Trading !! what is it !! Example of Reliance

Hi all , I am going to Pune for 10 days and will not be posting any article for next 10 days . See you all after 10 days . Read the post now :

What is Trading ?

I see many people who want to try there hands in trading .

Trading means buying and selling something with a short tenure in mind . Short tenure can be day , week or months . You can trade Stocks , Derivatives like Futures or Options or you can try out Commodities or currencies too .

The sad part is that many people just enter this trading business without much preparation and knowledge and burn there hands like anything . they continue loosing money every day , week , month and cant figure out why they are loosing .

Understand some things :

Trading is a profession , and its highly rewarding in every ways . BUT !! , Trading is one of the hardest thing one can ever attempt . trading is simple but not easy . It takes years for one to master it and become successful as a trader .

If you are trying to learn trading and want to do this in your life . I can suggest somethings :

- Start Learning about markets and do it for at least 1 year (not 1 month)
- Learn Technical Analysis and try to do some analysis on your own .
- Read good books and make sure you have read it really well .

Once you have done this . Then you should paper trade for some time ,may be 2 months . After you have paper traded and can see that you can trade well on paper , then start with small money (you must be ready to loose this money) … Do some real trading with this money and see how you perform .

Trading is a highly rewarding and satisfying profession . You can earn good money and you are your own boss . Trading can be fun and challenging . But Trading is the most challenging and highly risky profession one can attempt as i already said .

I have put up a simple Technical Analysis Example for Reliance , It discusses buying or selling Signal for Reliance in coming days. You can see it here

Why Technical Analysis ?

Technical analysis helps in taking much better decisions for buying and selling . Its a must for short term traders , however it also helps people who have longer time horizon , With Technical Analysis you can maek better entries , exits and manage your decisions well .

Some reading Material for people who want to learn technical Analysis is here

1. http://www.investorsintelligence.com/x/why_technical_analysis.html

2. http://www.cmsfx.com/en/forex-education/online-forex-course/chapter-3-technical-tools/technical-analysis/

3. http://www.informedtrades.com/trades.php?page=freetradingcourses (this is very detailed one)


Thanks
Manish