Trading Steps

What makes a frustrating market?

2010-07-29T22:15:00.000+05:30

If you are finding the Markets hard to follow, you are not alone. Watch as Adam shares some steps with you on how to improve your trading. Click on the link below: What makes a frustrating market?

Taking advantage of Time Decay in Options

2010-07-29T20:25:00.000+05:30

Krishna has this point to make: "Why one should not write stardles or strangles to take advantage of time decay. I have seen that it normally decays and can fetch a decent money if written in the beginning of series. Is really risk is so high that retail traders should never go for it ?? Normally retail traders keep burning their hands through buying options as it gives a fake feeling of

Market Moves

2010-07-28T22:10:00.000+05:30

Nitin Damle asks: " Today morning I heard u on CNBC Awaz telling to buy Nifty near 5400 Sir, my reading was different I was thinking that short term trading indicators are pointing towards correction Nifty is not moving above 5450 and there is huge negative divergence on MACD & actully given a sell signal so as per my reading it was a sell with S/L 5450 I got confused hearing u please tell me

Mental Fitness

2010-07-28T12:43:00.002+05:30

Thinking out side the box Original creative ideas are innovative because no one has ever thought about them before. Those who develop such ideas are usually thinking in a different way than others. Academic studies have shown that fundamental datapoints (earnings,corporate actions, etc.) explain roughly 30 percent of daily/weekly stock price variation. Given that fundamentals are only one of

Trading Turnover

2010-07-27T14:07:00.001+05:30

men asks: "Help needed. Dear Mr. Sudarshan, How does one determine turnover for fno for audit purposes? ASSUME 1 MINI PURCHASED 1,00,000/- SOLD NEXT DAY 1,00,500/- hence turnover is 500/- assume 1 mini purchased 1,00,000/- sold next day 99,500/- hence turnover is ALSO 500/- Therefore total turnover for AUDIT PURPOSE IS 500*2=1000, if no then what is the turnover for audit

news that we can use

2010-07-26T16:04:00.002+05:30

Goldman Sachs earnings fall, trading faces difficulties It is a piece of very bad news for Goldman in the last few days.Goldman posted disappointing earnings to a large extent because its highly profitable investment banking and trading divisions saw activities slow in the last quarter. The firm had to account for its settlement with the SEC, but that is a one time charge. The faltering in the

Wise Words from Barry Ritholtz

2010-07-21T19:33:00.000+05:30

What are my strengths?

2010-07-21T07:03:00.002+05:30

Gourav wrote: "Is there any specific reason you adress the traders as she instead of he.While reading i fell bit unusual" My Notes: I should do it more often. Woman constitute 50% of the population, so, in all fairness, they should be referred to half the time in my writings. This question sparked off a thought: I feel one of my strong qualities is: I have an open mnd. This helps me in my

Cycles of expansion and contraction

2010-07-20T21:26:00.000+05:30

Narrow ranges are patterns for profit. Liquid markets will usually not stay inside a narrow range for long. Therefore, when the Technician detects a narrow range pattern, she waits patiently for a breakout from this range. The direction of breakout is usually unknown. There is a general rule that consolidation will lead to a resumption of the trend, but this rule does not work at times of trend

Maybe I am not understanding the numbers

2010-07-19T20:46:00.000+05:30

Canara Bank Q1 EPS Rs 24.72 Share Price 496.5 (Source: http://www.business-standard.com/results/storypage.php?autono=401713) HDFC Bank Q1 EPS Rs 17.53 Share Price 2047.85 (Source: www.nseindia.com ) (I own long positions in Canara Bank. This has been my favorite PSU Bank for many months.)

More on Chicago

2010-07-19T20:21:00.000+05:30

Murali asks: Can you please elaborate on the rule of RBI that "since we cannot, open derivative trading accounts aborad". Does it mean that we cannot open an account with a foriegn broker and trade NIFTY or We cannot trade any other derivatives - NASDAQ / FTSE. Can you also clarify about CFDs. My Notes: The RBI allows Indian citizens to use foreign exchange for investment in equity shares, in

The Nifty trades in Chicago

2010-07-19T19:26:00.001+05:30

The Nifty is trading on the Globex. This means it trades for almost 22 hours on the Chicao exchange. In the day, (when it was Monday morning in India and Sunday night in Chicago) the Nifty was trading with 2 contracts in volume and a price of 5384 which was almost equal to what we were having in India. Now, as I write this, it is 7:23 PM in Delhi. The Nifty is trading in Globex with a volume of

American Shadows

2010-07-18T22:40:00.001+05:30

All of a sudden, we seem to get strongly attached to U.S. influences. First, the S&P500 fell almost 2.5% on Friday, about 26 points (Dow fell 260+ points). This will have some influence on india, on Monday. Second, There is a news item in the Times of india, confirmed by the CME website - http://www.cmegroup.com/ (check out the Equity Index menu option), that Nifty futures will begin trading on

What if they are wrong?

