’t prefer high volatile stocks which can trigger your Stoploss easily or don’t have enough volumes.

Let me help you to choose less volatile stocks which has good volumes as well as they are not highly volatile. I will choose Apollo tyre if I have to choose from tyre stock rather than Ceat or MRF. Same way I will choose Ambuja cement rather than ACC or Ultratech cement. Adani enterprise has very good volumes today which I gave delivery buy on Friday at 155. So you can choose stock which have liquidity and less volatility.

Now you have to find out that either that stock is bullish or bearish. For that you have to check it’s last few days movement. If it is continuously bullish irrespective of market movement, I will buy that whenever I will find it near day’s low or at lower levels. Example of today: Tata Global is bullish stock and it was not falling with the market so it was a best buying opportunity when market opened. It was 260 in morning when market opened and closed at 266 and it was still bullish for BTST as well.

So whenever you have to trade for intraday, find out less volatile liquid stock and buy it at lower level if it’s a bullish stock or sell it if it’s a bearish stock. I never suggest to buy falling stocks to buy for intraday. Buy only strong stocks which are not falling with the market. JSW Steel is also a great example of that.

Remember few points while deciding about any trade:

Don’t buy falling stock or specially when it’s facing resistance because it can trap you and give you big losses. Latest examples are PSU Banks which were falling continuously. Never buy them for intraday though it looks attractive to you.

Buy only those stocks which are taking support and not coming down with the market and rising with the market so that you will get good money in intraday.

Don’t trade in stocks who have any kind of news, results or any controversy because it’s completely gambling to trade like that. Like we see that PSU banks has negative news from last 10–15 days, always avoid to trade in this kind of sector or stocks.

Always apply a proper stop-loss while you initiate any trade and maximize your profit by modifying your stop-loss to cost so that whenever big movement comes, you can generate big profit.

“Stock selection” is the most important part of intraday trading. These are the parameters all intraday traders should look to pick stocks for intraday trading"

Life is simple, so you just keep it simple, dont complicate it.

Dear Friends,

I like discount brokerages not just because it helps save money but because its also a great innovative concept based on foundation called honesty ...

I used Zerodha Trading Platform Now? You'll love it to :-

Join Zerodha trade on their simple kite platform.
To join click on my referral link here
https://zerodha.com?c=ZK8607

I quote this site "That said, we also realized there is this small community of traders who are extremely talented and passionate. But, the biggest problem they face are: Not enough trading capital. A client with Rs 1lk returns 10% in a month which is brilliant, but that is just Rs 10,000, which in today’s world, is  not enough to survive trading full time (more than 90% of our traders have less than Rs 1lk in their account). To earn more, he starts over trading taking bigger risks, and eventually ends up making a loss. Most of the times before blossoming into a great trader, the career ends."

Read more at

https://zerodha.com/z-connect/zerodha/why-zerodha/opentrade-learn-following-star-traders


So, if my blogs help you and if you wish to join Zerodha do it by using my link below it will be of help ...

https://zerodha.com?c=ZK8607

Beginners Lesson For Trading - 1

Which Stocks To Select For Intraday Trading

Today we are going to know about which stocks to select for intraday. Most of the people get confused by selection of stock. Not every stock is suitable for intraday trading, the dynamics on intraday movement should be satisfied to select the stocks which can be traded in intraday. We have to identify our stocks which satisfy below criteria and then wait for trade setup and follow the strategy. We should not  forcefully trade daily. Below are the parameters on which intraday stocks should be chosen

1. LIQUIDITY :

Liquidity means how easily shares can be traded in markets , basically how many shares are available for trading on a particular day. We should chose liquid stocks for intraday trading.
For liquid stocks , at price point  there will be a high number of buyers and sellers during day trade.
Trade order will get executed immediately at market price without much spike if we trade in liquid stocks, otherwise placing market order for 1000 quantity of  stocks will raise price high.

2. VOLATILITY :

Volatility means how much up and down share prices move. For intraday , Shares should not be extremely high volatility.
High volatile shares give higher swings in both directions, and trigger stop losses.
Again, it should not be stagnant as well else there will not be intraday movement. Medium volatility is preferred on daily charts.
Can use ATR indicator to  measure volatility

3. CORRELATION :

Correlation means how stock prices move compared to its peers or its sector movement . Usually , stocks have Correlation with major indices and sectors, stocks moves with index. We should understand this correlation while trading stocks.
That is if the index or a sector moves up the stock belonging to that index or sector also moves up
Example fall in crude index benefits aviation sector, paints sector. Weakening rupee means rise in the IT sector.

4. FIND STOCKS WITH UPTREND OR DOWNTREND :

We should be trading in trending stocks , where some up move or down move is clear past 4-5 days. Sideways trend stocks tends to just trigger stop losses.
If we are in a bull run, then it is advisable to find stocks which are in uptrend from past few days.
If we are in a bear run, then it is advisable to find stocks which are in downtrend from past few days.

5. KNOW THE KEY DATES :

Key dates will help you trigger stoplesses.
Key dates likes results day, may help you decide stock trend.

Very Soon, we will try to create a stock screener on above criteria for intraday stock selection.

Life is simple, so you just keep it simple, dont complicate it.

Dear Friends,

I like discount brokerages not just because it helps save money but because its also a great innovative concept based on foundation called honesty ...

