Tag Archives: trading techniques

Bottom Trading

An easy-to-see, obvious reversal is the Island Reversal. It provides a dramatic reversal in  that the enthusiasm that sent a price in a particular direction is countered with the same enthusiasm going the other way. In the example of Orbital Sciences Corp. ORB, Figure 29, the up-trend can be easily seen. At the top, after the buying enthusiasm created a long bullish candle, the

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RSI – Relative Strength Indicator

  RSI – Relative Strength Indicator Developed by J. Welles Wilder and introduced in his book, New Concepts in Technical Trading Systems, the Relative Strength Index (RSI) is an extremely popular momentum oscillator. The RSI compares the magnitude of a stock’s recent gains to the magnitude of its recent losses and turns that information into a number that ranges from 0 to 100. It

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Why should one invest?

One needs to invest to: •earn return on your idle resources •generate a specified sum of money for a specific goal in life •make a provision for an uncertain future One of the important reasons why one needs to invest wisely is to meet the cost ofInflation. Inflation is the rate at which the cost of living increases The cost of living is simply what it

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What is a ‘Debt Instrument’?

Debt instrument represents a contract whereby one party lends money to another on pre-determined terms with regards to rate and periodicity of interest, repayment of principal amount by the borrower to the lender. In the Indian securities markets, the term ‘bond’ is used for debt instruments issued by the Central and State governments and public sector organizations and the term ‘debenture’ is used for instruments

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Important Terminology

Underlying – The specific security / asset on which an options contract is based. Option Premium – This is the price paid by the buyer to the seller to acquire the right to buy or sell Strike Price or Exercise Price – The strike or exercise price of an option is the specified/ pre-determined price of the underlying asset at which the same can

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What Is a Mutual Fund ?

A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. Anybody with an investible surplus of as little as a few thousand rupees can invest in Mutual Funds. These investors buy units of a particular Mutual Fund scheme that has a defined investment objective and strategy The money thus collected is then invested

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Why Should You Invest In Mutual Funds ?

The advantages of investing in a Mutual Fund are: 1.    Professional Management. You avail of the services of experienced and skilled professionals who are backed by a dedicated investment research team which analyses the performance and prospects of companies and selects suitable investments to achieve the objectives of the scheme. 2.    Diversification. Mutual Funds invest in a number of companies across a broad cross-section

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Buy and Sell Stocks Online

Buy and Sell Stocks Online There are many people who pretend to know everything about the Indian stock market. But in reality only a few has the idea about the functioning of the stock market. So, you should know about when and how to buy and sells stocks online. You should also have some good idea about how stock markets operate in India. Learn about stock

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Recession market

Stock Investing Ideas during the Recession The global meltdown has beaten the stock market very badly. The share market is in the bottom level now after a long period of time. Lots of investors are facing a great problem as they have lost a huge amount of money due to the stock market crash. No industry expert is expecting that market will still follow

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Trading Tips

Trading Tips – The Reckoner for Trader You cannot gain profit without using a good logic. Stock market is something which you can never estimate what would happen to your investment. You might gain high profits or incur huge losses in the stock market. So it is said trading tips – the reckoner for trader. Unless you follow some important instructions, you would not be

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