Author Archives: sevvursun

How to trade with Parabolic SAR

Trading with the Parabolic Stop and Reverse (SAR) indicator involves identifying potential trends and reversal points in a market. The Parabolic SAR is a technical analysis tool that helps traders determine entry and exit points by plotting dots either above … Continue reading

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The biggest challenges a trader faces while trading …

The biggest challenge while trading is the inherent risk involved. Trading in financial markets, whether it’s stocks, forex, commodities, or cryptocurrencies, always carries the potential for significant gains but also substantial losses. Several challenges and risks traders face include: Overcoming … Continue reading

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A Lesson for a Fearful Trader …

Overcoming Fear and Building Confidence in Trading Fear is a common emotion that can significantly impact a trader’s decision-making process. It can lead to missed opportunities, hesitancy to enter trades, and premature exits. Overcoming fear and building confidence is essential … Continue reading

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A lesson for a Greedy Trader …

Understanding the Dangers of Greed in Trading Trading in financial markets can be both exhilarating and challenging. Greed, the desire for excessive profits, can be a significant obstacle to successful trading. While it is natural to seek profits, being overly … Continue reading

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Should we eliminate fear while trading?

Eliminating fear entirely while trading is not a realistic goal, nor is it necessarily advisable. Fear is a natural human emotion that serves an essential purpose, especially in the context of trading and investing. Fear can act as a protective … Continue reading

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Is Trading a Game of Probabilities ?

Yes, trading is often described as a game of probabilities. In the context of financial markets, trading involves buying and selling assets such as stocks, currencies, commodities, or derivatives with the aim of making a profit. Since future market movements … Continue reading

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Is Trading that hard?

Trading can be challenging, especially for beginners, but it’s not impossible to learn and succeed with consistent effort and dedication. Here are some reasons why trading can be perceived as hard: It is important to note that many individuals have … Continue reading

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How important is journaling for success in trading

Journaling is widely regarded as a valuable practice for traders and can contribute significantly to their success. Here’s why journaling is important in trading: Overall, journaling provides traders with a structured framework to reflect, learn, and improve their trading skills. … Continue reading

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Trader’s dilemma – Trading and Overload of Information

Trading can sometimes be accompanied by an overload of information, which can have both positive and negative effects. Here are some considerations regarding trading and information overload: Positive Effects: Negative Effects: Strategies to Manage Information Overload: Information is just one … Continue reading

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Trader’s dilemma – Is trading and constanct search for information good?

Trading and staying informed are crucial aspects of successful investing. Here are some strategies and resources to help you in your trading journey: Trading involves risks, and it’s important to manage your risk exposure appropriately. Consider using proper risk management … Continue reading

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Trader’s Dilemma – How to overcome the resitance to place a stop loss

Overcoming resistance to placing a stop-loss order can be challenging, but it’s an important step in managing risk and protecting your investments. Here are some suggestions to help you overcome this resistance: Placing a stop-loss order is a crucial part … Continue reading

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Trader’s dilemma – How to overcome repeating same mistakes in trading

Overcoming the tendency to repeat the same mistakes in trading can be challenging but not impossible. Here are some strategies to help you break that cycle: Overcoming repeated mistakes in trading takes time, effort, and self-reflection. It’s essential to remain … Continue reading

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Trader’s dilemma – closing a trade too early …

Closing a trade too early can have several consequences, both positive and negative, depending on the specific circumstances and market conditions. Here are some possible outcomes of closing a trade prematurely: Avoiding the temptation to close a trade prematurely can … Continue reading

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How to trade – steps to trading for beginners.

In trading it is challenging to guarantee a specific profit amount every day, but we can make a fair amount of returns over a period of time that is more than what we get in safe assets such as bank … Continue reading

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What are the primary factors that drive volatility trading in financial markets?

Volatility trading in financial markets is driven by a combination of several primary factors. These factors include: It’s important to note that the interplay of these factors is complex, and the relative importance of each factor can vary over time … Continue reading

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Martingale System: What It Is and How It Works in Investing

The Martingale system is a gambling strategy that has been applied to investing in various forms. While it can be tempting to try this approach, it is important to understand its limitations and potential risks. The basic principle behind the … Continue reading

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How to manage risk and place stop loss orders…

Managing risk and setting stop-loss orders are crucial aspects of risk management in investing and trading. Here are some steps to help you manage risk effectively and use stop-loss orders: Remember, risk management is an ongoing process. It requires vigilance, … Continue reading

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What market conditions or factors make a short strangle strategy favorable?

A short strangle strategy is an options trading strategy that involves selling both a put option and a call option with the same expiration date but different strike prices, typically out of the money. The goal of this strategy is … Continue reading

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What are the key traits and habits of successful traders …

Successful traders possess a combination of various traits and habits that contribute to their effectiveness in the financial markets. Here are some key traits and habits often associated with successful traders: It’s important to note that these traits and habits … Continue reading

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What is the difference between Stock and Option Trading ?

Stock trading and option trading are both methods of participating in the financial markets, but they have some fundamental differences: It’s important to note that both stock trading and option trading carry risks, and it’s essential to educate yourself and … Continue reading

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To succeed in intraday trading a good money management system is required …

When it comes to intraday trading, effective money management is crucial for long-term success. Here’s a recommended money management strategy: Remember, no money management strategy guarantees profits in intraday trading. It’s essential to combine it with sound technical or fundamental … Continue reading

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Beginners should start with Stock Trading or Option Trading?

For beginners looking to enter the stock market, it’s generally recommended to start with stock trading rather than option trading. Here’s why: That being said, if you are interested in option trading, it’s important to educate yourself thoroughly before diving … Continue reading

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Can we effectively manage our emotions when trading?

Managing emotions while trading in the stock market is crucial for making rational and informed decisions. Here are some effective strategies to manage emotions: Remember, managing emotions while trading is an ongoing process that requires practice and self-awareness. By implementing … Continue reading

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How can a trader use the information derived from studying open interest to develop effective options trading strategies?

Open interest is a useful metric for options traders that indicates the number of outstanding or open contracts in the market. It can provide insights into market sentiment and potential trading opportunities. Here are a few ways traders can use … Continue reading

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US option trading from India – is it possible?

Yes, it is possible for individuals in India to trade U.S. options. However, there are certain requirements and procedures that need to be followed. Remember that trading in U.S. options from India involves international market exposure, currency conversion, and potential … Continue reading

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How far is back testing reliable …

Backtesting is a valuable tool in evaluating the performance of trading strategies or investment decisions using historical data. However, its reliability is subject to certain limitations and considerations. Despite these limitations, backtesting remains a useful tool for gaining insights into … Continue reading

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An Iron Condor explained in simple terms …

An iron condor is an options trading strategy that aims to profit from a stock or index staying within a specific price range. Here’s a simple explanation: An iron condor strategy allows you to profit from a stock or index … Continue reading

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Can we generate passive income thru option trading?

Option trading can be used to generate passive income through strategies like selling options and collecting premium. Here are a few ways you can utilize options for passive income: We have to keep in mind that option trading involves risks, … Continue reading

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How to create a simple strategy and backtest it.

Here is a framework to develop a simple trading strategy. It’s important to note that this is a simplified strategy, and successful intraday trading requires continuous learning, practice, and adaptation. Additionally, consider testing your strategy on historical data or in … Continue reading

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Option Buying Strategy – a long straddle with a difference

Here is an interesting option buying strategy. The twist to this strategy is it is basically a straddle but with a difference that leads to more profits. The author has backtested this strategy along with the normal long straddle strategy … Continue reading

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