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Bala Murugan replied to the topic What is fundamental analysis? in the forum Understanding the Price Movement 7 years, 8 months ago
Studying each and every factor about the company which affects the pricing of the stocks in the market is said to be fundamental analysis . This is an accurate and a very detailed study which is too expensive to be carried out by a common man . Hence this is only suitable for market giants and not the common traders .
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Bala Murugan replied to the topic Why do we need to do an analysis? in the forum Understanding the Price Movement 7 years, 8 months ago
Analysis is the basic phenomenon which differentiates trading from gambling . Studying of the risk and return ratio is essential analysis in trading in order to reduce the risk of losing money. This also helps to do a fair trading with knowledge and discipline .
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Bala Murugan replied to the topic What are different types of charts? in the forum Understanding the Price Movement 7 years, 8 months ago
Line chart : non – detailed and used for long term representation .
Bar chart : It gives the details of opening closing of the stock in the market and hence its used for short time representation .
Candle stick : This is the japanese model and It gives complete idea of the performance of the stock hence its used in hourly , day and less tha…[Read more]
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Bala Murugan replied to the topic What are different types of charts? in the forum Understanding the Price Movement 7 years, 8 months ago
Line chart : non – detailed and used for long term representation .
Bar chart : It gives the details of opening closing of the stock in the market and hence its used for short time representation .
Candle stick : It gives complete idea of the performance of the stock hence its used in hourly , day and less than week charts .
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Bala Murugan 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
Supply and demand are the main factors which drives the stock price . the prices change often due to the change in the demand and supply . if demand is high and the price will be high , i.e price is proposition to demand . which is inturn influenced by the seller and buyers who create the demand and supply .
And it is also influenced by the…[Read more]
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Bala Murugan 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
Supply and demand are the main factors which drives the stock price . the prices change often due to the change in the demand and supply . if demand is high and the price will be high , i.e price is proposition to demand . which is inturn influenced by the seller and buyers who create the demand and supply.
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Bala Murugan 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 : Its the industry accepted technique since its Easy to study the present trend of the market by analyzing the chart and data , its kinda transparent and easily accessed for everyone .
cons : not accurate , not possible analysing for new companies , risk factor is high and the success ratio is more are like 50:50
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Bala Murugan replied to the topic Why do people avoid penny stocks? in the forum Understanding the Price Movement 7 years, 8 months ago
People generally trade with top stocks and not the penny stocks. Because its hard to trade the penny stocks since its highly volatile , liquidized , too risky and low returns .
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Bala Murugan replied to the topic What is technical analysis? in the forum Understanding the Price Movement 7 years, 8 months ago
Studying the trend of the company by the price and volumes being traded is said to be technical analysis . They are usually derived by charts .
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Bala Murugan 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
The recent average turn over of the NSE on daily basis is about 17000 crores INR . yes , stronger hands can manipulate the price of stocks by increasing the supply or demand with higher volumes .
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Bala Murugan 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
|Inputs req. for Fundamental Analysis are the detailed history , working model , profit loss , and all social and economical factors which are related to the company . Hence this analysis needs all the details or inputs in depth hence it is time n cost consuming .
But in the case of the technical analysis the inputs required are market value ,…[Read more]
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Bala Murugan and Ajay Vishwanath are now friends 7 years, 8 months ago
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EQSIS and Bala Murugan are now friends 7 years, 8 months ago
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Ajai Kamath and Bala Murugan are now friends 7 years, 8 months ago
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Bala Murugan replied to the topic when does stock trading becomes gambling ? in the forum Stock market questions and answers 7 years, 8 months ago
When trading is done without knowledge and discipline and when risk is greater than returns it becomes more of gambling than business.
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Bala Murugan replied to the topic What is Trade Plan? Why it is essential in the forum Basics of Stock Trading 7 years, 8 months ago
Trade plan is the one which derives the threshold point of loss , where to buy , where to sell etc … without which if we start trading the risk of losing is very high … basically its tells the strategy of the trade .
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Bala Murugan replied to the topic How much time required to do trade? in the forum Basics of Stock Trading 7 years, 8 months ago
It happens in a fraction of a second , when the buyer and seller demand are met .
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Bala Murugan replied to the topic What is positional trading and Intraday trading? in the forum Basics of Stock Trading 7 years, 8 months ago
Intra day trading is the one in which trade is completed within the single day whereas positional trading is one exceeds day , basically positional has high risk and returns while in intra day pressure to act is high .
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Bala Murugan replied to the topic How Stock exchanges ensure the traders counter party risk? in the forum Basics of Stock Trading 7 years, 8 months ago
Stock exchanges holds caution deposit from brokers in case of any non payment or non delivery of stock the exchange deducts the amount from the broker or auctions the share which ever is necessary to solve the issue .
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Bala Murugan replied to the topic What is online trading? in the forum Basics of Stock Trading 7 years, 8 months ago
In the technologically advanced era the trading is carried out through online ie internet as the medium and this is said to be online trading . As the name says everything is carried out online and no paper work is involved for trading purpose .
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