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Dr Faiz replied to the topic Why do we need to close the intraday position on the same day? Is it mandate? in the forum Intraday Analysis for Day Traders 6 years, 10 months ago
Normally intraday position is taken depending on the volatility of the stock. Stop loss has to be adhered to strictly. In case the position is not closed the same day then by compulsion the day trader is pulled to become a positional trader . It is not mandatory to close , but strictly this happens only in loss making situations and it is better…[Read more]
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Dr Faiz replied to the topic What is the IDEAL time to trade intraday? in the forum Intraday Analysis for Day Traders 6 years, 10 months ago
The first half hour is a volatile period and may be avoided.
Times between 10 am to 11.30 is a good period to pick a trend .
During lunch there is a period of lull.
Between 1.30 to 2.45 a trend may be picked up. -
Dr Faiz replied to the topic What is the process of identifying momentum stock in intraday? in the forum Intraday Analysis for Day Traders 6 years, 11 months ago
Momentum stocks are those that will witness a substantial jump in the prices over a short period of time.It can be identified by watching the following Indicators
Global market trend
Indian market activity
Select top performing sector
Check the Trading volume
Rate of Change
MACD
Based on the last 3 indicators a Buy or Sell signal is…[Read more]
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Dr Faiz replied to the topic What are the major critics against Dow Theory? How come it remains on top of any analysis? in the forum Dow Theory in Practice 6 years, 11 months ago
Criticism for Dow Theory ;
1.There is a lag in identifying a change in the primary trend and it shows only after it has happened.It is biased towards a late recognition in trend.
2.Does not differentiate between a primary and secondary trend and it is easy to make mistake about trends. It does not strictly define trends.
Dow theory is still…[Read more]
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Dr Faiz replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 6 years, 11 months ago
Dow theory suggested two indices for the markets, namely the Dow Jones Industrial Average (DJIA) and the Dow Jones Transport Average . It is strongly suggested to see that both these averages are moving in the same direction . This will confirm the direction of a trend and it determines the market trend.
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Dr Faiz 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 6 years, 11 months ago
Dow theory can be represented in a line chart.
Dow theory is used to see Primary trend in the market . It could be either a Bull or a Bearish trend . This primary trend may last up to 2 years or shorter depending on any event that may stop the trend or reverse it . Any changes in the primary trend in the opposite direction is called a secondary…[Read more]
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Dr Faiz replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 6 years, 11 months ago
Resistance-Is the level at which the market price of a share reaches to a certain peak and repeatedly does not cross that barrier. This is the Resistance level that share is facing in an upward movement.
Support – Is the lower level at which the share price does not go below . This is the support level of a share in a down trend movement.
There…[Read more]
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Dr Faiz replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 6 years, 11 months ago
According to the Dow theory the primary upward trend (Bull market)is characterised by;
1.Accumulation phase
2.Public participation phase
3.Excess stage
The downward trend (bear market) is characterisedby:
1.Distribution phase
2.Public participation phase
3.The panic phase
According to Dow theory after identifying the primary upward trend…[Read more]
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Dr Faiz replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 6 years, 11 months ago
Charles H Dow in 1900 wrote a series of articles in the wall street journal which became the basis of technical analysis of the stock market.Dow believed the market behaviour of a stock or economy in general is a reliable measure of the industry or company and the market takes in to account all factors to identify a trend , direction and health of…[Read more]
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Dr Faiz replied to the topic Why do we need to do an analysis? in the forum Understanding the Price Movement 6 years, 11 months ago
Stock market analysis is needed by investors and traders to make decisions to buy and sell. There are two types of analysis , namely fundamental and technical analysis. By studying and evaluating past and current data it is possible to predict the market and make informed decisions . To trade in the market it is important to have knowledge and…[Read more]
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Dr Faiz 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 6 years, 11 months ago
On a daily basis trading in the NSE is an average of about 3 lakh crore
It is not possible to manipulate the market .
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Dr Faiz replied to the topic What drives the stock price? Why to price changes so often? in the forum Understanding the Price Movement 6 years, 11 months ago
Primarily there is fluctuation in any share due to Demand and Supply. This is due to various events happening that are observed by the investors ,making them to want to buy or sell a share . These events are called as catalysts. It can be Earnings , Products,Acquisitions, Regulatory laws and so on if favourable will push up the price of a s…[Read more]
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Dr Faiz replied to the topic What is the input (Data required) to do fundamental / technical analysis? in the forum Understanding the Price Movement 6 years, 11 months ago
Fundamental analysis aims at finding the intrinsic value of a company to predict the movements of a share. Data of balance sheets , assets , liabilities, future plans can provide the inputs. These are not accessible to the retail investor .
Technical analysis requires data input of price , time and traded volume to predict the share movement.
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Dr Faiz replied to the topic What are different types of charts? in the forum Understanding the Price Movement 6 years, 11 months ago
Line Chart
Bar Chart
Candle Stick chart
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Dr Faiz replied to the topic Why do people avoid penny stocks? in the forum Understanding the Price Movement 6 years, 11 months ago
Stocks that are having very low market price are called as Penny Stocks. Usually new investors are attracted by the low price and promises that its future is good . But without a good understanding of the company and its current assets and liabilities it is not advisable to invest in such companies.
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Dr Faiz replied to the topic what are the Pro and cons of fundamental analysis? in the forum Understanding the Price Movement 6 years, 11 months ago
Pros – The required data for fundamental analysis is available in the reports published by the company.
It is advisable to invest when the company shows sound financials, assets , future orders , and continued research in the field .
Cons – It is a lengthy and time consuming process.
It is predicting the company moves before itself and these…[Read more]
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Dr Faiz replied to the topic What is technical analysis? in the forum Understanding the Price Movement 6 years, 11 months ago
Technical analysis is a trading tool used to study the price movement and volume of a security.This was derived from Dow theory regarding price movements and they basically follow a certain pattern and repeats itself over a period of time .It uses data of the past to create charts that allow the investor to predict the future movement and stay…[Read more]
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Dr Faiz replied to the topic What is fundamental analysis? in the forum Understanding the Price Movement 6 years, 11 months ago
Fundamental analysis is a study of the intrinsic value of a company . This can be macro economic like the country economy , industry condition etc. Microeconomic can be a regarding company assets , future plans , management team etc. This is a long term study and accurate details cannot be obtained by retail investors. It may be available to…[Read more]
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Dr Faiz replied to the topic What is the Pro / Cons of Equity market from traders’ perspective? in the forum Essentials of Trading Instruments 7 years ago
Investing in stock market is good as long as knowledge and discipline is maintained. Investors sometimes get carried away with greed and fear leading to emotional decisions.
The pros are that it can be studied and analysed by the technical analysis on a minute to minute basis . There are various indicators that can be used and success can be…[Read more]
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Dr Faiz replied to the topic What are Margin / MTM / Premium / Strike Price / Expiry Date / lot size? in the forum Essentials of Trading Instruments 7 years ago
Margin- Refers to the collateral given by the buyer to the holder to cover some or all of the credit risk given by the holder.In options it is the amount decided by the exchange to buy a options contract in a certain Lot size .
MTM-Mark to Market is an assessment of the current assets and liabilities of a company . It shows the current market…[Read more]
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