BLOGS By EXCEL STRATEGIES

What A Good Stock Market Course Should Teach...?

It happens almost everyday that we get a lot of queries from our students and many traders who have suffered use losses in the stock market because of incomplete knowledge.... it really hurts us when we see negative messages from people that have suffered use losses and come to us with all the negative statements with the hope that we will help them...
We feel very privileged that people show interest & Faith in us..

In this blog we will try to address all the important strategies concepts and techniques that a Good STOCK MARKET COURSE should cover so that people are able to become self independent successful trader in stock markets...

It is a common misconception that stock market trading is only about strategies however stock market trading is not only about strategies it is a pout five major things that are listed below:

1. Selection of momentum stocks: we all know that a good strategy will be able to work and make money only if the stock that we have chosen is in high Momentum is somebody is trying to trade with the same strategy but on a stock that is not meant to go up or maybe someone who has below average fundamentals with their bad balance sheet and an organised management then that strategy cannot make money on that stock.
We have seen many time this is the big major problem that most of the traders and they simply go for this strategy and do not considered the Stock on which they are applying this strategy.

2. Working With Hi expectancy proven strategy: once you have recognised a good stock then you have to look for a good entry point along with the right stop loss area and the right targets. We have to understand that a good strategy always have a good positive expectancy that is when we know that random buying fetches us a 50% win rate so all you have to do is have strategy that can give us more than 60 to 70% win rate.
There are four important points that started should offer first is the entry point second is this stop-loss area III is the target area and forth is the trailing technique.
When we say area then and we obviously mean to say that there are not specific and exact entry and exit points it is always the area because market sometimes have random movement and those who are trading continuously in the stock markets they know that that is why there are always the areas where we have to put our stop loss and our target and there is not a single exact level that works every time perfectly.

3. Risk Management: everyone knows that once you have a good stock with you and you have a hi expectancy strategy to enter and exit in the stock you will not win till you have a good risk reward ratio always in place. What that simply means is that if you are winning a small amount and you are losing a big amount even if you have a good accuracy then also you will not make money because you are earning a small amount when you are right and you are losing a big amount whenever you go wrong in fact we have to do the opposite way that is we have to make it big when we are proven right and the stock moves in our direction and we have to come out with a small stop loss if we are proven wrong.
That is we need to have a good risk to reward ratio always have small stop loss and a high target.
However this risk to reward ratio may vary from person to person and in the time frame that you are trading in only for intraday we go for one risk and 1.5 reward. When we go for swing trading we usually go for one risk and two or three reward. When it comes to investing we have the highest risk to reward ratio because in investing we keep on holding the stock and it can even give us 10 reward or even 20 times the Reward.

4. Position sizing: this is also another very important point once we have decided on the momentum stock that we are about to trade in in after we have decided the strategy that is our entry stop loss and target points. After we have decided the risk to reward ratios, then comes a very important point of deciding the quantity that we are about to take not everyone can take the same quantity because everyone has different portfolio size you need to decide that how many number of shares one should take in the equity market for how many shares you need to take Indane today for investing... if you are trading in future and option then you need to decide how many lots you have to trade in futures or how many lots you should buy or do in option selling position sizing is all about the quantity that one should have according to his own portfolio size and trading psychology if you are not confident about the the trade then you should be having only half or even less quantity that even your portfolio allows. If someone has a Portfolio of 10 lakh Rupees then Ideally he should not be receiving more than 2% of his portfolio in each trade that is he should not have a stop loss of modern 20000 rupees per trade.

5. Hedging Techniques: this is probably one of the most important points which 99% retail traders don't even know about. Just like any other investment you should always safeguard your trades in the stock markets. For example once you bye bhai ek are you always have its insurance before you take it on a highway so that if any accident happens you are able to manage the accident... similarly whenever you risk your money in stock markets you should always have an insurance. We have seen that there are many ways to do hedging in stock markets but the best way is through options because options are the only risk management tools we will be making a separate block where we will teach how hedging works and what exactly needs to be done when it comes to taking insurance in stock market. This is another important aspect that every Stock Market Course Must cover.

All the above mentioned points are very very necessary and should be considered with 100% discipline before you take the first weight or before you risk your first hard and money in the stock markets.

We will be coming up with more search blogs to help the retail traders gain complete knowledge and exact professional strategies concepts and techniques that are used by Pro traders to make consistent money from stock markets.

Signing Off,
Excel Strategies