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Shiva replied to the topic What are the pro / cons of technical analysis? in the forum Understanding the Price Movement 7 years, 1 month ago
Pros – Can be used to short term (intraday analysis) and medium (weekly and monthly) and long term investments, since it follows the market and does not do anything on forecasting.
Cons – Does not indicate why the prices are moving as fundamental analysis do
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Shiva replied to the topic Why do people avoid penny stocks? in the forum Understanding the Price Movement 7 years, 1 month ago
Penny stocks are traded in very less volume and they do not follow the market trend, so it is advisable to avoid penny stock.
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Shiva replied to the topic What is fundamental analysis? in the forum Understanding the Price Movement 7 years, 1 month ago
Fundamental analysis is the detail study of company and the factors affecting the price which can be different from one industry to another, one sector to other etc.,
The study has to be both quantitative and qualitative. This is the best and stronger hands use this analysis because the volumes they deal will be very huge .
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Shiva replied to the topic what are the Pro and cons of fundamental analysis? in the forum Understanding the Price Movement 7 years, 1 month ago
Pro – It helps to analyse / study a particular company in detail and the factors affecting the price from one sector to another sector or a company to other company or an industry to another industry
Cons – It is unable to follow and do all the analysis and doing quantitative analysis is not enough, we should do the qualitative analysis which is…[Read more]
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Shiva 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, 1 month ago
The average turnover of NSE is 20,000 Crores .It is not possible to manipulate stock price by any average trader.
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Shiva replied to the topic What are different types of charts? in the forum Understanding the Price Movement 7 years, 1 month ago
Line charts Ā ; Bar charts Ā and Candle stick charts
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Shiva replied to the topic Why do we need to do an analysis? in the forum Understanding the Price Movement 7 years, 1 month ago
We need analysis to study the market ie to study the demand and supply where the input is the price and volume. Based on this we study the market action and understand the price movement and Ā decide when to buy and sell
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Shiva replied to the topic What is the input (Data required) to do fundamental / technical analysis? in the forum Understanding the Price Movement 7 years, 1 month ago
Fundamental analysis – Ā Contains both quantitative data (P&L , production, asset, Loan etc) and qualitative data (Employee satisfaction level, import/export policy, taxation policy etc) Ā of a company and it is detailing on the company , sector, etc.,
Technical analysis – It focus on the market and not on the company mainly on the demand and s…[Read more]
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Shiva replied to the topic What is technical analysis? in the forum Understanding the Price Movement 7 years, 1 month ago
Study of market with proper logic and deriving demand and supply by price and volume using charts , patterns indicators etc.,
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Shiva replied to the topic What drives the stock price? Why to price changes so often? in the forum Understanding the Price Movement 7 years, 1 month ago
Demand and supply determine the stock price.
The price changes mainly due to the fluctuation in the demand and supply
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Shiva replied to the topic How option contract differ from future contract? in the forum Essentials of Trading Instruments 7 years, 1 month ago
1. Both buyer and seller has to obligation in futures and in options only seller has obligation and buyer has no obligation
2. Futures has Margin money from buyer and seller ; Premium is paid by buyer in case of options to get the contract signed by the seller
3. Day to day settlement happens in futures and in option that is not the case
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Shiva replied to the topic What are Margin / MTM / Premium / Strike Price / Expiry Date / lot size? in the forum Essentials of Trading Instruments 7 years, 1 month ago
Margin – Caution deposit given to exchange because you will not default in the end of the day.
MTM – Day to day price fluctuation , out of which you are benefited or you have to pay the money because at the end of the day it has to be realized. (Mark to Market)
Premium – Money given to the seller to sign the contract by the buyer because the…[Read more]
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Shiva replied to the topic What is the Pro / Cons of Equity market from tradersā perspective? in the forum Essentials of Trading Instruments 7 years, 1 month ago
In equity –
Cons ; Low risk when compared to futures and options and easy to understand.
Pro:
We have to pay the money now to get the share once the deal is made
I have to sell the share to make profit and in case of short positioning I have to close the deal on the same day.
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Shiva replied to the topic What is the role of exchange in derivative instruments? in the forum Essentials of Trading Instruments 7 years, 1 month ago
Exchange plays the role of the mediator.
In case of options Premium amount is ensured and in case of futures margin amount is ensured and the final settlement is done through exchange.
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Shiva replied to the topic Why should a trader need the futures/call/put? in the forum Essentials of Trading Instruments 7 years, 1 month ago
Futures and options are needed to maximize profit and minimize risk
In futures – investment is not 100% and only margin money has to be paid
In call / put option we can customize our trade. If you expect your money value to go up you can go in for call Option and if you expect your price to go down you can go in for put option, but more study…[Read more]
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Shiva replied to the topic What is call option and PUT option? Who decide the premium? in the forum Essentials of Trading Instruments 7 years, 1 month ago
Call Option – The buyer has to the right to buy with no obligation
Put Option – The seller has to right to sell with no obligation
Premium is decided by both buyer and seller in the market
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Shiva replied to the topic What is Futures contract? in the forum Essentials of Trading Instruments 7 years, 1 month ago
Future contract is Ā the agreement made between the buyer and seller for a Ā predetermined price and the settlement has to be done on or before the expiry date.
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Shiva replied to the topic What are derivative instruments? in the forum Essentials of Trading Instruments 7 years, 1 month ago
There are 2 derivative instruments – 1. Ā Futures and 2. options
In futures :
Both buyer and seller execute a deal on the same day and settlement happens on the future date. The difference between the executed price and the last minute price is the profit buyer and seller are going to make.
The ledger balance will be done on day to day basis…[Read more]
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Shiva replied to the topic What is Spot / Cash market? in the forum Essentials of Trading Instruments 7 years, 1 month ago
The spot / cash market is equity market where the deal is settlement on the same day
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Shiva replied to the topic What is Equity market? in the forum Essentials of Trading Instruments 7 years, 1 month ago
It is the place where buyers and sellers meet , it is a spot market. Here the deal and settlement happens on the same day
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