Simple Steps to Technical Analysis of Stock Market

Knowledge can be overwhelming. Focus on your strengths instead and work to improve your current abilities. It is better to use past information than to constantly seek out new knowledge. The key to gaining confidence is to overcome your fears.

I will share a few of the common features with you.

1. The stock market is not a treasure chest, but a battlefield where buyers and vendors are always competing. Prioritizing safety is key. You should treat trading like a war zone, and aim to protect your capital.
2. Even profitable trades may turn bad. Don’t waste your money. Treat it as a weapon.
3. It’s important to put in the time and effort necessary to learn the nuances of the market. Focus on the demo environment and avoid being tempted by simple and illogical strategies.
4. It is important to stay informed of recent events and news relating to a specific stock or instrument in order for you make informed trading decisions.
5. When day trading, it’s crucial to not let your emotions control you. It’s important to take a step back if you are experiencing constant losses. If day trading isn’t for you, explore other options, such as options or futures.
6. Avoid the temptation to make aggressive trades. Instead, aim for a realistic return on investment target of up to 20% annually for long-term traders or 2-5% monthly for day traders.
7. If you reach your monthly goal early, it is best to wait until an opportunity arises that will allow you to trade.

Long-Term Investment Strategy: Key Strategies

It is difficult to make the decision to become an investor rather than a speculator. Contrary to what is commonly believed, you don’t need to have a lot of money to start investing. The first step to investing in stocks is saving a part of your monthly income.

Compounding can do wonders with time. An initial investment of 2000 R can grow to 100000 R after 40 years with a 10% return rate.

Compounding is a powerful tool that can help you reach your financial goals over the long term. Consider investing 2000 Rs at first and adding 100 Rs each month with a return of 10%. Your investment could increase tenfold over time to 10,00000 R.

Remember that investing has both rewards and risks. By learning to identify promising businesses, you could end up with shares that have increased in value by ten, twelve, or more times.

Profitable strategies to implement

This discussion will present a simple and profitable trading technique that only requires patience and discipline. Use the PSAR and 3 MA indicators to maintain your risk/reward ratio and adhere to the rules.

You will need a 9-period EMA, a 21-period SMA and a 45-period SMA. Also, you’ll need 0.01% PSAR.

Buy Rules

1. The price must be above PSAR and the 9-period EMA must cross the 21-period SMA and 45-period SMA upwards.
2. The market should be already in an upward trend (confirm this with a higher timeframe chart where the price should be over the 45-period MA).
3. Stop loss should be placed at the swing low of the previous day.
4. Set the target manually when the candle closes lower than the 45-period simple moving average (MA).
5. Avoid interfering during the crossover. If the moving averages do not separate clearly, wait until the crossover occurs.
6. You can use chart patterns to increase your profits if you have knowledge of them. If you are a beginner, you don’t need to worry. Just follow the rule above and you can still make good profits.

   Entering A is not clear

   Enter the B-clear

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   To help you better understand my moving averages, I’d like to share with you the color codes. I used the 9-period EMA in black, the 21-period MA and 45-period MA, respectively.

   Sell Setup

   1. Sell when the 9 Period EMA crosses the 21 Period SMA or 45 Period SMA. The price must be below the PSAR.
   2. Check the chart of the higher timeframe, where the price must be below the 45 MA.
   3. Set your stop loss at the swing high of the previous day.
   4. Wait for the candle to close over the 45 Period Simple Moving Average (MA) before taking the target manually.
   5. Before taking action, make sure that the moving averages have been clearly separated at the time of the crossover. If not, you should wait until after the crossover.

   How to become an Investor for the Long-Term

   Investing can be a difficult but smart decision when compared with speculating.

   Contrary to what is commonly believed, you don’t have to be rich to invest. The importance of saving a part of your monthly income is another important aspect of investing. Investing allows you to take advantage of the incredible power of compounding.

   An investment of 2000 Rs at 10% return per year can be worth 1,00000 Rs in 40 years. Time is the most important factor in achieving your financial goals. Compounding is more powerful when your money has been invested for a longer period of time.

   Imagine an initial investment in 2000 Rs, with only a 100 Rs monthly increase. This investment would grow to 10,00000 R at a 10% return annually, which is 10 times the initial investment.