Using 15 minute and 5 Minute Time Frames To Scalp In this video we break down how you can use 15minute and 5 minute time frames to Scalp.
Your 15 min can be your short term gauge for trend and your 5 minute can be where you enter into the market.
Using basic candle sticks patterns I go through a couple different setups one can do on the scalping side of things
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How to analyse a chart? (Educational Post).In this post we will try to analyze what happened to Nifty and what can be the future course. We will also try to understand how to analyze Nifty using a parallel channel, EMA, Support and resistance and RSI. Through this exercise we will try to deduce possible turnaround supports, probable resistances it may face in future. On the onset let me tell you that the exercise is to increase the understanding of Technical analysis. The data should not be used for taking positions in the unpredictable market. Now have a look at the chart.
With the help of basic knowledge, you will be able to understand that every time the Nifty or for that matter any stock hits the top of the channel it reverts. Every time a stock or an index hits the channel bottom it tries to bounce back. When RSI shows the stock is over sold it corrects positively through short covering and when the stock is overbought zone it will try to cool down the RSI by price correcting on the negative side. The mid of the channel acts as support when the price is above it and acts as a resistance when price is below it.
Similarly 50 days and 200 days EMA which we call Mother and father line act as resistance when the price is below it and act as support when the price is above the lines. (This movement of stock price or index, when above and below 50 or 200 EMA whether it is hourly, daily, weekly or monthly and my Mother, Father and Small child theory I have explained it in depth in by book The Happy Candles Way to Wealth Creation). The other green and red lines are supports and resistances respectively. These lines drawn based on peaks and valleys, tops and bottoms of important candles in case of a candle chart. In case of a line chart they are tops and bottoms of peaks and valleys again and important curves.
Like we have supports and resistances on line chart of a stock and index, RSI also has support and resistnace zones which can also indicate us the turnaround zones. There in one more Purple line which indicates the current trend. Looking at these various factors you can analyses and draw your own charts.
To know more about these indicators and how to use them and to understand Techno-Funda investment, read my book: The Happy Candles Way to Wealth creation available on Amazon in Paperback or Kindle version.
My deduction from the above chart is the following. 24966 will be an important support for Nifty. Below which it can fall to 24698 or 24384 levels. Channel bottom support is around 23874. Father line and 200 days EMA is at 23241. Any of these can be potential turnaround zones. RSI of Nifty tends to bounce from 39.82 or 26.45 zone. Current RSI is 40.63. When there is a turnaround the resistances for Nifty will be 25065 which currently is Mother line resistance which is coinciding with mid channel resistance. Above this zone resistances will be 25439, 25665 and 25836 before Nifty regains 26K+ levels.
The information regarding Nifty in this article is for the purpose of education and to show how various indicators often give same or similar result.
To know more about various Techno-Funda indicators and how to use them, when to use them, when to buy, when to book profit, Where to place a stop loss or what is trailing stop loss etc. you are recommended to read my book: The Happy Candles Way to Wealth creation which is available on Amazon in paperback or kindle version. You can also read my Smart School column in Smart investment financial Weekly for gaining techno-Funda knowledge.
Disclaimer: There is a chance of biases including confirmation bias, information bias, halo effect and anchoring bias in this write-up. Investment in stocks, derivatives and mutual funds is subject to market risk please consult your investment advisor before taking financial decisions. The data, chart or any other information provided above is for the purpose of analysis and is purely educational in nature. They are not recommendations of any kind. We will not be responsible for Profit or loss due to descision taken based on this article. The names of the stocks or index levels mentioned if any in the article are for the purpose of education and analysis only. Purpose of this article is educational. Please do not consider this as a recommendation of any sorts.
Building a Winning Trading Strategy: 5 Must-Know Tips for BeginnWhether you're just beginning your trading journey or looking to gain more confidence, many new traders overlook key advice that is essential for long-term success. Trading is a fast-paced and ever-evolving landscape, and having the right guidance from the start is crucial.
In this article, we’ll explore five fundamental pieces of advice every new trader should follow to build a strong foundation and improve their chances of success. These tips will help you navigate the complexities of the market and set you on the path to becoming a more confident and successful trader.
Let’s dive in!
Element #1: Build a Solid Foundation of Knowledge
Before diving into the complexities of trading, it’s crucial to establish a strong foundation of knowledge. You can’t expect to succeed in the financial markets without a solid understanding of how they operate.
Start by learning the basics:
Grasp essential trading concepts
Familiarize yourself with market terminology
Understand how different financial instruments, like stocks, indices, commodities, and cryptocurrencies, work.
This knowledge will form the backbone of your trading decisions. Successful trading is rooted in well-informed decisions, and the more you know, the better equipped you'll be to navigate the complexities of the financial markets.
Remember: Knowledge is power. But applied knowledge is everything.
Element #2: Asset Allocation – The Key to Diversification
Choosing the right assets to trade is another critical aspect of successful trading. Proper asset allocation can help spread risk and maximize your returns. Here's how:
Diversify across different markets: Don’t limit yourself to just one type of asset. Trading across different asset classes, such as stocks, currencies, indices, crypto, and commodities, helps balance your risk.
