I am beginner and tried few times of trading and investment with help of some random tips . I have tried Options and equity positional trading but I have lost most times. I want to learn with technical analysis to start trading . It can be basic tools or something which can give me earning of small amount in starting , Please guide me to move to right direction. Also I am confused of so many tools availble in market which one to follow and which one not to.
I can invest 30-40k for begining .
Hello Trader,
Start with only 10K.
Trade ONLY EQUITY CASH Market for a month and trade shares with value less than 250.​
Do only Positional / Swing on SMALL and MID CAPs
Intraday only on FnO underlying shares.
This will get your technical and fundamental knowledge straight.
Stick to very few Indicators and learn it fully: RSI, ADX, MACD, Stok RSI, MFI and Moving averages:
20,50,200 EMAs.
Some short videos that explains the above indicators:
https://www.youtube.com/user/ZigZagMarketsBlog/videos
Check this blog and read through the articles from the last pages:
http://www.investorsunderground.com/blog/
Also it is very important you read this:
https://en.wikipedia.org/wiki/Dunning–Kruger_effect
Its better to find yourself which suits you. Don't go for shortcuts. In trading experience and patience makes you richer.
Hi, I can identify with your position, my suggestion would be, ideally most of the indicators work fine, you need to define a strategy and that requires some study. Try reading Dr. Alexander Elder’s - Trading for a Living.
Also some ready Strategies available at: http://thepatternsite.com/setups.html.
Remember the most important part of trading is not the use of indicators but the use of proper money management and Risk Management. You can pick these from a lot of sources including the above quoted book
But do paper trading in them by keeping good records while you learn more of reading the above mentioned book.
Do not follow any advice. Keep your trading diary and find out your mistake and learn as much as you can.
Can I be painfully honest with you for a moment?
And I can almost guarantee you will not enjoy it.
You know how you’ve been struggling to get more and more returns on your investments? Tried everything, and it’s just not working, right?
Well, it’s not because you haven’t found the right investing strategy. It’s not because you need to change your investing guru. It’s not because the Mr. Market have turned against you and cursed you to wallow in mislaying forever.
It’s because you’re dumb.
And if you ever want a chance to earn passive income from your investments, you’d better smarten up.
Did I really just call you “dumb?”
Yes, I did. Sorry.
This is not a ruse where DUMB turns out to be a clever acronym for something far less offensive. The truth is, I’m calling you out, and I’m doing it out of love.
Because you see, everyone has been lying to you. Including me.
We teach you investing strategies. We dole out trading tips. We give you a pep talk and make you believe maybe you can really become the next investing superstar.
But honestly?
There’s one really big thing we’ve been leaving out. Here it is:
"Popular investors are smarter than you are"
And no, I’m not talking about IQ. Instead of their simplicity and transparent views.
Investing is not much complex, in lieu you made it complex. Being simple is the way to turn your ass out as a smart investor in the crowd of dumb investors.
How to make yourself smart Investor
I was not what you would call a “bright” kid.
I bunk my school classes. I failed tests. I scored mediocre grades.
But sometime around the age of 16 or so, I got fed up with myself and decided to change things. I just started caring less about what my friends are snapping at Snapchat and started thinking about who I wanted to become.
And that person was smart.
So instead of spending my time on FaceBook, I started scrolling MoneyControl. If my parents endorse me some money, instead of spending it on leisure, I buy books to furnish my finance knowledge. On the weekends, I stopped going to the playground and hunt out at the library, reading books totally of my own interest.
Nobody told me to do it. I just did it. Because that’s who I wanted to be. Within a year, I was well furnished with more than basic knowledge.
Each and every one of us decides who we are. No, you may not be ready to be a popular investor now, but you can become ready.
The whole reason for dictating this trash is not to brag my past or to publicly announcing myself, instead make you understand that you don't need to be extra-ordinary to get extra-ordinary returns. Doing things simply is what drive great returns.
Finally! Here's what you're here for.......
So let me share some simple tactics that I'm using and tested since I started investing (and even a dumb head can use this tactics).
#1) Be Greedy when others are Fearful
This is often quoted by great investor Warren Buffett. So instead of giving you theoretical preaching, let me try to illustrate it.
I bought some shares of ICICI back in May 1st week when it was trailing at low of 214 and currently (14 June) it is quoted at 245 INR.
I just followed a simple tactic - Market devalue share on each and every negative news without considering the fact weather it will hamper its long term value or not. It's a great time to enter in market. Nerd investors are pessimist, most of the shares are red and people are pulling out their funds in market.
I heard a negative news of ICICI that its net profit plunges 76 per cent to Rs 701.89 cr on NPA surge.
