Along with ‘What to Buy’, you must know ‘When to Buy’. Here are the top 5 strategies you can use.
- Buy the stock only when RSI crosses above 30 levels. (Success Rate: 90%)
2. Use the combination of 9 Day EMA and 21 Day EMA for most profitable trades. (Success Rate: 85%)
3. Always use MACD to identify the trend. (Success Rate: 90%)
4. Use Bollinger Bands to identify the ‘Bounce Back Price’ to get in.
(Success Rate: 60%)
5. For 90% successful trades, use Death Cross and Golden Cross. (Sucess Rate: 95%)
See detailed analysis in my previous answer: here
A Brief about Technical Analysis: The technical analysis comprises of Candlestick charts, different indicators to find out the stock current trend, entry points, and exit points. Different strategies and indicators for daily trade mechanism.
The investor should have an appropriate understanding of risks, both implicit and explicit: Perhaps investors can best prepare themselves to manage their money efficiently and build their net worth by getting a firm grasp of financial history. Investors can also acquire an understanding of the human psychology that influences the buying and selling decisions of individuals. This will improve their chances of avoiding mistakes that could impair their wealth-building process.
Technical Analysis is also an important component of disciplined trading. Discipline helps mitigate the nemesis of all traders, namely, emotion. As soon as you have money in the market emotionalism is in the driver’s seat and rationale and objectivity are merely passengers. If you doubt this, try paper trading. Then try trading with your own funds. You will soon discover how deeply the counterproductive aspects of tension, anticipation, and anxiety alter the way you trade and view the markets–usually in proportion to the funds committed.
Technicals can put objectivity back into the driver’s seat. They provide a mechanism to set entry and exit points, to set risk/reward ratios, or stop out levels. By using them, you foster a risk and money management approach to trading.
A short-term trader that uses technical places the capital on risk only in the presence of opportunities but otherwise preserve it. Trading stocks on the basis of technical analysis allow the trader to maximize profits while simultaneously limiting risks by following a solid plan of action.
Suggestion: Never use high brokerage demat account as your quick profits will be eaten by them. Use zero brokerage demat account. I personally use Upstox because of its interactive interface.