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Darshan Sanwal replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 7 years, 10 months ago
Dow Theory is the basic study of demand and supply. It studies how market reacts when the price reaches at a certain level and so on.
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Darshan Sanwal replied to the topic price movement in the forum Stock market questions and answers 7 years, 10 months ago
Any person who is able to understand the forces of demand and supply will understand the price movements of the stock.
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Darshan Sanwal replied to the topic What are different types of charts? in the forum Understanding the Price Movement 7 years, 10 months ago
There are 3 main types of charts :
1. Line Charts.
2. Candle Stick Chart
3. Bar Charts.
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Darshan Sanwal 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, 10 months ago
Average turnover in NSE is approximately Rs. 20,000 crores.
No individual person can manipulate the stock price as the demand and supply is from the whole of India.
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Darshan Sanwal replied to the topic Why do people avoid penny stocks? in the forum Understanding the Price Movement 7 years, 10 months ago
People avoid penny stock because it can easily be manipulated by the demand and supply
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Darshan Sanwal replied to the topic Why do we need to do an analysis? in the forum Understanding the Price Movement 7 years, 10 months ago
Analysis helps us to reduce the risk and increase the probability to increase our money.
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Darshan Sanwal replied to the topic What drives the stock price? Why to price changes so often? in the forum Understanding the Price Movement 7 years, 10 months ago
The forces of demand and supply determines the stock prices of the company. The price moves at such a frequent interval because the expectation of each individual is different and hence when individual negotiates over the price and when they reach consensus the price moves.
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Darshan Sanwal replied to the topic What is the input (Data required) to do fundamental / technical analysis? in the forum Understanding the Price Movement 7 years, 10 months ago
Inputs for
1. Fundamental analysis: it has over 100 inputs. few of them can be P/e Ratio, EPS, Projected sales,projected profit, GP Ratio, NP Ratio, and so on.
2. Technical analysis: Requires Volume traded and price movements of the company in stock market.
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Darshan Sanwal replied to the topic What are the pro / cons of technical analysis? in the forum Understanding the Price Movement 7 years, 10 months ago
Pros: Can be done by every one including retail investors.
Cons: It is subject to market demand and supply and hence with high risk.
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Darshan Sanwal replied to the topic what are the Pro and cons of fundamental analysis? in the forum Understanding the Price Movement 7 years, 10 months ago
Pro: It helps us to find us the actual value of the company.
Cons: Getting information is very difficult and also expensive. Takes a lot of time to do fundamental analysis.
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Darshan Sanwal replied to the topic What is technical analysis? in the forum Understanding the Price Movement 7 years, 10 months ago
Technical analysis is the analysis of market price movements. Top players who know the actual value of the company because of the price will not move more than the actual value of the company. Hence Through technical analysis the retail investors will know the actual value of the entity.
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Darshan Sanwal replied to the topic What is fundamental analysis? in the forum Understanding the Price Movement 7 years, 10 months ago
Fundamental analysis is that study which enables us to find the value of the entity.
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Darshan Sanwal replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 7 years, 10 months ago
Identify tops and bottoms in price chart (Line charts). Once identified then it is to defined each top & bottom as higher top or lower top and higher bottom or lower bottom respectively with reference to previous tops & bottoms.
Once identified Use the following formula:
Long(Buy) : Price moves from high bottom to High top with high…[Read more]
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Darshan Sanwal 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 7 years, 10 months ago
Line charts are used to understand dow theory.
Minimum look up period for DOW theory is 2 months.
Duration is the same as look up period.
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Darshan Sanwal replied to the topic Since dow theory is only to find the trend, cant we keep target and stop loss? in the forum Stock market questions and answers 7 years, 10 months ago
Dow theory Only helps us to understand the forces of demand and supply and hence it can’t be used to keep target and stop loss.
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srinivash c g and Darshan Sanwal are now friends 7 years, 10 months ago
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Darshan Sanwal replied to the topic What is Equity market? in the forum Essentials of Trading Instruments 7 years, 11 months ago
Equity market refers to Share Market (Equity shares of the company).
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Darshan Sanwal 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 option : The Holder of this option gets the right to buy the Security at an agreed price on a future date. However he does not have any obligation to buy.
Putt Option: <span style=”line-height: 1.5;”> </span><span style=”line-height: 1.5;”>The Holder of this option gets the right to Sell the Security at an agreed price on a future date. Ho…[Read more]
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Darshan Sanwal replied to the topic How option contract differ from future contract? in the forum Essentials of Trading Instruments 7 years, 11 months ago
The Holder of the option has no obligation to execute the contract where as the holder of a future contract has the obligation to settle the trade.
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Darshan Sanwal 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
Exchange is responsible for the execution of derivative contracts on a future date.
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