Wednesday 29 July 2015

Be a trader after your office hours

Before you click away from this blog post, rolling your eyes at being asked to take on yet one more role as a working mother, I invite you to stay just a little while longer! Kick your feet up, let’s have a coffee and chat.

We are in a pioneering generation of Indian women. We are still the primary homemakers, chefs and caretakers of our families. And yet many of us are simultaneously holding down careers that run parallel to our husbands, both financially and in terms of time commitments.

We go through our daily routines like a circus performer:  a juggler walking on a tightrope. Each hour of the day that passes, we add more balls to those that we have to keep juggling in the air. Breakfasts fed, lunch boxes packed, morning commutes, office deadlines and deliverables, and then the evening commute, dinner, homework. If we’re lucky, we may have introduced one or two other balls in the air too – maybe a little exercise, or relaxation time. We know and dread the cost of letting even one of those balls drop. So where, you ask, is there the time or balance to add one more ball to those we’re already juggling?

Well let’s get back to the juggler on a tightrope analogy. The key difference between us as working mothers, and that circus juggler up on the tightrope is simple – a safety net. Even the simplest of country circus fairs provides a safety net to save their precarious aerialists from a deadly fall.

So how about your personal safety net? Traditional financial savings instruments like savings accounts and pension plans deal with your long-term financial security as you approach retirement. But do you have the financial wherewithal to deal with daily ebbs and flows in financial situations? What kind of a present-day safety net do you have underneath you?

That’s where trading after hours can come in. Using the simple principles of #TeachAWomanToFish, a special course offered via Tradonomix, you can turn a few consolidated hours during the course of a whole week into the sort of safety net that gives you the confidence to continue on your high-wire balancing act.

Tradonomix’s accelerated weekend course gives you the ability to understand the markets, and to apply that all important aspect of timing to it in a confident manner. The focus is trade in a way that is more about up-front analysis and less about hourly button-pushing and worrying. The skills learnt through the course, and especially applied in conjunction with easy-to-use online trading platforms, help you to produce a revenue stream that runs parallel to your own, with the added advantage of providing liquidity when compared to other savings asset classes.

They key to it all, is to maintain that balancing act while keeping ourselves secure. The key to Tradonomix’s trading tools is all about timing. I think I have taken up enough of your time now, but do consider coming back to attend a weekend course and learn to add the ‘trader’ ball to the ones you so successfully juggle.

Tuesday 21 July 2015

Beginners Introduction to Price Action Trading – Part 1




This article is aimed at beginners who are completely new to trading/investing and want to know about how the same is done via charts.

A chart is nothing but a graphical representation of data. There are different way to represent this data like bar chart, line chart, candlestick chart, point and figure charts etc., but for our learning we stick to candlestick chart. The price data is obtained from the exchange and plotted using a Charting Software.

Each and every Candle comprises of

1) Open – The price at which trading commenced for the session
2) High – The highest price at which it got traded during the session
3) Low – The lowest price at which it got traded during the session
4) Close – The price at which trading closed for that particular session and
5) Volume – The number of shares traded during that particular session (shown in histogram format below candlesticks)

When people talk about price action trading, they are simply referring to the fact, that they make their trading/investing decision to buy/sell a particular stock using a simple candlestick chart along with volumes. When candle is plotted on a continuous basis on a chart, one can see the overall price movement/trend in that particular stock.

For ex., have a look at the stock chart shown below. The stock name is Hindustan Petroleum and the each and every day, a candle is plotted on a chart, along with the volume for that particular session.


What we do with the above chart, we will discuss in the next part. Meanwhile, any doubts on the basics, feel free to post your questions, and we will answer it back. 

About Author
Jayaraj V 
Director - Academy at Tradonomix

Jayaraj with an MBA in Finance and comprehensive teaching experience to boast of, trading acted like a magnet, pulling him towards it, to trade the financial market. The main attraction, he says, was the dynamic nature of trading along with all the challenges it came with. He works as the Director – Academy at Tradonomix.



