Trading Deep Knowledge
today I’m going to talk about trading, like what is trading, and how to do it, and why rules is most important in the starting days, how to manage your capital, how to manage your discipline, and how to follow this step-by-step. I’ll also share my Experience that everyone knows but no one talks about, along with some “dark secrets” you should be aware of before entering in the market.
This knowledge comes from my own experience and from big traders who have 20 to 40 years of experience in the market.
I started my journey as a small investor in 2019, and it has been 7 years for. You’ll learn how I lost my savings, how much I lost, and the most important how I managed my money and also controlled my mind so that I didn’t get emotional even after facing losses.
First, we will focus on the basic parameters because they are help us to find the success. I realized this after 4 years, and this knowledge was right in front of me. Now you’ll get to know it too.
Two Types of Trading
- Swing Trading
- Intraday Trading
Swing Trading
There are two types of swing trading: - Holding your position which buy in market time for more than one day is called swing trading.
- Holding options is also called swing option trading.
We will learn about options in another chapter, as they are a very complicated but not hard option is a very risky but it is possible to earn through option.
Let’s understand swing trading with an example. Raju is a shopkeeper who goes to the market every day to buy dairy products for his shop. The next day, when he reached to the market to get more dairy products, he heard someone telling to the another man yesterday night was heavy rain and landslides in the areas where his dairy products comes from. After hearing Raju decided to start tv watching the daily news and reading the newspaper daily. He found out that the news was true, the roads would take a long time to clear, and also the train tracks were blocked due to landslides. After seen this news in the tv and also newspaper, Raju decided to buy a large quantity of milk products, and also flour, wheat, and other goods. He immediately went to the market, buy a large quantity, and he buy it to his go down. and after some days later, the price of the dairy products and goods had price rise significantly. Raju then sold these dairy products and goods and made a very good profit.
morel of the story is, we learn that he made a very good profit by the right decision and correct information and knowledge at the right time. Swing trading is just like that. It’s important to keep track of the market’s ups and downs, and company what is doing that, and what it plans to do in the future. This is called swing trading.
this Key notes to provide strength and believe: - Technical Analysis
- Candlesticks
- Chart Patterns
- Trend
- Support and Resistance
These al are important ,if you want to master this then no one will beat in the market and we will discuss them in detail later.
What Is Intraday Trading?
Intraday trading is buying on same day and selling on the same day before market close to make a profit or loss.
There are three types of intraday trading: - Equity Trading
- Equity Options
- Index Options
Options are very risky, and if you don’t know this then learn them seriously, otherwise you will lose all your money.
Now, we will understand in daitle about intraday trading. As I said, equity trading is a buying and selling on the same day, where you either make a profit or a loss—one of the two is certain. We’ll learn this with an example.
Shyam is a raw materials shopkeepers who sells vegetables like onion, potatoes, and other products which he buys directly from wholesaler and sells in the market as a wholesaler. Just as I mentioned about Raju, same as happened with Shyam. Due to a landslide, his loded vehicle is stuck on the road, and it may take four to five days for the clear to the road.
If Shyam’s vegetables had reached him on the same day, he would have made a profit by selling them. but unfortunately, the loaded truck will arrive four or five days later, most of the vegetables will be rotten by then. Intraday trading is just like that. If you don’t use a stop loss, the market will take all your hard money you invested. But if you use a stop loss, you will only lose the amount you had in system. For example, if you have ₹10,000 in a trade and set a stop loss of ₹1,000, then you will only lose ₹1,000 when the market gose opp . We will also talk about stop loss in another chapter because a stop loss plays the most important role in trading.
A 1 year baby cannot walk immediately. First, they start moving from one side to another side. Then, they begin to crawl on their knees. Then, they try to stand up by holding something. When they try to walk, they fall again again, and that is the most difficult time for the babys. But when they start walking, they don’t stop. Have you noticed something from this example of the baby? Just like a child follows things step by step to move forward and then is able to walk, we also have to follow trading step-by-step. We have to learn everything.
I will tell you all of this, provide a complete roadmap, and teach you as well.- .Also Read this