Kicker Signals The Kicker Signal is one of the most powerful Candlestick signals. This is due to the signal having a gap built into it. In some cases the gap is very obvious. In other cases the gap is not always recognized by investors. As described in Mr. Bigalow’s book “Profitable Candlestick Trading”, the Kicker Signal dramatically illustrates investor sentiment has changed.
Figure 5 – Standard Pacific Corp. Many investors are afraid to buy after a gap up. The rationale being that they don’t like paying up for a stock that may have already moved 3%, 5%, 10% already that day. Witnessing a Candlestick “buy” signal prior to the gap up provides a basis for aggressively buying the stock. If it is at the bottom of
SOME STRATEGIES FOR WRITING COVERED CALLS STRATEGY 1 This is the strategy that works best in India since options of fundamentally strong stocks continue to have some time premium left till the last day. You should write at-the-money calls since these give the maximum premium inflow. It is critical, however, that once covered call writing is accepted as a strategy, nse india, traders should write calls
TAXATION OF DERIVATIVES TRANSACTIONS IN SECURITIES SECURITIES TRANSACTIONS TAX ON DERIVATIVES TRANSACTIONS Finance Act (N0.2) of 2004 has introduced Securities Transactions Tax on all derivatives transactions entered into a recognized stock exchange. This tax is payable by the seller of the derivative instrument. The rate of tax free trading tips applicable on the same has been revised to 0.0133% of the value of taxable securities transaction
SPECULATION: BEARISH SECURITY. SELL CALLS OR BUY PUTS Do you sometimes think that the nse india is going to drop? That you could make a profit by adopting a position on the market? Due to poor corporate results, or the instability of the government, many people feel that the stocks prices would go down. How does one implement a trading strategy to benefit from a downward movement in
SPECULATION: BULLISH SECURITY BUY CALLS OR SELL PUTS There are times when investors believe that security prices are going to rise. For instance, after a good budget, or good corporate results, or the onset of a stable government. How does one implement a trading strategy to benefit from an upward movement in the underlying security? Using options there are two ways one can do
HEDGING: HAVE UNDERLYING DUY PUTS Owners of stocks or equity portfolios often experience discomfort about the overall stock market movement. As an owner of stocks or an equity portfolio, sometimes you may have a view that stock prices will fall in the near future. At other times you may see that the market is in for a few days or weeks of massive volatility,
FUTURES TERMINOLOGY SPOT PRICE: The price at which an asset trades in the spot market. FUTURES PRICE: The price at which the futures contract trades in the futures market. CONTRACT CYCLE: The period over which a contract trades. The index futures contracts on the NSE have one month, two months and three months expiry cycles which expire on the last Thursday of the month.
Make Profit from Day trading Stocks Trading simply implies the practice of buying and selling financial instruments. It should be done on the same trading day. This is because all the positions are usually closed before closing of the market in the trading day. These traders who practice or participate in this type of trading are known as day traders are people who practice or
What Are Exchange Traded Funds? It is very important that when you think of investing in the stock market, you should have a clear knowledge of the functioning of the market. Without a goodresearch it would be very difficult to determine the good stocks and the bad stocks. You should have a good knowledge about what are exchange traded funds. As you know that there are