History has truly demonstrated that stock trading business is one of the simplest and most profitable means by which one can grow his/her wealth.
Essentially, almost every individual from the Forbes 400 are on this list because they own large blocks of shares in either public or private corporations, ranging from oil drilling, money management, manufacturing to cosmetics.
Whether or not your beginning is really humble, you will find this guide very useful as far as stock trading strategies are concerned.
It explains what stocks are, how to go about trading, what you should know, how to make money from them, beginner strategies and a great deal of so much more!
What is Trading?
To begin with, we must know what is trading.
In the simplest words, trading can be defined as the exchanging of one item for the other.
The Barter System from the Ancient Times could be seen as the earliest example of Trading in the world.
So, in today’s economic scenario, trading could be defined as the buying or selling of stocks, commodities, equities, financial bonds, etc.
Trading is done solely on the basis of supply and demand.
If the value of a particular share/stock/equity goes up in the stock market, a trader sells them at a higher price – thus, reaping profit.
Plus, if the demand is higher, the price also goes higher; while, the increase in supply would mark a decrease in price.
Today, trading has gone from being a confined stock market activity to a more developed financial exercise that has moved on to online markets.
This is known as online trading or E-trade.
To understand trading better, we must know how to differentiate between investing and trading.
Often, people tend to overlap their understanding of the two terms – which in reality, do not mean the same.
They are two very different methods of aiming at reaping profits in the financial markets.
Investment deals with the gradual build up of revenue, over a period of time.
It increases its revenue with the buying and selling of stocks/stock baskets, mutual funds, bonds and other investment instruments.
Experienced investors usually increase their wealth through reinvestment of stocks and due to the investment taking place over a period of time; it enjoys the additional benefits of interest and dividends.
On the other hand, trading, as defined above, involves a more frequent buying and selling of stocks and commodities.
Therefore, roughly, traders can be divided into four categories –
- Swing traders
- Day Traders
- Position Traders
- Scalp Traders.
What is a ‘Stock’?
A stock can be defined as a share which places you in the ownership of a company.
The stocks represent one’s claims on the company’s wealth and capital.
The more stocks of a company you buy, the greater your ownership stake.
Equity and shares are mostly the same – gaining of both provide your with immense ownership stakes.
Stocks usually trade based on exchanges.
One must always remember that there are two types of stocks available in the market- Common Stock and Preferred Stock.
While common stock, as the name suggests, is the one that most people prefer to trade with, preferred stocks are fixed dividends in a company held by certain members or preferred shareholders of the organisation.
Common Stocks are the major type of stocks issues in the market.
They yield higher margins of profit over a period of time and most people prefer to invest in them.
The proverbial saying goes, “To err is human”.
This applies to trading as well, since mistakes in trading are unavoidable.
Nonetheless, through this guide, we hope to prepare you for the common mistakes you might make which could be easily avoid.
So, before we get into the different methods that could be implemented as trading strategies, let us take a quick look at what are the common mistakes witnessed in trading.
Taking on Excessive Leverage
While trading, most people work with limited capital and this coaxes them to turn indecisive.
The fear of not making too much money pushes traders to take on excessive leverage which in turn shows them promising returns.
But the main rule in trading is that if your returns are over the top, the down trend is not far behind!
So, along with the promising returns come ghastly losses.
Sticking to Fixed Market Positions
Choosing to go with highly concentrated market positions could work for some experienced traders but it is a highly risky move.
A position which may have worked out well for you in the past, does not necessarily work out for you in the future.
Stock Market trends change every day and the best way to be in the market, is to map these changing trends rather than taking up erstwhile market positions.
Spreading your bets is the best move to make in the market.
Trading too frequently
Is there something called Too Much Trading?
Yes, there is! The most common mistake any trader (mostly day traders) make is to trade too frequently.
Though with the stock market trends blinking in front of us might compel us to make harsh decisions like trading too frequently – which causes us to make careless mistakes in understanding the market.
Misrepresented Risk – Reward
Before placing your bet on a stock or a commodity, it is advisable to gauge the risk-reward associated with such an investment.
So, what is a risk-reward?
A risk-reward is a ratio used by traders to compare the expected profits from an investment with that of the amount of risk undertaken to gain these profitable returns.
Most of us get carried away while seeing the stock prices go up and down in front of us.