Use uncorrelated markets: Hedge your risk by trading in markets that don’t move in tandem. This way, when one market dips, another might rise, protecting your portfolio.
Balance risk and reward: Spreading your investments across multiple asset classes allows you to manage risk while still pursuing substantial returns.
A well-diversified portfolio is key to minimizing risk exposure while maximizing potential gains.
Element #3: Risk Management – Strategies to Protect Your Capital
Protecting your capital should always be your number one priority. No matter how promising a trade looks, you need to have a risk management strategy in place to safeguard your funds.
Effective risk management involves:
Setting a risk percentage per trade: Know how much of your capital you’re willing to lose on a single trade.
Establishing clear risk-reward ratios: Make sure your potential reward outweighs the risk before entering any trade.
Using stop-loss orders: Always place stop-loss orders at strategic levels to limit potential losses.
Managing drawdowns: Learn how to handle periods of extended losses and adjust your strategies accordingly.
Remember, focus more on risk management than on reward. The traders who succeed long-term are the ones who consistently manage their risk.
Element #4: Mastering Technical Analysis
One of the most valuable tools in a trader's arsenal is technical analysis. This method involves studying price charts, volumes, and various technical indicators to make informed trading decisions.
By mastering technical analysis, you’ll be able to:
Identify market trends: Recognize when markets are trending upwards, downwards, or sideways.
Pinpoint entry and exit points: Use indicators like moving averages, trendlines, and oscillators to determine the best times to enter and exit trades.
Anticipate potential reversals: Spot market patterns that may signal a change in direction, giving you a heads-up before a reversal occurs.
Technical analysis enhances your ability to see the bigger picture and make data-driven decisions in a volatile trading environment.
Element #5: Developing the Right Mindset – The Psychology of Success
Your mindset is the ultimate driver of your trading actions. Even the best strategies won’t succeed without the right mental approach. Trading requires discipline, patience, and emotional control.
To develop a successful trader’s mindset:
Control emotions: Keep fear, greed, and ego in check. Emotional trading often leads to impulsive and costly decisions.
Stay disciplined: Stick to your trading plan, even during challenging times. Consistency is key to long-term success.
Focus on the long term: Don’t let short-term setbacks derail your progress. Trading is a marathon, not a sprint.
With the right mindset, you’ll be better equipped to handle the ups and downs of the market and remain focused on achieving your long-term goals.
Final Thoughts:
Success in trading is not just about mastering one aspect – it’s about combining knowledge, risk management, technical skills, and the right mindset to create a well-rounded approach. By focusing on these five elements, you can improve your chances of consistent and sustained success in the markets.
Start by building your knowledge base, diversify your asset allocation, protect your capital with effective risk management, sharpen your technical analysis skills, and cultivate a disciplined, resilient mindset. With these tools, you'll be well on your way to becoming a successful trader.
Happy Trading!
Mihai Iacob
Educational Post: Trend and Valuations and Techno-Funda analysisWe have been told that market is always right and the price of the stock is always indicative of what is happening in the company, it’s balance sheets and its prospects for future. This cannot be true as the price of the stock or an index tends to trend. The trend can be upwards or the trend can be downward as seen in this chart. The trend can also be flat.
Now if the stock has tendency to ‘trend’ the trend will always have sentiments and sentiments will always try to overplay or underplay the prospect of the company. In case the trend is bullish the valuations will tend to be expensive. In case the trend is bearish there is always a possibility of undervaluing a company.
This is why an analyst needs to look at both Techincal and Fundamentals of a company. By looking at Fundamentals of the company you will understand the inherent strengths, it’s resilience ability to bounce back, ability to adapt and ability to grow. After having understood the and identified fundamentally strong company you can use technical analysis to enter the same or buy the stock with the help of Technical analysis. Thus you will be able to maximize the opportunity to make your money grow faster. Knowing Technicals will help you understand and establish when the trend is going to change, perhaps find when the stock is breaking out or breaking down.
When the trend is changing positively and the stock is breaking out you can invest, compound and stay invested and enjoy the bull run. When the trend is changing negatively you can perhaps book profit, partial profit or exit the stock before it breaks down completely.
It is said that either you learn or you die. My advice to investors whether you are a new investor or a seasoned player who has been investing for decades will be to keep yourself educated in terms of markets and its methodologies. Learning and unlearning should be a continuous process rather than depending on others and asking for tips to make money. If you buy and stay invested, you will make your money grow as much as the company or index grows. But if you can catch the trend which is a friend, catch the breakouts and breakdowns you will grow your money faster. Invest the most important commodity along with your money into the market, that is your time. To learn more about techno-Funda investing contact us and reap the benefit. Benjamin Franklin has rightly said,” Investment in knowledge pays the best returns.”
Disclaimer: Investment in stocks, derivatives and mutual funds is subject to market risks, please consult your investment advisor before taking financial decisions. The data, chart and other information provided above is for the purpose of analysis and is purely educational in nature. The names of the stocks or index levels of spot Nifty mentioned in the article are for the purpose of education and analysis only. Purpose of this article is educational. Please do not consider this as a recommendation of any sorts.
