@kadhirveluj
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kadhirvelu replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 8 years, 2 months ago
As per Dow theory stocks can be bought in buyer zone when volume is high ( Sequence of HB,HT)
Stocks can be sold in seller zone when volume is high ( Sequence of LT,LB)
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kadhirvelu replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 8 years, 2 months ago
Dow theory helps to study the data in the form of line chart against price and time . It identifies the buyers zone and sellers zone by following the market trend with trading volume .It forms the foundation for modern day analyses with growing knowledge and demand.
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kadhirvelu 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 8 years, 2 months ago
Dow theory is the oldest method and requires 2 years of data for better analysis. It remains on top of analysis because of reliability and 51% of trades are successfully .Investors use dow theory as starting point and do further analyses on top .
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kadhirvelu 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 8 years, 2 months ago
* Line chart is used
* Minimum look up period is 2 years
* Trend forecasting is 2 to 3 months
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kadhirvelu replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 8 years, 3 months ago
Line chart is used to distribute one year or two year data with price and time frame.Significant higher top higher bottom closing price lower top lower bottom closing price trend is identified .
Bullish trend : Significant HB,HT buyers are aggressive
Bearish trend: Significant LT,LB sellers are aggressive
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kadhirvelu replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 8 years, 3 months ago
Support is buyer zone and Resistance is seller zone .
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kadhirvelu replied to the topic What is the input (Data required) to do fundamental / technical analysis? in the forum Understanding the Price Movement 8 years, 3 months ago
Fundamental analysis require company future expansion plans , Management policies , Assets and Liabilities ,Current technology and future road map,Product/service details ,Employee headcount .
Technical analysis require price and volume to take position on stocks.
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kadhirvelu replied to the topic What drives the stock price? Why to price changes so often? in the forum Understanding the Price Movement 8 years, 3 months ago
Future growth ,Demand and supply drives the stock price . Price change due to government policies , Environmental changes,Company expansion geographically.
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kadhirvelu replied to the topic Why do we need to do an analysis? in the forum Understanding the Price Movement 8 years, 3 months ago
Analysis is required to be a good trader with knowledge and discipline . Income and expenses are both part of trading. Analysis helps the trader to be in business without quitting due to emotional decisions.
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kadhirvelu replied to the topic What is technical analysis? in the forum Understanding the Price Movement 8 years, 3 months ago
Technical analysis helps the trader to understand price pattern,Demand and supply . Income can be generated both in Bull market and Bear market using the technical analysis . It helps Positional trading for holding stock weeks/month but not for longer duration in terms of year .
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kadhirvelu replied to the topic What are different types of charts? in the forum Understanding the Price Movement 8 years, 3 months ago
Depending upon the volume and absolute values we can use 3 types of charts
Line chart
Bar chart
Candle Stick chart
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kadhirvelu replied to the topic price movement in the forum Stock market questions and answers 8 years, 3 months ago
price movements helps to understand the Stocks Trending price ,Volume,Demand ,supply . Trade plan is possible with the help of price movements .
To understand the price movement whether its artificial or future growth dependent is the key for technical analyses.
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kadhirvelu replied to the topic What is fundamental analysis? in the forum Understanding the Price Movement 8 years, 3 months ago
Fundamental analysis is a detail study of the company on both qualitative and quantitative metrics. Future projects ,course of action ,technology adoption , Management policy changes are some of the challenging measures to be derived .Its expensive and time consuming certain details are available only to the stronger hands who are closer to the…[Read more]
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kadhirvelu replied to the topic What are the pro / cons of technical analysis? in the forum Understanding the Price Movement 8 years, 3 months ago
Pros of Technical Analysis
* Helps the trader to make a knowledgable and disciplined approach
* Trading volume and price pattern helps the trader to make informed decision with expected risk and expected return.
Cons
* Natural calamity or overnight economy crash leads technical analysis to expenses at times
* Technical analysis may fail at…[Read more]
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kadhirvelu replied to the topic what are the Pro and cons of fundamental analysis? in the forum Understanding the Price Movement 8 years, 3 months ago
Fundamental Analysis Pro
* Profit margin is more
* Better investment options
Cons
* To many details to be monitored , time consuming and expensive
* Quantitative measurement is not possible for all the metrics
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kadhirvelu replied to the topic Why do people avoid penny stocks? in the forum Understanding the Price Movement 8 years, 3 months ago
Penny stocks are unpredictable ,less profit margin for the risk taken . Hence people avoid penny stocks.
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kadhirvelu 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 8 years, 3 months ago
Avg turn over is 3 lakh crores . Its difficult to manipulate the stock price .
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kadhirvelu replied to the topic What is the role of exchange in derivative instruments? in the forum Essentials of Trading Instruments 8 years, 3 months ago
Exchange acts as a monitoring body to settle the agreed contracts between buyer and seller. Any dispute has to be settled by exchange on behalf of buyer/seller.
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kadhirvelu replied to the topic What are Margin / MTM / Premium / Strike Price / Expiry Date / lot size? in the forum Essentials of Trading Instruments 8 years, 3 months ago
Margin is the caution deposit collected by exchange from traders .
MTM Mark to market means settlement of profit or loss is executed on a daily basis based on market fluctuations.
Premium is the amount paid by buyer/seller for binding the contract on a future date.
strike price is the agreed market price till the contract duration.
Expiry date…[Read more]
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kadhirvelu replied to the topic How option contract differ from future contract? in the forum Essentials of Trading Instruments 8 years, 3 months ago
Options contract buyer has the right to buy in call option and right to sell in put option with no obligation.
Future contract both buyer and seller has equal rights .Profit or loss is settled on a daily basis based on the agreed future contract.
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