The numbers confound us and we end up making terrible decisions!
Why does this happen?
Mostly, this occurs due to our indecisiveness or greed.
The stock market is a place to exercise one’s greed for financial returns – but with good decision making skills.
Before entering the market, the pivotal thing to do is to sketch out a game plan for you.
What does this game plan include?
The game plan sketches out what you exactly need to do with the amount of capital you have and which stocks you must buy or sell keeping your capital in mind. Moving away from this game plan by indecisive compulsion, would lead to extreme losses.
The crucial agenda behind this report is to take away your ignorance about trading and updating you about the several trading strategies and guidelines you could choose to work with.
Being uninformed has driven several traders, usually beginners, to lose most of their money on wrong trading decisions.
Why is this the case?
Trading might seem like an easy way to make money but it also comes with a hidden book of guidelines like your electronic gadgets.
The reason behind this detailed description of possible mistakes in the trading market is to make you aware and to introduce you to strategies you can use to avoid making such grave oversight.
Why Must We Strategize?
Like all ways of money making in the world, trading stocks can also be very rewarding or painfully unprofitable.
Swinging between the two extremes is a trader, whose decisions along with the market trends determine his luck.
Formulating a fool-proof trading plan and trying to keep in mind the things which could go wrong usually helps traders to make well-thought of trading moves.
For beginners, the need to strategize is more since they are new to the trading mechanisms and they must learn as they move on further in the trading world.
Strategies once listed can be looked through repeatedly to help a novice or an experienced trader from committing mistakes that could cost him a grave financial loss.
Some of the strategies listed in this report are well suited for an experienced trader while beginners would take a while to get attuned to them.
Nonetheless, the next chapter provides some vital strategies for aspiring traders as well as experience traders to go through for the betterment of one’s trading mechanisms.
Trading Strategies and Other Technicalities Associated with Them
The major problem a new trader faces is to understand when to buy or to sell a particular stock.
The stock market does not arrive with a rulebook which sets a right time to buy or sell a stock – and this is because each trade is as unique as its trader.
Each person would view a stock differently; each person would possess different amount of capital and each trader would wish to trade using different trading mechanisms.
So, how do you understand when to hold your position and when to sell?
Most financial analysts would provide a partial sell as a solution to such a problem.
What do we mean by the term Partial Sell?
In case of uncertainty, always sell a fraction of your position.
How does this help?
Such a move ensures that you get to tie down some of your profits available at the current price since you will not be selling your whole position.
Thus, enabling you to save some of your shares.
These shares in your clasp can help you gain further profit, if the price in this position later moves up.
Momentum Trading helps you focus on stocks that are moving incomparably in one direction on high volume.
Momentum traders may hold their positions for a few minutes, a couple of hours or even the entire length of the trading day, depending on the how the stocks may move.
Such a strategy would enable you to list out some of the strongest up trends shown by a stock and narrowing down on which ones you would want to place your bet on.
It is vital to remember that traders using momentum mechanisms only do so for a limited time bracket.
This requires for the trader to be vigilant about the stocks which are constantly on the move – to know when exactly to strike.
Buying and selling of stocks becomes an easier exercise due to such serious vigilance.
Momentum Trading uses charts as a means to trade in the direction of the bigger trend.
This strategy is thus designed lower the risk and find out what the higher reward opportunities are by waiting for correctional methods.
The constant moving average helps us understand whether the market is bullish or bearish.
In such cases, The Stochastic Oscillator is used to identify when to pull back during an uptrend and when to bounce back during a down trend.
At the same time, The MACD-Histogram (Moving Average Convergence Divergence) is used measure buy and sell signals and to signal the end of such a pullback or bounce.
Based on an analysis made by Yale Hirsch – the founder of the Stock Trader’s Almanac, the six month cycle describes a Bullish cycle, running from November to April and a Bearish cycle running from May to October.
Thus, the phrase in the stock market “Sell in May and go away” originates from their analysis.
The analysis was based on the statistics made by the Stock Trader’s Almanac which show the Stock Market performing very well in the Bullish six months and under performing during six months long Bearish period.
Breakout is one of the most common stock trading strategies.
So, what are breakouts?
Breakouts majorly work with the identification of a key price as well as buying or selling price as soon as the stock price breaks a particular pre-determined level.
