Demand and Supply concepts have been running the world. Be it any market, they all function only on this simple economics concept.
New Delhi: Long-term vision is an excellent way to build wealth. But, it is surely not the only one. If you have made yourself capable of investing in good stocks for the long term by your own research. You can surely learn to utilize short opportunities in the stock market with quick gains.
Art of Quick Gains
According to Arun Singh Tanwar, Founder and CEO, Get Together Finance (GTF), quick gains is not a myth.
“They are 100 per cent possible if you know how to do it. In the stock market, there are more than 5000 stocks, and somewhere, every day a certain stock is going to give a quick grab and utilize opportunity,” Tanwar said.
The science behind stock market volatility is demand and supply. These are created by forces created by institutional buying and selling. When you learn to trace the small movements of institutions, the quick gains are not far.
“Intraday and scalping are the two core types of trading that can help you in getting quick gains. The strategies of both these trading types are no different. But, one needs to be highly attentive in the market. The small gains can be forecasted when you have very well studied the previous price movements of the stock. Further, tracking and identifying similar patterns can help in predicting favorable price movement,” he added.
Price Action Combined with Demand and Supply
Demand and Supply concepts have been running the world. Be it any market, they all function only on this simple economics concept. But, in the stock market, one has to track when the good supply has been created by institutions. When the stock price comes again in that zone, a trader should utilize the opportunity to catch the favorable movement. This movement will be the result of the execution of pending orders.
“A similar process goes with the selling of orders. Constant selling by institutions creates a supply area in the chart. When the price approaches the area again, a high probability short selling setup is created,” Tanwar explained.
Trends in the Stock Market
Tanwar feels that one needs to master the art of identifying trends in the stock market if one wants to make money out of it, especially, out of short-term trading.
“Trends tell us the momentum that the market is gaining. It cannot be identified simply by seeing the charts. Instead one needs to find from where the price is coming and which is the probable direction it might go. The trend check can help in knowing the future price movement. Price is showing a strong upward trend, long positions can be good. Whereas, if the trend is downward and there is nothing stopping it, taking short positions in intraday can be a good option,” he summed up.