How can I master the skill to predict the behavior of Indian stock market?
Short Answer: Technical Analysis.
Technical Analysis is the study of Market Psychology. Market Prices are governed by Greed and Fear. Most of the retain investor are eaten up in the market due to greed and fear.
You get a buy call on Breakout, but you will not know to exit the stock on reversal before the target is met. Sometimes you tend to sell the stock very early on fear. When the market falls for 2 days or 3 days, retain investors sell off in panic just to watch the market recover on the next day.
Learn Technical analysis and understand candlesticks and indicators. Learn about support and resistance, Learn about reversals on support and resistance. Learn about breakouts and Breakdowns. Learn to buy on dips, learn to book profits on rallies. learn to place the right stop-loss. Learn to manage risk.
There is no need to master a special skill to predict the market movement. Just learn to understand the Technical charts and put proper risk management in place.
“History will always repeat itself.”
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