INDIAN STOCK MARKET

Indian share market is one of the most volatile share markets in the world, that is why SEBI is so strict and demanding in terms of compliance. This website is meant for Giving basics of stock market , technical analysis,research of stocks,the most important is the tips for small investors. As we dont follow news much, its only the quarterly results and the normal news related to stocks like bonus and splits important for us, some news, like recent SEBI declaring a scam done by prominent share brokers, this type of news comes very rarely but if it comes then it is by chance and techncial analysis does not follow by chance news.......

TYPRES OF MARKET ANYLASIS.

There are two main types of stock market analysis utilized by investors. They include other concepts, some of which will be explained in this article. When performing analysis on the stock market, there are many factors to consider, but first you must decide which method you would like to utilize. Stock market analysis includes fundamental and technical analysis. Investors will typically stick to one method or the other and will typically not use both in tandem....

SMART EARNINGS VS INVESTMENTS

Read about the fundamentals of the stocks and the market, attend a seminar or take a class on investing and review online financial sites. Set your goals based on your financial position and a stock-picking strategy. Don't ever buy a stock without first learning about its business and who its competition is. You want to focus on the leaders in an industry. Invest in what you know. Consider the stocks of local companies with which you are familiar and in which you have confidence. Check out the past of the stock that you are going to buy. Invest in more than one or two stock so that lose in one stock can recover from the profit in the another one. Buy stocks that you will feel comfortable holding. Resist the temptation to dump a stock the moment its price drops a few percentage points. Give it a chance...

TRADING STRATAGIES

Everyone is looking for a good trading strategy. How about if you had 6 to choose from? With a little bit of experience and discipline, you'll find these to be quite useful.

1. Post-opening buying: If stocks rise 5% or more during early trading on any given day and it doesn’t make the news it will generally fall off after about 30 minutes or so of trading and the price will level. There are occasions when market makers are attempting to artificially inflate stock prices in order to sell off excess inventory. If the stock doesn’t fall off after about 30 minutes it is quite likely that they will continue to rise throughout the day. The tactic for this type of trading is to buy at 1/16 above the high of the day and sell at 1/16 below the low of the day.

2. Post-opening selling: This strategy is the direct opposite of the strategy mentioned above. When a stock opens low with no news it could be that there are nervous investors placing sell orders from the day before. It could also be the result of artificially lowered prices in order to draw in panic sellers so that market makers can purchase shares as the price declines and sell as they rise. The value of these stocks are generally recovered after about thirty minutes of trading and profit makers can make money by selling the stocks they’ve just purchased on the decline at the average price. If the stock continues to fall after 30 minutes or show no sign of recovery chances are that it will continue to decline throughout the day. The tactic for this investment type is to sell short at 1/16 of the days low and set a stop at 1/16 above the high for the day.

3. Grinding: This is another tactic that is considered relatively easy. This is the act of buying an in demand stock as it is on the rise and selling quickly at 1/8 or ¼ of a point for a quick profit

4. Fading the market:This is a contrarian strategy in which buyers capitalize by buying weaknesses and selling strengths meaning you buy stocks with small declines hoping they will see gains when the market reverses. With this type of investing you should hold on selling until the stock trades above its opening. The logic behind this tactic is that current owners will sell in order to prevent further loss, which will drive the prices down for the short term.

5. Shop the final hour: The last hour of trading on any given day will typically see stocks easing back from their highest prices of the day. The reason for this is that day traders and market makers are exiting their positions in order to ‘guarantee’ their profits. This results in lower prices on many stocks during the very last hour of trading and opportunities for short trading possibilities abound as the result of this common practice.Keep your stops close. Its important to save your capital and live to trade another day.