Online Trading and Speculations

posted by - Prateek garg

There is very little difference between the speculation and the successful trading 

the ratios of successful trade and unsuccessful trade is very low .

Speculation is the purchase of an asset (a commodity, goods, or real estate) with the hope that it will become more valuable in the upcoming future. In finance, speculation is also the practice of engaging in risky financial transactions in an attempt to profit from short term fluctuations in the market value of a tradable financial instrument—rather than attempting to profit from the underlying financial attributes embodied in the instrument such as capital gains, dividends, or interest.

                                               

                                                                                                                                                               
                                                                                                              

Successful speculators embrace risk, they don’t hide from it, Without the prospect of substantial gains, there would be little motivation to engage in speculation.

there are the few rules of speculation -

1. Analyse your risk appetite(how much money you can take on risk ) .
2. Objective of Trade.
3. Time duration.
4. Instruments of trading(Future, options or spot) .
5. Market in which you deal ( Equity , Commodity , Forex or bitcoin ).         

Resistance and Support level -

Resistance  -     the level at which Stock struggle and generally starts declining . 

Support      -      the level at Which Stock stops declining and take turnaround .

A trader must take an strict stop loss on breach of which trade must be close . 

It is important to close the trade when your target is reached . 

Ex - let us assumes that wipro CMP is 240 and you start taking long position for a target of 260

with an Stop loss of 238, if the trade Favour you and your target is reached, you must have to reap 

profit and close your trade or if your Stop loss is hit you should take loss and close your trading position . 

Note -  Descipline is the key of trading .

Thank you so much for reading this article and I hope all of you are finding the content helpful,

Its delight to see you again with new findings and quality content , please give your valuable feedback in the Comment Box.

And please don’t forget to follow me