Candlestick charts are a technical tool that packs data for multiple time frames into single price bars. This makes them more useful than traditional open, high, low, close (OHLC) bars or simple lines that connect the dots of closing prices. Candlesticks build patterns that may predict price direction once completed.
Doji candle
Dojis are a tool used in technical analysis to find patterns in the price of securities. A trading session is known as a “doji” when a security’s open and close are almost equal, like a candlestick on a chart. The Japanese expression “the same thing” is where the word “doji” originates.
Example:
Spinning Top
The spinning top candlestick pattern has the same meaning as the Doji, which stands for market uncertainty.
The true body of a spinning top is larger than a Doji, which is the only structural distinction between the two.
Example:
Disclaimer : The information mentioned above is merely an opinion and should only be treated for educational purposes. If you have any questions or feedback about this article, you can write us back. To reach out, you can use our contact us page.
This is a major issue. You may obtain built-in analytics about your account and its performance by switching to an Instagram business account. You can review the effectiveness of your posts, following activity, and audience analytics.
I’ve heard a lot of people say that personal accounts have a far wider reach than company accounts. This isn’t actually true, at least not right now, according to a thorough investigation. According to the report, the reach for commercial accounts was 6.7%, while the reach for personal accounts was 7%.
Being a good trader depends on a variety of elements, one of which is maintaining the proper mindset. Learn how to enhance your trading psychology to lessen the impact of emotions and biases when you are trading.
What is Trading Psychology?
The term “trading psychology” describes a trader’s frame of mind while they are actively trading. It might decide how much of a profit they are able to secure or it can explain why a trader suffered significant losses.
In trading psychology, innate human traits like biases and emotions are crucial. The major goal of studying trade psychology is to increase one’s awareness of the different dangers linked to bad psychological traits and to cultivate more positive traits. Trading psychology experts typically do not operate out of bias or emotion. Therefore, they have a better possibility of making money while trading or, at the very least, of limiting their losses.
Trading psychology is different for every trader, as it is influenced by each individual’s own emotions and pre-determined biases. Some of the emotions which impact trading are:
Happiness
Impatience
Anger
Fear
Pride
How to improve your Trading Psychology
Knowing your own emotions, prejudices, and personality factors will make it easier for you to improve your trading psychology. Once you are aware of these, you may create a trading strategy that takes them into consideration in an effort to lessen their potential impact on your choice-making.
For instance, if you naturally possess confidence, you can discover that overconfidence and pride impair your ability to make decisions. For instance, instead of taking a slight loss on your trading account, you can choose to let losses accumulate in the hopes that the market will turn around. Greater losses or the eventual demise of your trading account could result from this.
Stops are a means to limit your losses and decide when to close a particular trade before you initiate the position, which can be used to counteract this. By doing this, you have become mindful of your own prejudices and emotions because you have chosen to take action against them rather than acting on them.
How does Bias affect Trading?
Biases have an impact on trade since they are, by definition, a decidedly biased preference for one product over another. They may therefore impair your judgement and drive you to act on instinct rather than logical fundamental or technical analysis, which can make your decision-making difficult when you are trading.
This is because trading bias means that you could be more likely to trade an asset that you have had past success on, or to avoid an asset on which you have incurred a historic loss. It is important that traders are aware of their conscious biases as this can help them overcome them and approach the markets with a more rational and calculated mindset.
There are five main types of bias:
Representative bias means that you will stick to or be more inclined to replicate previously successful trades. You might do this without carrying out analysis for every trade of this type because in the past, it has paid off for you. However, even if two trades seem similar, it is important to approach every trade on its own merits rather than on historical success
Negativity bias makes you more inclined to only look at the negative side of a trade, rather than acknowledging what went right. This could mean that you scrap an entire strategy when, in fact, you might only have needed to tweak it slightly to turn a profit
Status quo bias means that you will continue to use old strategies or trades rather than exploring new ones – you will stick to the status quo. The danger arises when you fail to assess whether those old methods are still viable in the current market
Confirmation bias is when you seek out, or give greater weight to, news and analysis that confirms your pre-formulated ideas. It may also be that you don’t seek out, or disregard, information which disproves your convictions
Gambler’s fallacy is where you assume that because an asset has been increasing, it will continue to rise. There is no reason to believe that it should, similar to how there is no reason that a coin should land tails side up – rather than heads – after doing so a few times in a row.
