Intraday Trading with Bollinger bands based Strategy-Money Classic Research

Different traders adopt different ways to trade effectively in the Stockmarket. Some traders prefer the intraday trading style and others are interested in short term and long term trading. The intraday trading is accompanied by considerable risks and the trader should have a sound strategy to trade successfully in the intraday trading.

In this article we are going to discuss an intraday strategy with the use of Bollinger bands and candle stick patterns. The Bollinger bands are formed with the moving averages and the Standard deviations across the moving averages. The upper band is formed by the positive standard deviation and the lower one by negative standard deviation.

The Bollinger bands help the traders in several ways by determining the current trend and also the opportunities of trend reversals. An upward sloping Bollinger band indicates an uptrend and the downward facing Bollinger bands indicate a down trend. Also the price movement is seen to be confined in the Bollinger bands. Thus the breakout from the Bollinger bands can be taken as the potential chances of trend reversals. If the breakout from the upper band is observed the trend reversal can occur in the downward side. Similarly if the breakout is observed from the lower band a trend reversal in the upward direction.

The signals from the Bollinger bands can be confirmed by the candle stick patterns. Thus if the reversal is anticipated by the Bollinger bands the reversal candle stick patterns will confirm the trend reversals. Thus if the Bollinger bands indicates reversals and there is doji or engulfing pattern there are high chances of trend reversals.

The advisory firms like Money Classic Research use the strategies like discussed above to generate accurate Stock Market Tips. They provide intraday trading tips and equity tips for the traders with proper Stop Loss.

How to Employ Risk Management and Wealth management while Trading-Money Classic Research

Different people follow different strategies to trade in the StockMarket. A proper trading plan along with a good strategy is the basic inputs for a profitable stock market business.  The tactics of Risk Management and Wealth Management are important for a successful trading plan. A good strategy can be decided by a variety of ways. One can use the Technical analysis to trade in the intraday and the Short term trading styles. There are more than dozen of indicators available to devise the strategy and generate the buy and sell signals.

The strategy once formed needs to be equipped with the principles of risk management and wealth management. The risk management principles aims at minimizing the risks and the principles of wealth management aims at maximizing the wealth. The principles of risk management can be practiced by using Stop Loss tool. The stop loss helps the trader in deciding a proper risk reward ratio. Thus if the risks are kept low and the rewards high a profitable trading plan can be devised. Similar to risk management, the wealth management can also be practiced by proper allocation of the wealth in to various investment options. Also calculations regarding the probability of success in the trades and the overall profits are the integral part of the trading plan.

The new traders can take the help of the advisory firms to trade in the Stock market. The financial advisory firms provide accurate stock market tips in the form of equity tips and intraday trading tips. MoneyClassic Research is one such advisory firm which is reputed and SEBI registered company. Also the company has ISO certifications. The advisory firms provide the buy and sell calls with proper Stop Loss and principles of risk management and wealth management can be practiced using these accurate tips on the Stock Market.

Trading Tactic Using Money Management and Technical Analysis-Money Classic Research

Money Management is an important tactic which can be used in conjunction with the general estimation of the price movements. The technicalanalysis can be used to predict the general direction of the price movement.

For example the following tactic can be used:  

1)  Use the technical indicators like RSI to determine the overbought and oversold levels. The value above 70 will indicate an overbought level and the value below 30 are considered as overbought level. Thus appropriate trend reversal opportunities can be found and buy or sell calls can be placed.

2)    The signals from the RSI should be confirmed with MACD or Parabolic SAR. MACD stands for moving average convergence and divergence. The moving averages of two different periods one small and other big are watched for crossovers. Thus appropriate buy and sell calls can be placed confirmed with both RSI and MACD. Similar to MACD the Parabolic SAR can also be used to confirm the trend and place the buy and sell calls.

3)    Once the buy and sell calls are placed the money management can be used to cover the losses if any. For example if a buy call is placed and the price goes down, a sell call should be placed with increased quantity. Thus if the price continues to go down it will cover the loss and will add to the profit.  The process can be repeated until the trade goes in the trader’s favor. The similar process can be repeated if a sell call is placed in the start.

The above tactics can be used with stock market tips provided by the advisory firms. They provide accurate intraday trading tips and equity tips with proper stop loss. MoneyClassic Research is one such advisory firm which is reputed and is also SEBI registered.

