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ARVIND MUTHAPPAN replied to the topic What is triangle pattern? What are the conditions to qualify as perfect triangle? in the forum Price Patterns and its characteristics 7 years, 11 months ago
* wave formation in ascending form which can be plotted
*time frame is anywhere between 6-8 weeks
*volume is required to confirm the break
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ARVIND MUTHAPPAN replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 7 years, 11 months ago
Price patterns are the charts which will helps us to determine the trend if it is bearish or bullish
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ARVIND MUTHAPPAN replied to the topic What is FLAG pattern? What are the conditions to qualify as perfect FLAG? in the forum Price Patterns and its characteristics 7 years, 11 months ago
* it should have steeper line
*the movement side ways can be considered as flag
*takes less time approx 3-8 days to form
* the trend should be upward during the breakout until then it is considered neutral
*volume is the factor to be considered during breakout
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ARVIND MUTHAPPAN replied to the topic What are different types of charts? in the forum Understanding the Price Movement 7 years, 11 months ago
DOW and candlestick are the main theory which is evolving and there are many types which will fall under dow theory more than candlestick
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ARVIND MUTHAPPAN 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, 11 months ago
Avg turnover of NSE per day is 20,000 cr….head and shoulder pattern may be the sign of manipulation
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ARVIND MUTHAPPAN replied to the topic Why do people avoid penny stocks? in the forum Understanding the Price Movement 7 years, 11 months ago
people avoid penny stock because first fundamental analysis is a cost which will be done by big company and to that ROI will not be there so technical analysis may or may not work here and the company performance will be at risk everytime against economic slowdown
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ARVIND MUTHAPPAN replied to the topic Why do we need to do an analysis? in the forum Understanding the Price Movement 7 years, 11 months ago
We need to do analysis to understand the actual value of the stock before you buy .which is evaluated by the buyers and sellers through fundamental or technical analysis
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ARVIND MUTHAPPAN replied to the topic What drives the stock price? Why to price changes so often? in the forum Understanding the Price Movement 7 years, 11 months ago
buyers and sellers drive the stock price ….the price changes so often because of the volume of people standing in queue to buy and sell
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ARVIND MUTHAPPAN replied to the topic What is the input (Data required) to do fundamental / technical analysis? in the forum Understanding the Price Movement 7 years, 11 months ago
input data for fundamental analysis : last 5 years balance sheet.Competition,business model,diversification other incomes
Techncial analysis : Last 2 years graph of sell/buy,volume.
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ARVIND MUTHAPPAN replied to the topic What are the pro / cons of technical analysis? in the forum Understanding the Price Movement 7 years, 11 months ago
Pro : retail traders need this tool,following the trend low risk involved.long ,short works effectively
Cons: Dow theory ,candle stick analysis is evolving need to keep ourselves updated with the pattern and trend.when market becomes emotional like the brexit it stops working that day .
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ARVIND MUTHAPPAN replied to the topic what are the Pro and cons of fundamental analysis? in the forum Understanding the Price Movement 7 years, 11 months ago
Pros :
fundamental analysis is good for long position,volatility price movement will not create an impact as you know less than accurately when to unwind it
Cons : it is time consuming ,Analysis of the company needs a team ,investment cost is high ,independent retail trader fundamental analysis cannot be accurate when it comes to risk assesment
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ARVIND MUTHAPPAN replied to the topic What is technical analysis? in the forum Understanding the Price Movement 7 years, 11 months ago
technical analysis is understanding the projectile graph that is created by the buyer and seller.they are many theory some of the famous ones are DOW theory and Candlestick
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ARVIND MUTHAPPAN replied to the topic What is fundamental analysis? in the forum Understanding the Price Movement 7 years, 11 months ago
Fundamental analysis is evaluation of the company .
* balance sheet,competition,company risk,other diversified income,business model,idea to grow,projected growth,Earning and inventory every qtr ,economic slowdown impacts
these are some of the key points .
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ARVIND MUTHAPPAN replied to the topic Why should a trader need the futures/call/put? in the forum Essentials of Trading Instruments 7 years, 11 months ago
a trader needs Future /call/put because less capital high returns with high risk.
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ARVIND MUTHAPPAN replied to the topic What is Futures contract? in the forum Essentials of Trading Instruments 7 years, 11 months ago
when buyer and seller mutually agree at a price with the contract time frame mentioned with the caution deposit submitted to exchange is called future contract
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ARVIND MUTHAPPAN replied to the topic What are Margin / MTM / Premium / Strike Price / Expiry Date / lot size? in the forum Essentials of Trading Instruments 7 years, 11 months ago
Margin -borrowing money from the broker to buy share to trade or loan from broker
MTM-Mark to market is the value of asset or liability which is decided at the end of the market
Premium – the sale of the share bought and sold at a higher price is called premium
Strike price- strike price is price mentioned in the derivative contract
Expiry…[Read more]
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ARVIND MUTHAPPAN replied to the topic What is Equity market? in the forum Essentials of Trading Instruments 7 years, 11 months ago
Equity market is the secondary market where the buyer and seller meet to sell the shares
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ARVIND MUTHAPPAN replied to the topic What is call option and PUT option? Who decide the premium? in the forum Essentials of Trading Instruments 7 years, 11 months ago
Call options-buyers of the contract has right to buy the asset from the seller of the contract
Put options-buyers of the contract has the right to sell the asset from the seller of the contract
Buyer decide the premium
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ARVIND MUTHAPPAN replied to the topic What is the role of exchange in derivative instruments? in the forum Essentials of Trading Instruments 7 years, 11 months ago
Role of exchange in derivative instrument is to make sure the contract is executed correctly .
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ARVIND MUTHAPPAN replied to the topic How option contract differ from future contract? in the forum Essentials of Trading Instruments 7 years, 11 months ago
future contract -both buyer and seller have equal rights. Contracts have a time frame and there will be price agreed. caution deposit will be collected from both the party
Options contract -only buyer has the power and the call or put price will be mentioned .
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