EMA Crossover

EMA Crossover is one of my favorite indicators.   It is simple to trade using this indicator. We will buy or sell a stock when 1EMA crosses 200EMA in hourly chart with Stoploss little below or above 200EMA. In the below chart you can see how fabulous this simple strategy performs. This strategy not only works in equities but in commodities as well and here is the gold chart for you. It gave a sell signal near 33400 and currently gold is trading at 31800. The current profit is nearly 1.60 Lakh in the investment of 2 Lakh.     Most of the equity trades use this strategy in Banknifty Future Trading to make millions as this is one of those strategies who gets you highest reward on your risk. Last week we had a trade in banknifty where we bought it near 27125 and sold it 2400 points above our buy price which is 29500. The first target or

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Open=High & Open=Low Strategy for Intraday Trading

Today, we are going to share a very popular strategy especially designed for intraday traders. Yes, it is open = high and open = low strategy. In this strategy, buy is generated when the Low price of the stock is same as the Open price. This indicates the stock is bullish and the price could not survive at lower levels so we will buy the stock with the Stoploss 10 paisa below the Low price of the day. Simultaneously, sell is generated when the High price of the stock is same as the Open price. This indicates the stock is bearish for the day and price started falling as soon as the day started. The stoploss for our sell here shall be 10 paisa above the High price of the day. There are lot of websites on the google that shows you open=high and open=low stocks as soon as the market opens. The best time to take entry for these

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Trend line, How to draw it….

There is no perfect way to draw them and it seems that no one can agree on the best way. That’s because everyone has their own unique way of drawing them. What is the purpose of drawing trend lines? The purpose of drawing trend lines is to identify where possible reversals will take place. They can also signal that a change in trend may occur. In a uptrend, draw the line along the lowest points in the trend without letting the line cross through prices. You need at least two touches of the trend line. That is the proper way to draw a trend line. You can see how the stock found support near the line after we got a least two touches. That would have been a great opportunity to establish a position in the stock. You can see in this chart of NIFTY, that there was a trend line break but it did not result in a change of trend. Just because

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Trade Nifty and Banknifty using Bollinger Band and MACD.

Hello Traders, Today i am going to share with you all one of my trading strategy using only Bollinger Band and MACD. It is a very basic,simple and easy but an effective strategy. Whenever MACD is above zero line and it should be bullish divergence be vigilant on buying. Now next thing to note is Bollinger Band, it should expand and candle should close above Upper Bollinger Band that is a perfect long entry. Lets see 1 Example. In above chart please see boxed area.As soon as MACD crossed 0 line and BB started expanding their is no stopping till bearish MACD divergence. Trade can also be taken if you find bullish divergence  below 0 line but in that case you will not get big target,aim for target till it touches Upper BB then exit. BB always works as support and resistance and this strategy is like range breakout strategy. Just look for just opposite setup for Shorting,here is the

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Ways to Start Investing In Stocks. 

There are so many ways to invest in stocks. When choosing among individual stocks, mutual funds, index funds, ETFs, domestic or foreign. First you need to open a Demat account with any broker. Individual stocks: If you’re after a specific company, you can buy a single share or a few shares as a way to dip your toe into the stock-trading waters. Building a diversified portfolio out of many individual stocks is possible, but it takes a significant investment. Mutual funds or Exchange-traded funds: These mutual funds let you purchase small pieces of many different stocks in a single transaction. The upside of stock mutual funds is that they are inherently diversified, which lessens your risk.

Nifty Levels November 2018

Dear Traders,

As per our live trading session we saw massive selling positions being added near 10750 in December Contract which we have marked as a supply zone.

We also observed few long positions yesterday and bought nifty near 10600 which is marked here as a demand zone.

If that’s not broken the first step on upside would be 10721 followed by 10745.

If nifty is able to break 10750 then we shall see 150 points more on upside.

If we talk about Banknifty Options November Expiry we have seen long build up in 26300 CE at 130 on 26th November, 2018 which is a crucial level as of now. Current Trading Price for 26300 CE is 154 which is yet above the pivot with the high of 230 today.

Target for Nifty November contract could be 10858

How does short interest affect a stock price?