Automation of Bullish Engulfing Candle Stick Strategy-Money Classic Research

Automated trading is a new concept and is a very effective way of Stocktrading. In automated trading a computer is used to place the trades. The buy and sell calls are placed automatically when certain rules are met. The strategy with the entry and exit rules should be programmed with the help of a programming platform.

The rules for the execution of the buy and sell calls should be expressed in terms of various variables and then can be programmed accordingly in the platform. In this article we are taking an example of bullish engulfing pattern in Candle Sticks.

The candle stick pattern is a tool for judging the price sentiments. The price movements in a given period are represented by the candles of different sizes and colors. The size of the candles represents the extent of the price movements and color represents a bullish or bearish candle.

The engulfing pattern is a pattern of trend reversal from bullish to bearish and vice versa. The engulfing patterns are of two types namely the bullish engulfing and bearish engulfing. In the bullish engulfing a small bearish candle is engulfed by a long bullish candle and in case of bearish engulfing a small bullish candle is engulfed by a long bearish candle.

The strategy can be programmed based on the rules like the close of next candle should be higher or lower than the previous candles. Also the entry or exit can be defined based on the previous close or open.

The above strategies are extensively used by the technical analysts in the advisory firms to generate Stock market tips. MoneyClassic Research is a reputed advisory firm which generates equity tips and Intraday trading tips. The advisory firms are also helping with automated trading platforms in form of technological support as well as support on various strategies.  

Trading Strategy Involving RSI and Candle Stick Patterns-Money Classic Research

Different traders have different approaches towards the Stocktrading. Some people follow technical analysis and other follow Candle Stick analysis. There is yet another group where the traders trade on the basis of latest news. In this article we are going to discuss an approach using both Technical analysis and Candle Stick analysis in conjunction with each other. The trading strategy involves the use of RSI and Candle Stick Patterns to determine the buy and sell signals.

RSI is an oscillator indicator. RSI stands for relative strength index and is used to determine the overbought and oversold levels. The buy and sell signals can be placed when the market is an oversold and overbought levels respectively. The value of 30 and 70 are taken as the standard values of overbought and oversold levels.

In case of candle stick patterns the candles are used to represent the price movements in a given time frame. The red candles represent the price fall and the green candles represent the price rise. The shadows of the candles represent the high and low of the price in the given period.

The RSI can be used to see the potential chances of trend reversals. At the overbought and oversold levels the reversals can be anticipated and the buy and sell calls can be placed. The buy and sell signals can be further confirmed by the candlestick patterns. The reversal patterns like doji , hammer etc give the confirmation that the prices are going to return and the buy or the sell signals can be placed.

The strategies discussed above along with many other strategies are used by the analysts in the advisory firms to generate accurate stock market tips. Money Classic Research is one such advisory firm which provides equity tips and accurate intraday trading tips to their clients.  

Important Insights for trading Using Candle Stick Patterns-Money Classic Research

Candle Stick patterns are the best tool for trading in Intraday as well as Short Term Trading styles. In the Candle Stick system the price movements are represented by the candles of various sizes and colors. The Red candles represent the price fall and the green candle indicates the price rise. The candle has a body and the upper shadow as well as lower shadow. The body represents the difference between the open price and the close price of the period of candle sticks formation. If the open price within the period is lower than the close price, it will be represented by the green candles. Similarly when the open price is higher than the close price it will be represented by Red Candles. The Upper and lower shadows indicates the high and the low the price formed during the period.

The important factor of Trading with candle stick pattern is the period of the candle sticks. For the intraday trading generally the time frame of candles is kept near to 10 Minutes or 15 Minutes. On the other hand for the short term or swing trading the time frame is usually a day. It is also possible to analyze both the time frames one longer and one shorter. The longer one will give a broad direction of the price movement and the smaller time frame candle will determine an exact entry for the trade.

The Candle Stick patterns can be used with other indicators like Bollinger bands to confirm the price movements. The above methods are extensively used by traders and even the technical analysts in various advisory firms to provide accurate stock market tips to the clients. Money Classic Research is one such advisory firm which provides accurate tips in the form of Equity Tips and Intraday Trading Tips. 

Important Strategy for Intraday Trading-Money Classic Research

Different people use different types of Strategy for Trading in Intraday market. The technical analysis is an important tool for analyzing the price movements of Stocks in the Stock Market. The concept of trend and supports and resistances are at the core of the technical analysis.

