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Head and Shoulders

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A three-peak formation where the middle peak (head) is the highest, while the side peaks (shoulders) are lower. This pattern signals a potential trend reversal from an uptrend to a downtrend. It forms after a strong bullish trend, and a breakout below the neckline support confirms the shift to bearish momentum. Significance Suggests that buyers ... Read more

Option Strategy Table Summary

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Sl.No. Strategy Name Market Outlook Primary Objective Risk Level Profit Potential Loss Potential Strike Price Selection How It Works 1 Covered Call Moderately Bullish Earn premium while holding stock Low Limited Limited OTM – Sell OTM call above current price. Sell call against owned stock to collect premium. 2 Bull Call Spread Moderately Bullish Profit … Read more

Rolling Straddle Hedge

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The Rolling Straddle Hedge strategy involves: Building multiple Straddles using deep In-the-Money (ITM) Call & Put options across different expiries & strike prices. Adding more contracts at different deep ITM strike prices to manage risk and lower the breakeven point. Rolling positions forward to later expiries to extend the hedge and mitigate time decay losses. ... Read more

Cryptocurrency Trading

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Cryptocurrency trading involves buying, selling, and exchanging digital assets like Bitcoin, Ethereum, and altcoins to profit from price movements. Unlike traditional markets, crypto operates 24/7, offering high volatility and frequent trading opportunities. Key Points: Traded on exchanges like Binance, Coinbase, and WazirX through spot or derivatives markets. Driven by market sentiment, regulations, and blockchain innovations. … Read more

Copy Trading (Social Trading)

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Copy trading allows less experienced traders to replicate the trades of professional traders automatically. Key Points: Used in Forex, Crypto, and Stock Markets. Works on platforms like eToro, ZuluTrade, and Tradetron. Example: A trader subscribes to a top-performing Nifty trader on a copy-trading platform and automatically mirrors their trades.

Arbitrage Trading

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Arbitrage trading involves exploiting price differences of the same asset in different markets for risk-free profits. Key Points: Common in futures vs. spot market, options pricing, and cross-exchange arbitrage. Requires fast execution and large capital. Example: A trader buys Nifty Futures at 21,800 on NSE and sells it at 21,820 on SGX (Singapore Exchange), making ... Read more

Algorithmic (Algo) Trading

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Algo trading uses automated systems to execute trades based on pre-defined conditions, reducing human emotions in decision-making. Key Points: Uses high-speed computing and mathematical models to trade. Includes High-Frequency Trading (HFT), where trades are executed in milliseconds. Common in institutional trading and hedge funds. Time Frames Used: Milliseconds to minutes for HFT 5-minute (M5) to … Read more

Bottom-Up Approach

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The Bottom-Up Approach focuses on analyzing individual companies first, rather than starting with macroeconomic or industry-wide trends. This method is based on the belief that a well-performing company can outperform its sector or even the broader market, regardless of economic conditions.  Steps in the Bottom-Up Approach Company Analysis: Analyze financial statements, revenue growth, profitability, debt ... Read more

Top-Down Approach

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The Top-Down Approach begins with a broad analysis of macroeconomic factors before narrowing down to specific sectors and finally selecting individual assets (stocks, commodities, or currencies). It is based on the idea that overall economic conditions significantly impact the performance of industries and companies. Steps in the Top-Down Approach Macro-Economic Analysis: Analyze global and national ... Read more

Swing Trading

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Scalping is an ultra-short-term trading strategy that focuses on capturing small price movements within a very short time frame, often lasting seconds to minutes. Scalpers aim to make dozens or even hundreds of trades per day, accumulating small profits that add up over time. Since scalping relies on quick execution and low spreads, it is ... Read more