Bhanu Prakash Yadav “Rudra” - For Beginners Way to Profitable Trading: Understanding Chart Patterns And Trading Methods

DISCLAIMER

Any advice or information in this book is general advice only. Please take into account your personal circumstances while trading the stock markets. You should never trade or invest based solely on this information . By reading this material or using the information in this book you agree this is general education material only.

You shall not hold any person or entity responsible for loss or damages resulting from the content or general advice provided in this book. Trading has large potential rewards, but also large has potential risk. Do not trade with money you cant afford to lose.

The author is neither a financial consultant nor an investment adviser. The data and information provided in this book are solely for educational and informational purposes only. The trader should be aware of all the risks associated with trading and kindly seek advice from an independent financial adviser. Nothing in this publication and the information supplied in it should be considered as a recommendation to buy or sell any trading instrument. The past performance of any trading system or methodology explained is not necessarily indicative of future results.

Preface

I personally believe that trading is not gambling rather it should be considered as a business and those who are mentally and emotionally trained are the only ones who can have a successful journey in this world of trading. This book, For Beginners Way To Profitable Trading is written exclusively for those who want to trade with confidence.

People generally fail in trading not because they lack trading tools. It is their mental psychology which makes a difference. In this book I will discuss about various patterns and some very useful technical indicators. It is observed that certain emotional patterns occur frequently on charts. Thus if we have proper knowledge and understanding about the nature of the patterns, then we can trade with confidence and proper reward/risk ratio. This book is written in very simple language and is divided into two parts. The first part is about Trading Obstacles and the second part will introduce you to the chart patterns and some most commonly used technical indicators. The second part of this book further divided into six different chapters. The first chapter of this book will introduce you to types of charts used, Support and Resistance and Trend Lines. In the second chapter I will discuss about Volume and On Balance Volume. The third chapter deals with the chart pattern like Head & Shoulder pattern, Inverted Head & Shoulder pattern, double top, double bottom and broadening formation. Chapter four of this book deals with the triangle patterns like Ascending and Descending triangle patterns. The fifth chapter of the book deals with the study of Flag and Wedge patterns, the last chapter of this book deals with the study of indicators. Along with it some examples are also given to make the readers understand the techniques more accurately. At the end of this book, several day trading examples are provided in order to make the trading concepts clear. Every pattern is represented on charts in order to make this book more interactive. I wish the readers good luck and hope that they will be able to improve their trading skill after reading this book.

Notion Press

Old No. 38, New No. 6
McNichols Road, Chetpet
Chennai - 600 031

First Published by Notion Press 2017
Copyright Bhanu Prakash Yadav 2017
All Rights Reserved.

ISBN 978-1-947202-28-3

This book has been published with all reasonable efforts taken to make the material error-free after the consent of the author. No part of this book shall be used, reproduced in any manner whatsoever without written permission from the author, except in the case of brief quotations embodied in critical articles and reviews.

The Author of this book is solely responsible and liable for its content including but not limited to the views, representations, descriptions, statements, information, opinions and references [Content]. The Content of this book shall not constitute or be construed or deemed to reflect the opinion or expression of the Publisher or Editor. Neither the Publisher nor Editor endorse or approve the Content of this book or guarantee the reliability, accuracy or completeness of the Content published herein and do not make any representations or warranties of any kind, express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose. The Publisher and Editor shall not be liable whatsoever for any errors, omissions, whether such errors or omissions result from negligence, accident, or any other cause or claims for loss or damages of any kind, including without limitation, indirect or consequential loss or damage arising out of use, inability to use, or about the reliability, accuracy or sufficiency of the information contained in this book.

Dedicated

to my Father

Acknowledgements

SPECIAL THANKS TO SHAREKHAN

Charts are taken from Trade Tiger Terminal.

I would like to thank the almighty and all the people who supported me while writing this book. Without the help of my family and good friends the completion of this work was unimaginable. I would also like to thank Dr. Snigdha Mishra for her editorial assistance, and Aditi Srivastava for giving me the idea to write this book.

I wish this book will prove helpful for all the readers who want to trade with awareness.

To know more about Sharekhan, visit: www.sharekhan .com .

Description

The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) are the two prominent stock exchanges of India. Trading activity takes place between 9:15 am & 3:30 pm, from Monday to Friday.

The trading mechanism is the same for both the exchanges. Equity markets follow a T+2 rolling settlement, in other words suppose that any trade took place on Tuesday then it will get settled by Thursday.

BSEs primary index is the BSE SENSEX while NSEs primary index is Nifty 50. SENSEX consists of 30 stocks while Nifty is comprised of 50 stocks.

For a detailed knowledge about BSE and NSE you can visit the following sites:

www.bseindia.com

www.nseindia.com

PART 1

Trading Obstacles The Most Important Factor

It is my personal experience that success in trading is independent of the trading software being used. A trader will be in loss continuously unless he has developed the proper winning discipline.

When a novice trader enters into the market he has some misconceptions about the markets, which are the easiest ways of making money. But unfortunately his misconception gets cleared when he actually enters the trade and begins to lose money. If someone is not mentally prepared for trading then it is sure that he will definitely find this task frustrating, irritating and emotionally disturbing as well because the losing streaks will leave him mentally and emotionally imbalanced. This is why I advise the people to first develop a proper mental setup and then enter into the market.

Now I would like to share my personal experience in the Indian Stock Market as I think that it will definitely help you to understand this trading business. When I entered into the market I had no knowledge about the markets and also about trading. I had only one aim and that was to earn as quickly as possible. Luckily, for the first few months I was having a party in markets. I was acting on the call of the broker and thought that it was the easiest task to undertake. Then times changed and I found that my honeymoon period was over, my losing streak started and I lost all my money within two months. I was very frustrated and scolded my broker as I thought it was his fault. But I believe in the NEVER SAY DIE attitude and I made a second attempt in markets after gaining enough knowledge about the indicators. But it was just the opposite and I was not able to take decisions whether to go long or to sell short and started losing money again. I was having various problems like hesitation in making entries, hesitation in making exits, not able to accept small loses which eventually become big, and making very early exits from profitable trades. In my opinion, these are the mental obstacles that were preventing me from being successful and these are the common problems which are faced by all the traders.