The support is a point at which the market approach from the top and reverse back after touching the levels. Similarly the resistance is the price level at which the market approach from the bottom and touch the level and again reverse and go down. The traders put the buy call at supports and sell calls at resistances. At the support there are chances that the market will reverse and go up and at the resistances the market is anticipated to go down. Thus the supports and resistances can be used to determine the levels at which appropriate buy and sell calls can be placed. In case of IntradayTrading the previous day’s high and low can be taken as resistance and support for the next day.

The support and resistances can be traded with the help of candle stick patterns. If the candle sticks patterns showing the trend reversals are formed near supports and resistances. For example if a doji Candle is formed near the support there are high chances that the trend will reverse. Similarly if the trend reversal candle sticks are formed near resistances there are high chances that the trend will reverse.

The concept of trend is also important in day trading. The trader should always follow the current trend. The trader should trade with the trend and not against the trend. The advisory firms like Money Classic Research also use the above tactics to generate Stock market Tips. Accurate Intraday trading tips and equity tips can be generated using the above mentioned strategies. 

Top Money Mantras from Investment Gurus-Money Classic Research

Stock market is a lucrative Avenue for many traders. But the experience and knowledge counts very much in the Success of the traders. In this article we will discuss the top money mantras and tips from the highly experienced Investment Gurus. Some of the tips shared by the highly knowledgeable and experience traders are discussed below:

Avoid Dirt Cheap Stocks

It is advised to the traders and Investors that they should not invest in very cheap stocks. The reason being the cheap stocks don’t have good fundamentals and they can fall drastically. Thus a investor can lose all his investment if things go wrong in case of cheap stocks. Instead the trader should try to analyze the fundamentals before investing in any stock. The trader should maintain proper tradeoff between the price of the stocks and its fundamentals. It is wise to invest in a Stock which is fundamentally strong with high price than the stocks which are fundamentally weak but are cheap.

Staggered approach of Buying

The traders should try to adopt a staggered approach for trading. That is they should buy stocks at regular intervals. Buying stocks at regular intervals will lead to a Strong long term portfolio to the investor which will benefit him in a long term.

The Focus Should be on Stocks and not on Sectors

Another approach which is stressed upon by the experienced traders is that they should try to focus on the individual Stocks rather than the whole sector. The individual stocks are capable of providing the higher returns that the overall bench marks.

The above are the some tips from the experienced investors. The trader can take the help of reputed advisory firms like Money Classicresearch to get accurate stock market tips. The advisory firms are in the business of providing equity tips and intraday trading tips.

Scalping Technique (An efficient Technique used by Many Traders)-Money Classic Research

One of the most important techniques of trading is the Scalping Technique. The Scalping involves the fetching of Small profits from the small movements in the price. The small movement in the price of the Stocks when added multiple times will fetch sufficient profits. There are many ways to perform scalping. The important ways of Scalping includes the scalping with technical analysis. There is a choice of many indicators which can be used to initiate the buy and sell calls.

The principles of Riskmanagement and wealth management are also very important in doing scalping. A proper risk reward ratio is the most important part in deciding a proper plan so that an overall profit can be generated after a number of trades. The proper Risk Reward ratio can be decided by selecting a proper Stop Loss. The Risk Reward ratio can be 1:1 or can also be 2:1 or any other. In case of 1:1 Risk reward ratio the profit earned is equal to the loss earned. Thus if the trader is following a strategy with higher number of profitable trades than even with some loosing trades the trader will be in an overall profit. On the other hand if the Risk Reward ratio is 2:1 the loss incurred is twice that of profit incurred and there are high chances that the trader will end up in an overall loss after number of trades.

The trend  following techniques are useful in scalping. Thus if the risk reward ratio is proper and the trader is following the trend there are high chances that the trader will incur an overall profit.

The technical analysts use the above mentioned techniques along with many other techniques to generate accurate Stock market tips. The technical analysts generate the intraday trading tips and equity tips based on the technical analysis conducted.  

Different Categories of Stocks in Stock Market (Small, Mid and Large Cap)-Money Classic Research

It is advised to new traders that they should take sufficient knowledge about the Stock Market and once they are confident, only then should start trading with real investments. The investor or trader should understand about the basic categories the stocks are divided into. Also the traders should understand about the major indices available and their significance.

The Indian market is traded on various exchanges and the major are BSE and NSE. BSE stands for Bombay Stock Exchange and NSE stands for NationalStock Exchange. The stocks of major and reputed companies are listed on the Stock Exchange. The major index of BSE is SENSEX and that of NSE is Nifty. The indices mentioned above indicate the current level of Indian market and the levels of indices indicate whether market is trading in the Bullish sentiment or Bearish sentiment. When the pressure of buyers is more than the sellers the market is considered bullish and when the sellers are more than buyers the market is in bearish sentiment.