In continuation, again another bad news - ICICI Bank reports lower than expected Q3 net profit, bad loans rise and also ICICI was fall out of top 10 market cap list.
Above statements are enough to clarify its bad situation right now but...
What made me invest in such bad times?
Always remember this when it comes to value investing - "Buy wonderful companies at its low instead of hoping ordinary companies to go up"
Its a common phenomena that a bunch of quarterly news can't decide the company's future. In addition, great companies will always find ways to tackle its pitfalls which maintains their futuristic growth and ICICI presence in BSE30 (Sensex) shows its greatness.
In short, news can change company's price but can't change its fundamental values. Currently, same situation is happening with pharmaceutical companies. Here comes my next investment.... Cipla disappointing results, profit falter.
Again its a great bet right now. I entered in Cipla stock on 2nd June @468 INR and now just check out it's current trailing price.
I just want to clear out one point - Market devalues stocks on bunch of negative news and value investors hunts this situations to get most out of less.
Here's a short overview of situation...
People will hear out news >>> they will react emotionally >>> they will feel insecure (like all are selling stocks, why shouldn't I?) >>> this results in high sell-off >>> stock price declines >>> smart investor leverage this situation.
Don't get excited....
However, this technique sounds simple but still their are some precautions to consider before reaching out to final decision.
(If image is blur, follow the link here to get navigated to the source page)
Text read in red circle - "Create alert"
A simple search on Google (top 50 financial twitter feeds) will swamp you with more than enough results OR you can find them easily segregated in my profile (whom I'm following). Here's the link - @sowmay_jain. I usually re-tweet the news that can make market dance.
There are many other sources to quickly get updated with financial news but for now just try above method. If curious enough, shout at comments below. Now lets switch to second strategy.
(This post was initially appeared on my blog)
Harisman: I personally use Elliott Wave theory on stocks and indices for trading and have found it so far the best tool to trade in indices, stocks, commodities and currency, i also use trend line analysis and pattern recognition technique to trade in combination with RSI as one of the technical indicators. If you are willing to begin and earn an earning out of it, then i would suggest you to start it in a transition manner. Since you have already lost money earlier, this means you are following the regular crowd behavior and are trapped in trader’s psychology, the best tool to stand apart from crowd behavior and always come out as a unique trader is Elliott Wave.
I have beeing use EquityBoss.com that helped me to cherry pick excellent portfolio of stocks delivering solid returns. I find their fundamental research extremely reliable. Their stock idea center is a theme tailored to meet the expectations of different investors such as short-term, long-term, largecap, midcap, smallcap, dividend income and even include F&O positional trading opportunities.
My investing experience has become simple, sensible, confident and most of all, extremely profitable and it can definitely help anyone.  They have a free trial to test drive their product.Â
Happy investing!
Read this article which contains a set of compiled resources to learn about Stock Market and technical analysis. These resources are well researched and apt for beginners:
IS this with Vijay kumar admin name ?
yes. . I guess you are member now.
Yes I am member now. But In that group many people give their suggestions. Which one to follow.? I need to learn plus earn . Kindly advice or can I have your contact for whats app
Keep reading older posts that are really good . . .& my newer posts. Mainly, we are discussing how Open Interest changes / Implied Volatility moves & how Clients are forced to shift positions, etc, It is relatively newer way of looking things, apart from charts. Hope it will be real journey, as it has been for many.
yes. Will try follwoing this but at this stage , I need to bit improve my basics by small practices. and basics should be strong enough to grasp your concept.
Its nice to start with, Thanks for advice.
There are few technical indicators that can be used to find the timing of entry or exit in shares. Here are the top few indicators that I use:
Read more here:
Moving Average Crossovers (http://www.onlinetradingconcepts.com/TechnicalAnalysis/MASimple2.html)
MACD Histogram (http://www.onlinetradingconcepts.com/TechnicalAnalysis/MACD3.html)
Further, the combinations of the indicators mentioned above gives the best result.
In addition, it is advisable to use these indicators on fundamentally strong company. There are few fundamental ratios like P/E, P/BV etc that you can also consider before buying a stock.
I hope the answer is useful to the readers. If you want to learn more about how to select a stock to invest, you can visit this blog post: How To Select A Stock To Invest In Indian Stock Market For Consistent Returns? (http://www.tradebrains.in/how-to-select-a-stock-to-invest-in-indian-stock-market/)
Random tips are of no use until you study it properly. I suggest to learn stock market from scratch and then implement it.
There are many ways of learning
Once u complete your learning, start analysing the stocks performance, There are many tools that can help you. I recently tried stockedge. It is one of best tools for end-to-end information related to stocks.