We have individually tried all the strategies and techniques to understand how the market functions. We have tried combinations of strategies to withstand and minimize the loss in any volatile market and any trend.
Read more
A trader is someone who buys and sells, a share/option/futures/ any other commodities. He tries to earn profit while he trades. On the other hand, a disciplined trader, sticks to the strategies even when he incurs a loss. He studies the market and chooses the best trades.
When we trade, we predict the market movements and we buy or write either a Call option or a Put option. If the market moves as per our calculation, we earn the maximum profit. This is an ideal situation. However, the market is not influenced by one person.
Traders overtrade because they are hooked on the rush that comes from being in markets. Some overtrade because they feel that they will miss a golden opportunity if they don’t trade. Some overtrade since they don’t have specific enough entries to keep them out of the bad trades.
Paper trading means simulated trading without involving money. This is to gain experience and to keep in check the emotions that can get in the way while trading. The term dates back to a time when aspiring traders would practice on paper before risking money in live markets.
The common application of fund in market is investing in shares of companies. But return from shares takes time and is a long term investment. So how can we earn short term profits? The answer to this is trading in derivatives.
The most fundamental elements of stock trading are as follows:
Setup: Each investment requires different understanding of risk and return. This is the pre planning stage that every investor has to undergo to understand their application of fund.
We have individually tried all the strategies and techniques to understand how the market functions. We have tried combinations of strategies to withstand and minimize the loss in any volatile market and any trend.
Read more