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The best place to lose money in this world is Trading.

Trading is misunderstood!

I understand why — it’s a complex process with lots of conflicting advice.

Here’s the good news.

With a little effort & dedication, you can do better in

Bhav Bhagwan Hai (Price is God)

Lekin Open Interest (OI) Bhagwan ka Baap Hai (OI is Father of God)

This is what some traders claim about Open Interest (OI)😄

Is it True or Not?

Check These Features about OI & Decide Yourself!

Thread 🧵

#openinterest #OI
(1/N)

Check the ZEEL OI Change Chart as of 22/Sep/2022

There was a huge spike in 270 Puts (PE).

It means people sold 270 PE anticipating the price would not close below 270 before this month's expiry.

But the closing price of ZEEL on the next day (23/Sep) is 260.95.

(2/N)

Now can you imagine the conditions of these 270 PE sellers?

They have trapped - Either they have to book a huge loss or shift their position (it brings more risk to the table).

On 23/Sep, most people closed their position in 270 PE.

(3/N)

Also, many traders sold 270 CE, which adds more pressure to the fall.

270 PE opened at 6.9 and closed at 13.5 (close to 100% losses for options sellers) on 23/Sep.

(4/N)

Open Interest (OI) provides all this information (and many more).

What is Open Interest (OI)?

OI is the total number of outstanding derivative contracts (both futures and options) that have not been settled (still open).

(5/N)

When people think about what it means to become a

“Successful Trader”

They think they should attend a workshop.

Need not be!

You can become a better trader just by listening to 1-hour teachings from 2-time US Investing Champion Mark Minervini sir!

Thread 🧵

(1/N)

First, we must acknowledge the efforts of Vivek ji for bringing him to help Indian traders 🙏🏻

The casual conversation starts to know what's Mark's take on failures.

Whether he has faced many failures at the beginning of his trading journey.

(2/N)

Mark said -

"I will not see failures as failures; I see them as results."

"We get either a good or bad result for every action. Every result comes with a lesson, my aim is to pick it and adopt it in life."

(3/N)

Mark lost money in his initial 5-6 years of trading journey.

He lost around $2,000 to $4,000 first time.

He lost $20,000 to $30,000 second time.

He lost big money when he followed his broker's advice to average a losing stock.

(4/N)

Q - How did Tony Robbin's Program Help you to become a Better Trader?

M - Investing on ourselves is important. One study medical to become a doctor even though he is not paid during the study time.

(5/N)

How you can filter stocks for Intraday trades - 🧵

As a kid, we would do homework before school the next day - you have to do homework here too. A specific sector performs on a particular day and studying things a day before will help you spot that particular sector. (1/11)

To prepare for the next trading day, you got to check the Index charts of all sectors. You got to keep an eye on a specific Index if you see a few factors:

- If any Index closed exactly at the resistance, you can get a trade on either side on the next day. (2/11)

- If it gave a rejection candle at resistance.

- If any Index closed exactly at support, you can get a trade on either side the following day.

- If there was a bullish signal at the support.

- If any Index gave a breakout or breakdown and then gave a good closing. (3/11)

- If any Index has taken support at 50 or 200 EMA.

Once you spot the Index, look at all the stocks in that particular Index. Pick at least 3-4 stocks from that Index and add them to your watchlist for the next day. It's ideal to check both higher and lower timeframes. (4/11)

What you should do next day? (When I am unable to check Indices and stocks a day before, I sometimes directly start with this process.)

- Start with checking the top gainers/losers list. I observe market from 9:15 to 9:45am to check the sectors performing well on that day.(5/11)

Swing Trading Strategy
That can help you generate Monthly Income !
A thread 🧵
Using RS , MACD , 21 EMA and Price Action
All Concepts with charts Explained !

RETWEET AND SHARE !

UNDERSTANDING MACD
Moving average convergence divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of stock.
It is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA.
2/n

The result of that calculation is the MACD line. A nine-day EMA of the MACD called the "signal line," is then plotted on top of the MACD line, which can function as a trigger for buy and sell signals.
3/n

Traders may buy the security when the MACD crosses above its signal line and sell—or short—the security when the MACD crosses below the signal line.
4/n

UNDERSTANDING RELATIVE STREGTH
1.Relative strength is a strategy used in momentum investing and in identifying value stocks.
2. It focuses on investing in stocks or other investments that have performed well relative to the market as a whole or to a relevant benchmark.
5/N

#RSI is a common indicator which most of us use in the stock market.

This learning thread would be on
"𝙐𝙨𝙚𝙨 𝙤𝙛 𝙍𝙎𝙄"

Like👍 & Retweet🔄 for wider reach and for more such learning thread in the future.

Also, an investment strategy is shared using RSI in the end.

1/16

Setup 1:

RSI- commonly used to show whether price is overbought or oversold.

General rule:
𝐑𝐒𝐈 > 𝟕𝟎 -- 𝐎𝐯𝐞𝐫𝐛𝐨𝐮𝐠𝐡𝐭
𝐑𝐒𝐈 < 𝟑𝟎 -- 𝐎𝐯𝐞𝐫𝐬𝐨𝐥𝐝

One becomes cautious once price becomes overbought and optimistic when price becomes oversold.

2/16

Let's understand this with an example of Laurus Labs:

1. It was in overbought zone and after a few days when a small dip was seen from 693 to 588 (15% downside)

2. It was in oversold zone and after a few days when a small rally was seen from 59 to 107 (82% upside)

3/16

Well, this looks very easy, but it is not.

When a price is in overbought zone and is in momentum, then it can move up without taking a dip and exiting or shorting stock would prove wrong.

When IRCTC was in overbought zone, price went up from 2718 to 6396 (135% rally).

4/16

Similarly, for oversold stock.

When a price is in oversold zone and is crashing, then it can move down without taking an upmove and buying stock would prove wrong.

When DHFL was in oversold zone, price went down from 126 to 11 (91% crash).

5/16

Gold to dxy has made a double bottom on weekly. Gold is showing a breakout on daily falling trendline.
In the correction everything falls, first to move up is gold, followed by equity

@nishkumar1977 @caniravkaria

For first time Dxy correcting with markets, bearish divergence on dxy charts as well