 

Thursday 16 July 2015

Trading is a Mirror!!


Before we start anything in life, we need to know all that there is to know about it. This fact is no different in the world of trading. Do you want to be a successful trader ?If your answer is yes, then we do need to know what trading is all about, not just in methodologies or strategies ,but the underlying thoughts and emotions as well. 

When someone asks you what Trading is for you, we have different answers.
Trading is a Dance, says one … Trading is a Sport, says another … Trading is War, cries out the third… Pure Music, says yet another…. Power…. Drama …. Rock Climbing……

Trading is a Mirror. The Mirror that shows us what we are. It reflects the fear, greed, patience, confidence, over-confidence, euphoria, regret hope and a myriad of other emotions battling for supremacy within us. It exposes us, our frailties and our weaknesses, our strengths and our power .It shows us how we accept our successes and our failures. The question before you go down this Path called Trading is: Are you really ready for it? Are you willing to expose yourselves and accept yourself for what you are? Willing to make changes and convert your weaknesses into strengths? Are you really willing to stop pinning the blame on everything and everyone other than yourselves, accept it as your mistake and to change yourselves? Trading is not just about each and every trade taken, it is all about how we tackle these conflicts raging within us. 

When Panic sets in when a trade work against us  , when we are fearful and ready to grab profits the moment a trend has merely begun its move and to focus on money and not the process, the Mirror has just exposed our weaknesses as we crumble to our Mad Mind. Trading is about watching all our emotions running when we are ready to take some trade, and to step aside and observe these flow of thoughts.

The hand shivers, we just are not able to pull the trigger when the time comes to enter the trade .When we do manage to enter a trade but it does not go the way we want,…anxiety,fear and panic make a merry dance. We are not relaxed…. Price starts to move towards our stop loss, we start to sweat ,or instead it starts off on the desired direction,…. happiness, euphoria, greatness, power…..and then suddenly the fear to lose …to lose what we are gaining. The Mind now begins to think about yet another emotion, Fear of Regret…it starts acting on that emotion ….Things become even worse when price hits our stop losses but we are not able to get out from our trade….Losses mount…. Stubbornness sets in, we refuse to exit and instead add to our positions to make our holding cost lower. Price does not correct, the fall continues, it is too far now, too late, too painful…. we start praying to god in Hope …some miracle, some magic …..silently hoping for some miracle to happen….some magic which suddenly turn losses into breakeven…. Nothing happens,too much pain now, we cannot take the agony, this suffering  any longer… we come out of our positions, taking the big loss.The account is badly hit, pride battered ,ego bruised…but we feel relaxed. Price still moves against our original position, but we are happy now that we are already out….It could be the time when markets start reversing again, we can always reenter, we salvage the temporary peace for now, bliss….and then this cycle starts again .This goes on and on till correct observation of one’s mind leads to correct thought and subsequently correct action.

To watch all these emotions….to watch ourselves without any prejudice …to watch what we are inside, like in a clear mirror….this is what it takes to be a professional Trader, and to be a professional Trader one need to be ready to change oneself ….but to change ourselves first we need to realise where we are wrong ….where our fault lies…our strengths and our weaknesses … and start working on that with a clear, unprejudiced mind-set …to be ready to change oneself …

Trading,. ….is watching oneself in a Mirror!!! Yes it is….and with experience and with time and a persistent, adamant and obstinate desire for change, one can indeed change that image in the Mirror.

About  Author

Harish Chheda

Chief Knowledge Officer at Tradonomix

Harish has more than 2 decades of experience under his belt. His expertise lies in a number of fields, including Swing Trading, Intraday Trading, and Positional Trading in Equities, Commodities, and Forex. He is also adept in Business Risk Management with Derivative Products.

At Tradonomix, he brings to practice the knowledge he has accumulated in the last 22 years. He is the Chief Knowledge officer at Tradonomix

We offer trading course for beginner, intermediate & advanced level. Please visit www.tradonomix.com to explore our trading courses.

Wednesday 8 July 2015