Technical Analysis - Support and Resistance

As you can see in the above graph, the stock has difficulty crossing the 29.64 barrier. So, its a support and resistance both. The stocks normally rebounds from support and resistance. But, if it crosses that it is called a break out. Many people start buying if a stock crosses the resistance and sell if the stock crosses the support level. Once the stock crosses the...

Read More

Trading & Investing

Trading - Buying and selling stocks frequently. Investing - Buying and holding stocks.This goes upto years and investors gets dividend, split stocks. Type of traders. Position Trader – positions are held for months. Swing Trader – positions are held from days to weeks. Day Trader – positions are held throughout the day only with no overnight positions. Scalp Trader – positions are held for seconds to minutes with no overnight positions. There...

Read More

Risk Management the only true edge in trading.

What makes a retail trader different from a professional trader? I believe it's the risk management.In order to be successful in trading, it doesn't matter whether you are right or wrong when placing a trade. What does matter is that when you are wrong, you lose a little bit and when you are right, you maximize your gains. The risk reward ratio should be atleast 1:2. If you give a profitable strategy to some newbie who doesn't use proper risk...

Read More