Reblog | StockArchitect

Reblog: How To Use The Reward Risk Ratio Like A Professional

The reward to risk ratio (RRR, or reward:risk ratio) is maybe the most important metric in trading and a trader who understands the RRR can improve his chances of becoming profitable.

A trader who uses the RRR incorrectly will never become profitable on the other hand. In this article, I will show you what you need to know about the RRR.

Busting myths around the reward:risk ratio

Let’s first tackle some of the common misconceptions about the RRR to help you understand what most people get wrong before then diving into the specifics of the RRR.

Myth 1: The reward:risk ratio is useless

You often read that traders say the reward-risk ratio is useless which couldn’t be further from the truth. When you use the RRR in combination with other trading metrics (such as winrate), it quickly becomes one of the most powerful trading tools.

Without knowing the reward:risk ratio of a single trade, it is literally impossible to trade profitably and you’ll soon learn why.

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stockarchitect February 12, 2018

Risk Management / risk reward ratio / Statistics / Tradeceity / trader / Trading /

Reblog: Aster DM Healthcare IPO Review

Aster DM Healthcare Ltd. (Aster) is one of the largest private healthcare service providers which operate in multiple GCC states based on the number of hospitals and clinics and an emerging healthcare player in India. GCC states that comprise the United Arab Emirates, Oman, Saudi Arabia, Qatar, Kuwait and Bahrain. It also operates in Jordan and Philippines. Aster is having operations in different verticals and geographies. It has already started work for 10 new hospitals, 5 in GCC states and 5 in India. Although it has a larger portion of revenues coming from GCC states, due to India based company, it has registered office in the southern region and is mulling listing in India. Asters hospitals in India are located in Kochi, Kolhapur, Kottakkal, Bengaluru, Vijaywada, Guntur, Wayanad and Hyderabad. These are operated under “Aster”, “MIMS”, “Ramesh” or “Prime”, “Aster Aaadhar” and “Aster CMI” brands. Its clinics are located at Kozhikode, Eluru and Bengaluru. As of 30.09.17 the company had 17408 employees including 1417 full-time doctors, 5797 nurses, 1752 paramedics and 8442 other employees. In addition, it had 891 “fee for service” doctors. Aster has a diversified portfolio of healthcare facilities, consisting of 9 hospitals, 90 clinics and 206 retail pharmacies in the GCC states, 10 multi-specialty hospitals and 7 clinics in India, and 1 clinic in the Philippines as of September 30, 2017. Overall currently it has total 323 operating facilities.

Majority of Aster hospitals and clinics provide secondary and tertiary healthcare services to patients. In addition to providing core medical, surgical and emergency services, some of its hospitals provide complex and advanced quaternary healthcare in various specialties, including cardiology, oncology, radiology, ophthalmology, neurosciences, pediatrics, gastroenterology, orthopedics and critical care services. Aster had plans on the table for more large hospitals in metros of India before the budget, but now it mulls affordable hospitals in tier –II and tier- III cities and in rural areas. No plans have been firmed up so far in this regard.

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stockarchitect February 12, 2018

Aster DM Healthcare / Chittorgarh.com / Dilip Davda / IPO / IPO review /

Reblog: Buy To Cover Definition: Day Trading Terminology

Buy to cover is an order type made against a stock with the purpose of closing an existing short position. Traders are required to place the buy order with a broker so as to fulfill the requirements of a margin call or to close a position for a profit.

Short selling is the process of borrowing shares from your broker to sell in the open market with hopes of buying them back at a cheaper price. By initiating a buy-to-cover order, the trader is able to cover the short sale allowing the shares to be returned to the rightful lender.

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stockarchitect February 7, 2018

Buy to close / marging call / warriortrading.com /

Reblog: Overbought, Oversold, and Oscillators

Overbought and Oversold

Many pundits out there throw out the words overbought and oversold when it comes to stocks or the major stock indices. Is there a way to keep track of overbought and oversold?

Oscillators

There are many technical indicators (special indicators by looking at the stock charts) to help determine oversold and overbought conditions. Oscillators are the most popular. At one point, a stock (or index) is overbought, and then at another point, it oscillates back to oversold.

S&P Oscillator

One popular Oscillator is the S&P (Standard and Poors) Oscillator, which is a proprietary Oscillator. In Jim Cramer’s ‘Real Money: Sane Investing in an Insane World’, Jim Cramer mentions the proprietary S&P Oscillator as one way to spot a market bottom. He says that it costs around $1000 to subscribe.

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stockarchitect February 5, 2018

bottom indicators / market bottom / oscillators / overbought / oversold / SPX oscillator / stock investing / Stock Market / stock market correction / The Tech Farm /

Reblog: Union Budget 2018: Key takeaways and sector-wise highlights

New Delhi: Finance Minister Arun Jaitley delivered the current government’s fifth and last full financial budget (Budget 2018 for the fiscal year 2018-19) amid subdued economic growth, challenging fiscal situation and farm distress.

While a budget covers a plethora of items and heads, the mix can leave a lot of people confused. This budget is rendered all the more important as there are elections coming up in eight states this year and the Lok Sabha election next year, all of which put tough demands on the Finance Minister.

