Perfect Approach That Every Trader Must Know About
Different people have different approach towards the stock market. The basic stock exchanges in India are BSE and NSE. BSE stands for Bombay Stock Exchange and NSE stands for National Stock Exchange. The common indicators which are bench mark indicators are Sensex and Nifty. Many people have Nifty as the favorite index to trade in. People follow different strategies to trade in the Nifty Section. One of the important strategies to trade in the Nifty is to track the SGX nifty. SGX Nifty is the index traded in the Singapore exchange. The SGX Nifty is traded in the morning hours and provides a good indication of the market direction in the morning. Thus if the SGX Nifty is found to trade in the positive direction with good jump the Indian market are also expected to trade in green region. Similarly if the SGX Nifty is seen to be trade in the negative direction the Indian market will also open with a negative bias.
There are many important strategies which are followed to trade in the stock market. The market can be bullish, bearish or it can be sideways. Thus there are different strategies which can be followed in different type of market conditions. The strategy which will work in bullish market will not work in the bearish market. Similarly the strategy which will be proper for trending market will not work in the sideways market.
The trend strategy is the simplest and followed by many stock traders. There are three types of trends, namely the uptrend, the downtrend and the flat trend. The trend trading is done by following the trend. Thus if a uptrend is seen a buy call should be placed. Similarly if a down trend is seen, a sell call should be placed. The probability of a trend continuation is assumed to be more than trend reversals. Thus it is always advised to trade with the trend and not to trade against the trend. The trend trading is based on the basic principles of buying low and selling high. If the uptrend is in place, the buy call is placed so that if the trend continues it will lead to a higher price and then the sell can be placed to achieve the profit. Similar situation follows in the down trend when the sell trade is placed before the buy trade.