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Top Exit Strategies in Day Trading

 Hello friends  lets under stand exit set up in trading  1. Risk and Reward Ratio Strategy This strategy is the simplest exit strategy available for day traders. Also, even beginners can use this one for a successful exit from an intraday trading session. Simply put, this one is about picking the right risk and reward ratio that could be favorable and will help your trade to be a successful one.   For instance, if the price of a stock is ₹10 and you expect it to rise to ₹15 but it doesn’t go above as per the trend line that you have mapped, you will need to place your stop-loss order at that point. So, for a stock price of ₹10, you can put a stop-loss at ₹9. Here, your risk to reward ratio would be 5:1. This means, for making ₹5, you will risk ₹1, which is not a very bad position to have. 2. Trailing Stop-Loss Strategy The trailing stop loss order is the second-best exit strategy for intraday traders. This strategy aims to balance the trading ...

What are Blue Chip Stocks

  LETS UNDRSTNAD What are Blue Chip Stocks? Blue-chip stocks  are highly priced market stocks that have emerged as a preferred investment option over recent years. The companies that issue  blue-chip stocks  are highly esteemed in the stock exchange market and tend to have a stable financial record and credibility.  Besides their repute, the fact such companies extend attractive dividend pay-outs can be credited for the growing popularity of the said stock. However, before investing in  blue-chip stocks,  individuals should equip themselves with a few essential details. Stocks that are issued by blue-chip companies, i.e. companies with a large market capitalization, are termed  blue-chip stocks.  Companies that issue these shares are well-established and enjoy great market repute; therefore, the shares issued by them are highly valued in the market.  Features of Blue-chip Stocks The features of Blue-chip stocks are listed below – Assured...

Nifty Change in Open Interest – Explained Meaning of “Change in Open Interest”

 Hello friends lets understand Open interest   How to interpret “Change in Open Interest”? Nifty Open Interest” or “Nifty Change in Open Interest” are two very reliable indicators to identify the ST direction of the market. When the smart money is bullish, they usually start writing Puts. And when the smart money is bearish, they prefer writing calls. Change in OI” can also be used to identify approximate support and resistance levels. If the OI has increased for 22500PE the most then it will imply that the option writers consider 22500 level as a strong support. On the other hand, if the highest increase in OI is for 22500CE, then it implies that option writers consider the 22500 level as a strong resistance level. The Option writers are generally the market participants with deeper pockets compared to option buyers. For more accuracy in predicting the ST direction, this chart should be read with “Nifty Options Traded Volume” and   If the OI increase is low but...

What Option Trading is and How It Works

Hello friends now a days every trader wants to learn option trading  but we all need to understand  ( ABC ) of option trading  Over a experience of 17 + years I have seen big scale jump into option volumes it itself says people are more interested in such trading instrument  lets understand how to trade all direction buy using option  Swing up Swing Down  Sideways - Natural  Mainly we have 3 direction to paly   we have three objective of option trading  Three objectives for options trading There are three general objectives when determining your options trading strategy: Hedging  – Hedging against a price decline of a stock you already own Generating income  – Earning from a stock you own and are willing to sell Speculating  – Profiting from a stock's price change Option trading is a popular financial instrument that allows investors to speculate on the price movements of various assets, such as stocks, commodities, curren...

Portfolio rebalancing Alert for Mutual fund investors

  Mid & small cap mutual funds: Regulators took these 4 steps to protect investors from high valuations   SEBI and AMFI are taking steps to safeguard the interest of retail investors in mid and small-cap funds. These include asking AMCs to frame a policy to protect investor interests, disclosing risk parameters, moderating inflows, conducting stress tests, etc.   As per AMFI data released for January 2024, the number of folios for mid-cap funds has reached 1.33 crores, and for   Small cap funds  has reached 1.78 crores. In comparison, the large-cap fund folios stand at 1.33 crores. The assets under management (AUM) for mid-cap funds have reached Rs. 2.90 lakh crores nearing the Rs. 2.99 lakh crores AUM for large-cap funds. The AUM for small-cap funds at Rs. 2.47 lakh crores is not far from that of large cap funds  steps that AMCs are taking or have been asked by SEBI and AMC to take to protect retail investors? Let us discuss some of them. ...

103 candlestick formations

  There are   75   recognized patterns  that can be split into simple and complex patterns. Author Thomas Bulkowski takes an in-depth look at 103 candlestick formations, from identification guidelines and statistical analysis of their behaviors to detailed trading tactics.   Candlestick Pattern Direction Doji Bullish/Bearish (Indecision) Hammer Bullish (Reversal) Bullish Harami Bullish (Reversal) Piercing Pattern Bullish (Reversal)   Candles, to make quick trades based on short-term price movements.  Others may prefer longer-term candles, such as daily or weekly candles, to make trades based on longer-term trends and price movements   Wise investing  

Space sector related opportunity we should not miss for short or long term game

 Hello friends as a individual investor we should never miss investing opportunities that will turn profitable in short term  Government inactive to improve Space sector take a quick note on this on below points  India approves 100% foreign direct investment in Space inactive This is a step to make India’s Space Policy 2023 a reality. The global space economy is currently valued at around $447 billion according to estimates by McKinsey. India’s share is about $8 billion which is a measly 2% of the global space economy. I had a chance to meet the ISRO Chairman last month, and he is quite ambitious about private sector participation in the Space sector.  ISRO has set a target to increase India’s share of the global space economy to 8% by 2033 and 15% by 2047. India earlier allowed 100% foreign investment for the establishment and operations of satellites but only with government approval. The amended policy allows under automatic route -  🚀 100% FDI for Manufactu...