Q & A (Stock Market ) for Beginners.

How can I use options trading to hedge my positions and manage risk?

Option doesn't work like a derivative or cash calls . If the proper volume is not there, then both the CE ad PE calls will get decayed and will be made zero. Avoid the option if you don't know how to study volume. option works on volume. Option needs more discipline way of trading. or else you will loose money in no time.

What is a bull market, and how do I take advantage of it?

If the stock go uptrend, it will be a Bullish Market.

BUY stocks which are performing good to make a profit. Depending on the timeframe, we need to analyse the market. If the timeframe is Day or weekly chart, to book the profit it takes many days and weeks. If the timeframe is smaller, we can go for Intraday or short term trading.

How can I control my psychology at the time of trading?

One has to spend more time on trading. Trade with equity with a lesser amount. Even if you trade for 1 share it would be good. find the trend, and take the trade with SL and Target. Don’t adjust the SL and Target. Dont keep on watching the trade, if you do so, definitely you will do the operation of the trade like taking trades multiple times which leads to more brokerage and also you will loose the track of you trade . Everyday Note down how the trade went. By doing so, you emerge stronger emotionally.

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What is the difference between a trading plan and a trading strategy?

Trading plan include A to Z from analysis , allocation of the fund, SL Execution of the trade, booking the profit/loss, following the self made rules. etc, etc…

Trading Strategy is which strategy you are using to trade that particular day/time/moment . E.g either swing trading, breakout or else moving average… etc.

How can you manage risk in a volatile stock market?

Analyse the market and find out the trade with predefined Stoploss and Target.

you can take BO order, where you can define both SL and Target.

Execute the trade and don't sit in front of the screen. let the trade decide.

If you get the profit accept it, or if SL hits accept it. DOnt average SL or target. BY doing so you mind will be confused ad cat able to handle the new movement and new values. So stop averaging.

Refer these videos for more info

How do I read a technical analysis chart of the bull and bearish market for a beginner?

I have explained in the following video, how to select stocks using manual method for day trading. In few videos, I have explained what are the conditions we need to check for Buying using Technical indicator and what conditions we need to check for reversal or selling of the stocks using technical indicators.

1. Video for selecting of the stocks using manual method

2) Videos for buying/selling of the stocks using technical indicator, refer the following videos.