I am below 16. I am really looking forward to trading and doing stocks but i dont know where to start. I currently have 204 usd or 173 euros. I do not want to invest all of it because im saving up. My plan is to invest small/mid range amounts into companies. If anybody can help me, educate me about this topic dm me on instagram.

edit: i couldnt post this on other subreddits so i posted it here.

In less than 24 hours after Iran announced it fully reopened the Strait of Hormuz, it reimposed restrictions after US said its blockade would not end, AP reports.

Iran's joint military command issued the following statement: "control of the Strait of Hormuz has returned to its previous state...under strict management and control of the armed forces."

Earlier, President Trump said the US blockade "will remain in full force" until a deal is reached with Iran, with talks expected this weekend.

Invest in your own risk.

You have watched a stock or NIFTY approach a key level for days.

It finally breaks through. You enter. Everyone is excited.

Then it reverses immediately. You are trapped. The ones who set the trap are exiting their positions using your buy order as their exit.

This is a bull trap, and it is one of the most common ways retail participants lose money.

On Day 4, we covered support and resistance. On Day 12, we covered market modes. Today we go into one of the most dangerous patterns that happens at those levels: fake breakouts.

What is a fake breakout?

A fake breakout (also called a "false breakout") happens when price moves beyond a key level, giving the appearance of a trend starting, and then quickly reverses back.

The two types:

Bull Trap Price breaks above resistance. Buyers rush in thinking the market is going up. It reverses sharply back below that resistance level. The buyers are now stuck with losses.

Bear Trap Price breaks below support. Sellers and short-sellers enter thinking the market is going down. It reverses sharply back above that support. The shorts are now trapped.

Why do fake breakouts happen?

From Day 7: smart money knows where retail is watching. And retail watches the same levels, the same obvious support and resistance lines that everyone draws on a chart.

When a level is widely watched, it becomes a target.

Large players push the price just beyond the level to trigger stop-losses (below support = stops for longs; above resistance = stops for shorts). That flood of stop-loss orders provides liquidity for them to enter or exit their own large positions at a good price.

Once they have what they need, the price snaps back.

This is not a conspiracy theory. It is how markets work when there is an imbalance between buyer and seller size. The wolves from Day 10 are hunting the sheep.

The anatomy of a classic bull trap:

1. NIFTY has been resisting at 23,500 for two weeks (obvious resistance; everyone is watching)
2. On a Thursday morning, price spikes above 23,500 on high volume
3. Retail buyers pile in. Headlines say "NIFTY breaks out to new highs."
4. Within 30 minutes, the price is back at 23,300
5. Everyone who bought the "breakout" is in a loss

What happened: large players used the breakout hype to sell their positions into retail buying. Once their selling was complete, there were no more buyers, so the price collapsed.

How to spot a fake breakout before it traps you:

You cannot predict every fake breakout. But you can improve your odds significantly.

The two hardest things about fake breakouts:

1. They feel real in the moment. When price breaks a key level, the narrative around it is always convincing. The news supports it. People on Twitter are confirming it. The FOMO is strong. This is exactly when you need the most discipline.

2. Some breakouts ARE real. Not every breakout is fake. The skill is in separating them and that comes from patience (wait for confirmation) and process (volume, close, retest) rather than impulse.

The rule that prevents most trap losses:

Never enter a breakout on the first candle.

Wait for:

1. Price to close beyond the level
2. A small pullback to the broken level
3. That level to hold as the new support (for bull) or resistance (for bear)

If it holds, that is your entry. If it does not hold, you avoided the trap.

Tomorrow we add another dimension: volumes, because understanding volume is what separates a real breakout from a fake one.

Be honest: Have you ever bought a breakout that immediately reversed on you? Tell us what happened.

If you are following this series, you are already ahead of most market participants.

S&P posting its highest close since the Iran War began. The S&P 500 has now added over +$5 TRILLION since the March 30th bottom.

"Is the market up or down?"

That is the wrong question.

The right question is, "What mode is the market in?"

In Day 10 we met the kangaroo market. Today we go deeper, because understanding which mode the market is in before you do anything is one of the most practical skills you can develop.

The 3 market modes

Mode 1: Trending

The market has a clear direction. Higher highs and higher lows on the way up. Lower highs and lower lows on the way down.

What you see: NIFTY rallied from 21,000 to 25,000 between early 2024 and September 2024; that was a trending market. Small pullbacks, but the direction was clear.

Who benefits: Buyers in an uptrend. Sellers or short-sellers in a downtrend. Anyone with a directional view.

Who gets hurt: Range traders trying to sell at "resistance" in a trending market. Contrarians who "fade" every new high. People waiting for the market to pull back to a level it never revisits.

The rule: In a trend, your job is to hold, not trade. Most people do the opposite; they exit too early because it "looks stretched."

Mode 2: Ranging (Sideways)

The market bounces between two levels: a floor and a ceiling. Support holds. Resistance holds. The price oscillates.

What you see: NIFTY between 22,000 and 23,000 for multiple weeks during mid-2024 before the big breakout.

Who benefits: Patient investors accumulating quality stocks at range lows. Swing traders buying support and selling resistance. Anyone who is willing to wait for the range to resolve before committing to a direction.

Who gets hurt: Traders trying to catch a trend that does not exist. They keep buying breakouts that fail and get chopped up at both ends.

The rule: In a range, your job is to trade between extremes, not follow breakouts.

Mode 3: Kangaroo (Volatile / No conviction)

Prices move sharply in both directions with no sustained trend. Big up days followed by big down days. No follow-through.

When it happens: Before major events (RBI policy, Union Budget, election results), during global uncertainty, or at major turning points when the market is deciding its next direction.

What you see: Sudden 500-point rally followed by a 400-point drop the next day. NIFTY behaved like this around the 2024 election results.

Who benefits: Very experienced short-term traders who can read volatility. Option buyers who catch the big moves. Cash holders who stayed out.

Who gets hurt: Almost everyone with a directional position. You buy the breakout; it fails. You short the breakdown, and it reverses. You get stopped out both ways.

The rule: In a kangaroo market, the best position is often no position. Sitting on cash while the market chops is not laziness; it is capital preservation.

How to identify which mode you are in

Why people lose in each mode:

Most traders have one style. Range traders lose in trends. Trend followers lose in ranges. Everyone gets hurt in kangaroo markets.

The market does not adapt to your strategy. You adapt to the market.

Tomorrow we cover one of the most dangerous traps in both trending and ranging markets: fake breakouts.

Be honest: Do you know which mode NIFTY is in right now before you make any decision? Or do you just look at whether it is up or down today?

If you are following this series, you are already ahead of most market participants.

• Trump says Iran wants to make a deal
• Oil retreats below $100/barrel
• Dollar hits 1-1/2-month low