TRADING IS MY LIFE

 What are the volume based trading indicators (other than VWAP)? In addition to VWAP (Volume Weighted Average Price), there are several other volume-based trading indicators that traders use to analyze and interpret volume data in the market. Here are a few examples: 1. On-Balance Volume (OBV): OBV is a popular volume indicator that measures cumulative buying and selling pressure in a security. It adds volume on up days and subtracts volume on down days, creating a cumulative line. Traders use OBV to identify divergences between volume and price, which can indicate potential trend reversals. 2. Volume Profile: Volume Profile is a graphical representation of the volume traded at different price levels over a specific period. It helps identify areas of high volume concentration, known as volume nodes, which can act as support or resistance levels. Traders use Volume Profile to analyze price levels where significant buying or selling activity has occurred. 3. Accumulation/Distribution...

 Why is gold considered a dangerous investment? Originally Answered: Why is gold not considered to be a good investment? Throughout the ages, gold has been a universal currency and a great store of value. It hasn’t really been an investment until recent times, in the same way the US$ isn’t really an investment today. But the reason why gold isn’t a great investment today is as follows… All the gold in the world is worth around US$7,500Bn. And it'd fit in a cube of 20m length. Now, gold has uses, but none that are significant except jewellery, so, big picture, it’s pretty useless. If you bought all the gold in the world for $7.5Tn after, say, 20 years, it’d be worth a little more than $7.5Tn (inflation and the global economy would push up the price). Now sure, I'm ignoring the speculative element, but you don't invest long-term in the expectation you will sell in a speculative bubble - you look at fundamentals. Note, you would get no dividend or yield on gold - in fact, you’...

 What is a supertrend indicator in trading, and how is it used? Different technical indicators are used by intraday traders to enter and exit transactions profitably. Moving averages, Fibonacci retracement, stochastic oscillators, Bollinger bands, the Relative Strength Index, and supertrend indicators are a few of the algorithms they employ. Among these, Olivier Seban's super trend indicator has gained popularity for its ability to help investors accurately identify trades (buy and sell). What is your opinion in this context, kindly tell us in the comments As the name signifies, the Supertrend Indicator shows the direction of price movement in a market that is trending or moving in a specific direction. Investors can see the trend represented on stock price charts, which are colored red for declining prices and green for advancing prices. Note: Finding the supertrend indicator, comprehending how it operates, and knowing when to apply it is all essential to effective trading. When v...

 How do traders assess the overall market sentiment and factor it into their strategies? Traders assess overall market sentiment by analyzing various indicators, news, and market factors. Here are ten examples of how traders assess market sentiment and incorporate it into their strategies, with hypothetical amounts in rupees: 1. Technical Analysis: A trader observes the market's price trends, chart patterns, and technical indicators to gauge the sentiment. They allocate Rs. 100,000 to take trades aligned with the prevailing bullish or bearish signals identified through technical analysis. 2. News Analysis: A trader closely follows news sources to stay updated on economic, political, and financial news. They allocate Rs. 150,000 to take positions based on their analysis of news sentiment, such as positive earnings reports or geopolitical developments. 3. Sentiment Indicators: A trader utilizes sentiment indicators, such as the CBOE Volatility Index (VIX) or put/call ratios, to asses...

 Does chart pattern trading really work? Stock market is working based on few assumption such as 1-History repeat itself. 2-trend will continue its direction unless there is some external forces stop the same( eg of such forces is News and Data realase) 3- there is law of average, which comfirms that nothing really work 100% in market. Does chart pattern really works?? So i would give the answer considering the assumption which I mentioned above. And by taking a result of W PATTERN Let's look into examples. In this example we can clearly see our expectation towards pattern formation v/s how market performs. It seems that market should reverse by forming W pattern from bottom, but market actually fell down even lower level from his earlier support level. Have a look into another example Now in this example market perform exactly same way in which we learn in books and many other resources, even it's target hiting was same as ‘ Text Book Examples'. By comparing both the examp...