Stock prices fluctuate because of supply and demand. High demand for a stock causes its price to go up. Too much supply causes a stock’s price to decline. Investors buying and holding a stock until it appreciates is a common practice. However, some investors profit when the value of a stock goes down, referred to as short selling. Short interest reflects the number of investors who expect the price of stock to decline. Short Interest When an investor shorts a stock, he expects its price to decline. To short a stock, he borrows money using a margin account to buy the shares at a high price. The stock may come from the broker’s inventory, another customer or another brokerage firm. To close the short position, the investor must buy the stock back called “covering.” If the stock drops in price, the investor gets to buy the shares at a lower price, making a profit on the difference. If the stock

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What is Better long term Investment or Short term Investment or Trading?

A basic question comes in mind when an individual is new to the Stock Market. Long term investment requires patience, commitment, and keeping calm when the market fluctuates. A long term investment is an investment that has a higher probability of maximizing your return over a 10 year period or more (long-term investment goals can be buying a house, retirement planning or children’s education or Marriage). There are options for investing on a short-term basis (Short-term goals can be Own Marriage,Family Travel,Small function or buying a car etc.).A short term investment is an investment you expect to hold for 3 year or less. While many people try to play the market or speculate with day trading. But it is a risky business and one should educate himself /herself or consult an Expert before trying day trading or short-term investment. It totally depends on your own personality, go with what suits your style. Long-term investment instruments are Mutual Funds and Bonds

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If selling options is the best thing to do, all options buyers idiots?

Not really. There is a huge reason why a lot of people buy options despite knowing that it is not profitable in the long run. And that is to sell options you need to post huge margins. This often forces people to buy. Let me explain this with an example here: If you buy a nifty 10600 call for 180 Rs, you will need 180 * 75 Lot Size = 13,500 rupees to buy this. If nifty goes above 10800 you will make 20 rs profit or little bit on higher side than that. If nifty goes 11,000 you money might just double! To sell a Nifty 10600 CE option, you will need around 80,000 rupees as margin. If nifty goes to 10500 you make around 10,000 rupees as you could see in the below chart which is nearly 12% return on your investment. If nifty closes at same level still you will make nearly 100 rupee because premium is

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What are the Golden Rules for Trading in Stock Market?

There are hundreds of books written in different languages with the same message which is drafted in 8 simple rules here: Never lose your money. Never forget rule no 1. Traders & Investors are 2 Strangers. Maintain different account for trading and investment; never mix it. Stop Loss could be the trigger to save you from a complete destruction. You should always have your Stop loss when in trade. Buy on rumor & sell on news. Research shows that among all day traders, nearly 40% day trade for only one month. Within three years, only 13% continue to trade. After five years, only 7% remain. 2% of them are the ones who take all the money from the market. Portfolio is the penalty you pay for your ignorance. Stick to a handful of companies which you could easily manage and keep track of fundamental as well as technical. Never Do Intraday Trading based on published news because it is available

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What are the reasons most of the people loose money in Stock Market be it day trading or investment?

  The biggest reason for loss in stock market if not applying basic principles while you invest in stock market: No Risk Management Strategy Not Checking Fundamental for the company (this is core while investing for long term) No time diversification. For example if you have to invest 20,000 in a company, you should buy shares in 4-5 intervals. I would first invest 5000 see how’s the price moving, based on a behavior of that stock, I would invest remaining amount. Speculation: Gambling in bear scripts like infibeam or Pcj, catching the falling knife. No diversification in portfolio, even sir Rakesh Jhunjhunwala has lot diversified his portfolio in different categories and different scripts. Your investment should be allocated in some really good companies and as warran buffet says, don’t put all your eggs in one basket. Investing huge amount in penny stocks thinking it will be rocket in a few years; agree Rakesh Jhunjhunvala’s titan went from 2 to 1000 but

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How much income tax do I need to pay for a stock market investment?

    There is no income tax for stock market investment. If you sell your stock the same day, when you bought, the profit you made (selling price minus buying price with all charges)  will be considered as your income and be charged at your regular income tax levels. If you sell your investment stocks within One Year, the gains you made (Selling price minus buying price with all charges) will be taxed at 15%. If you sell your investment stock after one year, the gains you made (selling price minus buying price with all charges) will be treated as Long Term Capital Gains (LTCG) and will be taxed at 10%. This tax will be for gains beyond 1,00,000 (Total gains minus 1,00,000 will be charged at 10%)