Let's understand stock market! Day Trading

Two ways to do earn from stock market: a) Investing b) Trading

Technical analysis is not that helpful when you are going for long term investment in a share. That is primarily done based on its fundamentals ( company's managment, cash, asset, liabilities etc).  

For trading, you mean for earning profit in a short span from the share market. You need Technical Analysis for trading. For this nature of earning you don't require the fundamentals. P/B, PE ratio doesnt' matter.

What is Technical Analysis in Trading?

1. Trend 

3 types ( Up trend, DownTrend and Sideways trend(na up , na down it is between Resistance and Support, going small up/down in a zone i.e between support and resistance). 



It is first step to identify the type of trend, a very important step.

2. Candle Sticks



Compare Index vs Stock

your stock must beat stock. 

Check whether it is beating the sector or not?

sector don't beat index but beat stock. 

To Learn: Stock selection, channel, trendline, Dow Theory, 


51 super trend, 82 Super Trend

926 Moving average

42 EMA

which script to watch? volume is fuel for market!!

market sidewise/sideways - kia matlab?

band for each stock/item - to play within that band even in low volume. 

Top py reversal package.

Patterns: head & shoulder, tripple top, double top; reversal pattern

Market pyschology is making this pattern. 

Index vs company comparison: Bluechip 

TELE: High Beta stocks, 

KSI,MI30, sath laga lein unki companies keisa perform kar rahi hein; 

Settlement ratio. ??? Jis ki SETTLEMENT RATIO kam hy uspy trendline laga dein aur support resistance b lagana shuru kar dein aap kamana shuru kar dein gay. 


INSURANCE SECTOR IS CALLED THE PSX BIG BULL. 



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