India is the world’s fastest-growing economy, said the Finance Minister as he announced the Budget. He lauded the govt’s moves to contain black money and encourage tax formalisation. Batting for GST, he said it ensured tax simplicity, demonetisation paved the way for a digital economy.

“When the Narendra Modi government took over, India was considered to be one of the fragile five economies of the world. Our government reversed the trend,” Jaitley said.

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stockarchitect February 2, 2018

2018 / Arun Jaitley / Budget / Capital Gain / Customs Duty / Disinvestment / Dividend / Economy / Income / LTCG / Tax / Union /

Reblog: Why Having A Trading Routine Is Vital To Your Success

I think we can all agree that habits are what determine our success or failure in any endeavor, trading included. So, how do we go about developing the type of habits that will lead us to profitable trading?

The answer: Routine.

Proper trading habits do not just magically appear out of thin air (unfortunately). They can sometimes take years to form. However, luckily for you, you have the power to put into motion a plan that will bring forth the proper trading habits sooner than otherwise possible. The development of positive habits, the ones that lead to success in any field, is something you can make a conscious effort to achieve simply by implementing consistent daily routines.

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stockarchitect January 31, 2018

charts / Day Trader / Day trading / Discipline / Investment / learntotradethemarket.com / Nial Fuller / Resistance Level / Routine / trader / Trading /

Reblog: 50 Day crossover study

Homeserve weekly chart

I’m on holiday in Cornwall for a few days having completed a marathon yesterday in just under 4 hours, so I’m away from the charting software I use every day.

So, I thought I would share one of the charts I’ve used previously and just talk a little bit about one of the indicators that’s a really simple one to follow but actually when user with other indicators can be really very strong.

Take a look at the 50-day line in black and the 200-day line in orange and see how they can influence a profit from September 2014.

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stockarchitect January 29, 2018

50 Day Crossover / bournetotrade.com / Daily Cross Over / Ian Bourne /

Reblog: Galaxy Surfactants IPO review

Galaxy Surfactants Ltd. (GSL) is India’s one of the leading manufacturer of surfactants and other specialty ingredients for the personal care and home care industries. Its products find applications in a host of consumer-centric personal care and home care products including skin care, oral care, hair care, cosmetics, toiletries and detergent products. Over the years, GSL has significantly expanded and diversified its product profiles, client base and geographical footprints. Currently, its product portfolio comprises over 200 grades which are marketed to more than 1700 customers in over 70 countries. GSL is supplying its products to FMCG companies in India such as Cavinkare Pvt. Ltd., Colgate Palmolive, Dabur India, Henkel, Himalaya, L’OREAL, Procter & Gamble, Reckitt Benckiser, Ayur Herbals, Jyothy Lab and so on. It is exporting its products to Africa Middle East Turkey, Asia Pacific, Americas and Europe FMCG giants. To meet global demands, GSL has established step-down subsidiaries and manufacturing facilities is Egypt and USA. GSL has at present strategically located 7 manufacturing facilities out of which 5 are in India and 2 located overseas. It has registered 47 patents since 2002 and 38 patent applications pending. GSL’s products find applications across “mass”, “mass-tige” and “prestige” range of products and is the most preferred supplier to leading brands.

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stockarchitect January 29, 2018

Dilip Davda / Galaxy Surfactants / IPO / IPO review /

Reblog: How to Trade with Candlestick Charts Like a Pro

WHILE everyone is used to seeing the conventional line charts found in everyday life, the candlestick chart is a chart variant that has been used for around 300 years and discloses more information than your conventional line chart.

The candlestick is a thin vertical line showing the period’s trading range.

A wide bar on the vertical line illustrates the difference between the open and close.

Note: The daily candlestick line contains the currency’s value at open, high, low and close of a specific day.

The candlestick has a wide part, which is called the “real body“.

This real body represents the range between the open and close of that day’s trading.

When the real body is filled in or black, it means the close was lower than the open.

If the real body is empty, it means the opposite: the close was higher than the open.

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stockarchitect January 24, 2018

Black Spinning Tops / Candlestick / Dark Cloud / Doji / Doji Star / Dragonfly Doji / Evening Star / Gravestone Doji / Hammer / Harami / Long Black Day / Long White Day / Long-Legged Doji / Morning Star / Piercing Line / Short Black Day / Short White Day / Support / White Spinning Tops /

Reblog: What is Gap Trading?

When trading, one cannot overstate the importance of gaps.

Gaps refer to areas on a chart where the price of a currency or stock moves sharply up or down with little or no trading in between. As this area represents an abnormality in the normal price pattern of the stock / instrument, it gets referred to as a gap.

So of what use can a gap be to an investor? Because the tiny area represents a fluctuation in the pricing, a trader can potentially exploit the gap and make a profit.

Gaps occur as a result of underlying fundamental / technical factors that vary for each stock or instrument and require monitoring and knowledge by the investor.

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stockarchitect January 22, 2018

Breakaway / Common / Continuation / Exhaustion / Gap / Gap Trading / Gaps / markettraders.com / trader / Trading /

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