-
Murugan Thanikachalam replied to the topic Why do we need to do an analysis? in the forum Understanding the Price Movement 8 years, 8 months ago
Analysis helps to increase Reward to Risk Ratio.
-
Murugan Thanikachalam replied to the topic Why do people avoid penny stocks? in the forum Understanding the Price Movement 8 years, 8 months ago
Penny stocks are usually traded at very low volume, so illiquid and highly speculative.
Technical analysis of the stock is not possible.
-
Murugan Thanikachalam 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, 8 months ago
Equities 18,000 Crores
Index F & O 40,000 Crores
Stock F & O 60,000 Crores
Currency F & O 14,000 Crores
NSE Bond OPtions 4,000 Cro…[Read more]
-
Murugan Thanikachalam replied to the topic What is the input (Data required) to do fundamental / technical analysis? in the forum Understanding the Price Movement 8 years, 8 months ago
Fundamental Analysis: Quantitative and Qualitative parameters of the Company.
Technical Analysis: Traded Price and Volume for a specific period.
-
Murugan Thanikachalam replied to the topic What is fundamental analysis? in the forum Understanding the Price Movement 8 years, 8 months ago
Fundamental Analysis is the detailed study of the company going thro’ the Quantitative and Qualitative parameters of the company to ascertain the Intrinsic value.
-
Murugan Thanikachalam replied to the topic What is technical analysis? in the forum Understanding the Price Movement 8 years, 8 months ago
Technical Analysis is the study of DEMAND and SUPPLY using PRICE and VOLUME to detremine Market TREND and DIRECTION.
-
Murugan Thanikachalam replied to the topic Why should a trader need the futures/call/put? in the forum Essentials of Trading Instruments 8 years, 8 months ago
Trader needs Futures as it requires low investment and additional conditions can be added to the contract.
-
Murugan Thanikachalam replied to the topic What is Futures contract? in the forum Essentials of Trading Instruments 8 years, 8 months ago
A Futures Contract is between buyer and seller to be executed on a future date.
-
Murugan Thanikachalam replied to the topic What is the role of exchange in derivative instruments? in the forum Essentials of Trading Instruments 8 years, 8 months ago
The Exchange acts as a mediator to the buyer and seller, collecting the Refundable Caution Deposit from one party to pay the other party, in case of FUTURES and
collecting the Premium from one party to pay the otherin case of OPTIONS.
-
Murugan Thanikachalam replied to the topic What is Spot / Cash market? in the forum Essentials of Trading Instruments 8 years, 8 months ago
Spot/Cash market is another name for Equity market.
-
Murugan Thanikachalam replied to the topic What are derivative instruments? in the forum Essentials of Trading Instruments 8 years, 8 months ago
Futures, Call and Put Options are some of the Derivative instruments.
-
Murugan Thanikachalam replied to the topic What are Margin / MTM / Premium / Strike Price / Expiry Date / lot size? in the forum Essentials of Trading Instruments 8 years, 8 months ago
Margin is the Refundable Caution Deposit, given by the Buyer in order to take care of any default on his part.
MTM is Mark to Market which means Profit/Loss to be realised on a day to day basis.
Premium is the extra money the buyer pays the seller to help him decide to sign the contract.
Strike Price is the agreed price of the Future…[Read more]
-
Murugan Thanikachalam replied to the topic What is call option and PUT option? Who decide the premium? in the forum Essentials of Trading Instruments 8 years, 8 months ago
CALL OPTION: A Contract where the Buyer gets the RIGHTS TO BUY but no obligation.
The seller has obligation to fulfill the contract.
PUT Option: A contract where the Buyer gets the RIGHTS TO SELL but no obligation.
The seller has the obligation to fulfill the contract.
In both Call and Put Option, the SELLER of the contract decides the premium.
-
Murugan Thanikachalam replied to the topic How option contract differ from future contract? in the forum Essentials of Trading Instruments 8 years, 8 months ago
In case of CALL Option, the Buyer gets the RIGHTS TO BUY, but no obligation.
So the Risk is limited to the Premium paid, but the PROFIT potential is unlimited.
In case of PUT Option, the Buyer gets the RIGHT TO SELL, but no obligation.
So the Profit is limited , but the LOSS potential is unlimited.
In case of FUTURES, both BUYER and SELLER…[Read more]
-
Murugan Thanikachalam replied to the topic What is the Pro / Cons of Equity market from traders’ perspective? in the forum Essentials of Trading Instruments 8 years, 8 months ago
Pros of Equity Market:
Will be in possession of shares.
Entitled for Dividends and Bonus.
Cons of Equity Market:
Investment is more.
Actual possession of shares a must to Sell the shares.
-
Murugan Thanikachalam replied to the topic What happens if I quote high price to buy a stock compared to its current market price? in the forum Basics of Stock Trading 8 years, 8 months ago
If my Buy price is higher than the current market price my queue position will be pushed to the top and my order will be executed first.
-
Murugan Thanikachalam replied to the topic Who decide the stock price? in the forum Basics of Stock Trading 8 years, 8 months ago
The Buyer and Seller decide the stock price.
-
Murugan Thanikachalam replied to the topic How to place order? Types of order? Validity of order? in the forum Basics of Stock Trading 8 years, 8 months ago
Order is made online, after logging in thro’ client ID.
Buy and sell are two types of orders.
Validity is till execution and settlement of the particular order.
-
Murugan Thanikachalam replied to the topic What is online trading? in the forum Basics of Stock Trading 8 years, 8 months ago
The advantage of Online Trading is that we can do the trade ourselves, wherever we are and the only criteria is that we should have Trading and Demat account.
-
Murugan Thanikachalam replied to the topic Why do people choose stock trading? in the forum Basics of Stock Trading 8 years, 8 months ago
Low capital, part time work, almost nil overheads and good profit to risk ratio are some reasons why people choose Stock Trading.
- Load More