Bar Chart Definition: Day Trading Terminology
A bar chart is a graph characterized by a vertical bar and it’s used by technical analysts to learn more about trends. In trading, a single bar is used to represent a single day of trading. As one of the most popular chart type aside from candlesticks, it represents price activity within a given period of time.
As a result, traders and investors use this chart type to spot trends and patterns. What you need to know is that a bar chart is similar to the candlestick. The only difference is that the body of a bar chart is not filled like that of a candlestick.
As the western version of the Japanese candlestick, they help investors and traders to observe the contraction and expansion of different price ranges.
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Today I want to talk about a topic that could turn a lot of losing traders into profitable and professional traders. In our pro forum, I keep coming back to this topic quite often because I know about the importance and in the pro area, we have now seen many times that traders who follow this way of thinking, have a better chance of becoming profitable.
Learning vs. making money
I completely understand that this will be a tough pill to swallow but I always think that being honest and having realistic expectations is a key to trading success.
In trading, there is a time to make money and there is a time to study and work on yourself. When you are just starting out, you should not focus on making money and you have to completely detach yourself from the belief that you’ll earn a great living anytime soon.
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This is a post by Mastermind, Bramesh Bhandari. The original post appears here.
If you are a LOSS making trader, answer the below question to yourself honestly.
What is the main Reason for Your Trading Loss? We are running a poll on Twitter Please participate
- Unable to Understand Market Trend as it moves from Sideways to Trending or
- Is it your system or strategy? You are not having the Right Strategy and Losing
- You — By repeating the same mistakes again and again
As per my experience with trading over 12+ years and also talking with 1000’s of traders over a period of time, my understating is
Traders are often their own worst enemies. The simple reason being most of the traders after doing a big loss will turn to charts and try to find their mistake. What I missed in catching this move, should I apply more indicators or should I learn something new to catch big moves etc. Readers can go back to thought process they went once they took a big loss or missed a major rally.
It’s easier to look at charts and imagine what the market might do or find an excuse , compared to turning inward and engaging in self-examination to determine if any changes in your approach to trading are required.
A very simple exercise will make you understand this
Go back to your past traders, highlight the trades where you made maximum losses, analyse all the loss making trades. You will observe over a period of time you have repeated the same mistake again and again. Be It taking an impulsive trade, trying to find top or bottom, not putting SL , taking over-sized position etc.
What would happen if you identified a recurring mistake? Would you do anything differently while trading, as a result? Would you need or use some type of structure or process to assist you in not repeating the same mistake?
The only thing we actually have any control over is our behaviour. The market will do what it will do. If one is truly interested in maximising / improving P&L, then focus on not to repeat your mistakes again. We may not be able to control our emotions, but we can learn to manage them.
Trading Journal is one of the tools which can help you in understanding your mistakes and over a period of time not repeating them.
This is a blog post by Mastermind, Nooresh. The original post appears here.
One can understand the obsession for Day Trading by just doing a Search on Google for the Words like – Day Trading, Intraday Trading Tips, Day Trading Tips and the number of sites that pop up catering to it.
BSE, an exchange in India, mentions itself to be the fastest exchange in the world.
Nifty 50 index is world’s most actively traded derivatives contract: Survey – Link
Majority of brokers have 90 – 96% of their business coming from Derivatives
There are a bunch of Discount Brokers with Rs. 0-20 as broking change.
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