Category Archives: Trading Snippets

Price action trading is a strategy that relies on analyzing the price movements of an asset to identify potential trading opportunities. Here are some basic price action trading strategies: It’s important to note that price action trading requires discipline, patience, … Continue reading →

The statement “if most traders would learn to sit on their hands for 50% of the time they would make a lot more money” is a common piece of advice given to traders. The idea behind this advice is that … Continue reading →

Becoming a professional trader requires a significant amount of time, effort, and dedication. The amount of time it takes for a beginner to become a professional trader can vary greatly depending on the individual’s level of commitment, aptitude for trading, … Continue reading →

Option trading involves a combination of skill and luck. While luck may play a role in some trades, successful option traders typically rely on their knowledge, experience, and analytical skills to make informed decisions. A skilled option trader needs to … Continue reading →

In the world of trading, it is important to approach the market with caution and avoid making impulsive decisions that can lead to losses. One way to achieve this is to not challenge the market and instead, approach it with … Continue reading →

Revenge trading occurs when a trader tries to recoup his losses by making impulsive trades without a well-defined trading plan. Traders may engage in revenge trading due to various reasons, such as: Emotions: Trading can be a highly emotional activity, … Continue reading →

Many traders allow their emotions to cloud their judgment, leading to poor trading decisions that can result in losses. The best trading strategy in the world may not work if a trader allows their emotions to control their decisions. Fear, … Continue reading →

The statement “A successful trader must learn to be a good loser before he can start winning” is a common adage in trading and investing, and there is some truth to it. Trading is inherently risky, and even the most … Continue reading →

Trading and gambling both involve taking risks, but the main difference is that traders use a systematic approach to managing risk, whereas gamblers often rely on chance and luck. Traders aim to minimize potential losses while maximizing profits by carefully … Continue reading →

Booking profits in trades refers to the act of closing out a position that has been profitable in order to lock in gains. It is an important part of trading, as it allows traders to realize gains and avoid the … Continue reading →

Uncertainty is a significant factor in trading as it can affect market behavior and investor decision-making. When there is uncertainty in the market, investors may become hesitant and less likely to buy or sell assets. This can lead to increased … Continue reading →

Trading psychology refers to the study of the emotional and mental factors that can impact a trader’s decision-making process and behavior in financial markets. It involves understanding how human emotions, biases, and perceptions can affect a trader’s ability to make … Continue reading →

There is no single profitable trading strategy that works for everyone. The most successful traders tend to develop their own unique strategies based on their experience, market knowledge, and risk tolerance. However, here are some general tips that can help … Continue reading →

A successful option trader is someone who is able to consistently generate profits by trading options. To become a successful option trader, it is important to have a deep understanding of options trading and the underlying markets, as well as … Continue reading →

There is no magic or short cut to make easy profits by trading in options. Such an advice could be misleading or inappropriate for our specific investment needs and risk tolerance. However, there are some general tips that can help … Continue reading →

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 →

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 →

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 →

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 →

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 →

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 →

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 →

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 →

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 →

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 →

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 →

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 →