Stock Market report weekly

Stock Market report weekly

Stock futures October 15, 2022

 Stock Market report weekly

report

 

 Welcome to stock market outlook blog. 

What an amazing week this has  been for the market stock specified action continued volatility was really high . We already discussed October is going to be a gap month. Every day market is either gapping up or gapping down. Anything for short term is very difficult to analyze. 

Market trajectory will be up. Periodic corrections will continue . Short term concerns in the market is now over yet we are gapping up, gapping down this kind of cray volatility will continue 10 to 15 percent correction in the market will go like this.

US Stock

 US Stock market yesterday saw lot of recovery mainly because they been oversold so much . Short positions in US stock market is at record high and same with Indian market. So this kind of crazy market environment is simply going to continue and that is what is making this market very difficult for traders to participate in and I don't think this is going to improve we think will improve first or second week of January.

We will update about this a time progresses but that is what we can know our best educated analysis that this volatility cycle will end somewhere in second or third week of January of 2023.

 We will share couple of things today . In this market last couple of weeks we discussed few stocks . This is a market where stop loss have to be deep and position size has to be small. Position size = Risk per trade/(entry-stop loss).We are not in that market cycle where after the breakout happens price will simply keep trending higher. For that kind of market we think there is lot of time for that kind of market.

Indian Stock Market

In current market we will seeing a lot of volatility stock specific actions will continue . In fact in this week markets have been so volatile and still the stocks we discussed none of these stock violented their range structure. Volatility within that structure has been immense .

Have a look at India cement it is very volatile . Very good stock at good price trading in range it is not violating's it range so far in this volatility . If your position size is small we are not concern about the volatility where the stock will move 17 or 20 percent downside due to volatility.




On weekly chart in medium term our stock market still in consolidation structure till the time global market improve its overall structure. Of course there has been one consideration that global market fall 20% we are falling 10% its not like we will continue outperforming but broadly structure of our market is not negative or structure . Or medium time structure is still fine. IN short term anything can happens and we don't want to change our short term view just because market just move up Friday. 

Build your positions gradually. Massive volatility will continue. Avoid getting shaken our die to incorrect position size. For upcoming we sill se lot of volatility if you are afraid of volatility stock market is not for you .

Mistake in stock market

 The biggest mistake in stock market is that we assume whenever we but position we think that it will move up always. But what actually happens  market takes lot of path . We saw a vertical rise in 2021 . But mainly when we buy stocks market will move against our positions it will move in and out in and out to . It will breakout mentally and when your exit your position or may be few months the same stock will up 100%. This is what stock market is that is why we tell all our readers get rid of short term type of mentality .

If  traders takes trades without any data points all retail investors will become poor in the next 10 years. People are crazy about tv anchors, indicators, their stock market gurus, social media it is all making fool of retail investors. If tv anchor says nifty has resistance at 17100 many retail investors take their short positions at 17100 . Next day market move against them by 200 points. The same anchors give your the other explanation why it moves up.

We have created our trading system all data driven and back tested check the result. If retail investors continuous to listen to anchors, news and do trading based on their recommendation they will become poor every day. Pay for small amount of money for our efforts save your capital because this stock market system is designed to loose money in 90 days . 

Myth spread by the stock market educators to retail traders

  1. Day trading always works but it is not true they teach you this because it will provide guaranteed trading volume every day to the broker and commission to the educator who introduces you to the broker. Conflict of interest.
  2. It is better to not have overnight risk close your position at the end of the day but the truth is it will double their commission if retail traders follow this.
  3. You can earn monthly income from trading in the stock market - educator teaches you this because they want you to trade daily and generate guaranteed monthly income for himself because you trade daily educator will get commission daily.
  4. Psychology is the most important thing in trading the educator teaches you this because if you start losing money, of course, you will lose the money you will start blaming your mind not his education.

  5. The 90/90/90 Phenomenon

    1. It says 90% of the retail traders lose their 90% capital within 90 days.
    2. The broker provides you the leverage  of 40x 
    3. If you lose 2.5% with leverage you will blow your account by 100% in a single day.
    4. What if the broker takes the opposite side of your trade
    5. The broker always wins with 90% success ratio.
    6. Your objective is to make money but the broker objective is to take your money
    7. The infrastructure is built not for your benefit. It is built for the broker benefit

There take your trade based on data driven system back tested for 12 month. Check the data by yourself. 





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