The Stocks in the stock market are classified in the broad category of large Cap Shares, Mid Cap Shares and Small Cap Shares. The classification is based on market capitalization and the value of the company. The large cap stocks are companies with high market capitalization or high value. The mid cap stocks have medium values and the small cap shares have small value. There are separate indices also available for these different categories of Stocks.

For the trader who are new and are beginning their career in field of Stock Market, they should take the help of financial advisory firms for trading. The advisory firms which are reputed and are SEBI registered like Money Classic Research can be consulted for Stock market tips and other equity tips as well as intraday trading tips. The traders are advised to trade with strict stop loss.   

Candle Stick patterns (A Better Insight on Trading Charts)-Money Classic Research

Different people follow different tactics to trade in the StockMarket. Some of them trade on the basis of technical analysis and other on the basis of advice from various advisory firms. Some traders trade on the basis of News and other on the basis of Candle Stick pattern Analysis. Out of the above mentioned tactics the trading on the basis of Candle Stick patterns is an effective and promising way.

In Candle Stick patterns the price movements are represented by the candles of different colors and different sizes. The candle Stick patterns are drawn for a particular time frame or period. The candles in the candle Stick patterns represent the open price, close price, minimum price and maximum price in a period. If the close price is higher than the opening price it is shown by a green candle. On the other hand if the opening price is higher than the close price it is represented by a red candle. The size of the candle represents the difference between the open and the close price. The more is the size of the candle the bigger is the price movement.

The candle stick patterns of various types give different indications about the market conditions. For example there are patterns like doji, engulfing etc which are potential chances of trend reversals. The doji is represented by a small plus sign and indicates that the bulls and bears are in balance and the trend can reverse. Similarly engulfing patterns are of types bullish engulfing and bearish engulfing. The engulfing represents the potential chances of trend reversals.

The above mentioned tactics are used by the technical analysts in reputed advisory firms like Money Classic Research. The advisory firms provide accurate stock market tips and also accurate tips in form of equity tips. For intraday they provide Intraday Trading Tips with proper Stop Loss levels.

Trading Strategies based on Probabilistic Distribution-Money Classic Research

The stock market is always accompanied with Risks. The risks are more as the market can be in different phases at different times. At times the market is trending and at other times the market is sideways. In trending market also the market can be bullish or bearish. Thus the strategy should be able to deal with all market conditions. It is a known fact that most of the strategies are good for a particular market situation and do not provide that kind of returns in opposing market situations. Thus a strategy which is good for trending market may not be good for sideways market and vice versa.

The probability study is an important tool which can be used to predict the price movements and to devise a profitable strategy. The price movement can turn in any direction and there are equal probabilities of profit or loss in the trade. The probability of winning trades is more when some good strategy is followed. Also the probability of winning trades increases and decreases based on changing market situations. The probabilistic distribution is used to determine the profit which can be earned in particular market situation.

The probabilistic distribution can be used along with the risk management to end up in good profit by making a proper trading plan. The risk management can be employed by using proper Stop Loss. The stop loss can help in deciding a proper risk reward ratio and which will help to limit the total loss after the number of trades.

The above stated strategies are advanced strategies and are best employed using automated trading platform. The above strategy and many other strategies are followed by the reputed advisory firm like MoneyClassic Research and they provide accurate stock market tips. They provide accurate tips in form of equity tips or intraday trading tips.

The best way to decide a profitable Portfolio-Money Classic Research

Trading in the Stock Market is an art. The stock market trading is always associated with certain risks. The trades can turn profitable or can also turn in to loss. The return of investment can also be high or low. Thus deciding a proper portfolio for investment is the most important task in trading in Stock Market.

The long term investment is by far the most reliable and risk free way of investing in stock market. The long term investment requires the trader to buy the stocks and keep them without selling for a long period. The period of the long term investment usually ranges in years. Once a certain appreciation is achieved in the investment the investor can then sell the stocks to achieve a good profit.

The important task in the long term investment is to decide a portfolio which is both risks free and also profitable. An important technique which the investor can adopt is the diversification of the portfolio. That is the investor can choose the stocks from different sectors. Thus in the situation when one particular sector goes down the other sectors can make up for the loss incurred and the investor will end in no loss or small profit.

