Search for:
Cart 0
  • Home
  • Learn To Trade
  • Technical Analysis
    • Introduction
    • Understanding Candlesticks
    • Concept of Trend
    • Support and Resistance
    • Chart Patterns
      • Overview
      • Reversal Patterns
        • Head and Shoulders Chart Pattern
        • Double Top Chart Pattern
        • Double Bottom Chart Pattern
        • Triple Top Chart Pattern
        • Triple Bottom Chart Pattern
      • Continuation Patterns
        • Symmetrical Triangle Chart Pattern
        • Ascending Triangle Chart Pattern
        • Descending Triangle Chart Pattern
        • Rectangle Chart Pattern Pattern
        • Flag and Pennants Chart Pattern
    • Harmonic Patterns
    • Technical Indicators
      • Moving Average SMA and EMA
      • Bollinger Band Indicator
      • Relative Strength Index (RSI)
  • Blog
  • Connect
    • Contact
    • You Tube
  • phone (+91) 9560531632
  • email Profitandstocks@gmail.com
0
Profit and Stocks
  • Home
  • Learn To Trade
  • Technical Analysis
    • Introduction
    • Understanding Candlesticks
    • Concept of Trend
    • Support and Resistance
    • Chart Patterns
      • Overview
      • Reversal Patterns
        • Head and Shoulders Chart Pattern
        • Double Top Chart Pattern
        • Double Bottom Chart Pattern
        • Triple Top Chart Pattern
        • Triple Bottom Chart Pattern
      • Continuation Patterns
        • Symmetrical Triangle Chart Pattern
        • Ascending Triangle Chart Pattern
        • Descending Triangle Chart Pattern
        • Rectangle Chart Pattern Pattern
        • Flag and Pennants Chart Pattern
    • Harmonic Patterns
    • Technical Indicators
      • Moving Average SMA and EMA
      • Bollinger Band Indicator
      • Relative Strength Index (RSI)
  • Blog
  • Connect
    • Contact
    • You Tube

Blog

Profit and Stocks > Blog > Blog > BUY and SELL TRAPS

BUY and SELL TRAPS

access_timeAugust 29, 2020
perm_identity Posted by Profit and Stocks
folder_open Blog

Market is having many aspects while it is going up and downs. This blog is about the Trap in market. One is Buying trap and other is Selling trap. The trader must know this aspect in order to secure the position and can take right decision at right time to avoid losses or lock profits.

Let us talk about both type of traps.

BUY TRAPS:

The picture below is first such case. From this one can identify the Resistance has been broken with Gap up and closing basis, Buying is rewarding when resistance is broken. Riding the momentum, at this time trader will make BUY position to gain as the Gear is in BUYERS control or trader add more buying position to gain more by riding the Trade.

Market is about the Buyer and seller fights; Trader must know the facts when to exit preciously so that the losses can be avoided or profit can be locked. Refer below snap shot, where the Seller took complete control and Buyers who are not having proper knowledge, they remain trapped, thinking that the Market will bounce back and hope for gaining. Market is not having any emotions and their losses increases.

SELL TRAPS:

Sell traps are just opposite the buy traps. When the support is broken, their may be huge movement in downside and SHORT position can be rewarding. But Trader must know all aspect of short selling while support is broken.

In above picture, at point 1, the support level was tested. At point 2, The support level is broken and fresh Short position was taken or Trader add more short position to gain more.

As in below picture It failed to go down after support break and smart trader exited once they get confirmed that market is not going to go down. The Trader who is not having proper knowledge remain in short position thinking that market will go down and end up losing the capital.

Market is merciless, the trader should have knowledge (I would say proper knowledge) of all aspect of the market moves including the Buying and selling traps.

Trade is like a journey and it should be enjoyable. Suppose you are going from Junction A to B. You have taken a Bus for that. After covering some distance, you realised that it took turn toward Junction C (which is not desired by you), as soon as you realised, you should close the journey. You should not ride till Junction C and cursing yourself by losing time and money. Better to exit as soon as your plan/study says.

Thanks, 😊

Tags: Professional TraderStock MarketTrade PlanTrading
Newer Trade Journey-A practical way
Older Long terms always pay is myth-Trade/invest wisely

Leave a Reply Cancel reply

Search for:
Recent Posts
  • WHY INTRADAY IS MORE COMPLEX TO TRADE THAN POSITIONAL
  • How do you make a Financial or stock market study interesting and effective?
  • Long terms always pay is myth-Trade/invest wisely
  • BUY and SELL TRAPS
  • Trade Journey-A practical way
Categories
  • Blog
Archives
  • March 2023
  • March 2021
  • February 2021
  • August 2020
  • May 2020
  • March 2020
  • November 2019
ADDRESS
  • location_on
    Flat No.-706,Tower-Beauty, The Seven Lamps, Sector-82, Gurgaon, Haryana-122004
  • phone_android
    +91-9560531632, +91-8448670480
  • email
    Profitandstocks@gmail.com
ABOUT

Profit and Stocks is an exceptional team of market traders with over 12+ years of combined trading experience. Profitandstocks.com is a full-service trading education and mentoring company managed by Mr S. Kumar, passionately curious and independent trader in the financial markets since last one decade. Our broad and global mission is to provide Training and Guidance to struggling traders and investors.

RECENT POSTS
  • WHY INTRADAY IS MORE COMPLEX TO TRADE THAN POSITIONAL
  • How do you make a Financial or stock market study interesting and effective?
  • Long terms always pay is myth-Trade/invest wisely
  • BUY and SELL TRAPS
  • Trade Journey-A practical way
© 2018 Profit and Stocks. All rights reserved| Disclaimer
keyboard_arrow_up