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Joel Pinto replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 7 years, 10 months ago
Dow theory was developed by Charles Dow, Wall Street Journalist. It is a basic tool to understand Trends based on Demand and Supply.
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Joel Pinto replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 7 years, 10 months ago
Here we need to analyze min 2 year data as line chart.
Identify higher top/higher bottom/lower top/lower bottom w.r.t previous top/bottom.identify sequences:
Higher Bottom – Higher Top – with volume ==>Bullish trend (means Demand > supply)==>Buy (Create Long position)
Lower Top – Lower Bottom – with volume ==>Bearish trend (means Demand…[Read more] -
Joel Pinto replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 7 years, 10 months ago
Support – Demand > Supply – Long position
Resistance – Supply>Demand – Short position
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Joel Pinto 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
Technical analysis – Price and Volume.
Fundamental Analysis – asset value, Future earning, Management team, Growth of the company and sector, Govt Policy, Etc.,
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Joel Pinto 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 17000 crores. The traders with large investment potential can manipulate the stock price falsely creating a surge or decline in demand and supply.
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Joel Pinto 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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Joel Pinto 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: Inexpensive, transparent, widely accessible, lesser time required, easier method
Cons: Not as accurate as fundamental, not much useful for higher volumes of trading and for long term investments, doesn’t give any information about the company.
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Joel Pinto 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
Buyers and sellers decide the stock price depending on their expectation of the market movement.
They also take decisions based on the company’s business,change in govt policies and rumors etc
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Joel Pinto 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
Pros-Through the quantitative study of a particular company, we can be sure of the price movement and invest accordingly.
Cons-It takes a lot of time to gather information and the data is not accessible to majority of the people.
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Joel Pinto replied to the topic price movement in the forum Stock market questions and answers 7 years, 10 months ago
Demand and supply are the factors that affect price moment
Demand>Supply = price rises
Demand <Supply = price falls
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Joel Pinto 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 is the one which help us in finding right demand and supply and will be easier to find to invest on which stock or share. Analysis is also useful to understand the market.
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Joel Pinto replied to the topic What is fundamental analysis? in the forum Understanding the Price Movement 7 years, 10 months ago
Fundamental analysis involves studying about a company in detail and determining its net worth through analysis based on quantitative and qualitative factors.
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Joel Pinto replied to the topic What are different types of charts? in the forum Understanding the Price Movement 7 years, 10 months ago
1. LINE CHART
2. BAR CHART
3. CANDLESTICKS CHART -
Joel Pinto replied to the topic What is technical analysis? in the forum Understanding the Price Movement 7 years, 10 months ago
Technical analysis is the study of the price movement and the corresponding volume to derive the market trend. Technical analysis has many tools in charts like candlebars for weekly trading, line charts for monthly trading and gap indicators for strength of the stock
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Joel Pinto replied to the topic What are Margin / MTM / Premium / Strike Price / Expiry Date / lot size? in the forum Essentials of Trading Instruments 7 years, 10 months ago
MARGIN: It is the caution deposit collected by the exchanges from the investors.
MTM: Mark To Market price . The closing price is compared with the market price and daily settlements happen to balance the ledger.
PREMIUM: It is paid by buyers to sellers in case of options.
STRIKE PRICE: It is the price fixed by buyers in case of options
EXPIRY…[Read more]
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Joel Pinto replied to the topic What is Spot / Cash market? in the forum Essentials of Trading Instruments 7 years, 10 months ago
A spot market is one in which the deal is made immediately and the settlement is done towards the end of the same day. If a short position is created in spot market then the position has to be coverd before the end of the same day.
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Joel Pinto replied to the topic What is the role of exchange in derivative instruments? in the forum Essentials of Trading Instruments 7 years, 10 months ago
The role of exchange is to balance the market price and the agreed price between the buyer and the seller
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Joel Pinto replied to the topic Why should a trader need the futures/call/put? in the forum Essentials of Trading Instruments 7 years, 10 months ago
In Future/Call/Put contracts, trader need only small amount (as caution deposit) to execute the contract.
Unlike, in Spot market they don’t need full cash/shares to execute the trade on the first day itself. The cash settlement will take place at the end of the day based on the market movement at MTM basis.
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Joel Pinto replied to the topic What is call option and PUT option? Who decide the premium? in the forum Essentials of Trading Instruments 7 years, 10 months ago
Call option – Right given to buy the stocks at a specified rate and at a specified time.
Put option – Right given to sell the stocks at a specified rate and at a specified time.
The premium amount is given by the buyer to the seller to execute this contract.
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Joel Pinto replied to the topic How option contract differ from future contract? in the forum Essentials of Trading Instruments 7 years, 10 months ago
In future contract, the buyer and seller have their rights to buy and sell with obligations.
In option Contract the buyer of the contract have the rights with no obligations
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