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Janani replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 7 years, 8 months ago
Higher bottom with high top sequence with high volume is bullish pattern, demand>supply, then buy.
Lower top with lower bottom sequence with high volume is bearish pattern, supply>demand, then sell.
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Janani 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
Fundamental – complete organization operational and financial details we require to arrive at assets value.
Technical – stock and price movement details and its history by arriving the demand and supply details .
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Janani 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
On daily basis at EOD the range of closing price and opening price is the average. yes bulk traders can manipulate the stock price which is often false illusion.
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Janani replied to the topic what are the Pro and cons of fundamental analysis? in the forum Understanding the Price Movement 7 years, 8 months ago
Pros : Fundamental analysis gives detailed analysis and complete information of an organization . very useful for capital investors in a long term perspective.
Cons : not easily available in the market for a common retailer. not easy to understand. information cost is very high.
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Janani replied to the topic price movement in the forum Stock market questions and answers 7 years, 8 months ago
Price is controlled by the factors of demand and supply.
Demand > Supply price is high
Demand < Supply price is low.
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Janani replied to the topic What is fundamental analysis? in the forum Understanding the Price Movement 7 years, 8 months ago
To analyze and research in detail more of a companies performance in order to understand the price movement
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Janani replied to the topic Why do we need to do an analysis? in the forum Understanding the Price Movement 7 years, 9 months ago
To gain knowledge of a company we need to do analysis. Depending upon our investments volume we can choose either to do fundamental or technical ..
Without analysis share market investment will became gambling.
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Janani replied to the topic What are different types of charts? in the forum Understanding the Price Movement 7 years, 9 months ago
Lines, Bars & Candle sticks.
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Janani replied to the topic What drives the stock price? Why to price changes so often? in the forum Understanding the Price Movement 7 years, 9 months ago
Traders decide the stock price based upon the ratio of demand and supply.
Demand > Supply price is high
Demand < Supply price falls.
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Janani replied to the topic What are the pro / cons of technical analysis? in the forum Understanding the Price Movement 7 years, 9 months ago
Pros:
For retail traders technical analysis gives more information which is easy to understand.
Useful for intraday and short term traders.
For Technical analysis information is easily available to common people at no charge.
Cons :
Not as accurate as fundamental analysis and tough to understand for trading.
not available in market for…[Read more]
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Janani replied to the topic Why do people avoid penny stocks? in the forum Understanding the Price Movement 7 years, 9 months ago
Highly risky.
Lack of information & transparency.
Starting with small amounts amateurs starts trading with lack of knowledge.
Chances of a company to file bankruptcy is high.
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Janani replied to the topic What is the role of exchange in derivative instruments? in the forum Essentials of Trading Instruments 7 years, 9 months ago
Futures and options are the exchange traded derivatives over the counter traded derivatives. Margins and caution deposits needs to be paid on this .
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Janani replied to the topic What is the Pro / Cons of Equity market from traders’ perspective? in the forum Essentials of Trading Instruments 7 years, 9 months ago
Pros : Dividend earned in long terms, Capital gains, Limited liability to risk, Liquidity of shares can be done easily.
Cons: Dividend earned in short term is minimal, High risk, Fluctuation in market price. Limited control of capital investments.
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Janani replied to the topic What is call option and PUT option? Who decide the premium? in the forum Essentials of Trading Instruments 7 years, 9 months ago
Call option – Bearish Instrument, Buyer have rights to buy with no obligations.
Put Option – Bullish instrument, Buyer have rights to Sell with no obligations.
Premium to be paid by seller is decided by buyer.
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Janani replied to the topic What is Futures contract? in the forum Essentials of Trading Instruments 7 years, 9 months ago
It’s a contract traded for future at a predetermined price for a specified time . Futures can be used either to hedge or to speculate the price movements of an underlying assets.
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Janani replied to the topic What is Equity market? in the forum Essentials of Trading Instruments 7 years, 9 months ago
Equity market is nothing but the share market where only stocks of equal values are traded.
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Janani replied to the topic What is Spot / Cash market? in the forum Essentials of Trading Instruments 7 years, 9 months ago
Spot & cash means one and the same , where settlement takes place in T+2 days. Its a market where commodity or shares are traded immediately on spot by paying cash.
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Janani replied to the topic What are derivative instruments? in the forum Essentials of Trading Instruments 7 years, 9 months ago
An instrument used to derive the value of an underlying assets which can be either commodity, shares, currency or bonds etc..
They are forwards, futures, options and swaps.
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Janani replied to the topic How option contract differ from future contract? in the forum Essentials of Trading Instruments 7 years, 9 months ago
In option contract buyer has rights and seller have obligations. Where as in future contract both buyer and seller have rights and obligations.
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Janani replied to the topic Why should a trader need the futures/call/put? in the forum Essentials of Trading Instruments 7 years, 9 months ago
The amount required to enter a deal on future/ call /put is minimal when compared to spot markets. as settlement happens only on expiry date depending upon contract either buyer or seller is benefited as money is paid on daily basis. Only caution deposit paid to exchange and premium are required to create a deal thats the reason why traders need…[Read more]
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