 How do traders handle losses and adjust their strategies to minimize potential risks? Traders handle losses in different ways and adjust their strategies to minimize potential risks. Here are some common approaches and examples: 1. Analyzing Losing Trades: Traders analyze their losing trades to identify the reasons behind the losses. They review their trading strategies, entry and exit points, and market conditions to determine if there were any mistakes or areas for improvement. For example, a trader might find that they consistently experience losses when trading during volatile market hours. As a result, they may adjust their strategy to avoid such trading sessions and focus on more stable market periods. 2. Learning from Mistakes: Traders view losses as learning opportunities and strive to avoid repeating the same mistakes. They may keep a trading journal where they document their trades, emotions, and observations. By reviewing their journal, traders can identify recurring pa...

 What is the role of exchange-traded funds (ETFs) in the Indian stock market? Exchange-Traded Funds (ETFs) play a vital role in the Indian stock market, just as they do in many other financial markets around the world. An ETF is an investment fund traded on stock exchanges, much like individual stocks. They are designed to track the performance of a specific index, sector, commodity, or asset. Here are some ways ETFs contribute to the Indian stock market: 1. Diversification: ETFs provide investors with an opportunity to diversify their portfolios without having to buy each security individually. This is especially beneficial for retail investors who may not have the capital to sufficiently diversify their portfolios. 2. Accessibility: ETFs can track a variety of indices and sectors, providing investors access to different market segments. For example, an investor can buy an ETF that tracks the NIFTY 50, giving them exposure to the 50 largest companies in the Indian stock market. 3....

 How do traders determine their profit targets and set realistic expectations? Traders determine their profit targets and set realistic expectations through a combination of factors, including market analysis, risk management, and personal trading objectives. Here are some key considerations and examples of how traders establish profit targets and manage expectations: 1. Technical Analysis: Traders often use technical analysis to identify potential price levels, patterns, and indicators that can guide their profit targets. They analyze historical price data, chart patterns, trend lines, support and resistance levels, and other technical indicators to identify areas where the price may encounter obstacles or exhibit significant movement. For example, a trader might set a profit target just below a resistance level identified through technical analysis, anticipating a potential price reversal. 2. Risk-Reward Ratio: Traders assess the risk-reward ratio for each trade to determine an a...

 Does chart pattern trading really work? Chart Patterns work beautifully if spotted with right analysis. Key to spotting a good and real chart pattern is that the pattern will be obvious to see and does not need trying too hard to spot a pattern. Often traders try too hard to spot a chart pattern and end up assuming patterns that do not exist in the 1st place, which results in false moves and bad positions. Here is a example of text book chart pattern in NIFTY. See for yourself क्या चार्ट पैटर्न ट्रेडिंग वास्तव में काम करती है? सही विश्लेषण के साथ देखे जाने पर चार्ट पैटर्न खूबसूरती से काम करते हैं। एक अच्छे और वास्तविक चार्ट पैटर्न को पहचानने की कुंजी यह है कि पैटर्न देखने में स्पष्ट होगा और पैटर्न को खोजने के लिए बहुत अधिक प्रयास करने की आवश्यकता नहीं है। अक्सर व्यापारी एक चार्ट पैटर्न को खोजने के लिए बहुत कठिन प्रयास करते हैं और अंत में ऐसे पैटर्न मान लेते हैं जो पहले स्थान पर मौजूद नहीं होते हैं, जिसके परिणामस्वरूप गलत चालें और खराब स्थिति होती है। निफ्टी में पाठ्य पुस्तक चार्ट ...

 How should I recognise a breakout and a fake breakout in the stock market? Every trader should know how to differentiate between a genuine breakout and a fake breakout to make money in trading. That doesn’t mean other trading ideas will not work. My logic holds good if you are looking for the best entry point and best exit point in any trade. Let me explain in detail. It’s important to understand 2 herds that exist in the market: 1. Smart Money and 2. Dumb Money ‘Smart Money’ refers to institutional investors, big shots who have money and information power who give direction & momentum to markets. ‘Dumb Money’ refers to nonprofessional traders, retail traders who often try to make quick money. Please observe the below chart carefully. Image - Smart Money in Action If you look at the above image, the smart money has prevented the fall 3 times with significant buying volumes. Besides, the price has consolidated for over 8 trading periods before the breakout. It indicates two thi...