If you are new to share market you’re likely to hire a share trader to manage your investment, then you probably hire of their sales pitch. From those who guaranteed maximum profits other who say to take a large risk that can deliver high returns. Of all things, they will tell you things they only want you to know. Therefore, it is imperative to learn to share the market. As learning empowers individuals to make independent decisions. Before we start with our list to top 10, let’s first understand why a trader never reveals their secrets.
Majority of stock market traders will only tell you things that they want you to know. Here are the top 4 classic stock trading strategies a trader will never tell you. And you don’t learn!
Why professional traders never share their strategy?
In short, a professional trader is making a huge sum of money through the stock market. They do not stress about taking money from small investors or retailers like us as we’re no longer bothered to learn share trading, money management, and risk management. Some of the possible reasons why a professional trader does not share their strategy are:
- A professional trader has spent on learning market: This happens with every profession. Just like doctors, engineers, architects etc spend many years learning a skill, a trader acquire formal education. Moreover, their years of experience also sum up.
- Nothing in the world is for free: Yes, this is somewhat true! You may end up hating us but every financial trader value its time and money more than any other occupation. Thus, they’re not simply not going to share their trading secrets with you.
- They don’t want you to become an expert: No professional trader necessary wants you to become experts. An investor provides liquidity to a trader to enter and exit their investment. If they will teach you how to 'manage funds’, their profession won’t be worth.
Here are 4 stock trading strategies secrets that might your trader hide from you.
# 1 Pattern Chart
Identifying chart patterns is a simple system for predicting stock market trends. Learning to read a chart is a skill that takes time, but the majority of technical analyst nowadays depends on basic chart reading that takes very little skill. The good things will be if the investment charts start at the lower left and if it ends at upper right.
Stay away from the chart if it is heading downwards. Do not waste your time to analyse why the chart is falling. There are thousands of stocks you can make the most out of them without picking the one that is losing money.
# 2 Current interest rate
Current interest rate yields market prices. It has been seen that interest rate fluctuates due to a change in monetary policy changes. An interest rate plays an important role to drive the value of a currency. When interest rates are going down then the currency value will drop. As the RBI working towards tightening the policy and lowering the interest rate, the currency value has also decreased. Thus, it is a direct relationship between the current interest rate and currency value.
The reason interest rate pushes the currency value high because of high private consumption growth. As the interest rate increases more and more people invest their money to get benefit from a higher rate of interest. Especially, big investors and corporations invest large amounts of money to get higher return currency value. Therefore, it creates more demand for a currency.
# 3 Carry Trade
Currency carries trade is a simple trading strategy for currency trading. A carry trade is when you buy high-interest currency against the lower yielding currency. It is the best long-term investment for big investors. For example, Let an interest rate of X country is 3.5% and for Y country is 0%. If you sell Y currency to X currency for a long-term. Then, in this case, an investor will benefit from higher investor rate from Y currency. Hence, the return will be 35% per year at a leverage rate of 10:1 ratio.
This is where a carry trade can be very beneficial for long term investors. However, there are various risk factors when investing in carrying trade that your stock trader will not tell you. Such as:
- Economic factor and growth process of a country: For example, North America has a high GDP rate and high-interest rate. If their economic situation doesn't change, the central bank will decrease the interest rate which matter can be of concern for investors as lack of currency strength.
- Political and geographical risk: Markets is erratic and do not follow any particular trends. The price function is high and major decrease or increase in price movements can be seen in day trading. This is because of geopolitical risk which makes currency fluctuate.
When there is an economic crisis, investors stop investing in the market. Also, they may withdraw their money from the market due to an increase in the risk of investment. The situation may lead to a decrease in fall of price.
# 4 Market Correlations
Market correlation is a measure of how assets move in correlation to each other. For example, Gold, Dollars, Crude Oil etc move in the same direction. These are the positive correlation when the asset moves in the same direction.
A negative correlation is when one asset moves in the opposite direction. By identifying assets with a low or negative correlation, stock market investors can earn high returns. A negative correlation is also known as Inverse correlation.
Stock Market Tips for Beginners
One best stock market tips for beginners is to learn the most important terms of the market. Learning share market will empower investors to profitable trades. With a sufficient amount of knowledge, anyone can predict market behavior. Stock market beginners should educate themselves as to avoid common mistakes that most people make. Along with eliminating scams, you may fall prey to. You should also understand the market landscape in the permanent state of flux.
- Start with the basics ‘how to invest in the stock market'.
- Gather valuable and practical knowledge
- Master your skills with trading challenge
Share market courses in Delhi is just for you. The course will take you through a step-by-step process of securities trading. Thus, become a successful profitable trader. The stock market course is based over 20+ years of live market experience, over 50,000 hours of chat time and countless hours of training and education.
Where to Learn Share Market in Delhi?
Share market classes in Delhi are organized by IFMC Institute. The training is led by a certified stock market technical analyst and research analyst. The courses are divided into a job-oriented course, investors and traders program, and advanced level programs. IFMC Institute is an award-winning stock market institute in Delhi NCR India for excellence in financial market education by Delhi City Icon Awards. IFMC Institute classes can be availed at - Lajpat Nagar, North Campus, Laxmi Nagar, Noida (UP), and Vaishali (Ghaziabad).
How Can You Learn Share Market Online?
Online share market courses by IFMC Institute can be enrolled at www.ifmcinstitute.com. The online programs are instructor-led videos where you learn directly from an industry veteran. Learn how to get started in this lucrative industry even if you've never traded before. IFMC Institute offers more than 15 online stock market courses for beginners, veterans, and professional traders. The prime benefit to enrolling for an online class is that you get access to content anywhere and anytime.