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Dr. Karthik Jayachandran 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
1. More predictive than technical and more ahead of technical
cons:
1. only stronger hands can do this
2. Expensive
3.Inputs are not readily available and transparent
4. Can`t be done by retail traders
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Dr. Karthik Jayachandran replied to the topic What are the pro / cons of technical analysis? in the forum Understanding the Price Movement 6 years, 11 months ago
Pros:
1.Traded Price and Volume are the transparent inputs needed for the analysis
2.Suitable for weaker hands
3.It focuses on market
Cons:
1.Company performance cant be studied
2. Forecasting of the stock price can`t be done
3. All technical indicators reflects what has already happened in the market. Thus technical analysis is reactive…[Read more]
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Dr. Karthik Jayachandran replied to the topic What is technical analysis? in the forum Understanding the Price Movement 6 years, 11 months ago
it is about studying the Market demand and supply
price and the traded volume are the key factors
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Dr. Karthik Jayachandran replied to the topic Why do we need to do an analysis? in the forum Understanding the Price Movement 6 years, 11 months ago
to have knowledge about the stock before trading we need to do analysis
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Dr. Karthik Jayachandran replied to the topic What are different types of charts? in the forum Understanding the Price Movement 7 years ago
4 types
- Line chart
- Bar chart
- Candle Stick chart
- Point and Figure chart
http://www.investopedia.com/university/technical/techanalysis7.asp
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Dr. Karthik Jayachandran 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
- Caution deposit given to the exchange so that you wont default at the end of the day
MTM
- in day to day price fluctuation either you are beneficial or you are suppose to pay to the exchange, but has to be realized in money.
- profit or loss realised on day to day basis to make sure that you are marked to market.
Premium
- the money…
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Dr. Karthik Jayachandran replied to the topic What is Futures contract? in the forum Essentials of Trading Instruments 7 years ago
- agreed to buy latter
- deal happens now but the settlement happens latter
- both the buyer and seller agree Ā to a price and the date
- both buyer and seller have obligation to execute the order at the mentioned price and date
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Dr. Karthik Jayachandran replied to the topic Why should a trader need the futures/call/put? in the forum Essentials of Trading Instruments 7 years ago
Futures- the deal happens now but the settlement happens latter
- if the trader doesn’t have money to buy a contract now but can bring it at latter date
Options
- Call options are needed by the buyer to get the rights to buy the share without obligation
- Put options are needed by the buyer to get the rights to sell the share without obligation
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Dr. Karthik Jayachandran replied to the topic What is the difference between Trading and Analysis? in the forum Basics of Stock Trading 7 years ago
Trading is buying and selling of shares in share market.
Analysis forms the basis of valuation.
- Fundamental Analysis-Studying or evaluating the company in detail, difficult to do as an individual
- Technical Analysis- Studying the market, can be done by an individual
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Dr. Karthik Jayachandran replied to the topic What is Trade Plan? Why it is essential in the forum Basics of Stock Trading 7 years ago
<span style=”color: #222222; font-family: arial, sans-serif;”>AĀ </span><b style=”color: #222222; font-family: arial, sans-serif;”>trading plan</b><span style=”color: #222222; font-family: arial, sans-serif;”>Ā is a structure, or a set of guidelines, to define yourĀ </span><b style=”color: #222222; font-family: arial, sans-serif;”>trading</b><span st…[Read more]
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Dr. Karthik Jayachandran replied to the topic What is online trading? in the forum Basics of Stock Trading 7 years ago
Previously trading was done by visiting the brokers place now everything has become online through internet.
benefits
- less paperwork
- over coming communication error
- assess to information limitations
- lower settlement risk
Pitfalls
- Infrastructural glitches
- adapting to tchnology
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Dr. Karthik Jayachandran replied to the topic How Stock exchanges ensure the traders counter party risk? in the forum Basics of Stock Trading 7 years ago
<b style=”color: #222222; font-family: arial, sans-serif;”>Counterparty risk</b><span style=”color: #222222; font-family: arial, sans-serif;”>Ā is theĀ </span><b style=”color: #222222; font-family: arial, sans-serif;”>risk</b><span style=”color: #222222; font-family: arial, sans-serif;”>Ā to each party of a contract that theĀ </span><b sty…[Read more]
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Dr. Karthik Jayachandran replied to the topic Why do people choose stock trading? in the forum Basics of Stock Trading 7 years ago
to make money
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Dr. Karthik Jayachandran replied to the topic How to place order? Types of order? Validity of order? in the forum Basics of Stock Trading 7 years ago
order can be placed through online or through phone call
buy order and sell order are the two types of orders
validity is 1 day
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Dr. Karthik Jayachandran replied to the topic Who decide the stock price? in the forum Basics of Stock Trading 7 years ago
the market i.e. the buyers and seller decide the stock price and it is based upon the demand and supply
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Dr. Karthik Jayachandran replied to the topic What is positional trading and Intraday trading? in the forum Basics of Stock Trading 7 years ago
<p style=”margin-bottom: 20px; margin-top: 0px; color: #000000; font-family: ‘Open Sans’, sans-serif; font-size: 14px; text-align: justify;”><span style=”font-size: 16px;”>Intra-day tradingĀ : when you buy & sell on the same day, your trading style is known as āintraday tradingā</span></p>
<p style=”margin-bottom: 20px; margin-top: 0px; color: #000…[Read more] -
Dr. Karthik Jayachandran replied to the topic Is Stock trading is gambling or Business? How? in the forum Basics of Stock Trading 7 years ago
stock trading done with knowledge and discipline is business
knowledge- An ability to identify the Risk Vs Return
Discipline-Taking rational decision, with no emotion in place
if Expected Return>>Expected Risk-Business
if Expected Risk>>Expected Return-Gambling
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Dr. Karthik Jayachandran replied to the topic Is it possible to buy stocks from BSE and sell it on NSE? How and what is the limitation? in the forum Basics of Stock Trading 7 years ago
yes it is possible to buy stocks from BSE and sell it on NSE, provided the company is listed in NSE but not on the same day as intraday trading because the settlement happens T+2 market working days.
<span style=”color: #3a2f27; font-family: Verdana, Helvetica, Arial, Geneva, Helvetica, sans-serif; font-size: 12px;”>Market Arbitrage involves…[Read more]
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Dr. Karthik Jayachandran replied to the topic What is long / short / long unwinding / Short Covering? in the forum Basics of Stock Trading 7 years ago
Long– when one expect the price to go up, BULLISH, UPWARD TREND, Long position is taken. buyer thinks how to make money out of this expectation.
Buy stock now–> hold it for some time–>sell it latter
Long unwinding– when the stocks are progressing bullish and reaches the maximum peak, now the BULLS start squaring off <span style=”color:…[Read more]
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Dr. Karthik Jayachandran replied to the topic What happens if I quote high price to buy a stock compared to its current market price? in the forum Basics of Stock Trading 7 years ago
if bid price is high compared to market price you will be in the top of the bid price window and it will get matched with the lowest ask price which will be the top most in the ask price window and trade will happen
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