Thursday, April 16, 2009

Price Vs Volume

How should one apply Price vs. Volume change for predicting market behaviour?Technical Analysts believe that price and volume are closely related. There are four rules for Price vs. Volume change:

1. A rising index with an increasing volume will indicate a bullish market and a "buy" signal as it reflects unsatisfied demand in the market.

2. A falling index with decreasing volume shows a bullish signal.

3. When volume tends to increase during index declines, it is a bearish signal.

4. When volume tends to decrease as the index rises, it is a bearish signal.

Sunday, April 5, 2009

There are few traits of good trader

Humility – Getting your ego out of the game
Discipline - stick to your own system
Vigilance – Protecting your capital
Courage - fears are heavy burden to carry through life
Realism - you have control over yourself but you don’t have control over the markets.
Perseverance – trading winners are very rarely born, they are developed.
(So you can become a good trader)
Focus on being - the result of your trading all begins and end with you, the captain of the ship

You are the master of your destiny
Never try to impose your will on the market.
Develop your trading systems, trading style