The 14 Stages Of Investor Emotions And Trading Psychology

Markets have defined and specific cycles. This is because investors and traders are emotional – whether we choose to be or not. Everyone has the best of intentions when entering this business right? We all want to make a ton of money with as little risk as possible – who doesn’t.…

The #1 risk management advice for novice traders? 17 trading professionals answer

Over the past few weeks, we asked 17 trading professionals from all different areas of trading to answer one question: What is your #1 risk/money management advice for novice traders?   And here are their answers:   Steve Burns Adjusting your stop and position size based on volatility @SJosephBurns |…

22 Reasons Why your Buy Sell Signal Software will fail

Now these Day People More interested to work with Buy Sell Signal Software and Auto Trading Software , and Loosing Money after adopting various Trading system, I going to Explains some Point why a trader fails by adopting a Buy Sell signal software (Trading System). 1) you are Using Buy…

What is pivot point ? and How to Calculate ?

In financial markets, a pivot point is a price level that is used by traders as a possible indicator of market movement. A pivot point is calculated as an average of significant prices (high, low, close) from the performance of a market in the prior trading period. [sociallocker id=”17183″] Below…

Learn from the most successful traders of all times. This is what they do

I have read dozens of trading and trading related books over the years and I have extracted a huge collection of trading quotes  with tips and advice I use in my daily trading. Listening to what the most successful people have to say, adopting ideas that helped them overcome their…

5 Ways to Increase Your Trading Performance

Trading is all about making money and one of the most asked questions is “How can I make more money?”. There are mainly 5 different ways ‘to make more money’ in trading that we will discuss in the following article. We will lay out the possible problems that you might…

How to Trade Double Tops and Double Bottoms

How to Trade Double Tops and Double Bottoms Double Top A double top is a reversal pattern that is formed after there is an extended move up. The “tops” are peaks which are formed when the price hits a certain level that can’t be broken. After hitting this level, the…

The Worst Mistakes Beginner Traders Make

Traders generally buy and sell securities more frequently and hold positions for much shorter periods than investors. Such frequent trading and shorter holding periods can result in mistakes that can wipe out a new trader’s investing capital quickly. Here are the 10 worst mistakes made by beginner traders: Letting losses…

What are the differences between patterns and trends?

The identification of patterns and trends are techniques used by analysts studying the supply and demand of an asset traded on an open market. A trend is the general direction of a price over a period of time. A pattern is a set of data that follows a recognizable form,…

Moving Averages: How To Use Them For Buy Sell Decision ?

Some of the primary functions of a moving average are to identify trends and reversals, measure the strength of an asset’s momentum and determine potential areas where an asset will find support or resistance. In this section we will point out how different time periods can monitor momentum and how moving…

Know the 3 Other Types of Pivot Points

While we suggest that you stick to the standard method of calculating pivot points, you should know that there are other ways to calculate for pivot points. In this lesson, we will talk about these other methods, as well as give you the formulas on how to calculate for these…

How to Calculate Pivot Points

The first thing you’re going to learn is how to calculate pivot point levels. The pivot point and associated support and resistance levels are calculated by using the last trading session’s open, high, low, and close. The calculation for a pivot point is shown below: Pivot point (PP) = (High…

How to Use MACD to take trading decisions

The rate of change (ROC) is calculated as the difference between two price points, and, hence, is slightly volatile. To make the indicator line smoother, technical analysts use two moving averages, wherein the lines are already smooth. The best example of this is the moving average convergence divergence (MACD). As…

How to use RSI indicator to take decisions on buying and selling stocks

The relative strength index (RSI), one of the most popular technical indicators, is computed on the basis of the speed and direction of a stock’s price movement. This means that the RSI indicator only measures the stock’s internal strength (based on its past) and should not be confused with its…

Top 6 Reasons Why Stock Traders Fail ?

Not Maintaining Trading Discipline The largest mistake any trader can make is to let emotions control trading decisions. Becoming a successful Stock trader means achieving a few big wins while suffering many smaller losses. Experiencing many consecutive losses is difficult to handle emotionally and can test a trader’s patience and…

Why professional traders are successful ?

Most struggling traders seem to think it is extremely difficult to make money on the market. In reality, making money by trading is within everyone’s reach. Upon reading this article, some traders will be surprised to realize that they probably have the skills they need to trade, but that they…

Advantages of a 3 in 1 Demat Account

Stock trading requires three different accounts: A Bank account to allocate and receive money. A Trading Account to buy and sell shares and A Demat Account where these shares are held. The process seems pretty straight forward but in practice, factors like keeping track of the accounts separately as well…

Understanding the relationship between Trading and a Demat Account

When considering investing in stock trading, the need for having a  trading and a Demat account comes into the equation. For those who are relatively new to investing in stocks, the most frequent queries are about why is therea needto have both these accounts and what is the relationship between…

Why should one Invest?

Before we address the above question, let us understand what would happen if one choose not to invest. Let us assume you earn Rs.50,000/- per month and you spend Rs.30,000/-towards your cost of living which includes housing, food, transport, shopping, medical etc. The balance of Rs.20,000/- is your monthly surplus.…

What is a Trading Cycle in Stock Market ?

Once you have bought or sold shares, the transaction is complete only when you have got the shares you purchased, or received money for the shares you sold. This is called settlement in stock market parlance.The stock exchanges have a complex mechanism in place to ensure that every trade is…

Options: The basics of ‘call’ and ‘put’

  What is an option? An option contract gives the buyer the right, but not the obligation to buy/sell   an   underlying asset at a pre-determined price on or before a specified time. The  option buyer acquires a right, while the option seller takes on an obligation. It is the buyer’s…

7 ways to shortlist the right stocks

 Equity as an asset class outperforms all other asset classes in the long run. True. But,  how do you pick the right company? It’s always important to spend time in knowing a company, its business, financial health and  prospects. But do you have the time, resources and energy to study…

IPO Basics: What Is An IPO ?

Selling Stock An initial public offering, or IPO, is the first sale of stock by a company to the public. A company can raise money by issuing either debt or equity. If the company has never issued equity to the public, it’s known as an IPO. Companies fall into two…

Seven dumbest investment mistakes

By Scott Woolley  Emotions can be expensive, especially when you start making  investing decisions with your gut instead of your brain. Fortunately,  there are ways to avoid–or at least limit–the mistakes that we oh-  so-human investors tend to make. Daniel Kahneman won the Nobel prize in economics seven years  ago…

The Stock I BUY goes down ..!

 Most people think that after they buy a stock, that stock tends to  move down rather than moving up. This always anticipates them to  think before purchasing any stock or share that they are likely to loose  money in a script invested in. I have heard people say that luck &…