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How To Use Volume To Trade Stocks

What Is Volume?

Stocks trade when markets are open. Some stocks are traded less some more. The number of shares that is bought and sold over a given time period is volume. Note that volume can change over given time period.

For example when the PNB Scam news came the next day PNB witnessed more than average volume.

Where to find high volume shares on a particular day in India?

Top 25 – Volume Gainers – Source NSE India

Most Active – Volume – Source Economictimes

Stocks that are witnessing a huge surge in volumes – Source Moneycontrol read more

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Novice Trader Makes 1.2% in 10 Days

Look at this first trade of a trader who traded option for the first time:

Jaykumar Testimonial 4-May-18. He traded option for the first time in life and made 1.2% return in 10 days – Results may vary for users

Jaykumar sent this Testimonial on WhatsApp for Web. He traded option for the first time in life and made 1.2% return in 10 days – Results may vary for users.

Margin block was approx 95k and he made 1200 so approx returns: 1.26% in 10 days.

Average return comes to more than 3% in 30 days.

This is approx 36% in a year. Ok fine lets take even more conservative approach

30% in a year.

Now think about it – COMPARE YOUR TRADING RETURNS VS 30% A YEAR. read more

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How To Manage Risk Short Selling Stocks

What is Short Selling?

Short selling is selling stocks without have the stocks in demat account. Short selling equities must be closed the same day (intraday) or market makers will close the stock in auction and you will have to accept whatever price market makers get in auction. Usually this results in losses. Therefore short selling should be done intraday only and must traded under (MIS) Margin Intraday Square-off.

Short selling can be done in derivatives (options and futures) if the trader wants to hold the position overnight. But overnight gap up and down comes with huge risk. Overnight losses can exceed 10,000. read more

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Why New Traders Lose Money

There are two major problems with new traders. These two problems are main reasons why new traders lose money.

See this whatsapp message I got from a new trader:

Reason for new traders losing money

Here is the text:

Hi it’s Abbas . I read your blogs and 5 days email.

I will share my experience. I started share trading in [broker’s name hidden] and lost almost 25k in first 15 days, in Feb 2018.

Then again I lost 15k in this April month in equity in intraday trading in stocks. I have less knowledge of options and futures. But after reading your website blog and option basic knowledge attachments. I have some now. read more

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There are many Psychological Obstacles For Traders. No greed control, no emotions control – trade whenever you feel like trading, itching to trade just to trade and have fun, etc.

All of these are dangerous to your trading account.

You should trade only when an opportunity comes not wherever you feel like or you think so.

A few days back one person called me and said he is losing 94k on a put option. Invested 1 lakh and current value 6k 🙁

When I asked him did you hedge? He said what is hedge? read more

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Look at this SMS I received today:

Do Not Believe In Guaranteed Profit SMS

Look at the hidden language – lets disseminate it:

1. Earn up to 3 Lakhs Weekly
2. Free Software
3. 100% Confirmed Calls

Which one do you believe is true?

NOTHING.

Lets get deeper. Whose fault is it? No its not entirely his fault. More than 90% of traders still believe that there are some software that can generate calls or signals to buy and sell options/futures/equities.

But where is that software? Who made it? What’s his name?

You will not find it as there is none. read more

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Today 18-Apr-2018 was a non-trending day for stock markets. See this pic:

Nifty on 18-Apr-2018

See the pic clearly. Till 1.45 pm all intraday traders must be long trying to make quick bucks. But then what happened?

STOP LOSS

I can bet ALL TECHNICAL INDICATORS – those 5 min charts, 15 min charts, 1 hours charts, candle sticks, bollinger bands, Moving average convergence divergence (MACD), and any other indicator that I am missing must be giving only one signal

GO LONG

And then when the trader goes long thanking the technical indicators, the software that they bought for a few lakhs or paying a monthly fees goes bust (fails) all of a sudden. read more

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How To Avoid Huge Trading Losses

In this post I will discuss some points on how to avoid huge trading losses that most traders suffer almost everyday.

Forcing Yourself To Trade:

This is a BIG Mistake. How many times you have forced yourself into a trade and lost huge money? I am sure many times. And why you do that? To make money or to lose money? If you are losing money then why you force yourself to trade?

Stop Forcing Yourself To Trade

You are in control of trading – neither brokers nor tip providers (if you are taking tips and wasting your money) are forcing you to trade then why you do that on the first place? read more

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This is one of the most common question I am asked by most traders since I started this website in 2015. Is It Possible To Become A Full Time Stock Market Trader?

Read this article to know if it’s possible to become a full time stock market trader. Basically if you are a good trader and making consistent profits then yes its possible. By consistent I mean in 6 months of trading you must be in profit of at least 10%. Which means if you can make over 20% a year you can become a full time trader, else its better to continue your job and trade. read more

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Bad news of PNB, SBI and Union Bank of India, the war between world’s top two largest countries US and China over trade tariff leading to Japan’s Nikkei, Dow Jones and S&P 500 plunging 5-6 percent each will certainly have an effect on our stock markets as well.

Now based on this opportunity market pundits will start telling different stories in business channels and news portals online. Some will say go short Nifty might see 9600 in days to come, some will say go long Nifty will bounce back soon. Whom to listen? read more

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