This is helpful as in case the stock price has enough strength to break that pre-determined level, it will in most probabilities continue to move in the particular direction.
To put breakouts into good use, one must know the function of resistance and support.
Usually a part of Fundamental Analysis, another stock trading strategy which is very common with stock traders is that of retracement.
It requires a slightly different skill set and revolves around stock traders determining the direction the stock price is headed towards and how it would continue to move.
The Retracement strategy is based on the understanding that after every direction the price may move in, the stock price might reverse its move for a short period of time as stock traders gain profit and rookie traders attempt to trade in the opposite direction.
These retracements or pull backs can help experienced stock traders track a better price for which they begin in the initial direction.
To know Gap Trading, you must know the meaning of the term “gap” in the stock market.
A gap is a change in price levels between the close and open ends of two consecutive days.
A Gap can be of the following types – “Full Gap Up” (Full Gap Up-Long, Full Gap Up-Short, Full Gap Down- Long, Full Gap Down-Up) and “Partial Gap Down” (Partial Gap Down-Long, Partial Gap Down-Long, Partial Gap Up- Long, Partial Gap Down- Short).
Keeping the chart pattern in mind, technical analysts divide gap patterns into four types Common, Breakaway, Continuation and Exhaustion.
Gap Trading can be defined as a methodical approach to buying and short selling stocks.
Traders can watch a price gap from the previous close of a stock and identify the trading range to understand when to buy or sell a stock.
When the stock rises above the trading range, it signals a buy and when the stock falls below the trading range, it signals a sell.
CVR3 VIX Market Timing
Developed by Larry Connors and Dave Landry, this strategy looks for weakened Volatility Index readings to signal excessive fear or greed in the stock market.
This fear is often used to generate buy signals in this mean-relapse strategy, while in case of too much greed, it is used to generate sell signals.
Mean-relapse strategy or mean-reversal strategy was created by Larry Connors.
The strategy suggests that prices and returns eventually move back towards the mean or average.
Slope Performance Trend
The most important part of trading is to learn how to read a chart.
Technical Analysts who are also known as Chartists often deal with the interpretation of charts.
Slope Performance Trend is for chartists to analyze and strategize the trend in the stock market.
To understand Slope Performance Trend, one must know the use of Slope Indicators.
The slope indicator measures the rise over the run for a linear regression.
It shows the trend up when the slope is positive and the trend down when the slope is negative.
This way we can understand the market trends using a Slope Indicator.
Percent Price Oscillator
Chartists can also use the Percent Price Oscillator to determine if the 50-day Exponential Moving Average is above or below a long-term Exponential Moving Average.
The Percent Price Oscillator is positive when the shorter Exponential Moving Average is above the longer Exponential Moving Average and negative when the shorter Exponential Moving Average is below the longer one.
This indicator makes it easy to identify moving average crossovers.
Originally named as “Ichimoku Kinko Hyo”, it is a Japanese chart tool for trading.
Ichimoku Cloud can be defined as a group of indicators created as a standalone trading system.
These indicators can be used to analyze support and resistance, regulate trend direction and create trading signals.
It helps traders or chartists to analyze a trend and find potential signals within that trend.
The image below illustrates an Ichimoku approach –
Narrow Range Day NR7
Tony Crabbel’s book, ” Day Trading with Short Term Price Patterns & Opening Range Breakout” introduces us to the new trading pattern of “Narrow Range Day NR7”.
The book was published in the year 1990 and in spite of its publication availability being rare, traders all over the world still swear by the guidelines mentioned in Crabbel’s book.
Two patterns which are still used by chartists all over the world are – the Narrow Range Day NR4 and Narrow Range Day NR7.
This pattern works under the belief that a volatility contraction is often followed by a volatility expansion.
In such cases, the Narrow Range Day marks a decrease in price which is frequently followed by an increase in price.
Traders can apply approach to stocks, futures, indices and Exchange Traded Funds.
A Day’s Range is calculated by figuring out the difference between the high and the low range.
It is believed that this difference in range would be the narrowest in the time span of either four days (NR4) or seven days (NR7).
Using this system, one can also understand the use of ORB or Opening Range Breakout which focuses on the price range in the first five minutes of trading and is also a short-term pattern like the NR7, designed to begin a trade.
Its functionality makes one notice its similarities with Bollinger’s Bands – both deal with the expansion and the contraction of stock ranges.