The fundamental analysis can be conducted to determine the stocks which are worth of investment and can provide good returns in the future. Various ratios are calculated while doing the fundamental analysis and P/E ratio is one of them. Also one can choose the stocks of companies which provide regular dividends to the investors. These companies which provide regular dividends are usually fundamentally strong.

One can take the help of financial advisory firms like MoneyClassic Research which provide adequate advice and stock market tips for deciding proper portfolio. They also provide accurate tips in the form of equity tips and intraday trading tips.  

Trading using the Parabolic SAR and other Oscillator Indicators-Money Classic Research

There are many different indicators which are used for different indications in the technical analysis. The indicators are used to generate equity tips in the form of equity intraday tips. The main indicators are divided in the broad categories of momentum based indicators and oscillator indicators. The parabolic SAR is a trend following indicator and helps to identify the current trend as well as to follow the trend. The parabolic SAR is represented by the dots above and below the price levels. If the dots are above the price levels a down trend has just started or is in place. Similarly if the dots are below the price levels the uptrend has just started or the uptrend is continuing.

The parabolic SAR is used along with an oscillator indicator like ADX or RSI to determine the confirmation of the buy and sell signals. The RSI is an indicator which is used to specify the overbought and oversold levels. RSI stands for Relative Strength Index and this index takes a value between 0 and 100. The lower values specify that the market is oversold and higher value that the market is overbought. The values 30 and 70 are taken as the threshold values. The values below 30 are taken as oversold values and the value above 70 are taken as overbought levels. Using RSI and parabolic SAR confirms the buy and sell signals and there are high probabilities that the trade will be profitable.

Similar to RSI the ADX can be also be used in conjunction with Parabolic SAR to find accurate buy and sell signals. The ADX help to determine the strength of the trend. Thus if the trend is strong and uptrend, the buy trade can be placed. Money Classic Research is an advisory firm which use the strategies like stated above to generate accurate equity tips. 

The Risk Free Method of Stock Trading-Money Classic Research

Stock trading is always accompanied with certain level of risks. The risks involved depend on the type of trading the trader is involved in. The common trading styles include trading in intraday format, or short term and long term trading styles. The risk profiles are different for all these type of trading styles. The risk is considered to be Maximum in intradaytrading and minimum in long term trading. In case of the Short term trading the risks levels are intermediate.

The best way and risk free way of Stock trading is to trade long term. The long term trading in the past has always fetched good profits to the traders and investors.  The long term trading involves the investment for a long term and the period of the long term trading usually ranges in years. To find the stocks which are worth of investment and which can fetch good profits in the future, the fundamental analysis is used. The fundamental analysis involves various ratios like P/E ratios which are used to determine the current worth of the company. Also the company’ quarter and yearly results can be used to understand and forecast the company’s performance in near future.

The diversification of portfolio is another efficient way of reducing the risks and increases the chances of profits. Choosing stocks from more than one sector helps in diversification and will reduce the loss even when one of the stocks in a particular sector goes down. Also choosing the stocks which provide dividends to its investors are good choice of companies for deciding the portfolio.

The companies like Money Classic Research are the advisory firm which provides accurate stock market tips in the form of accurate equity tips and accurate intradaytrading tips. Money Classic Research is an advisory firm which is both SEBI registered and ISO certified.  

Trading Strategy Involving Bollinger bands and RSI-Money Classic Research

Different people follow different approaches towards the Stock market to earn good profits. Some traders use the Technical analysis and others use news as the basis of the trading. The use of the Technical analysis is by far the most favorite and most common way of investing in the Stock market. In the Technical analysis the charts of the price movements are analyzed and the historic data is used to predict the future price movements. The price and volume are the two of the most important entities studied in the Stick market.

There are more than a dozen of indicators used in the technical analysis. The indicators are broadly categorized as momentum indicators and oscillator indicators. The momentum indicators are the trend following indicators and the oscillators are used to show the strength of the trends. RSI and Bollinger bands are both the oscillator indicators. The RSI stands for the Relative Strength index and helps to determine the overbought and oversold levels. The RSI index takes a value between 0 and 100. The values below 30 are considered as oversold levels and the value above 70 is considered as overbought levels. The overbought and oversold levels are the potential chances of trend reversals. The Bollinger bands are formed using moving average and the standard deviations across the moving average. The price moves confined in the Bollinger bands. Thus the breakouts from the upper and lower bands can be taken as the potential chances of trend reversal.

