How To Set Up Platform for NSE/BSE Trading & Investing
The quest to become the ultimate share market trader is not only limited to your knowledge but also affected by the trading station you resort to. With the advancement in technology, it becomes all the more necessary to have a decent trading setup to get an edge over others while trading.
Understand the importance of Candlestick Charts
For day traders, prices of stocks play a highly important role which makes the use of candlestick charts a necessity. Candlestick charts are the type of financial charts that represent changes in the prices of stocks, derivatives or currency. As a matter of fact, all experienced traders tend to rely more on such charts instead of line graphs.
Selection of a time Frame
An individual chart represents the prices of a stock in a given time period. For better decision making and analysis, it is important that you select a time frame that is neither too long nor too short. It is recommended that you study the charts on a daily time frame basis.
Selection of volume bars
Volume bars are the charts that represent the number of stocks traded in a given time frame. Volume bars are equally important in setting up your trading station.
Indicators are the derived results and calculations that revolve around the prices or the fluctuations in the prices of stocks and are used for predictive purposes. They help us study the prices of a given security, reduce risk and decision making. Here, we take the help of moving averages. They are of three types, the 20 simple moving averages, the 50 SMA and the 200 SMA and each of them represents the trends of stocks for 20, 50 and 200 days respectively. Daily Chart 1. 20 SMA 2. 50 SMA 3. 200 SMA
Additionally, It is advisable that you use multiple monitors so that you have access to multiple sources of information at the same time. An average of 2 or 3 monitors will provide you with an edge while trading.
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