google.com, pub-3454802828914886, DIRECT, f08c47fec0942fa0 MCX Certified Commodity Professional: How to set up orderflow Chart for Indian NSE & MCX Market
Showing posts with label How to set up orderflow Chart for Indian NSE & MCX Market. Show all posts
Showing posts with label How to set up orderflow Chart for Indian NSE & MCX Market. Show all posts

Monday, 27 October 2025

The Biological Basis of Impulsive Trading Courtesy - Dhan

 




The Biological Basis of Impulsive Trading
Impulsive trading behaviour might not stem solely from psychology. Increasing evidence suggests it could be rooted in biological factors as well. Courtesy Dhan

Trading often gets portrayed as a pure numbers game, driven by charts, strategies, and market signals. This week’s insight highlights a different reality: trading performance is equally shaped by psychology and behaviour. Impulsiveness among traders is not always a matter of weak discipline or emotional volatility.

Research increasingly indicates that biological factors, including brain chemistry and neural responses to risk and reward, can influence decision-making under pressure. Recognizing this deeper layer can help traders approach their craft with more self-awareness and better long-term control over their actions.

Impulsiveness in trading may extend beyond mere temperamental weakness; it often has deep neurobiological roots. The prefrontal cortex (PFC), our brain’s executive control center responsible for decision-making, impulse control, and long-term planning, doesn’t fully mature until the mid-to-late twenties.

However, in some individuals, this maturation process is delayed or incomplete, leaving them with a structurally or functionally underdeveloped PFC well into adulthood.

This underdevelopment manifests as difficulty inhibiting immediate responses, poor risk assessment, and an inability to resist the dopamine-driven reward anticipation that markets constantly trigger.

For traders, this means repeatedly entering positions without proper analysis, overtrading, or abandoning their strategy at the first sign of volatility, not from lack of knowledge, but from neurological limitations in self-regulation.

Distinguishing Psychological from Biological Impulsiveness

Psychological impulsiveness typically:

  • Emerges situationally (under stress, after losses, during high volatility)

  • Responds to cognitive awareness and self-monitoring

  • Shows improvement with experience and deliberate practice

  • Correlates with emotional states such as fear, greed, or revenge trading

  • Can be “overridden” with conscious effort and environmental structure

Biological impulsiveness typically:

  • Appears consistently across contexts, not just in trading

  • Persists despite conscious awareness and repeated consequences

  • Shows little improvement from experience alone

  • May be accompanied by other attention or impulse control difficulties (fidgeting, interrupting, task-switching)

  • Runs in families, suggesting genetic components

A practical test: If a trader can follow their rules when well-rested, calm, and writing down each decision, but struggles in real-time, it’s likely psychological. If they struggle even with extensive preparation, accountability partners, and reduced complexity, biology may be at play.

Treatment Approaches

For Psychological Impulsiveness:

  • Cognitive-behavioral techniques: Identifying triggers, challenging distorted thinking, and developing pre-planned responses

  • Environmental engineering: Trading only during specific hours, using position size limits, implementing mandatory waiting periods

  • Skill development: Practice with simulation, deliberate journaling, mentor oversight

  • Stress management: Adequate sleep, exercise, and mindfulness practices to maintain prefrontal cortex function

  • Accountability structures: Trading with a partner, daily reviews, public commitment devices

For Traders with Biological Impulsiveness:

  • System-dependent trading: Algorithmic execution, bracket orders, automated rules that remove real-time decisions

  • Career recalibration: Potentially shifting to longer timeframes

*Medical aspects are outside the scope of this article.

The Critical Takeaway

Recognizing whether impulsiveness stems from underdeveloped neural hardware versus psychological software determines the intervention. A trader struggling with biological impulsiveness who relies solely on “discipline” is like someone with myopia trying harder to see; the effort is admirable but the problem requires a different solution.

Proper diagnosis opens the door to appropriate treatment, whether that’s cognitive training, medication, or structural adaptations that work with rather than against one’s neurobiology.

For traders, this isn’t about excuses; it’s about accuracy. Understanding the root cause allows for targeted intervention, potentially transforming a career-ending pattern into a manageable challenge

Single Prints – Last Buyer / Last Seller in Hidden Trade Locations

 Markets turn when the last buyer has bought at a high or when the last seller has sold at a low. With traditional bar charts you only see the low of the bar or the high of the bar. You cannot judge the internal buying or selling that has been apparent inside the bar.


What is the importance of the last buyer / last seller?

 It is important because it potentially signals the end of the move. No one wants to buy or sell anymore. The price has gone too high or too low. It is at an extreme.

Think of it in real life terms. Imagine you sell beer. There is a lot of demand so you raise prices, but people keep buying. At some point people have drank a lot of beer and don’t want to drink anymore and by now the price is too high. So you might get 1 or 2 more beer sales before everyone stops buying beer and you find yourself lowering the price to get more interest and get people to buy again.

One of the truths about the markets is that when prices go up but people stop buying, prices go down. Sometimes it is quite obvious. You can see it in the Orderflow generated charts.It works both on short term and medium term charts. It can be used as a scalp trade or a swing trade.

Courtesy - Mike




Sunday, 5 October 2025

Order Flow Trading in Indian Market NIFTY and BSE Sensex Futures on Options

An order flow trading strategy for Sensex scalping involves analyzing real-time buy and sell orders to predict short-term price movements and capitalize on small profit opportunities. Traders use tools like order books (Level 2 data), Footprint charts, and Volume Delta to identify buyer-seller imbalances, liquidity gaps, and momentum shifts, enabling precise and rapid trade execution for quick profits. 


How to earn Intraday Trading by Using Order Flow Trading in Indian Market  NIFTY and BSE Sensex Futures on Options





Order Flow Trading in Indian Market BSE Sensex Futures on Options

 An order flow trading strategy for Sensex scalping involves analyzing real-time buy and sell orders to predict short-term price movements and capitalize on small profit opportunities. Traders use tools like order books (Level 2 data), Footprint charts, and Volume Delta to identify buyer-seller imbalances, liquidity gaps, and momentum shifts, enabling precise and rapid trade execution for quick profits. 



Tuesday, 16 September 2025

Order Flow Trading in Indian Market BSE Sensex Futures on Options

 

UA Based Scalping Trade:

Order flow trading involves analyzing the stream of buy and sell orders for a particular futures contract. By dissecting this data, traders aim to gain insights into market psychology and anticipate potential price movements.

I got a fantastic entry in today’s Trade session, @ Sensex Options. Though the profits are ordinary, the entry itself reminded me how important it is to maintain a feel for the market flow. I can say, it is an add on to the active trade management.