2010-07-15T21:11:00.000+05:30

In earlier posts today, I offered analysis by Dow Thoery Expert, Richard Russel who feels that we may be entering a bear market never seen before. He seems to be agreeing with Robert Prechter who is talking about Dow 400. (As I write, the Dow is at 10280). Now, experts have been known to be wrong. (including this writer who is not an expert, but still gets it wrong, many times). Suppose the

Richard Russel says worst bear market in history coming

2010-07-15T19:04:00.000+05:30

“We’re now in the process of building one of the largest tops in stock market history. The result, I think, will be the most disastrous bear market since the ‘30s, and maybe worse. Collapse of Fiat Currencies I think the key element behind this great bear market will be the complete destruction of all fiat currencies. This has been a long time coming. Fiat currencies are “wealth” created by

Explaination of a Sucker Rally

2010-07-15T18:42:00.000+05:30

Barry Ritholtz (ritholtz.com) gives the opinion of Tomi Kilgore who says that the current bounce in the SP500 may be a suckers rally. Quote Tomi Kilgore warns that the recent bounce may be a sucker’s rally: “The current rally marks the fourth time since early May that the Dow Jones Industrial Average has bounced more than 5%. Previous bounces have taken the Dow above key resistance levels,

FREE Trial to Technical Analysis WEbsite

2010-07-15T07:29:00.002+05:30

. Two Week FREE Trial For a limited time, Marketclub are offering a completely FREE 2 Week Trial to you. It requires no payment information and you can get started using MarketClub instantly! FREE Access To All of Tools For The Trader… Email Alerts—Know instantly when to make your moves. Trade Triangle Technology—Market proven entry/exit signals. Talking Chart Technology—The language

The look of a lost decade

2010-07-15T07:18:00.000+05:30

We have discussed earlier that the U.S.markets have done nothing over the last 10 years. Here is what two of their leading stocks, IBM & INTEL look like over the past 20 years. Finally a chart for the S&P. We learn from history, so these charts are useful. (charts from stockcharts.blogspot.com)

America goes up on Intel, India goes up inspite of Infosys

2010-07-14T14:09:00.000+05:30

Strong Intel earnings sent the global markets to otbit. The bears were slaughtered. But, what about earnings in India? Infosys did not give much promise, yet Indian markets have followed the world by moving up. The American and European markets have been reacting to good news by going up and bad news by going down. In India, "All the news is good news". This is what happens in bull markets. We

Breakouts must be respected

2010-07-14T07:38:00.000+05:30

The Nifty has broken out of a 15 day trading range. Any breakout, up or down must be accepted as the wisdom of the market.

Time to buy the Dollar

2010-07-12T22:43:00.001+05:30

Currency futures are available on the NSE as well as on the MCX. Is it time to buy the dollar. If the dollar index moves up, we might see a rally in the dollar. Find out what analysts see in the dollar index and the reason why they think a potential rally may be in the foreseeable future. Click on the link below: Is it time for the dollar index to rally?

What can go wrong

2010-07-12T20:38:00.001+05:30

What can go wrong? First, we are just entering the earnings season. A pessimsitic guidance by Infosys (reporting on July 13) can cause a lot of havoc and confusion. Second, The American Markets have seen a rally after a big decline. If this rally is a relief rally, we may see lower levels which will certainly affect our own markets. Third, unknown political events can affect us, for example,

Nifty trading setup

2010-07-11T22:06:00.000+05:30

Moving Average studies on the Nifty

2010-07-10T21:09:00.003+05:30

If you want to know about the death cross then: Learn what the death cross is and how you can construct it and use it in your own trading. "The "death cross": What it is and how to trade it" Arvind Sahu, our susbcriber and chart reader, wrote to me: thanks for your update in daily newsletter for article "death cross". what i understood, i showed in chart. DJIA index has crossed death cross.

Nifty - line chart

2010-07-09T08:38:00.000+05:30