• investment and trading
    Finance

    Investment and Trading – The Client Ethics

      The biggest problem with human beings is that they do more than what they are asked to do? You might wonder how this could be a problem? It can be better explained with an example. Say you are going to a doctor for treatment. The doctor hands out the prescription and asks you to meet him after five days. This is as simple as it can get. You have just got to do a certain thing for a certain period in a certain manner. Isn’t it easy to execute?. But what do you do? You peruse the prescription. Once you reach the drugstore, you try to find from the…

  • Finance

    Indispensable Patterns!

    As the title suggests, patterns play a crucial role in the Technical analysis. Every tool used in technical analysis like the bar chart, point and figure chart, etc, seem to create a pattern of their own. Candlesticks which is one of the most widely used forms of charting is known for its typical patterns it also goes to include variants such as Renko, Kagi, and three line break all of which have got to do with nothing other than patterns. Fibonacci relations depict yet another pattern while the line studies are also the symmetry of some sort creating patterns. Divergences and Reversals, overbought and oversold are all patterns too. The…

  • Finance

    Trade like you would Drive!

    The trading and investing world are quite similar to driving on the road. What do you do when you are out on the road? You mostly moderate yours driving in line with the way the others are driving. If the other cars are moving fast, you tend to move fast, if others are going slow, so do you. When others see a signal, you too are likely to see it. But, when a few cars overrun the signal because there is no cop there, you too tend to follow suit and overrun the signal, though you might not do it actually when you are on your own. You must note…

  • Finance

    The Worn Out Cliché

    The dividing line between those practicing Technical Analysis and those who do not is the statement that “you cannot time the market.” The argument that those who do not practice technical analysis put forth is that you might be out of the market too early or not be present when the stock is making the best move. But this is a bland statement without a basis. There is no record of someone missing a big move while you are trying to time it. To this argument, you have them asking” to show a rich market timer.” The answer to this is that if you do not know a rich market…

  • Finance

    Long term Orientation – single greatest edge an Investor can have!

    Enough people are shouting over the roof that to make money in the market. You should look at long-term investment. Though the advice of these people is well intentioned, it seems to fall on deaf ears, consistently. You will be able to understand this from the fact that it has been proved that for a turnover of over 1 lakh in the market, only 10-20% results in delivery. This is a meager percentage. If you were to minus from this the institutional participants and the percentage of participants who engage in short-term investments (also considered as long-term trading), you would notice that the actual percentage of people engaged in serious…

  • Finance

    Yes! Boredom does lead to success and profits in the Financial Markets

    Trading is exciting. At least that is what most people think. It does give the thrill to see your money grow rapidly in a manner which is unlikely in any other legal avenues for making money. That is why only a few are able to resist trading in the market. Trading also gives the trader an image of being some sort of a superior being, who is capable of taking all the risks.- which most normal people would avoid taking or at least think that they cannot take. As an outsider, there are a number of people who admire the carefree lifestyle of a trader and wish to emulate it.…

  • Finance

    When can Trading become a Utopian Dream?

    Stock trading, contrary to what most people think is an excellent business. To enumerate the benefits you can start with the scope to choose your trades or even depend on others to feed some names as well. You indeed have the choice of working or not working in your hands. Is that all? No, you indeed have the option to choose what you want to trade with, which is by far a wide range which includes stocks, futures, options, currencies, commodities or on delivery. Now, that’s what you call variety. It is akin to being taken to a Bikanerwala and being told to eat whatever you want. Suppose you choose…

  • Finance

    Planning is a way to bring the future into present!

    There is a point in time when you would wish to quit the comfort of a salaried job. It could be to start up and build a venture of your own. You may decide to quit because you are dissatisfied with the job. Lack of growth prospects and to search for better opportunities might be the other reasons for quitting the job. Whatever the reason, quitting the job has to be a planned decision. If the planning is lacking, the period during the transition from employment to whatever that lies beyond is guaranteed to have financial repercussions. It is essential to be financially stable to make the transition hassle-free. Getting…