The ability to recognize your personality traits early on is one of the keys to establishing good trading psychology. You must be completely honest with yourself and acknowledge any impulsive inclinations or a propensity for irrational behavior’s.
If this is the case, it is critical to keep these characteristics in check when you are actively trading as they may drive you to make snap judgements that lack sufficient analytical support. However, it’s also crucial to utilize your unique strengths.
Recognizing your biases, as described above, is just as crucial as recognizing your personality traits and emotions. Although biases are a natural part of human nature, you should be conscious of them before entering or exiting any deals.
2 Develop and follow a trading plan
A trading strategy is essential to helping you reach your objectives. The blueprint for your trading, a trading plan should include your time commitments, available trading capital, risk-to-reward ratio, and a trading method you are at ease with.
For instance, a trading plan might specify that you’ll dedicate an hour to trading every morning and evening and that you won’t risk more than 2% of your portfolio’s entire worth on any one trade. As the guidelines for entering or closing a trade are already stated for you, this can help you minimize losses and limit the impact of emotions on your trading.
Trading plans should also take into account individual factors that could affect your trading discipline such as your emotions, biases and personality traits. If you make clear what your biases are before you start trading, you might be less inclined to act on them.
3 Have patience
It is essential that you have patience with your positions because patience is a fundamental component of discipline. When you make decisions based on emotions like fear, you run the risk of closing a position too soon and losing money. Have faith in your analysis, and practice patience and self-control. Similarly, it is crucial to exercise patience when trying to enter a trade and to do so at the correct time rather than immediately.
For instance, you could want to wait until right before a Bank of England (BoE) announcement if you wanted to speculate on particular GBP currency pairs like EUR/GBP or GBP/USD because there is typically more volatility at this time.
4 Be adaptive
While it is important to have a trading plan, remember that no two days on the markets are the same, and winning streaks don’t exist in trading. With this in mind, you should become comfortable in assessing how the markets are different from day to day and adapt accordingly.
If there is more volatility on one day compared to the day before and the markets are moving particularly unpredictably, you may decide to put your trading activity on hold until you’re sure you understand what is happening. Being adaptive can help to limit your emotions and rule out representative and status quo biases, enabling you to assess each situation on its own merits – ensuring that you are pragmatic during your time on the markets.
5 Take a break after a loss
Sometimes, rather than immediately entering another trade in an effort to make up some of your losses, it is preferable to take a brief break from your trading account to collect your thoughts and compose yourself.
The most successful traders are those that accept losses and use them as teaching experiences. Before returning to their platform, they usually take a few minutes to themselves. During this time, they evaluate what went wrong with that specific trade in the hopes of learning from it so they won’t make the same mistake again.
6 Accept your winnings
Quitting when you’re ahead and taking your winnings is just as crucial as taking a break after a setback. You might feel invincible after a run of victories or one particularly sizable victory, at which point you might move into another position and try to repeat the process.
Since today is “your day” on the markets, you can even initiate a string of fresh positions in the hope that none of them would lose money. Due to this, you can end up taking unwarranted risks or diversifying your portfolio too quickly without first researching each market.
7 Keep a trading log
You can keep track of all your wins and losses, as well as the feelings you had during each trade, by keeping a trading journal. As a result, it represents the conclusion of all the earlier ideas discussed in this essay. You can use it to determine whether or not the decisions you made at any given time were wise ones.
A trading journal can be used, for example, to note the moment you decided to reduce your losses and the final price the asset reached. You can determine if you made the proper choice or not by doing this.
Trading psychology summed up
Trading psychology is all about your mindset during your time on the markets and it can inform an explanation of your profits or losses
It is important for you to be aware of your own weaknesses and biases before entering a position but, equally, it is important that you understand your own strengths
Learn from your wins as much as your losses, but remember that winning streaks don’t exist in trading and that each position should be assessed on its own merits
Knowing when to take a profit or cut a loss can be the difference between a good day and a bad day on the markets
Keep a trading log as a record for you to see what worked, what didn’t work, and whether your decision at the time was correct in hindsight. Use this information to improve your decision making in the future.