Faber’s Sector Rotating Trading Strategy
Mebane Faber propounded the concept of Faber’s Sector Rotating Strategy which puts forth a model for long term investment.
Faber’s Sector Rotating Strategy is used to improve risk-adjusted returns and automate the course of investment.
Momentum investing, which is a major factor governing the sector rotation strategy, works to invest in quarters or sectors that have shown the strongest performance in the stock market, over a period of time.
Momentum investing is also a form of Relative Strength Investing – in other words, it works to invest in sectors by first finding out which parts show signs of strength.
Average Directional Index (ADI) and Stochastic Oscillator
The next point deals with the function of two trading equipments which help out traders to foresee the profits that lay ahead for them.
The first one is an Average Directional Index or ADI.
Average Directional Index can be defined as an indicator that is mainly used in technical analysis as a target oriented value for the strength of the trend at work in the market.
It does not provide directions, so it will assess a trend’s strength regardless of whether it is moving up or down.
ADX is illustrated through two lines in a chart window along with two lines that are also called DMI or Directional Movement Indicators.
The role of the DMI lines is to tell us whether an instrument is trending or not.
These DMI lines help in acquiring ADX lines, as ADX is a moving average of the Directional Movement Indicator.
There are oscillators available in the markets which help in telling us whether a market has been rallied too far and thus, helping us know whether the market might turn soon enough.
One such oscillator available in the market is the Stochastic Oscillator.
It is a technical momentum indicator that helps in comparing a stock’s closing price to its price range as noted over a given period of time.
This indicator is calculated with the following formula:
%K = 100[(C – L14)/(H14 – L14)] (Where – C = the most recent closing price, L14 = the low of the 14 previous trading sessions, H14 = the highest price traded during the same 14-day period)
Pre-Holiday Market Changes
If we take the US market into consideration, there have been nine holidays in the past one century, when the market has been traditionally closed.
Research shows that stock prices follow a specific pattern of change in two trading days before these holidays.
The general move traders make is to buy stocks or equities one or two days prior to a holiday.
The research further validates that short term traders would try to sell just after a holiday and long term investors usually look to wait until the year end to do so.
These strategies have seen to be profitable for both parties in the past.
The factors governing this theory are that traders are usually selling their stock holdings much a two or three day long holiday to avoid any sudden bad news.
This abrupt pressure of stock selling brings down the stock prices and makes these days a good time for buying stocks or equities in lower range.
Commodity Channel Index (CCI) is a momentum oscillator created by Donald Lambert to identify a new market trend and to be warned about extreme trading conditions.
Usually used in technical analysis, CCI is a momentum oscillator used to determine when an investment vehicle has been overbought or oversold.
CCI helps in moving along with the trend and beginning to take positions after a corrective phase.
CCI also determines the relationship between the stock price, a moving average (MA) of the stock price and normal deviations (D) drawn from that average.
Commodity Channel Index can be calculated by the formula –
Most traders insist that there must be three factors to be kept in mind during the use of CCI. These are:
- If the CCI goes above +100, it indicates the emergence of an uptrend or a bullish market, which would remain constant until the surge drops to -100 – thus, indicating the emergence of a downtrend or a bearish market.
- It is important to wait for a smaller counter trend movement, i.e., when a CCI surge above +100 on the daily chart, it indicates a bounce within a bigger downtrend. At the same time, when the CCI plunges below -100 showing a pullback within a huge uptrend, it is wise to expect oversold bounces when the trading market seems bearish.
- When the market inclination seems bullish and the CCI drops below -100, there would be a sudden movement backwards into a positive territory that signals a reversal of the pullback. This shows that a bigger uptrend is returning. When the market inclination seems bearish and the daily CCI goes above +100, a drop towards the negative territory signals a reversal of the bounce which in turn shows that a bigger downtrend is resuming.
Another trading strategy which has gained quick popularity in the recent years, is that of Swing Trading.
The next chapter speaks at length about the definition of Swing Trading, how it works and the advantages associated with such an approach.
Understanding Swing Trading
Swing Trading – How does it Work?
Swing Trading is an approach which attempts to benefit from the gains in a stock within the span of one to four days.
Technical Analysis is extensively used by Swing Traders to find stocks with short term price momentum.
These swing traders do not look for the elemental value of stocks but are interested in the price trends and patterns.