The RSI and Bollinger bans can be used together to confirm the buy and sell signals. The advisory firms like Money Classic Research use the strategies like stated above to provide stock market tips to their clients. They provide accurate tips in the form of equity tips and intraday trading tips to the traders to trade effectively in the Stock market.   

How to Trade the Cash Futures Arbitrage- Money Classic Research

There are many different ways to minimize the risks involved in trading in Stock market. Some people devise the accurate strategies to trade effectively in the Stock market and others use the tips from the financial advisory on various segments of Stock market. In this article we will discuss a risk free method of trading, that is Cash Futures Arbitrage.

The Cash Futures arbitrage is practiced by buying and selling the same entity on cash and futures market. In the Cash market the trader or the investor pays for the current price of the stocks while buying and sell also at the current market price. In case of the futures trading the Stocks are bought and sold at a future date. The prices in context are also future prices. The trader is compelled to square up his position at the end of the contract.

In the Cash Futures Arbitrage generally the Stock is bought in the Cash market and sold in the Futures market. Generally the price of the futures market is more than that of cash market. Thus when the trader buys in the Cash market and sells in the future market, he will lock a definite profit. The difference between the futures price and cash market price is known as spread of the trade. Thus when the price fluctuates and when the gap or spread decreases the trader can square up his open positions and   can lock in the profits. The trader can also square up the positions when the contract expires. On the expiry the price of the cash market and the futures market converges and thus can lead a definite profit.

The above strategies along with many other strategies are use by the technical analysts in the advisory firm. Money Classic Research is one such advisory firm which provides accurate stock market tips in the form of equity tips or Intraday trading tips.

The major Segments in Stock Market Trading (Cash, Options and Futures)-Money Classic Research

The three important segments in which the traders can trade in the Equity markets are Cash Segment, Futures Segment and Options Segment. In the Cash Segment the traders pay for the current price of the stocks listed on the Exchange. The stocks are bought and sold based on the current market price of the Stocks. Also the market price of the stocks on the exchange continuously fluctuates. This is due to the change in the demand and supply for the stocks of the company. For example if the demand of the stocks of particular company increases so will the price will increase. Similarly if the demand of the Stocks of a particular company decreases the price of the stock will go down. This process will go on endlessly.

In the futures segment a contract is signed between the buyer and seller to buy and sell on a future date. The prices involved are also future prices. The prices of the future contract also changes due to change in the demand and supply. In case of options the put and call can be purchased. One gets benefitted from the Put when the market goes down and gets benefitted from call when the price goes up.

With the above all segments the trader can opt to trade in the Intraday, Short Term and long term styles. The Risk Profile is different for the three trading styles. With the intraday trading as having the maximum potential risks and the long term investments having minimum risks. The new trader can take the help of some financial advisory firm like Money Classic Research which is reputed and also SEBI registered and ISO certified. The advisory firm Money Classic Research provided stock market tips in the form of equity tips and Intraday Trading tips. Money Classic Research has been serving its clients satisfactorily for many years now.

Trend Following Strategy with the Help of Technical Indicators-Money Classic Research

There are many strategies which the traders follow to trade in the Stock market and incur good profits. The use of Technical analysis is by far the most effective way of trading in the Stock market. For the beginners who don’t have sufficient experience in the Stock market and are beginners can adopt some simple strategy like Trend Following strategy. The trend based strategy is based on the fact that the trend arises due to some market sentiments and there are always reasons due to which the trend arises.

There are only three types of Trend Conditions. The uptrend, the down trend and the flat trend are the only three conditions in which the market can fall. The important concept of the trading with the trend is to take the position so that the trader can buy low and sell high. Buying low and selling high will lead the trader to incur a definite profit based on the price difference between the buy and sell levels. Thus if an uptrend is in place the trader can first buy and then sell so that the trader will incur a profit. Similarly if the down trend is in place the trader can sell first and buy after that to incur the profit. Selling first and buying subsequent to that is considered as short selling.

There are various technical indicators which can be used to gauge the trend. The common ones are moving averages. The moving average helps to know the current direction of the trend. If the moving average is sloping upward, it is considered as uptrend. Similarly if the moving average is sloping down ward it is considered as down trend.

The above techniques are also followed by the technical analysts in the financial advisory firms to provide stock market tips to their clients. The technical analysts provide accurate tips in the form of equity tips and intraday Trading Tips.