“VACATION…!!!”
The word itself is
effective enough to provide a sigh of relief. Right from young ones to the
elderly people all are very much excited to go for a so called “vacation”. The
enthusiasm, the passion, the happy faces……oh my god!!! Whole family seems to be
happy when we plan a vacation to any hell of the place in the whole world. With
the vacation comes the responsibility of packing our suitcases so that we do
not forget our necessities during the vacation. At this time only one person
comes to our mind to do this tedious task……… YES your thoughts are going in the
correct direction i.e. our “MOTHER” she takes the charge of each and everyone’s
baggage. She has the solution for every space related complications in packing
of the suitcase. She asks each and every member of the family about his
essentials and put them in their respective suitcase without fail. Even the
young ones try to assist her in the process of packing of bags.
As the process of packing of bag is
vital for going to the vacation, in the same way the process of gaining
knowledge about the stock market is a vital step to enter in the stock market.
There are many different ways to gain knowledge in stock market. Money control is one of the website to earn knowledge where experts share their views about
the market and sometimes provide the short term levels. NSE India gives us
information about the future and option segment and also make available the
live prices of the F&O segment. This was about gaining information now
about gaining knowledge…..The most important component to enter the share
market is knowledge. Without knowledge, it would be like “shooting arrows in
the dark.” At first, the arrow would hit the target if your luck is strong
enough but, not every time.
There are
different tools which we need to pack in our suitcase in order to go for a
vacation in share market. As we pack our necessities in suitcase when we go out
to vacation in the same way we need to be ready with different types of tools
for example different types of charts, different indicators and many more. Most
important thing is to be alert during the market hours. As to what is happening
around us and around the globe which can have a direct or indirect effect on my
position in the market. The other crucial factor while entering the share
market is the entry point. Ask yourself with two questions before entering the
trade.
1) Why to enter this particular trade?
2)When to
enter?
After procuring the satisfying
answers for both the questions we can put a bid in the market. One of the most
major factor is that, Never ever fall prey to any grapevine related to share
market. Analyse the news, use your brain, make sure that the news is not a hoax
and then trade over it. It will save your hard earned capital and avert you
from losses. This will boost your confidence and you can invest your money
properly.
Out of the pool consisting of
numerous indicators, I feel the below mentioned are quiet useful while trading
in the stock market.
a) MACD- Moving Average
Convergence Diversion
b) Bollinger band
c) Volume oscillator
d) RSI- Relative Strength
Index
e) Stochastic
f) Momentum
g) Volume
h) Money flow index.
And the list is never ending…. If you
grab a firm hold over any of these indicators then trading in stock market
would be much more easier. They would assist you in getting the answer to the
question “Why to enter? And When to Enter?”
Hence, it is very important to be
equipped with the weapons before the commencement of the battle. And to earn
money is the biggest battle of life. To add more turbulences, earning money
from stock market is way more difficult than if you are not equipped with
the required instruments.
To sum up, the tools which you need
to pack in your suitcase when going on a vacation in a stock market is
knowledge, indicators, alertness, candlesticks, analysis.This would make your
voyage an easy one with minimum difficulties and you can return back to home with lots of profit from the journey of the stock markets……….
By Aniket Mandlekar
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