Disclaimer : The information mentioned above is merely an opinion and should only be treated for educational purposes. If you have any questions or feedback about this article, you can write us back. To reach out, you can use our contact us page
Candlestick charts are a technical tool that packs data for multiple time frames into single price bars. This makes them more useful than traditional open, high, low, close (OHLC) bars or simple lines that connect the dots of closing prices. Candlesticks build patterns that may predict price direction once completed. Proper color coding adds depth to this colorful technical tool, which dates back to 18th century Japanese rice traders.
Falling Three Methods
The “falling three methods” is a five-candle bearish continuation pattern that denotes a break in the current downward trend but not a turn around.
The candlestick pattern consists of three shorter counter-trend candlesticks in the Centre and two longer downtrend candlestick charts at the beginning and finish of the pattern.
Example:
Rising Three Methods:
The “rising three methods” is a bullish, five-candle continuation pattern that denotes a break in the current uptrend without a trend reversal.
Two lengthy candlesticks in the direction of the trend, in this example an uptrend, make up the candlestick pattern. three shorter counter-trend candlesticks in the middle, with two longer candlesticks at the start and end.
Example:
Disclaimer : The information mentioned above is merely an opinion and should only be treated for educational purposes. If you have any questions or feedback about this article, you can write us back. To reach out, you can use our contact us page Support@learningsharks.in
A technical technique known as a candlestick chart condenses data from many time frames into a single price bar. They are therefore more beneficial than conventional open, high, low, close (OHLC) bars or straightforward lines that connect closing price dots. Candlesticks create patterns that, when finished, may be used to forecast price movement.
The Morning Star
After a slump, the Morning Star multiple candlestick chart pattern forms, signaling a bullish reversal.
It consists of three candlesticks: a bearish candle in the first, a Doji in the second, and a bullish candle in the third.
The first candle indicates that the downward trend is still in effect. A Doji on the second candle suggests market uncertainty. The market’s bulls are back, and a reversal will occur, according to the third bullish candle.
The true bodies of the first and third candles should be entirely clear of the second candle.
Example:
The Evening Star
The numerous candlestick pattern known as the Evening Star is formed after an uptrend and indicates a negative reversal.
It consists of three candlesticks: a bullish candle, a doji candle, and a bearish candle.
The first candle represents the uptrend continuing, the second candle is a Doji and represents market uncertainty, and the third bearish candle represents the return of the bears and the impending reversal.
The true bodies of the first and third candles should be entirely clear of the second candle.
Example:
Disclaimer : The information mentioned above is merely an opinion and should only be treated for educational purposes. If you have any questions or feedback about this article, you can write us back. To reach out, you can use our contact us page.Support@learningsharks.in
Although we may receive a commission from the links our partners provide, our assessments and opinions are unaffected by our advertising connections. The editorial team at TIME did not contribute to the creation of this material.
Each share of stock in a publicly traded corporation, or one whose stock is exchanged on markets like the New York Stock Exchange and the Nasdaq, has a price. An investor owns a portion of the business for each share they purchase.
The price per share of a stock is mostly determined by supply and demand. The stock price often increases if demand for a constrained number of shares exceeds supply. Additionally, the stock price normally declines if supply exceeds demand.
Setting stock prices
William Haight, a director at Capital Choice Financial Group in Phoenix, said that the amount of a stock and how many people want it influence its price. “The price of a stock will increase if more people desire to acquire it. However, the price will decrease if more people decide to sell.
On the other hand, let’s take a look at RXYZ Co., a fictitious healthcare organisation. The stock might be trading at $45 per share on Monday. The next day, a Wall Street analyst publishes a negative report on the healthcare industry, which prompts some investors to sell their shares in RXYZ and causes the stock price to fall to $40 a share. That represents an 11% drop in one day.
What factors affect the share prices of listed companies?
Stock price variations are caused by a variety of factors, not just supply and demand. In actuality, a number of factors may combine to cause up and down swings in price.
Company activity
According to Haight, his increased demand may cause the stock price to climb. In contrast, if RXYZ reports poor financial results for the third quarter, investors may lose faith in the company and sell some or all of their RXYZ shares.
