"Open Interest And Price Relation..."

Basics Of OI with Detailed Explanation in Charts.
All 4 Types Included...
Examples are Most Recent..
So, It Will Be Easier to Understand..

1) LONG Build-up
--> Increase in Price + Increase in OI.

Examples -- MUTHOOTFIN And INFRATEL..

2) SHORT Build-up
--> Fall in Price + Increase in OI.

Examples -- SUNTV And AUROPHARMA.

3) LONG Unwinding
--> Fall in Price + Fall in OI.

EXAMPLE -- BRITANNIA

4) SHORT Covering
--> RISE In Price + Fall in OI.

EXAMPLES -- BNF 30500CE & 30600CE.

#weekend thread..

OVERTRADING...

Why It Happens..??
And How to Overcome it..??

RT If u Find Any Value Addition to Your Trading..

Every Trader Goes through Phase of Overtrading at some point in his Career.

It's never Intentional, It's just a Psychological Reaction to a Series of Profit Or losses.

3 Emotions which Lead to Overtrade.

Fear :- Attempt to make up for a loss..

Excitement :-When Markets are Moving Fast, Traders rush to Make New positions Without Proper thinking
(Out of Excitement)..

Greed :- When traders are already in profit, they want to Make "Even More"..

The MAIN Reasons for Overtrading :--

1) Series Of losses And Urgency to recover them as quickly as possible.

In this Process, We Forget the Utmost Fact that
'Each Trade is Unique in it's own aspects..'

2) When we do not Follow the limits of Our Own Trading Plan. 
And feel tempted to increase frequency of trades
(Outside of The Trading Plan).

"Stop Loss Hunting...."

Noticing So many Examples of SL Hunting Nowadays in Markets. So, Making a Thread to Explain it Best to my Abilities. Also Attaching most Recent Example in NIFTY from last week...

What Is SL Hunting...??

Stop Hunting is a trading strategy that involves triggering the SL orders of other traders in the market to trigger a 'Temporary High-Volatility Environment'.
Official Definition.

In Simple Words, Common thinking of Most traders is Same. So Whatever Strategy They're using, It Involves Putting A SL at Predictable levels.
i.e. Previous Swing High or Low, Below the Support ,Above the Resistance, Etc.

So when Enough Traders Enter with SL in One trade, Expecting a same move,
They Preset these Obvious Levels as their SLs resulting in Forming a Cluster of Stop Losses. Just like so many Fish come together at point of traps.

This is Example of 15 Oct NIFTY. Price is Showing Clear Uptrend. Also Crossed Range Of Yesterday's high. So Many Traders get Convinced about Upmove n Start to Enter With SL of 30-35 Points. So, New traders Entered here Put SL of Around 11390-11395 levels.