Stock traders are time and again advised to never trade impulsively and out of emotions but to rely on tactical strategies. Sadly, even then, this hardly happens. And this is one of the foremost reasons why candlestick charts have emerged to be the most reliable tool to predict market movements. The patterns on chart, which although are based upon certain formations – but beyond all the technical juggernauts – they basically underline the emotions of the stock market as a whole.
Out of many popular advices experienced stock traders give to rookies, “be proactive” is one of the top ones. While given with all the noble intentions, many people interpret it in a slight different way. Result? They end up making big trading blunders, struggling to make decent return from their investment.
When you’re serious about building a solid stock portfolio, falling prey to common mistakes isn’t an option. Every step you take must be well calculated, analyzed and expert-backed to hit all the chords perfectly. However, ours is a real trading world, where few things are completely flawed. For someone beginning on the scene, the biggest problem is trading for the wrong reasons.
There are only a handful of “success rules” for the stock traders. One, don’t put all your eggs in one basket; second, don’t invest money that you can’t afford to lose. While the first one risk huge financial loss, the later one risk your lifestyle and livelihood. And we’re saying this with no exaggeration!
“Hustle”- that’s the first thing expert teaches the new traders. It’s one of many glamorous terms and rules on the trading scene. Sadly, while as powerful as that instruction is, only a handful of people really manage to hustle in the stock market. These are the successful traders whose stories we read to keep us inspired. The rest… they struggle with a meager return from their investment. They are the victims of Analysis Paralysis.
The selling spree in the world indices didn’t spare Nifty today. The selling was evident right from the opening bell when Nifty gapped down and not even for a single moment during the showed any strength or mood to revive. Lets have a look at the charts and see what they say about the Index in the upcoming sessions.
The recent down moves in the banking stock seems corrective. Yesterday’s move has created a down gap in the stock. The stock closed below the 20 sma with heavy volumes. The fall did not manage to dampen the momentum, it only increased the volatility. Once a close is registered above 1436 levels, Indusind Bank is expected to make new highs.
The IT stocks are falling dominoes. The front line stocks are seen just devoid of any energy to move north! Does this gives a good opportunity to Long – Medium term traders to get into the IT stocks. The IT stocks are offering buy – backs! Do we think, that promoters are going to buy back, because the future of the sector is gloomy or shady?
Tomorrow the IT giant will announce its Q4 earnings. The volatility has already shot up more than 50% from it normal levels. Have a look at the current month volatility smile chart! The curve is so prominent, that tells us the current month vega has turned up!
BankNifty 21600 Call was recommended on the Wavemetric Mobile Application on 11th April 2017, at the time of the recommendation the strike was trading at 224. During the day the price and volatility surged, and closed at 332. Thereby giving a wooping 45% in a single day!!