Blog by PriyaSahu

To apply the Darvas Box strategy in technical trading, you identify a stock that is moving up in price, draw a box around its recent high and low price range, and buy when the price breaks above the top of that box. This method helps capture momentum by entering trades only when the stock ...

To apply the concept of risk of ruin in your strategy, you must calculate the chances of losing your entire capital based on your win rate, loss rate, and position size. This helps you decide how much to risk on each trade so that you don’t wipe out your trading account. It is a critical p...

To apply the CAN SLIM strategy to stock trading, you need to focus on stocks with strong earnings growth, new innovations, institutional support, and buy them when the market is in an uptrend. This strategy helps identify potential winning stocks by combining both fundamental and technical...

The Accumulation/Distribution (A/D) line is a powerful indicator used by traders to measure the flow of money into or out of a stock. It helps you understand whether a stock is being accumulated (bought) or distributed (sold), which can give you clues about the stock's future movement.

The 1% risk rule is a simple but powerful risk management strategy. It says that you should never risk more than 1% of your trading capital on a single trade. This helps protect your money from big losses, especially when the market is unpredictable.

Sentiment analysis in trading refers to using AI to understand what people are feeling about the market. It looks at news, social media, and other text to figure out if the general mood is positive, negative, or neutral. In trading, this can help you decide whether to buy or sell a stock b...

To apply sentiment analysis using AI for trading signals, you need to use AI tools that analyze news, social media, and financial reports to detect positive or negative sentiments about stocks or the market. This data helps traders predict price movements and make smarter buy or sell decis...

To apply risk/reward ratios in trading, you measure how much potential reward you aim to earn for every rupee you risk. Before entering a trade, you calculate your target profit and your stop-loss. A good practice is to look for trades with a risk/reward ratio of at least 1:2 or higher, meaning...

To apply reinforcement learning (RL) to algorithmic trading, you train an agent to make trading decisions like buying, selling, or holding stocks based on market data. The agent learns by receiving rewards or penalties based on the outcomes of its actions, helping it improve over time. With eno...

To apply reinforcement learning in high-frequency trading, you train an AI agent to make real-time trading decisions (buy, sell, hold) based on market signals, aiming to maximize rewards like profits while minimizing losses. The agent learns by continuously interacting with fast-changing m...

Reinforcement learning is a smart and simple way to teach computers how to make better trading decisions. It learns from its past mistakes and successes, just like humans do. By applying reinforcement learning, we can create trading strategies that get better and smarter over time. Let’s unders...

Reinforcement learning is a smart way to teach a computer how to do trading. It learns by trying different things and seeing what works best. When it makes a good trade, it gets a reward. When it makes a mistake, it gets a small punishment. Over time, it becomes better and better at making the ...

To apply ratio spreads to manage risk in options, you need to buy a certain number of options and sell more options of the same type at a different strike price. It helps in earning a profit when the stock moves in a certain range, and controls your losses if the move is unexpected. Ratio ...

To improve your risk management in trading and investing, you can use **probability thinking**. This means understanding the chances of different outcomes in your investments. By thinking about probability, you can make more informed decisions, avoid big losses, and increase your chances o...

To apply Point-and-Figure (P&F) charting in trading, you use Xs and Os to track price movements without considering time. Xs show rising prices and Os show falling prices. It helps traders clearly spot breakouts, support, and resistance levels, making it easier to make buy or sell deci...

To apply NLP (Natural Language Processing) to analyze financial news, use tools or software to read and understand the meaning and tone of news articles, blogs, or reports. NLP can identify whether the news is positive, negative, or neutral and help you decide how it might affect stock pri...

To apply NLP (Natural Language Processing) for stock sentiment analysis, you use software or tools to read and understand news articles, tweets, or financial reports, and then analyze the tone of the text. NLP helps in identifying whether the overall sentiment is positive, negative, or neu...

To apply Monte Carlo simulations to portfolio risk, you create thousands of possible future scenarios using random values based on historical data. This helps you understand the potential risks and returns of your investment portfolio by showing different outcomes under varying market cond...

Mean-variance optimization (MVO) is a powerful strategy used for portfolio construction that helps investors balance risk and return. By using historical data and mathematical models, you can determine the best combination of assets in your portfolio to maximize returns while minimizing ri...