These market movements as noted in swing trading are in the form of waves or “swings” which note the changing movement of market price.
Mostly used by traders who work from home and day traders, swing trading helps to find out which stocks have the exceptional ability to move up in a short span of time, for the trader to be able to act quickly in accordance.
Swing traders usually keep a particular stock on hold for a time period spanning between a few days or two-three weeks.
It is during this time frame that they trade the stock keeping the intra-month or intra week oscillations in mind.
Most traders believe that Swing Trading offers reward-risk characteristics.
Since Swing Trading is mostly based on Technical Analysis, it relies on the current stock price and volume trends as well.
It is seen that some swing trading strategies possess both a trend and a counter trend as trading components.
As per traders around the world, some advantages of Swing Trading are:-
Smaller Time Bracket in play
Since swing trading works over a period of a few days or a couple of weeks, swing traders need not spend a lot of time on online trading portals scanning for potential trading opportunities.
Thus, swing traders possess more time to view charts and to decide on their trading plan, due to their increased trading time in hand.
Higher Profit Potential
Due to the lower risk associated with Swing Trading, day trading in the same market helps traders reap better profits.
Since financial markets never move in the same direction forever, swing trading allows you to take advantage of this factor while the market in the few days within the smaller time frames in hand.
By being in and out of the market within a constrained time frame, traders can collect profits and identify other markets that are setting up for other trades.
This allows traders to limit the risk and tie up a lot less money instead of continuously changing one’s margins according to the new trade in sight.
Another advantage associated with Swing Trading is that once your first trading position is closed, you do not have to put in more money into your trading account to move on to the second position.
Stop losses in Swing Trade are typically smaller than long term trades.
Stop losses are orders placed with a broker for buying or selling a stock once it reaches a certain price.
This allows for you to place larger sized positions instead of extremely low leveraged ones via the longer-term trends.
Keeping these advantages in mind, traders can use these points to their strength while taking up newer approaches to stock market trading.
Whichever be the approach, it is vital to remember that stock market is prone to constant change and to take unmitigated risks might prove to be quite dreadful, since all approaches have advantages as well as disadvantages – and, it is upon us to weigh which one might work out well for us.
Trading Strategies for Forex and Exchange Traded Funds
Understanding the Terms – Forex and Exchange Traded Funds
Before we begin with the various training strategies one might work with for Forex Trading and Exchange Traded Funds, let us look us what these terms actually mean.
We often see huge sign boards in busy market places in India, which have the word “Forex” scribbled over them. But, what exactly is Forex?
Forex (FX) or the abbreviation for the terms Foreign Exchange is the world’s highest traded market.
In case of a Forex Trade, you deal with trading of currency.
Here, traders would buy one currency while selling another.
Thus, traders exchange the sold currency for the currency being bought.
Just as it is in case of stock trading, where stocks are bought for the stocks that are being sold, Forex deals with currency trading.
It is important to remember that Forex trading always occurs in pairs.
Foreign Trade and external political speculation are seen to be the driving sources behind Forex trading.
As part of Forex trading, one must remember the role of “Exchange Rates”.
The exchange rate between two currencies would constantly change, as two currencies would rarely hold the same value.
Exchange Rates of currencies change based on the supply and demand for a currency which causes a change in its value.
Therefore, Forex trading is based on the fact that one can trade keeping in mind whether a market is trending or not.
Some of the strategies that one can use for Forex Trading are –
This is considered to be one of the best estimated moving averages crossover strategy.
It is a strategy which helps to find out the pure price in Forex.
It is suitable to be used with all timeframes and currency pairs.
The graph showcasing Bladerunner Trade shows about 20 EMAs drawn like a knife edge dividing the price.
Bollinger Bands retest and bounce in a ranging market.
Trading Bands are illustrated by lines plotted in and around the price structure and this often forms an “envelope”.
These trading bands also show whether a price is on the high or low range on a relative basis.
The prices they provide are completely relative since these trading bands only provide a framework within which a price may be indicated.
The ends of the trading bands are thus called – Upper and Lower Bands.
A middle band also exists in between these two.
The first thing one must do to indulge in Forex trading using this strategy is to understand whether a price is in range.
To do this, one can check whether the price stays on one of the sides of the middle band.
If this is the case, price is trending down and if the price is staying above the middle band while going higher then the price is in an uptrend.
