The first thing to do is to at the opening of the stockmarket is to check last nights closing share price.
1. If you were going to sell, has the share price reached or dropped at your pre selected exit point?
2. If the share price went down, was your stop loss activated? (If you are not familiar with stop losses, please see a previous article on this to clarify.)
3. If you were...
A lot of different parties hype the merits of buy and hold investing because in the past this approach has worked very well at providing steady returns over a long period of time. Building positions continues to be an essential aspect of any stock trading approach even today. However, it should not form your entire strategy. If you’re uninterested in the market then it may be your main...
Everyone that aspires to trade in the markets should select a consistent trading system. Below are the principles for examining a trading system. How many of these principles do you adopt with your current approach?
* To corroborate a trading system you need a minimum of 50 trades in the test. You should also have at least 75 ticks (overall market trades) in a bar to have a sound charting...
Looking at the un-predictable behaviour of the stock market people are indulging in day trading by the day. This way they do not plan to keep a stock for months or years, rather quit the moment they find 2-5% profits. This also helps them to make a sort of daily income from day trading. There are also some smart investors who enter the market as soon as it dips 10-15% and quit the moment it...
BSE Sensex (10048.49) and Nifty (3108.65) closed 12.1% and 10.7% up respectively last week. Nifty Put Call Ratio was 1.17. Nifty April 2700 Put Option was very active. .Support for Sensex is at 9350 and Nifty at 2900.Resistance for Sensex is at 10820 and Nifty is at 3320. Inflation was at 0.27 v/S 0.44 last week. Crude oil was at 52.50$.FIIs turned net buyers during the week but local funds and...
From March 10 to March 26 of 2009, the market indices showed a tremendous climb. The S&P 500 was up 22%. The DOW was up 21%. The NASDAQ was up 19%. The S&P/TSX was up 17%. As of the March 27 close, the indices have retreated, likely due to profit taking to lock in gains after the rise in the past couple of weeks. This may be a pause, or it could be the beginning of a trend reversal. We do not...
Caught in the uncertain and volatile markets of the past couple of months, I was finding it extremely difficult to yield consistent returns in short-term trading. My options included:
1. Getting out of trading (for now) and take a break.
2. Go with buy and hold strategy (at least consider it).
3. Go with equity options (to accommodate a dwindling capital base).
4. Go with day trading.
I...
With the month of March largely over, I want to describe my trading progression for the month. Near the beginning of the month, I read professional analysts saying it was time to sell as the market bottom has not been reached, with plenty of signs for continued stock market downturn. From an economic standpoint, some of that analysis had substance. From the candlestick technical analysis...
Way back in the day, when I was just getting my feet wet in stock investing, I learned a simple concept. It helped me to profit even before I knew the first thing about earnings, balance sheets, P/E ratios, etc. Honestly, at that point in time, it was way over my head. Im sure some out there can relate.
So what did I do? I learned to follow trends. I devised a simple formula that anyone can...
One cannot deny the opportunities in spread betting. When you win, you can obtain an unimaginable level of profits. But when you lose, the same thing happens, only in the different direction. At the same time, people who are engaged in this activity vary, as well as their purposes in being involved in this industry. Essentially, you can look at it in different perspectives, despite its...