In addition, the following corporate events could cause a rise or fall in the stock price:
grant of a patent for a novel and exciting commodity or service.
international expansion’s launch.
unexpected demise of the CEO.
a significant client is lost.
The state of the economy
Investors may feel more optimistic about the path of the economy, for instance, if the U.S. Bureau of Labour Statistics releases data showing that the unemployment rate decreased and the nation added a significant number of jobs the previous month.
They might therefore be more motivated to invest in the stock market, which would raise the price of some companies’ shares. Contrarily, poor employment and unemployment data may frighten some investors, triggering a stock sell-off that lowers share prices.
Inflation
As a result, investors may decide to sell some of their shares if the inflation rate is rising and they start to feel uneasy about the state of the economy. Investors may become more optimistic about the economy and increase their stock-buying activities, however, if the rate of inflation is declining.
Furthermore, a company’s financial performance could be negatively impacted by excessive inflation because purchasing goods and services will cost more. A company’s profits may be reduced by an increase in costs, which would deter investors and cause the stock price to fall.
Interest rates
The price that businesses pay to borrow money is significantly influenced by interest rates. High interest rates may increase the cost of company borrowing. As a result, company earnings might decline, which would lower stock prices overall.
In addition, stocks may not be as appealing as CDs, bonds, and other assets whose yields benefit from increased interest rates due to the higher interest rates on their stock market. Stock prices would decline if investors sold out.
Consumer spending
The Congressional Research Service asserts that “consumer spending is a key driver of short-run economic growth in the U.S. economy.”
The same holds true for company sales, earnings, and stock prices, which can all suffer from sluggish consumer spending.
World events
In 20 significant geopolitical crises, such as the attack on Pearl Harbour, President John F. Kennedy’s assassination, and the 9/11 terrorist attacks, between 1941 and 2020, the S&P 500 stock index declined on average by 5%, according to data from LPL Research.
According to IMF data, geopolitical risks between 1985 and 2020 caused a drop in stock returns ranging from 10.53% to 42.14%, which is consistent with this finding.
Major investors
Haigh remarked that changes in stock prices might be influenced by the behaviour of big institutional investors like mutual funds and hedge funds.These investors possess a lot of shares, so their buying and selling activities can have a big impact on stock prices, he said.
Why do stock prices change every second?
Investors may decide to purchase or sell a company’s stock when they learn new information about it, according to Haight. “The stock’s price increases if more individuals purchase it. The stock’s price will decrease if more individuals sell it.
Lean on professional advice
Your broker’s financial advisor can assist you if you’re unsure about what’s occurring in the stock market or whether to buy or sell shares. These experts can help guide you in the right way by attentively monitoring the ups and downs of the stock market.
Stock chart patterns often signal transitions between rising and falling trends. A price pattern is a recognizable configuration of price movement identified using a series of trendlines and/or curves.
When a price pattern signals a change in trend direction, it is known as a reversal pattern; a continuation pattern occurs when the trend continues in its existing direction following a brief pause. There are many patterns used by traders.
Hammer
At the end of a downtrend, the single candlestick pattern known as a hammer is formed, which denotes a bullish turn.
This candle’s genuine body, which is little and near the top, has a lower shadow that ought to be twice as large. There is minimal to no top shadow in this candlestick chart pattern.
The psychological explanation for this candle formation is that as soon as prices opened, sellers pushed them lower.
As soon as buyers entered the market, prices shot up and the trading session ended with prices higher than they had started.
Example:
Inverted Hammer
At the bottom of the downtrend, an Inverted Hammer forms, signaling a bullish reversal.
The actual body of this candlestick is at the very end, and its upper shadow is quite long. The Hammer Candlestick pattern is the opposite of this motif.
When the starting and closing prices are close to one another and the upper shadow is greater than double the true body, this pattern is generated.
Example:
Disclaimer : The information mentioned above is merely an opinion and should only be treated for educational purposes. If you have any questions or feedback about this article, you can write us back. To reach out, you can use our contact us page Support@learningsharks.in
Stock chart patterns often signal transitions between rising and falling trends. A price pattern is a recognizable configuration of price movement identified using a series of trendlines and/or curves.