I used Zerodha Trading Platform Now? You'll love it to :-

Join Zerodha trade on their simple kite platform.
To join click on my referral link here
https://zerodha.com?c=ZK8607

I quote this site "That said, we also realized there is this small community of traders who are extremely talented and passionate. But, the biggest problem they face are: Not enough trading capital. A client with Rs 1lk returns 10% in a month which is brilliant, but that is just Rs 10,000, which in today’s world, is  not enough to survive trading full time (more than 90% of our traders have less than Rs 1lk in their account). To earn more, he starts over trading taking bigger risks, and eventually ends up making a loss. Most of the times before blossoming into a great trader, the career ends."

Read more at

https://zerodha.com/z-connect/zerodha/why-zerodha/opentrade-learn-following-star-traders


So, if my blogs help you and if you wish to join Zerodha do it by using my link below it will be of help ...

https://zerodha.com?c=ZK8607

Follow this Strategy: Follow the open low factor

• If Opening Price and Low Price of any Stock Or Indices has been kept with same price including that of decimal point.
• 
  
• Soon after the market opens in any particular day after the 20 minutes of Opening of trades can be recognized as OPEN-LOW for the day. 
• 
  
• When this has been framed after the market opens in any specific Stock Or in any of the Indices, The price will move upward direction only. So, One has to go long in that specific stock or Index preferably nearer to the low price and book profit as and when the target has been met. One can recognize the targeted price based on the volatility factor of the specific stock or the index and so on. One can keep the stop loss as the low price of the stock or the indices for going long in any stock / indices. 
• 
  
• Suppose if the low price has been broken out one has to cut their long position immediately after the violation of the price and should take short position soon after the low price get violated. Here, the trader can keep the violated low price as upward stop loss. Here, Ones the low factor get violated the price of the stock or index will drastically come down by applying maximum volatility factor over the downside front.
• 
  
• OPEN-HIGH: If Opening price and the High Price of any Stock or Indices has been kept with a same price including that of the decimal point soon after the market opens in any particular day after the 20 minutes of opening of trades can be recognized as OPEN-HIGH for the day. The moment the factor has been framed the stock price / the index will go down drastically. 
• 
  
• So, One Can go Short selling of the specific stock / indices by keeping the high price as stop loss. Here also One can apply the volatility factor for the downside target for the specific stock / indices. The individual Volatility factor has been available both in NSE and BSE Websites. Here the percentage of volatility can be applied downward either with the previous day's closing price or with the High price of that specific day for arriving the downward target of the stock / indices. 
• 
  
• At same time, When a High price is getting violated, one has to cut their short position immediately and should take long position by keeping the violated high price as stop loss. Whenever the violation is happening stock price / Indices will end up with double end volatility.
• 
  
• Volatility factor of the specific stock has been given on the bottom of the web page. The volatility has been highlighted as maximum , minimum, and average in terms of percentages. So, If someone wants to book minimum profit at very frequent intervals one has to choose the minimum percentage and it should be applied either with the previous days closing price of the stock or with the " Open - Low " or with the "Open High" prices.
• 
  
• I hope now traders might have followed the above strategy, how the targeted price can be met in and how a trader can book profit in a very smart way!
• 
  
• If you are a day trader, your position size is likely larger due to the fact you are looking for a smaller move with your short timeframe. Keeping a tight stop is extremely important when trading larger size, as a day trading strategy gives stocks multiple opportunities to work. For day trading, the strategy is rather simple:
• Always keep your profit objective at least 3 times greater than what you are willing to risk.
• 
  
• Allow no more than a 1% move against you from your entry point. Ideally, you are in the trade beyond the trend line and out of the trade below it. You can always get back into the trade if the stock returns to the buy point.
• If a stock gaps beyond a technical trigger price, the original trade plan is negated for a day trade so a new plan should be made.
• 
  
• If the futures make an intermediate lower high intraday (or higher low when trading the short side), exit half of your position. This implies a weakening market and can make it tougher for open positions to continue working.
• 
  
• If your stock hits a new low for the day (long trades) or new high for the day if you are short, exit the position. A day trade is intended for initial moves, so there is no purpose in widening stops to accommodate a stock moving in the wrong direction. Get out if the stock breaks a low (or high if short) as you can reenter the trade if it triggers again.
• 
  
• Once momentum fades and buyers are thinning out, take your profit. This can be done by carefully monitoring the intraday chart and the time & sales.
• 
  
• NOTE.: The above strategy will work only in the normal course of trading days only. At the same time, It never work whenever a positive or negative news item or any rumor will appear through any media would change the direction of the individual stock / indices price movement in an opposite direction.
• 
  
• If Open & Low Price is Equal than go for the Buy with Stop Loss Below the Low Price.
• 
  
• If Open & High Price is Equal than go for the sell with stop loss Above the high price.

Life is simple, so you just keep it simple, dont complicate it.

Dear Friends,

I like discount brokerages not just because it helps save money but because its also a great innovative concept based on foundation called honesty ...

I used Zerodha Trading Platform Now? You'll love it to :-

Join Zerodha trade on their simple kite platform.
To join click on my referral link here
https://zerodha.com?c=ZK8607

I quote this site "That said, we also realized there is this small community of traders who are extremely talented and passionate. But, the biggest problem they face are: Not enough trading capital. A client with Rs 1lk returns 10% in a month which is brilliant, but that is just Rs 10,000, which in today’s world, is  not enough to survive trading full time (more than 90% of our traders have less than Rs 1lk in their account). To earn more, he starts over trading taking bigger risks, and eventually ends up making a loss. Most of the times before blossoming into a great trader, the career ends."

Read more at

https://zerodha.com/z-connect/zerodha/why-zerodha/opentrade-learn-following-star-traders


So, if my blogs help you and if you wish to join Zerodha do it by using my link below it will be of help ...

https://zerodha.com?c=ZK8607