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Showing posts with the label risk

Trading Psychology

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Hello readers, today's blog is all about the thing that runs the whole world for us without it we might as well just not exist.  Our mind! our mind which is a powerful tool to make us analyze everything including the financial markets. We must have a strong psychology to survive and win in the stock market and make well-informed decisions. Let's dive in and understand what trading psychology is and how it is going to be helpful for a trader and investor to make huge returns and stay in the game for a long time. What is "Trading psychology"? Trading emotions refer to a variety of feelings and psychological states experienced by traders when making decisions in the financial markets. These emotions can range from fear and greed to excitement and regret , and they play an important role in shaping trading behavior. Emotions can arise in response to market volatility, uncertainty, or the potential for profit or loss. They can influence traders' perceptions, judgme...

Candlestick and candlestick pattern

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Hello everyone, this blog is about the main element of the price chart which tells us about the direction that price might be going towards. Candlesticks , this is a Japanese concept that tells the main 4 elements of price at a particular time HLOC- High, Low, Open, and close . These elements can be a great guide to predicting where the price may go.  So, let's get into what is the Candlesticks and candlesticks patterns which can help you predict what the next movement could be.  What is Candlesticks? A candlestick is a representation of price movements in financial markets , such as stocks, currencies, or commodities . It consists of a rectangular shape called the "body" that represents the price range between the opening and closing prices during a specific period, like a day or an hour. There are lines called "wicks" or "shadows" extending from the top and bottom of the body, which indicate the highest and lowest prices reached within the sa...

Option Trading: a dive into the derivatives

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Hello readers, welcome back to Green Bull vs Red bear! Today's blog is about a type of derivative called options. Options trading is potentially the fastest way to make a profit in the stock market, making it the most complex and risky type of trading. according to a report by SEBI about 90% of option traders make a loss in option trading while only 10 % make a profit. On average, the loss is up to 50,000 rs. But worry not as we are going to try to understand what actually is option trading and how it works. What is Options Trading? Options trading is a dynamic financial practice where investors buy and sell contracts granting them the right but not the obligation to buy (call options) or sell (put options) underlying assets such as stocks or commodities at decided prices within a particular timeframe. It's the same as holding a flexible tool for future asset transactions, contingent upon market movements, without being bound to execute them. Within this realm, traders emplo...