When a price pattern signals a change in trend direction, it is known as a reversal pattern; a continuation pattern occurs when the trend continues in its existing direction following a brief pause. There are many patterns used by traders.
Bullish Engulfing
After a decline, the multiple candlestick chart pattern known as “Bullish Engulfing” forms, signaling a bullish turnaround.
Two candlesticks are used to make it, with the second candlestick enveloping the first. The decline is expected to continue as the first candle is negative.
The first candle is entirely engulfed by the second candlestick, which indicates that the bulls have returned to the market.
Example:
Bearish Engulfing
A numerous candlestick pattern called a “bearish engulfing” forms after an uptrend and denotes a bearish reversal.
Two candlesticks are used to make it, with the second candlestick enveloping the first. The fact that the first candle is bullish suggests that the uptrend will continue.
The lengthy bearish candle on the second candlestick chart totally engulfs the first candle, signaling the return of the bears to the market.
Example:
Disclaimer : The information mentioned above is merely an opinion and should only be treated for educational purposes. If you have any questions or feedback about this article, you can write us back. To reach out, you can use our contact us page Support@learningsharks.in
Fertilizers companies Coromandel Inter, FACT, Chambal Fertilizers, RCF, GSFC, Paradeep phosphates and National Fertilizer are all making a run this season. Should you add them to your portfolio? let’s find them out
On Thursday, 13 Apr, 23 Fertilizers & Chemicals Travancore Ltd was up ₹ 321 12.40%National Fertilizer Ltd was down₹ 85.3 -0.87%, Coromandel International Ltd ₹ 927 -0.05% respectively.
Let’s look at companies Technicals one by one to find out which one to invest in
National Fertilizer Ltd
While the company has not been profitable all this while. However, The company has posted profits of 700 cr for 2022 as compared to a -95CR loss Last year. As per the price point, one should avoid making new positions.
Coromandel International Ltd
Net Profit
26
197
208
213
294
-181
237
-95
700
Coromandel seems to be making a fine entry at CMP 927 however, considering the stock could be making a BEARISH Rising wedge pattern. Hence, it is not advised to make an entry in this stock.
What is a rising wedge?
A technical signal known as a rising wedge suggests a reversal pattern typically observed in bad markets. This pattern appears on charts when the price rises and the pivot highs and lows converge towards the apex, which is a single point.
Fertilizers & Chemicals Travancore Ltd
FACT seems to have taken the best of all already, Stock price currently trading at Rs320 a Piece. Already 64% up from its last low of Rs 193. It is not advised to make new positions in this stock.
The company has made over Rs 681Cr profit this year compared to 353cr Profit last year.
Chambal Fertilisers & Chemicals Ltd
The only company that seems to have the advantage of being added to the portfolio. Chambal fertilisers posted a profit of 1,184CR this year compared to 1566CR last year which seems to be a fall yet profitable still.
The price of Chambal Fert is Rs 289 and it can be a good buy still in the portfolio with targets of up to Rs 312.
Rashtriya Chemicals & Fertilizers Ltd
RCF has posted 1,041CR profit as compared to 702CR from the last year. Furthermore, the stock seems to be in the category of a buy zone. As can be seen in the start. RCF is making a symmetrical triangle pattern. To know more about this pattern, click here
Gujarat State Fertilizers & Chemicals Ltd
The company has posted a whooping profit of 1,345CR which was 891CR last year. Also, Stock seem to be on the support in a channel pattern. This can also be a decent addition in your portfolio.
Paradeep Phosphates Ltd
With only ₹ 4,402 Cr Market cap, Paradeep phosphates CMP 54 posted 330CR profit this year. Last year, PP gained 398CR which seems to be a decent fall. Considering the DII holds 20.73% of the company. we recommend this to be a decent accumulation.
Please note: Paradeep phosphates are making a descending triangle, which indicates a possible downfall. Or it has been done already, as you can see in the stock price,
Conclusion
While the sector/industry seems to be getting a lot of FII and DII attention. There are fewer stocks only which can be added to the portfolio at this time. We recommend you do your complete analysis of them before adding them. To stay updated follow us on Instagram.
