TRADING WISDOM

Trading the financial markets can feel much like sailing the open seas. On the surface, it’s an exciting adventure, full of opportunities for profit. But beneath that excitement lies risk and unpredictability. For sailors stepping into the world of trading, this journey can be thrilling but also filled with hidden dangers. In Mark Douglas’ book […]

As a sailor, you’ve likely faced your fair share of unpredictable weather. The wind doesn’t always blow in the direction you’d prefer, and the sea can be merciless. But what do you do when the winds change? You don’t panic. You adjust your sails. The same principle applies to trading. The market, like the sea,

Short-term trading involves making quick decisions and taking positions that are usually closed within a few days or even within the same day. This style of trading is very different from medium- and long-term trading because it requires close attention to market fluctuations, quick reflexes, and a deep understanding of market dynamics. In this chapter,

As a new trader, one of the key aspects of market analysis is understanding medium-term trends and how they interact with market brackets. These concepts will help you identify market movements and make better trading decisions. Let’s break this down with simple explanations and examples from the Nifty Index on the National Stock Exchange (NSE).

As a new trader, one of the key ideas you need to understand is how the market moves over the long term and how it pauses or consolidates in what we call “brackets.” These are crucial concepts for identifying market trends and timing your trades effectively. Let’s break this down, using examples from the Nifty

In the book “Markets in Profile: Profiting from the Auction Process” by T. Jones and James F. Dalton, the authors explain how different traders operate on different timeframes and how these timeframes affect market movements. It can be confusing at first, but understanding these concepts can help you make better trading decisions. Let’s break it

Once upon a time, in a small coastal town, there lived two friends who shared the same name but had very different dreams. Cadet Vikibaba aspired to one day become the Captain of a great ship, while Trader Vikibaba dreamed of mastering the world of the financial markets. Though their paths seemed different, their journeys

“Every trader is the hero of their own story, but not all heroes win in the end. To succeed, you must know which type of hero you want to be.” In the vast and often unpredictable world of trading, understanding the different types of traders is crucial. Much like a game of chess, where each

“Every trader, irrespective of profile, is a day trader on the day he makes the trade.” — Markets in Profile by T. Jones and James F. Dalton The stock market can feel like a battlefield or a competitive sports game. Just like in soccer, where understanding the opposing team’s players is crucial, in the stock

Investing in the financial markets can be as challenging as navigating the open seas. To better understand how we make decisions—whether in trading stocks or steering a ship—it’s helpful to look at the work of Daniel Kahneman, a Nobel Prize-winning psychologist. In his book “Thinking, Fast and Slow,” Kahneman introduces the concept of two systems