Passionfortrading
Life Cycle of Stock MarketHi Traders,
Is it wise to trade all the time with the same mindset?
No Right.
When we start trading, we do the same things again & again thinking that what we did yesterday, last week, or last month, with the same strategy we try to make a profit out of it & that's the reason most of our capital is either at breakeven or in a negative.
I believe we need to be smart enough to change the strategy according to the type of market we are facing.
Type of Market:-
a. Base:- Where the market is in a consolidation stage, and not appreciated in the market by the trader & investors.
b. Growth:- Market in an uptrend stage, where the market is appreciating the fundamentals such as good earnings, growth & its intrinsic value & realise that it is undervalued.
c. Top:- It is a stage where smart investors know that the market cannot continue forever as the market became highly overvalued & they square off their position & leave the market with a profit.
d. Decline:- It is a stage where the market is in a downtrend. There can be various reason for the downfall, such as a decline in the fundamentals of the companies, War, panic, fear, etc.
Type of Strategy:-
a. Base:-
Short term trading, where need to identify the demand (Buy) & Supply (Sell).
b. Growth:-
long term positions which last maximum to 3 months, (use a call option)
c. Top:-
from a traders point of view, again find out the demand & supply with the mindset that small is good.
d. Decline:-
It is a stage where I make a lot of profit by using margin, Put options, short selling, etc.
So, as a trader, we need to change our trading mindset according to the market phase.
Thank You
Identify the area where market behave rationallyAs I am new in Tradingview lot of readers will not take my post in earnest, but that's up to you because things are going in my favour.
Here we just need to identify the areas where market behaves rationally by using the trend lines.
Technical analysis is all about demand & supply.
You can only make money in the market when you start predicting by having all the rules of your own in your favour.
WTI CRUDE: Inverted Correlations with USD/CADHi Guys,
Oil started a downtrend when Jamal Khasshoggi was assassinated. It bottomed at 42 on the 24th of December.
Thank you for your support and for sharing your ideas.
Disclaimer:
Please note that I am not a professional trader and these are my personal ideas only. The information contained in this presentation is solely for educational purposes and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. CozzamaraDaZena is not responsible for any liabilities arising from the result of your market involvement or individual trade activities.
GOLD: Let's start from zeroThank you for your support and for sharing your ideas.
Disclaimer:
Please note that I am not a professional trader and these are my personal ideas only. The information contained in this presentation is solely for educational purposes and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. Cozzamara is not responsible for any liabilities arising from the result of your market involvement or individual trade activities.