The image below shows such a graph using Bollinger Bands.
Implementing the Forex Fractal
The concept of The Forex Fractal was first put forth by trader Chris Lori.
According to the dictionary, a fractal can be defined as, “a geometric pattern that is repeated at ever smaller scales to produce irregular shapes and surfaces that cannot be represented by classical geometry.”
Forex Fractal works by following the pattern on a five-minute forex chart which will show the same pattern repeating on higher timeframes, within the same time span.
Traders from all over the world stand by to study the formation of these patterns to understand the movement of currency prices.
This approach not only gives you an idea of the trend but also how long a price might take to bounce back after a break out from the fractal to the withdrawal into the body of the fractal image.
Exchange Traded Funds
Moving on, let us now look at what Exchange Traded Funds are. Exchange Traded Fund is a profitable security that tracks a commodity, bonds, or a group of capital like an index fund.
This is thus different from Mutual Funds.
Mutual Funds are professionally managed investment resources which bring in money from several investors to buy market indices.
Unlike mutual funds, an Exchange Traded Fund trades like a common stock in a stock exchange.
The prices of Exchange Traded Funds change throughout the day, based on them being bought and sold.
Some of the strategies traders can keep in mind while dealing with Exchange Traded Funds are:-
Flexibility & Inexpensiveness
One of the advantages of trading with ETFs or Exchange Traded Funds is that it is flexible and inexpensive for traders who wish to move in and out of the market during the day.
The traders do pay brokerage charges every time they trade but it saves them from paying short term redemption fees while moving in and out of the market intraday.
ETFs also provide traders an easy entry into various parts of the market, like different industries, sectors and forms of funding.
Mitigation of Risk
Broad based Exchange Traded Funds are often bought by experienced traders to retain risks in their portfolios.
In cases where a trader might hold a vast percentage of portfolios in a single stock, they wish to reduce the risk and volatility.
In order to do so, they often sell a portion of this vast percentage of stock position and buy a bigger domestic equity ETF.
This limits the risk of losing all the concentrated position one might possess in a single stock.
Retaining Tax Loss
It is a strategy which deals with understanding capital losses in a taxable account are re-expanded sales income among similar investments.
This in turn helps to keep the investors’ portfolios majorly unchanged.
With the availability of a large variety of Exchange Traded Funds in the market, it has proven to be easy to buy ETFs which are similar to the ones you have sold.
Easy Access to Market Sectors
For enthusiastic investors, the want to gain quick exposure to different sectors of the stock market might be high.
For people like this, trading with ETFs or Exchange Traded Funds might prove helpful as an investor does not require major expertise in the emerging markets to buy an ETF, as the only fact an investor must know about, to do this, is to know about the emerging market index.
Several investors shift portfolio capitals between different advisors or funds.
During this transitory period, the capital usually sits idle.
Trading with ETFs enables investors to retain their assets by keeping them invested and prohibits the capital from lying idle.
Hence, we see how not just stocks but Forex trading as well as ETFs can prove to be quite a profitable area of investors and traders to work with.
Both commodities require an in depth knowledge of how it works, where can they go wrong and how must their markets be dealt with, before taking a plunge of trading with them.
As a rapidly advancing field of study, stock market trading approaches change in a blink of an eye.
One can look at these strategies as a vast creation of knowledge which is ever growing.
As a potential trader or investor, you must keep a track of these changes.
With the passing of each year, newer trading techniques and approaches are being introduced to us.
This write up concentrates on the trading techniques which have been widely accepted and found to have proven profitable before.
We began our report with a short introduction to what the terminologies trading and stocks mean.
We hear their usage in our daily life and they are often associated with the idea of money-making.
The report outlines various strategies a debutante trader or an experienced one can learn from and enhance their trading experience.
The need to strategize or to know about these strategies are also outlined in this write up followed by the best strategies inculcated into stock market trading , over a particular time span.
Several new approaches to trading, like the Swing Trading, have also been dealt with at length in the write up.
Keeping these strategies in mind, it is of pivotal importance to remember that there is not a single approach which might lead you to success – but many.
Losses form an integral part of success in stock market trading.
Therefore, it is important to curtail as much of losses as you can while remembering the ways to gather profits as well.
This report would help amateur traders to begin their tryst with the trading world and for experienced ones to refurbish their old ties with the same.