This learning sharks article is of a general nature. Our articles are not meant to be investment advise; instead, we only offer analysis based on objective methods, past information, and projections from analysts. It doesn’t represent an advice to buy or sell any stock, and it doesn’t take into consideration your goals or financial position. We hope to provide you with long-term analysis that is driven by essential facts. Be aware that recent price-conscious announcements from businesses or high-quality information may not be taken into account in our analysis.
The goal of stock trading classes is to impart investment strategies for stock trading, which is purchasing and selling stock in a certain firm. In order to become stock traders, retailers, business investors, etc., aspirant students enrol in stock trading courses.
Learn how to trade stocks by enrolling in online stock trading courses or stock trading for beginners courses on Coursera, Udemy, NSE Trading Courses, edX, and other similar platforms. Two well-liked professional courses are offered by NIFM New Delhi, BSE Academy, and IFMC Institute: Certificate in Stock Market and Diploma in Financial and Stock Market.
Online platforms do not have any requirements for enrollment in stock trading courses, however the institutions favour applicants who have completed class 10 plus two and obtained the necessary minimum marks. The annual course costs are between INR 1,000 to 1,50,000.
What is Stock Trading?
Online platforms and some colleges offer stock trading courses for retailers, business investors, and interested students who want to learn the basics of stock trading and the terminologies. The key details about stock trading courses are tabulated below:
No prerequisites for stock trading online courses, however, the candidate is expected to pass class 10 and class 12 and have some knowledge of the market.
Average Fees
INR 5,000 – 1.25 lakhs
Top Job Prospects
Stock Trader, Stock Broker, Equity Analyst, Dealer, etc.
Average Salary
INR 2.5 lakh to INR 9.5 lakh per annum.
Types of stock trading
There are eight primary types of trading.
Day trading
It entails purchasing and selling stocks all in the same day. If a trader purchases shares for intraday trading, they should sell those shares at the close of the trading day. Day trading is renowned for making money off very minute changes in the stock’s NAV. Due to the trader’s brief position holding period, intraday trading carries a low level of risk. But if the trade involves too much margin money, the danger can rise.
Scalping
Due to the brief duration of each deal, it is also known as micro-trading. The trader will execute a number of brief deals in an effort to make marginal gains. Daily scalp trade activity might range from a few dozen to one hundred. Scalping involves similar skills to day trading, including knowledge of the market, expertise, and awareness of price movements, as well as a solid understanding of technical analysis.
Swing trading
Swing traders profit from transient patterns and movements in the market. One day to seven days are typical for a swing trader’s trade duration. It entails examining recent trends to determine market patterns and carry out the transaction.
Momentum trading
When trading stocks based on momentum, traders choose stocks that are or will break out by taking advantage of the stock’s momentum. The trend’s direction will serve as the foundation for traders’ trading decisions. As an illustration, if the current momentum is upward, the trader will sell for a bigger profit. The trading approach is to purchase equities at a lower price when the movement is downward.
Delivery trading
It is one of the safest investment methods and the most common trading strategy on the stock market. Delivery trading is a type of long-term trading in which investors purchase equities with the intention of keeping them for a while. Margin utilisation is not allowed in delivery trading. Investors who engage in this form of trading must pay the full price for the equities. certain forms of stock trading
Positional trading
The buy and hold technique is a type of delivery trading that includes positional trading. It calls on traders to hold onto their positions for an extended period of time while ignoring even the smallest changes in the market. When the trader waits a long time before selling off, position trading is profitable.
Fundamental trading
To select equities, traders look at the company’s fundamentals. They focus particularly on company-related news and financial information. Fundamental traders maintain their positions for a long enough period of time to permit a major change in the stock price. The trading approach is very similar to stock investing.
Technical trading
Technical traders, as opposed to fundamental traders, concentrate on price trend analysis. They time the market using graphs and data. Compared to positional or fundamental trading, technical trading has a higher level of risk. Traders should be knowledgeable about the market and have the skills to analyse graphs and charts for patterns.
How online trading has transformed stock trading
The popularity of stock trading has been significantly aided by online trading platforms. All participants now have easier access to data and analysis via their laptops and mobile devices. Due to the variety of trading methods available, traders can choose the one that best suits their profit aim, risk tolerance, and investment objective. Open your free trading account with Angel One in less than five minutes, and then trade swiftly and easily from anywhere using our online trading tool.
