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divackar replied to the topic What is fundamental analysis? in the forum Understanding the Price Movement 8 years, 4 months ago
It involves the internal study of the company and then predicting the price fluctuations based on these.
It is very accurate but cannot be done general public due to its high cost.
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divackar replied to the topic What is technical analysis? in the forum Understanding the Price Movement 8 years, 4 months ago
Technical analysis involves forecasting the direction of prices using the market trend, study of past market prices,volume traded,etc.
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divackar replied to the topic What are the pro / cons of technical analysis? in the forum Understanding the Price Movement 8 years, 4 months ago
cons-
It is based on history,we can never accurately predict what will happen in the future.
There are so many techniques which will give different results,ie, its vague.
Human judgement is also a big part of this analysis, so human errors are possible.
pros-
It is good for short term indication.
Its cheaper and easier to perform.
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divackar replied to the topic what are the Pro and cons of fundamental analysis? in the forum Understanding the Price Movement 8 years, 4 months ago
pros-
It is more accurate.
It is good for long term investments.
cons-
Not everyone can afford fundamental analysis.
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divackar replied to the topic what are the Pro and cons of fundamental analysis? in the forum Understanding the Price Movement 8 years, 4 months ago
pros-
It is more accurate.
cons-
Not everyone can afford fundamental analysis.
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divackar 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 8 years, 4 months ago
average daily turn over is 10000 crores.No one can manipulate the stock price easily.
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divackar replied to the topic Why do we need to do an analysis? in the forum Understanding the Price Movement 8 years, 4 months ago
We do analysis so that we can take an educated guess about the price variations in the future. It is impossible to predict with certainty what is going to happen , but by doing analysis we aim to improve our odds of making profits to more than 50%.
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divackar replied to the topic Why do people avoid penny stocks? in the forum Understanding the Price Movement 8 years, 4 months ago
People avoid penny stocks because they are very unpredictable.
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divackar replied to the topic What is the input (Data required) to do fundamental / technical analysis? in the forum Understanding the Price Movement 8 years, 4 months ago
Fundamental analysis
Careful study about the internal elements of company which affect the well being of the company and predict the future price movements.
Technical analysis
involves studying the market and forecasting through the study of past market data and volume of trade.
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divackar replied to the topic What are different types of charts? in the forum Understanding the Price Movement 8 years, 4 months ago
line chart.
bar chart.
candlesticks chart.
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divackar replied to the topic What drives the stock price? Why to price changes so often? in the forum Understanding the Price Movement 8 years, 4 months ago
Stock price is price at which the last trade of the stock was carried out, so the buyers and sellers drive the stock price.It changes so often because people trade at different values.
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divackar replied to the topic What is the Pro / Cons of Equity market from traders’ perspective? in the forum Essentials of Trading Instruments 8 years, 4 months ago
pros-Abundant choices.
Opportunity of substantial returns.
liquidity.
cons-Volatility.
Time consuming if done with proper analysis and prediction.
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divackar replied to the topic How option contract differ from future contract? in the forum Essentials of Trading Instruments 8 years, 4 months ago
Buyer of the contract has all the power in case of options, but there is a obligation to buy/sell in the case of futures.
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divackar replied to the topic What is call option and PUT option? Who decide the premium? in the forum Essentials of Trading Instruments 8 years, 4 months ago
Call option is bought by the buyer in order to buy stocks at a agreed price on a particular date.Put option is bought by the seller to sell commodities at a agreed price on a given date in the future. Premium is decided by the buyer of the option and his counter part.
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divackar replied to the topic What is call option and PUT option? Who decide the premium? in the forum Essentials of Trading Instruments 8 years, 4 months ago
Call option is bought by the buyer in order to buy stocks at a agreed price on a particular date.Put option is bought by the seller to sell commodities at a agreed price on a given date in the future. Premium is decided by the market price of the stock on that date.
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divackar replied to the topic What is Spot / Cash market? in the forum Essentials of Trading Instruments 8 years, 4 months ago
Spot market or cash market involves immediate stock trade.
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divackar replied to the topic What are Margin / MTM / Premium / Strike Price / Expiry Date / lot size? in the forum Essentials of Trading Instruments 8 years, 4 months ago
Margin-The amount of equity contributed by customer as a percentage of the current market value of the securities held in a margin account.
MTM-The accounting act of recording the price or value of a stock, to reflect its market value rather than its book value.
Premium-The extra price paid on securities as compensation for the growth in its…[Read more]
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divackar replied to the topic What is Equity market? in the forum Essentials of Trading Instruments 8 years, 4 months ago
The equity market is the market for trading equity instruments,ie, all instruments of that kind should have the same face value,like stocks.
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divackar replied to the topic What is Futures contract? in the forum Essentials of Trading Instruments 8 years, 4 months ago
A contract made by the buyer and sell in the futures exchange to buy/sell a financial security at a pre-determined at fixed date in the future.
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divackar replied to the topic Why should a trader need the futures/call/put? in the forum Essentials of Trading Instruments 8 years, 4 months ago
The derivative market allows us to create short position for a period greater than 1 day.There are also possibilities of greater returns on the derivative market.
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