How to build a successful trading mindset?

A thread 🧵

There is a lot of talk about trading mindset or psychology. But what exactly is trading mindset?

#StockMarket #trading

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Thread on fibs:

Part 1 - Fib extensions:

The way I use fibs and extensions differ from conventional textbook methods.

Fib extensions are ratios beyond 1 used to project targets for profit booking.

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The main purpose of fib extensions is to forecast probable (emphasis on both words) areas of profit booking/correction in a script trading in unchartered waters (ATHs and lifetime lows)

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Basically, they are used to find Ghost supports/resistances.

Fibonacci is a price based and a relative time based tool.

Meaning, the proper way to use this tool largely depends on the swing markers you use relative to the TF of your analysis and trading.

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The primary ratios I use as part of extensions are 1.382 and 1.618.

Example 1 for broader price range swing:

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Example for minor swing:
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What is orderflow trading and how to develop an edge using orderflow:
A thread 🧵
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#StockMarket

As the name suggests, orderflow is the flow of orders in a stock or index which are being executed in live market.

Normal candlestick shows the candle open, high, low and close but not the actual buyer and seller activity which is happening at every price point.

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Orderflow chart shows a deeper insight into a candle's price action by showing the volumes that are coming in at every price level.

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Why is this information important?
1. As a retail trader, we would like to follow the steps of large players and institutions and see whether they are more inclined towards longs or shorts.
2. OF data shows us the real time supply demand which is flowing into the market

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I am planning on hosting a free webinar series on positional and intra trading using a few of my RSI and fibs techniques.

Proven and tested methods, not your average YT video.

But before that, I would like to hit 10k followers.

Are you interested?

#StockMarket #trading

How I understand the strength of a trend:

For many day traders, the issue is not with identifying the direction but being afraid of when the move will end or reverse.

It is a challenge to identify when a move can continue and convert to a big move n when it can reverse

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Reading orderflow data at important levels like previous day low and high (intra low and high are not that reliable levels), one can understand if a move can continue or not.

In the above chart, previous day low broke and market fell before giving a pullback.

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Orderflow indicated that large sellers continued to sell when PDL (previous day low) was breaking.

See below chart where sellers sold huge around PDL.

We pulled back to same level and they defended their positions.

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OF helps know the strength of a move and the probability of it continuing or not and helps me decide whether to stay in a trade for bigger profits or book out.

If you liked the content, follow me at @KillerTrader_ for more such knowledge.

Charts by @gocharting

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#nifty

Thread on sideways market:

Sideways price action or consolidation is a phase where institutional players are silently building their positions transacting in smaller quantities.

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What we need to understand is that big players have huge amounts of money and one major disadvantage of having such large cap is that they cannot transact in big quantities without being spotted (aka volumes)

In order to minimize this disadvantage to an extent, they will begin building their positions with many smaller blocks of orders to look like multiple small players and to not alert other market participants much.

This kind of price action does not result in major market moves since moving markets requires aggressive buying/selling at market prices.

Instead it results in a sideways price action.

When their positions are built, aggressive activity begins which results in markets moving in a trend. First positions are built slowly and then markets are moved aggressively in the favorable direction to get profitable.

In this article, I will walk you through all of the pros and cons of using supply and demand zones. I will teach you how to use them and more importantly, I will show you real trading examples as seen through my eyes.

Brief insight for those who has no patience to watch an hour long video 🤗

Here is the

Impact of Repo Rate Hike on Stock Market!
Plz do retweet for max reach🙏🏻🙏🏻🙏🏻

Even the biggest handles with 100k+ followers get this simple thing wrong in charting!🤦‍♂️

This is the most important thing especially if you are analysing long term charts!🧐

So, let's get this right today!

USE LOG CHARTS 📈 FOR ANALYSING LONG TERM CHARTS!

Let’s go🧵...

1⃣ Wait, What's Log chart?

Before I define Log chart, let's look at the chart you are using daily - 'The Linear Chart'

- Linear chart is used by default in most platforms. This is probably why you never knew log charts

Wait, don't click on 'log' yet before you understand it...

2⃣ ok, so what does Linear chart mean?

Take a look at the image
- The y-axis is separated equally by 1000 points starting from 0 to 11000.
- So, any linear chart would have its y-axis equally separated by 'N' points always

And... that's where the problem lies...

3⃣ But, I don't see any problem?🤔

Ok ok.. let me explain...

- Can you look at this #TATAELXSI chart & tell me the price in '99 when it was listed? No!
- Can you draw a proper trendline in this chart? No!

Reason is because of the price congestion between '07 to '20...

4⃣ What else?🧐

- Whenever there is a price change in an instrument & it's drastic it'd be difficult to analyse on a linear chart

- Look at this example of #BTCUSD. What happened in 2021(refer to the red box)? 🤔

All this is because of the equally spaced Y-axis!

hmmm... ok🙄

All-in-one chart that has everything you need to about trading cash stocks!

- How to enter
- How to define stop loss
- When to pyramid
- When to exit

Focus on big base breakouts & if this works even for 30-40% of your trades, you will make decent returns!

Retweet if you❤️it!

@nishkumar1977 @ca_mehtaravi @BlogJulianKomar @rohanshah619 @nid_rockz @vivbajaj @Trendmyfriends @Atulsingh_asan Would love to know how you ride major trends!