The first part of our Stock market training programme is to choose the stocks which are fundamentally good.
Second, Analyse the choosable stocks based on technical analysis.
What do we cover in Technical Analysis?
We do cover Role of technical analysis and Role of market psychology as well. Both are inter-connected as the two sides of coin. If a trader focus more on any one technique, there won’t be a good edge he can make in market.
Role of Technical Analysis
The role of technical analysis in the stock market courses is as good as sharpening your axe to cut the tree.
1. Candlestick pattern
The candlestick pattern is not only about the patterns price makes. As, if you have read the book of SteveNison (The Father of Modern Candlestick pattern), you must come to know that the candle, for example – Hammer, has psychology of the mass hidden in them.
Hammer is made in any given time frame when the price is at first in a good downtrend. Suddenly, a good level of buying came which absorbs near about 80% to 120% of the selling. Why does this happen? Is it enough to forecast that now the price has made a u-turn?
A lot of psychology of the market participants is involved in a single pattern, i.e. Hammer. Price can break the Hammer and make it a failed pattern. That’s why only if a hammer is built, it is not enough for us to say that this is the trading opportunity. Going deep into what level of supply is absorbed and what level of demand is created, a good trader can analyse that the hammer is seriously a good trade to go with.
Our mentors deliver full psychology of the candlestick patterns from its origin in the beginner stock market course.
2. Support/Resistance and trendlines
Support and Resistance are not two terms but a single price number which sometimes becomes Support and can convert into Resistance. This number is important in the psychology of price because it becomes important for the participants of the particular stocks.
For example – If a trader has bought a stock at the price of 110, now if the price has come to 105 or 100 he will think of coming out of the stock as he might have thought of it as a stop loss or he will buy more at that price to do the average.
That zone or the particular price becomes important because the mass has bought or sold near that price.
The more to be discussed in detail in our Stock Market training courses. Let me give you a little introduction to trendlines.
Trendlines play a very important role in the Price-Time chart because it doesn’t refer to only price as support or resistance. A trendline refers to time also with regard to price. So, if you are an options trader, you must know the psychology of Trendline.
Price-Time As I described, we don’t rely on the indicators but still, indicators play a vital role in trading to confirm what a trader is thinking thinking about the price. We don’t use many indicators as it has a role to study only momentum, trend and weightage. The main indicators are RSI, MACD, Volume, Bollinger Bands, Anchored VWAP and a few more. RSI and MACD are good to work on divergences, but divergences again only the indication and not the trigger which signals something. A keen eye is needed to study the behaviour of divergence same as it is needed to study the naked price.
A good learner should know what is the difference between the price and the indicators derived by price.
4. Fibonacci Retracement and Extension
I bet most traders have studied Fibonacci Retracement and Extension but they don’t use it in their analysis. The reason is the same, as Fibonacci shows the psychology of the mass of traders and investors.
The price is the stock usually retrace near to Fibonacci level, but if you see the levels are already so near and this gives price the freedom to retrace from any level, it will visualize as it comes from that particular level.
Some people call it Gorakh thandha, and there is no doubt it seems so. Trust me, all the things which really work in the stock market seem to like deceptive businesses.
Fibonacci is a great tool to understand the psychology of price. Our students in our stock market courses understand the real value of what a great scientist ‘Leonardo Fibonacci‘ discovered.
Role of Market Psychology
The role of Market psychology in stock market courses is as good as understanding how to hold the axe and how to hit the spot.
If you have read the best books on Market psychology such as Trading for a Living, The disciplined Trader, Unholy grail, Trading in a zone
, Stock Market Wizard, Truth of the stock tape
and more like that, you must have read a thought flowing around, which is
“Successful trading is 80% money management and 20% strategy.”
Trading psychology comes when your analysis starts going right but trades still going wrong. The trade we put as the entry and exit in the market is not totally based on our analysis but more based on our emotions like Fear, Greed, Hope and Ego.
In our Stock market courses, we made our students practice more and more to improve the psychology of their trading and not give their emotions a space and stick to the discipline.
What do we cover in Futures and Options course?
Traders Mantra cover all the aspects of Futures and options. In stock market, derivatives are the most volatile part. As, Futures and Options are highly leveraged positions.
Role of Futures in Stock Market Trading
In stock market, Futures are the derivatives with which we can long and short the positions as well. If a trader analyse that the market should go up, he longs the position and same like if a trader analyse the market will go down, he can short the position.
Futures are highly leveraged positions in which there is always a lot of the number of particular shares depends on the stocks. For example: If the Reliance CMP is 2661 then the real value of Reliance future is Rs 5.53 lakh because the lot size of Reliance is 250. While trading, a trader can long the position of Reliance only at Rs 1.50 lakh. The broker gives the leverage of near about 5x.
Same in Nifty 50, a trader can short or long the Nifty in Rs 1.08 lakh but the real value of Nifty lot is 8.75 lakh. The lot size of Nifty is 50.
Lot size of Stock and the index varies by time to time. Also, the leverage given can vary from time to time.
Role of Options in Stock Market Trading
Options are of two types, i.e. Option Buying and Option Selling.
In Option buying, the position standing against it is of Option Seller.
For options trading, One should understand the terms like Option Premium, Out the Money, In the Money, At the money, Intrinsic Value, Greeks (Delta, Gamma, Vega, Theta and rho), Option Interest Data, Hedging and few more terms.
Stock market Certification
Traders Mantra gives the certification of the completion of the stock market course which brings the best quality. Our students who had done courses from our organisation can score the test of NISM, which are good for their future.
Traders Manta is renowned by the best quality provider and certified by ISO 9001.