Friday 9 June 2017
Thursday 8 June 2017
Saturday 11 February 2017
Tuesday 7 February 2017
How to make consistent profits in share market? Part-2
Our problem is that
most of the people in stock market lose money. Due to many constraints and hurdles
in getting theoretical and practical knowledge; everybody can not make his own
trading system. In last blog I told you
that you should also think about the solution of the problem. I know many people must have thought about investing
advisory companies which provide tips in share market. But you can ask experience from the person
who has availed these services. This is
not the solution of the problem because their tips are not reliable and they
charge huge fee also. The customers have to sit in front of computer or mobile
screen for more time. If their tips are so reliable then their employees who
call the customers and give tips should have become rich by using that tips themselves. But the reality is that they are working for
salary. Even these Companies do not trade
on the basis of their own tips. Now I
will tell about the solution. Solution
is finding a friend and has friendship with him. The friend should be having his own trading
system and he must be making profits in stock market.
You must be
thinking that how, where and when this friend can be found. I will give you the solution. Name of that friend is CommoditySuccess.com
for Indian Commodity Traders. You can
make him your friend.
Now I will
tell you about features of CommoditySuccess.com. It has his own unique trading system which is
called UTS. This unique trading system gives signals for entry point, exit point,
stop loss and position sizing. The
signals generated by UTS are performing very well and I am making consistent
profit in commodity market. It also provides free basic education which can be
learnt on this website. This is not only
an education but this is the summary of education and study materials available
around us which is required to be learnt before using UTS. Here the basic education about stock market,
commodity market, management of emotions, news analysis and trading platform is
available. Because friends don’t take fee they only give the profits. Hence commodity
success dot com also helping you free of cost for now.
For using UTS
some competency is required to be developed and that is to become proficient in
trading platform which you are using. Here
the proficiency in trading platform means you should know about the four things:-
(a) How to place BUY order.
(b) How to place SELL order.
(c) How to place stop loss order.
(d) How to book profit and loss.
Now I will
tell you about the features of the UTS :-
This gives
signal for swing trading. Swing trading
means to hold our position for 2 to 10 days, for this we trade in NRML products
of commodity future contracts.
In this one
day time frame candlestick chart is used.
In this
every day only one hour is required to be given. First half hour 10:30 to 11:00 in the night
for placing entry or exit orders second half hour 10:00 to 10:30 in the morning
to place stop loss orders and rest of the time of day is free.
Now I will
tell you about how to use UTS to make money.
First of all it is required to read and learn the all educational content
available in CommoditySuccess.com. After
that you have to login to CommoditySuccess.com between 10:30 to 11:00 in the night. If any signal is generated by UTS that will
be updated on CommoditySuccess.com.
Saturday 4 February 2017
How to make consistent profits in share market? Part-1
Let us see the things which
are required to make profits. The first requirement is money. We invest money
in stock market and make more money. So money is our input. The second
requirement is a trading system. This trading system tells us about four things.
1. When should we enter in the market, means, when to buy or sell, 2. When
should we exit from the existing position? We exit from trade to book profit or
loss, 3. What should be our stop loss? We place stop loss order to minimize the
loss in a trade, 4. What should be the allowable maximum quantity for trading a
share? We can not invest our whole money in a single stock. If we do so and if
market moves against us then, we will suffer with huge loss and if we want to
invest in other stock then money will not be available with us for trade.
Now we will see that how to
develop our own trading system. To develop this system it is required to gain
two types of knowledge, 1. Theoretical knowledge. We gain this knowledge by
attending coaching classes. In today’s time we can take help of either online
or offline coaching classes. We can gain this knowledge by reading books also,
2. Practical knowledge. We gain this knowledge by trading in stock market
directly.
Now we will see that what do
we learn while gaining theoretical knowledge, 1. Chart reading. In this chart
the movement of price of a commodity is shown in vertical axis and time in
horizontal axis. Today many types of charts are available in trading platforms.
But out of these, traders must know how to read candle stick chart, 2.
