Overall performance of week 23-27 Aug 2021

Lets dive dip and analyze our trade for the whole week and see where we stand by end of this week.

Education:

1. Started with 20,50,100 SMA: This is average of 20, 50 and 100 days simple moving average of price of that stock. As per my learning if a stock is in sequence of 20, 50, 100 and price then we should buy the stock and as soon as the stock sequence becomes price, 100, 50, 20 we should sell the stock.



2. Bollinger band: Best for trades in a volatile market. What it says is if a stock is getting consolidated between upper band, 20 SMA and lower band. It will break out to any one band for atleast 3 to 5 time. We can buy at breaking point of bollinger band and sell after 3 to 5 candle. 


3. Price action: Price at which stocks either resist or take support. We should always trade accordingly. Pivot indicator can be used for such analysis.


4. RSI: Relative Strength Index. This is a momentum indicator in the market. Mostly I have seen this analysis failing but let me put my learning. If at the same price momentum is increasing this means the trade is going to rise and vice versa. I have modified my indicator low and high to 40 and 60 respectively. Note: Use this with some other indicator to be effective, but personally I have never seen this working for me.


Figures:

At the start of my trade on last Friday I had transferred 10K in my account and today I am at 5000 in my Angel Broking account so I will count 5000 loss here plus from my first 3 earning I was able to transfer 1K and 2.5K in my bank account so this will be profit.
Overall 5000 - 3.5K = 1.5K loss (Huge to take)

Conclusion

Overall this week was a lot of learning and less learning. I am happy that I am still here and willing to trade going further, but only thing is that I will have to stick to my rules and make this happen.

GOAL:
Learning: Basics of market from CA Rachna Ranade YouTube videos.
Financial: Goal for next week is to earn 100 rupees after brokerage. So that I get some motivation that I can make this figure grow continuously .

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