Why traders trade non trending and choppy stocks

#1
There are thousands of stocks. But on what basis traders choose stocks. Someone says choose from top gainers and loosers. Someone says choose stocks from top performing sector. And all thousands of stocks have some one would be there for trading even though the stocks are not trending and very choppy. why will someone trade those kind of non trending and choppy stocks since every trader have technical knowledge.Please share your opinion on this
 

pannet1

Well-Known Member
#2
There are thousands of stocks. But on what basis traders choose stocks. Someone says choose from top gainers and loosers. Someone says choose stocks from top performing sector. And all thousands of stocks have some one would be there for trading even though the stocks are not trending and very choppy. why will someone trade those kind of non trending and choppy stocks since every trader have technical knowledge.Please share your opinion on this
Rosi,

You have a long way to go. Understand that a price dont follow technical analysis so rigidly. Someone who does a range play will look for mean reversal stocks and will sell the breakout and buy the breakdown.
 
#3
Rosi,

You have a long way to go. Understand that a price dont follow technical analysis so rigidly. Someone who does a range play will look for mean reversal stocks and will sell the breakout and buy the breakdown.
As u said, someone buys at reversals and breakouts. But who buys or sells in the middle of support and resistance (I mean between reversals). Still there is order flow where there is no proper support and resistance , breakouts and breakdowns and chart patterns
 

newtrader101

Well-Known Member
#4
As u said, someone buys at reversals and breakouts. But who buys or sells in the middle of support and resistance (I mean between reversals). Still there is order flow where there is no proper support and resistance , breakouts and breakdowns and chart patterns
True, I've also been puzzled by the order flow, especially when a market such as Crude has been hurtling down for weeks, still there are people who buy. At each price point a set of people think it is a low (and is going to rise), and another set thinks its a high (and is going to fall).

Besides the wide variety of trading systems that give rise to such decisions, other reasons may be ignorance, emotions, market makers, and who knows what other secrets are there? Or is it the planets who influence people to behave in different ways?

As for myself, at the beginning of my trading career, the trades I made then look downright senseless to me now. So greed, inexperience, stupidity, arrogance, all come into play...
 

Bidy

New Member
#5
I feel one need to adjust to market condition, crude currently in value seeking mode. You will just do fine I guess if you don't try to fade a move.
 

Tejas Khoday

Co-Founder & CEO, FYERS
#6
There are thousands of stocks. But on what basis traders choose stocks. Someone says choose from top gainers and loosers. Someone says choose stocks from top performing sector. And all thousands of stocks have some one would be there for trading even though the stocks are not trending and very choppy. why will someone trade those kind of non trending and choppy stocks since every trader have technical knowledge.Please share your opinion on this
Trading within a well-defined price range is also a trading strategy. Traders prefer to buy at the lower end of the range and sell at the upper end and vice-versa (Short at the upper end and cover at the lower end) as much as possible. The idea is to make a higher return than the actual movement of the scrip. For instance, between October 2017 to July 2018, Reliance Industries was stuck in a 15% price range. If you tried going long expecting the breakout to occur, you'd be wrong and make losses on 3 different attempts. However, if you had traded in the range successfully, it would give you the cushion to withstand any losses incurred on your more aggressive trades. Trading in a range and extracting money out of the market gives you a cushion to operate and take further risks to make the big money. Take a look at this chart to see what a range looks like. They are imperfect and it needs careful study to be able to trade them profitably.

https://charts.fyers.in/d320cae4c2bc35b419a58b38d911c6e9/e6ae19b987e9c382d1b4f819428846e1.png

My $0.02!
 
#7
Still someone trades where there is no proper support and resistance or range , no breakouts and no breakdowns and no chart patterns.Mainly during opening hour there wouldn't be range or patterns and no news also.what makes them to decide to take long or short position
 
#8
I feel one need to adjust to market condition, crude currently in value seeking mode. You will just do fine I guess if you don't try to fade a move.
Mainly during opening hour there wouldn't be range or patterns and no news also.what makes them to decide to take long or short position
 

Bidy

New Member
#9
Mainly during opening hour there wouldn't be range or patterns and no news also.what makes them to decide to take long or short position
Hello
You can trade to break overnight high low in opening hours. It all depends on which tf you trade and what you are looking for? I personally wait for first 15 mins, why? Because there are enough opportunity in next 2-3 hours. Also I don't know which tf you trade and your style of trading.
Thanks Bidy
 

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