Technical indicators. By studying these, we can forecast the movement of price
of a commodity, 3. To know the fundamentals of a commodity. In this we study
about the factors affecting the supply, and demand of a commodity. Supply and demand
is directly linked to the price. If supply of a commodity is increasing, then
price will tend to be going down, and if supply is decreasing, then the price
will tend to be go up. Like this if demand of a commodity is increasing, then
price will tend to be go up, and if demand is decreasing, then the price will
tend to be go down, 4. Analyzing the news, report and data. In this we predict
the effects of a news, report or data on price of a stock.
Now we will see that how
many types of technical indicators are available. These are mainly of four
types. 1. Momentum indicators. These indicators show the speed of price
movement. RSI and stochastic are the examples, 2. Trend indicators. These
indicators show the market is bearish or bullish. Moving Average, MACD, ADX and
Super Trend are the examples, 3. Volatility indicators. These indicators show
the range of price in a time period. Range is the difference, between highest
and lowest prices, in a time period. This time period may be anything like 1
hour or 1 month. DATR is the example. DATR gives the average of ranges of price
for some days, 4. Volume indicators. These show the amount of, total bought and
sold quantity in a time period. OBV and Money Flow Index are the examples.
Now we will see that what we
require to gain practical knowledge and how these things are constraints also.
1. Money to lose in market, 2.Time to lose in market. I am using losing word
here, because after gaining only theoretical knowledge we cannot make money in
stock market. When we start trading in stock market after gaining theoretical
knowledge, then we have to lose money to gain practical knowledge. Our lost
money and time is like a fee to the stock market, for learning out of it. Now a
question arise here that how much money and time do we require to gain
practical knowledge so that we can develop our own trading system. Answer to
this question is that we should have sufficient money until and unless we gain
minimum required practical knowledge. For gaining this minimum required
practical knowledge one may require many years also. Hence money and time are
constraints and requirement both in the way of gaining practical knowledge.
Now we will see that what we
learn while gaining practical knowledge. 1. Which indicators work for which commodity?
It means which technical indicator forecasts commodity price movement accurately.
We find this relation by applying the technical indicator, on old price chart
of commodity. This analysis called Back Testing, 2. Correct time frame of commodity
price chart. In this we learn that in trading chart of which time frame will be
more suitable. It is possible that for some commodity one hour time frame chart
and for some commodity chart of one day time frame is suitable. This analysis
is also done by Back Testing. 3.
Quantity of shares. In this we find that which proportion of our
available money should be used for trading a single commodity. So that our risk
remains less and money is available for future trading also. We find this quantity on the basis of, volatility
of the different stocks, 4. Controlling of our emotions. If a person cannot
control the emotions, he cannot trade in stock market. Because, the price neither goes up nor comes
down continuously. If market is bearish, then the price of commodity may fall for
some time and may rise for some time and if market is bullish, then also price
of commodity may fall for some time and may rise for some time. Price of
commodity keeps fluctuating up and down. Two types of emotions are very
important while trading in stock market. 1. Fear, 2. Greed. Due to fear trader
exits from his position after seeing some profit or loss even if his direction
of the trade is right. However, his trade was having potential, to give him
good profit. Due to greed, the trader stays in market for more profit even if,
indicator tells that this time is to exit, from the market. Because of the
greed his profits, either reduces, or converts in to loss. These emotions are required
to be controlled. Whe way to control fear and greed is called patience. In fear
patience tells, that your trade is correct as per technical and fundamental indicators,
wait for some time. This is not the right time to exit, and in greed patience
tells that, this is not the right time to stay in market. Profit or loss
whatever is there take that and come out of the market. There will be many opportunity in future also.
Now we will see that, after
gaining theoretical or practical knowledge, how to make money. We develop our
trading system by using this knowledge. We keep faith in our trading system and
we make money using this system.
Is it so easy, to make money,
in stock market? Answer of this question is No. Because most of the people lose
money in stock market. Now we will see that, why this is not so easy. 1. Quality
of coaching. It is not sure that, the
coaching which we attend, is good and, we gain right theoretical knowledge there,
2. This is also not sure that everybody is having sufficient money and time to lose
to gain minimum required practical knowledge. I am not trying to demotivate you,
but telling the reality. Now there is question that is there any solution and
short cut to make money in stock market. Answer of this question is absolutely
yes. There is a solution of the every problem. I will tell you about solution
and short cut, in Part II of this Blog. You should also think about what can be
a solution and short cut of this problem.
Tuesday 31 January 2017
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