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Ajay Vishwanath replied to the topic What type of Charts Used, Minimum look up period, Duration of Trend forecasting for Dow Theory? in the forum Dow Theory in Practice 7 years, 8 months ago
Line chart, minimum 2 years of line charts to be analysed, forecast duration is 3 months
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Ajay Vishwanath replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 7 years, 8 months ago
Support is where bulls show interest in the stock.
Resistance is the tolerance where bears/sellers will be comfortable with selling their shares.
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Ajay Vishwanath replied to the topic What is technical analysis? in the forum Understanding the Price Movement 7 years, 8 months ago
Predicting the future price movement of stock using charts and volume.
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Ajay Vishwanath replied to the topic Why do people avoid penny stocks? in the forum Understanding the Price Movement 7 years, 8 months ago
– Risk>return
-Poor company strategies
-trading at less than a dollar
-high liquidation risk.
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Ajay Vishwanath replied to the topic What are the pro / cons of technical analysis? in the forum Understanding the Price Movement 7 years, 8 months ago
Pros – Technical analysis is available to all average traders.Helps us predict the future price movement by studying patterns.
Cons – We cannot conclude but we can only predict the future trend. Reaction to the market should be precise at the right time. Not everyone would be aware of technical analysis concept.
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Ajay Vishwanath replied to the topic What drives the stock price? Why to price changes so often? in the forum Understanding the Price Movement 7 years, 8 months ago
Demand vs supple control the stock prices.
Prices move very often because of company news, goodwill of the company,global market situation, overnight risk.
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Ajay Vishwanath replied to the topic What are different types of charts? in the forum Understanding the Price Movement 7 years, 8 months ago
Line, Bar and candle sticks are the types.
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Ajay Vishwanath replied to the topic Why do we need to do an analysis? in the forum Understanding the Price Movement 7 years, 8 months ago
An analysis is a basis requirement to trade with knowledge and discipline. It educates us on the concept of risk vs return which in turn makes us to business and not gambling
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Ajay Vishwanath replied to the topic What is fundamental analysis? in the forum Understanding the Price Movement 7 years, 8 months ago
Analyzing the assets worth of a company and also arriving at the future strategies of the company is fundamental analysis.
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Ajay Vishwanath replied to the topic what are the Pro and cons of fundamental analysis? in the forum Understanding the Price Movement 7 years, 8 months ago
Pros – It gives a common basic understanding of a company which can become easy for trading if studied in detail.
Cons – These information will not be available to an average trader on a frequent basis and thus it cannot be relied upon accuracy because those information would have already been available to the stronger hands.
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Ajay Vishwanath replied to the topic What is the average turnover in NSE only daily basis? Can any one manipulate the stock price? in the forum Understanding the Price Movement 7 years, 8 months ago
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Ajay Vishwanath replied to the topic What is the input (Data required) to do fundamental / technical analysis? in the forum Understanding the Price Movement 7 years, 8 months ago
Fundamental – Analyzing the basic information on the company with regards to their strategy for the future, value of their assets vs liabilities.
Technical – Understanding the demand vs supply of the stock and forecasting the future trend and arriving at a conclusion from a trading perspective
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Ajay Vishwanath replied to the topic What is the Pro / Cons of Equity market from traders’ perspective? in the forum Essentials of Trading Instruments 7 years, 8 months ago
Pros – Better returns, chance of losing complete investments is almost zero.
Cons – volatility,no short position holdings for than 1 day hence not suitable for long term holdings.
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Ajay Vishwanath replied to the topic What are derivative instruments? in the forum Essentials of Trading Instruments 7 years, 8 months ago
Derivatives in financial terms are the instruments which derive their value from an underlying asset like shares currency etc..
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Ajay Vishwanath replied to the topic How option contract differ from future contract? in the forum Essentials of Trading Instruments 7 years, 8 months ago
In options both buyer and seller have only the rights and not the obligations. In futures both parties have the obligation to fulfill the contract. Futures follow MTM where legers 0f both parties are neutralized on a daily basis. Options follow premium where either one of the parties has the chance to make money from the price movement.
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Ajay Vishwanath replied to the topic What is Futures contract? in the forum Essentials of Trading Instruments 7 years, 8 months ago
Futures contract is where the daily price variation help us to realise the money as profit or loss. It has a specified expiry date. These contracts require us to pay a caution deposit or margin which may be taken out or added depending on MTM on a daily basis.
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Ajay Vishwanath replied to the topic What is Equity market? in the forum Essentials of Trading Instruments 7 years, 8 months ago
Equity market is where stock/shares/equities alone are dealt.
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Ajay Vishwanath replied to the topic Why should a trader need the futures/call/put? in the forum Essentials of Trading Instruments 7 years, 8 months ago
For futures only margin or caution deposit and premium for options is required to enter into the deal. Futures helps us to qualify our income as profit as the cash is realised each based on MTM. options can be more customizable in terms of the premium that needs to be paid with respect to call/put.
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Ajay Vishwanath replied to the topic What is Spot / Cash market? in the forum Essentials of Trading Instruments 7 years, 8 months ago
spot market is where the settlement is initiated on the same day and actually settled on t+2 days.
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Ajay Vishwanath replied to the topic What is positional trading and Intraday trading? in the forum Basics of Stock Trading 7 years, 8 months ago
Positional trading – Holdings for more than a day.
Intraday trading – Holdings for less than a day.
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