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Friday, 4 April 2014

TRADE FOR DREAM - SOME FREQUENTLY ASKED QUESTION :Its my own views; i realized.



SOME FREQUENTLY ASKED QUESTION :
 
What is Technical Analysis?

Technical analysis is a method of evaluating securities by analyzing the statistics generated by market activity, such as past prices and volume. Technical analyst use charts and other tools to identify patterns that can suggest future activity.

Why should I have a knowledge of Technical Study ?

To make success in Trading/Investing stocks you must get the knowledge first, you must learn before you lose.  Many  Traders/Investor go into the stock market to make easy money but without any knowledge they lose a large part of their capital. Before Trading/Investing it is necessary to go through a period of preparation. When you enter in any profession/business you take some knowledge or learn that business rules before entering it, when you don’t follow that rules you will lose money in that business too, so for the same reason you will lose money in stock market and at last people blame to their destiny.

After completing the course, How  I will differ from others?

After completing the course you have a clear answer of following questions:
  1. Why & at what price I will buy/sell the instrument i.e equity, Commodity of Forex?
  2. What is the Risk Reward Ratio & whether I am not breaking my money management rules? ( very important for capital protection)
  3. At what price I place a stop loss, if it hits should I reverse my trade or exit?
  4. If I am in profit at what price I will book the profit (partial/full) & when to re-enter or exit?
  5. How & what basis should I pick my instrument for trading from so many scrips ?
  6. How could I identify, between the two instrument which one reward me more return on capital?
Why most people lose money in the market?

In my 5 yrs experience only about stock markets, It has been realized that people have perception about share market either it is gamble or pure luck. People wonder how to make this gamble or speculation become a profitable business. More so is there need for any formal education to learn about this speculation or business. For doing this speculation or business most people depend on stereotypical methods such as watching business TV channels, reading business newspapers, trying to get free information over the Internet, trusting on tips providers or broker’s, attending free seminars and so on. After doing all this it is realized that major part or all of capital is lost, then it is concluded that speculating and gambling is a big hoax. Even all this is not enough to make them realize that educating one self is the ultimate solution for the trading or investing in stock, financial markets. Still it is believed that going thru all meaningless methods are not enough make them learn & understand the simple study of technical analysis. God bless them.

SHARE MARKET- MY GOLDEN RULES

MY GOLDEN RULES :



  1. Accept That The Stock / Financial Market Is 101% Hardcore Business.
  2. Learn How To Do That Business In A Professional Way & Gain Experience Thru Self Analysis, Professional Teaching Or By Experienced Mentor’s Assistance For Market Value Clarifications.
  3. Decide, With How Much Amount You Want To Start Your Business, Analyze Your Risk Appetite As Well As % Of Return You Want At The End After Deducting The Expenses & Taxes.
  4. Stop The Same Old Myth Watching Television, Reading Newspaper, Broker’s Advise, Help Of Tips Providers.
  5. Trust On Your Education Religiously & Do Practice As Much As You Can.
  6. Never Ever Listen To Anyone’s Else Opinion, Trust Your Chart, This is the only Fact Provider.
  7. Trade/Invest Always Level Based Instead View Based.
  8. Don’t Rigid, Don’t Overconfident & Don’t Emotional
  9. Remember If Everyone Is Thinking The Same Than Someone Isn’t Thinking.
  10. Remember You Are Trading/Investing Other Trader/Investor Not Stocks Or Future Contracts.
  11. Before The Start In Any Trade One Must Know The Risk Reward Ratio.
  12. Like In Any Other Business Don’t Expect Gain For First 6 To 8 Months, Instead Try To Analyze Your Trading/Investment, Profit Will Automatically Come.
  13. Trading/Investment Without Stop Loss Is A Dangerous Omen. Keep In Mind, People Who Hesitate To Place A Stop Loss; Are The Once In Loss. Stop Loss Must Be In The System Not In The Mind.
  14. Be A Smart Businessman , Don’t Go For A Small Moves, Make Handsome Profit That Will Happen Only With Passions. Remember Only One Trade Will Earn You A Yearly Profit.
  15. Last But Not The Least , The Biggest Strategy In Market Is Discipline Nothing Else.