Importance of Support and Resistance in Trading

Support and Resistance are very important to a Technical Analyst or a Trader when planning for a trade.You,as a trader or technical analyst,should never undermine the significance of these two aspects of the trading plan and you should be very clear of these two levels before you enter a trade.Support and Resistance are your entry and exit levels for a long trade and vice versa for short trade.Moreover,prior knowledge of Support and Resistance brings much needed discipline in trading which is an important step for you to become a successful trader.

How to do News Trading ?

News Trading is a strategy of trading by taking position,long or short, in securities ahead of any big news which is so significant that it may lead to massive wild moves in that security and closing the position after the news has been released.Though you may trade in any security for news trading but the most popular securities are the Currency Trading and Stock Trading.News can be of any type like Monetary Policy announcement,quarterly results for any stock,inflation data,IIP data or GDP figures or any stimulus or Jobs data

Outlook for NIFTY for the coming trading sessions

In our previous post on Nifty Outlook,we expected Nifty to move towards 6220 and 6300.Nifty,after slipping towards 6150 levels,came back strongly and tested 6300 after crossing 6220,finally closing around 6260 level for the week.

Nifty Daily Chart
[source : www.icicidirect.com]

Nifty is continuing with its bullish trend.In the process,it again broke out of a bullish triangle at 6230
on a daily chart.This pattern gives much higher target for Nifty in the coming days.

Though  leading indicator Slow Stochastic is showing negative crossover indicating overbought market,market is expected to continue the strong momentum it gained

after taking cues from Exit Polls of 5 state elections

Define your Risk Profile before Stock Trading

Know your Risk profile

Stock markets,though have the potential to produce greater returns than other asset classes,are associated with high risk.Infact, higher the risk higher is the return or vice-versa.So it becomes imperative to understand that you know the risk before entering the markets. Every individual has his own risk taking capacity or Risk Profile when it comes to his trading or investment decisions.So what are the factors that define your Risk Profile?

Equity Linked Savings Scheme (ELSS)-A Tax Saving & Investment Option

As the financial year nears its end,every individual or invester starts looking for tax saving instruments which should yield handsome returns along with primary requirement of saving tax.There are several
options available in the market which are commonly used by people like Public
Provident Fund (PPF),National Savings Certificate (NSC) or Unit Linked Insurance Plans (ULIP).Although, these are quite popular

Outlook for NIFTY for the coming trading sessions

In our last post on Nifty outlook,we expected downside targets of 5975 and 5900 for Nifty.Nifty however staged sharp pullback on the back of considerable short covering and closed at 6177 for the week.

Nifty-Triangle Pattern Breakout

On daily chart,Nifty has given breakout (blue circle) above a Triangle chart pattern which is a bullish sign for Nifty in the short-term period.

Equity Systematic Investment Plan ( ESIP ) - Intelligent way of stock accumulation

Systematic Investment Plan ( SIP ) remained very popular and successful method of investment in Mutual Funds for long term investors.Taking inspiration from SIP, the leading stock brokers have started providing similar option to investors for stock accumulation.This is known as Equity Systematic Plan ( ESIP ) or Systematic Equity Plan ( SEP ).

Equity Systematic Investment Plan ( ESIP )

We all know it is always risky to invest in stock market.An investor willing to buy stocks wants to enter in the stock at a fair price so as to minimize his risk and maximize the returns