Author Archives: sevvursun

How to manage trading risks

Managing trading risks is an important aspect of successful trading. Here are some steps you can take to manage trading risks: Remember, no trading strategy is 100% foolproof, and there is always a risk involved in trading. However, by following … Continue reading

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Taking Advantage of Supply Demand Zones to Trade Profitably

In financial trading, a supply zone refers to a price level or area where selling pressure has historically been strong and has caused prices to decline. Traders use supply zones to identify areas where selling may occur in the future, … Continue reading

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FOMO – Fear Of Missing Out

The Fear of Missing Out (FOMO) is a common psychological phenomenon that can occur in trading. FOMO can cause traders to make impulsive decisions based on the fear of missing out on potential gains, even if those decisions go against … Continue reading

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Importance of Understanding Probabilities in Option Trading

Understanding probabilities is crucial for successful option trading. Options trading involves buying and selling contracts that give the owner the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a … Continue reading

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Trading Strategies and Behavioral Biases

Trading strategies and behavioral biases are closely interconnected. Behavioral biases refer to the systematic errors or deviations from rational decision-making that can influence traders’ decision-making processes. These biases can often lead to suboptimal trading decisions that can result in losses … Continue reading

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Option Trading and Emotions

Option trading can be an emotionally charged experience. Here are some common emotions that we traders may experience when trading options: To be successful in options trading, it is important for traders to be aware of their emotions and manage … Continue reading

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A Long Straddle Strategy

A long straddle is an options trading strategy that involves buying a call option and a put option on the same underlying asset, with the same expiration date and at the same strike price. The strategy is designed to profit … Continue reading

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Long Strangle Strategy

A long strangle is a popular options trading strategy used to profit from a stock’s price movement in either direction. It involves buying both a call option and a put option at the same time, with the same expiration date … Continue reading

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How to backtest a trading strategy

Backtesting a trading strategy involves testing the effectiveness of a trading strategy based on historical market data to see if it would have been profitable in the past. The process involves applying the rules of the trading strategy to historical … Continue reading

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Is there a ‘Best’ Option Trading Strategy

There is no single “best” option trading strategy that applies to all investors or market conditions. The most effective option strategy for an investor will depend on their individual goals, risk tolerance, and the market conditions at the time. Here … Continue reading

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Option Trading Strategies

Option trading strategies can vary depending on an investor’s goals, risk tolerance, and market conditions. Here are a few common strategies: Covered call: In this strategy, an investor owns an underlying asset and sells a call option on that asset. … Continue reading

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Metrics of a good trading plan

Win Loss Ratio: The win-loss ratio is a measure used by traders to evaluate the profitability of their trades. It is calculated by dividing the number of winning trades by the number of losing trades over a specific period. For example, … Continue reading

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Trading Anxiety & Stress – bane of a day trader….

Source: The Enlightened Trader Once upon a time I experienced anxiety and stress every time I took a trade. I had trouble sleeping and I found myself regularly checking my positions and second guessing myself constantly. But that was a … Continue reading

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Not Sticking to a Trading Plan

Source: Zerodha Varsity Novice traders often report that they have difficulty sticking with their trading plan. There are many possible reasons. A common issue is not having a clearly defined plan. When a trading plan is not clearly defined, it … Continue reading

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How to Create a Price Action Strategy

Source: New Trader Ru A price action trading system is a process for using new price data to make buy and sell decisions on a watch list of markets. A price action trading system attempts to use entry and exit … Continue reading

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A Trader’s Experience

Source: Profitable Trader I began trading 14 years ago in 2008. I began trading with commodities. I was neither successful nor a failure. I used to earn profits and lose them subsequently. This went on for three years upto 2011. … Continue reading

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Novice Trader behaviour ….

Source: Investopedia When you begin trading, there are a lot of questions. With all the information out there it can be hard to decide where to start. Setting goals can help, but often novice traders set the wrong type of … Continue reading

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The See-Saw of Fear and Greed

Source: Trading View As your time spent with the market increases, you start to discover things about the nature of the trading game. Why they say its simple not easy. Why do 95% of traders end up losing money? Why … Continue reading

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The Foundation of Technical Analysis

Source: CMT Association There are three premises on which the technical approach is based: Market action discounts everything. Prices move in trends. History repeats itself. Market Action Discounts Everything: The statement “market action discounts everything” forms what is probably the cornerstone … Continue reading

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How Important is Discipline in Trading …

Source: Steve Burns Trading discipline involves making yourself follow your own trading rules. Self discipline enables a trader to trade a system consistently over time like they planned to with the right position sizing, stop losses, and trailing stops. Many … Continue reading

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Winning Trader’s Character

Source: Zerodha Varsity Winning Traders are humble. It is important to reward yourself for a job well done. We feel pride after making a significant achievement and are especially proud when the achievement has increased our social status. Pride can … Continue reading

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Trading Lessons

Source : Scanz Often times, it’s the little life lessons that have the biggest impact. A simple piece of advice from a friend or family member can have a stronger impact than ten self-help books combined. It’s a lot easier … Continue reading

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What Serious Traders Do …

Source: Motilal Oswal We have seen in the past that trading is less about great insights and more about great discipline. If you are a serious trader, then you need discipline in trading and that can only come from setting … Continue reading

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Creating a Robust Trading Plan

Source: Steve Burns Qualitative analysis seeks to understand human behavior from the perspective of the researcher of information. It looks for the dynamic in an integrated reality. Information can be gathered through observation, historical research, and interviews of human behavior. … Continue reading

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How to become a Patient Trader …

Source: Divergent Trader One of the biggest problems I see constantly is a lack of patience, traders think they need to trade every day to make money. You don’t… This is the rat race mentality, if you come from an … Continue reading

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Is it easy to become a Successful Trader

Source: Day Trading Adda Very few career can offer you this kind of freedom, flexibility, and income that day trading gives. As a day trader, you can work from anywhere in the world. You can decide when you want to … Continue reading

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The psychology of trader misjudgement

Source: Steve Burns A traders emotions, ego, and thinking can become very distorted when real money is at risk in the markets. Hormones like serotonin, dopamine, and adrenaline can cause impulses and emotions to drown out thinking and decision making … Continue reading

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Risk comes from not knowing what we are doing

Warren Buffett says “Risk comes from not knowing what we are doing.  We only have to do a very few things right in our life so long as we don’t do too many things wrong.” These words fit so well … Continue reading

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Trading Mindset Cheat Sheet

Source: Steve Burns To be a profitable trader you need three things: A trading system with an edge.  Proper position sizing per trade. The right trading mindset.  If you don’t have the right mindset for trading then the other two will … Continue reading

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Can we traders beat FOMO …

Source: TraderLion We’ve all heard it before: Some guy on Twitter bet the farm on a trade that he believed would solve all his money worries and bring him to early retirement. Two weeks later, he’s disappeared completely from social … Continue reading

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