Find the best tutors and institutes for Stock Market Investing

Find Best Stock Market Investing classes

Please select a Category.

Please select a Locality.

No matching category found.

No matching Locality found.

Outside India?

Search for topics

Stock Market Investing Updates

Ask a Question

Post a Lesson

All

All

Lessons

Discussion

Lesson Posted on 02 May Financial Planning/Stock Market Trading/Derivatives Trading Financial Planning/Stock Market Investment/Technical Analysis

Stock Market Sentiment Analysis

Pradeep Muthappa

I provide training in Chart Analysis and Options Trading. I am an expert Futures and Options Trader....

Comments
Dislike Bookmark

Lesson Posted on 02 May Financial Planning/Stock Market Investment/Technical Analysis

Support and Resistance - EMA

Pradeep Muthappa

I provide training in Chart Analysis and Options Trading. I am an expert Futures and Options Trader....

Comments
Dislike Bookmark

Lesson Posted on 02 Apr Financial Planning/Stock Market Investment

How to you go about creating massive wealth?

Rahul Jain

Have worked as an equity analyst for more than 15 years. Now into full time investing.

That includes among many other things: 1. Self-education 2. Improving your skills 3. Ensure alignment of your own goal with your work Once you have a steady calling and generate cash, it's only logical to ensure the money is best utilised towards ensuring it compounds over time. read more

That includes among many other things:

1. Self-education

2. Improving your skills

3. Ensure alignment of your own goal with your work

 

Once you have a steady calling and generate cash, it's only logical to ensure the money is best utilised towards ensuring it compounds over time.

read less
Comments
Dislike Bookmark

Looking for Stock Market Investing classes

Find best Stock Market Investing classes in your locality on UrbanPro.

FIND NOW

Lesson Posted on 16 Feb Financial Planning/Stock Market Investment

Meaning Of Derivative

BHAVANI PRASAD MADDALA

I have been giving training's and advisory services in the stock markets since 15 years and I am Certified...

What is a 'Derivative'? A derivative is a security with a price that is dependent upon or derived from one or more underlying assets. The derivative itself is a contract between two or more parties based upon the asset or assets. Its value is determined by fluctuations in the underlying asset. The most... read more

What is a 'Derivative'?

A derivative is a security with a price that is dependent upon or derived from one or more underlying assets. The derivative itself is a contract between two or more parties based upon the asset or assets. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. 

Derivatives can either be traded over-the-counter (OTC) or on an exchange. OTC derivatives constitute the greater proportion of derivatives in existence and are unregulated, whereas derivatives traded on exchanges are standardized. OTC derivatives generally have greater risk for the counterparty than do standardized derivatives.

read less
Comments
Dislike Bookmark

Lesson Posted on 16 Feb Financial Planning/Stock Market Investment

Equity Market

BHAVANI PRASAD MADDALA

I have been giving training's and advisory services in the stock markets since 15 years and I am Certified...

The market in which shares are issued and traded, either through exchanges or over-the-counter markets. Also known as the stock market, it is one of the most vital areas of a market economy because it gives companies access to capital and investors a slice of ownership in a company with the potential... read more

The market in which shares are issued and traded, either through exchanges or over-the-counter markets. Also known as the stock market, it is one of the most vital areas of a market economy because it gives companies access to capital and investors a slice of ownership in a company with the potential to realize gains based on its future performance. 

Breaking Down 'Equity Market':

Equity markets are the meeting point for buyers and sellers of stocks. The securities traded in the equity market can be either public stocks, which are those listed on the stock exchange, or privately traded stocks. Often, private stocks are traded through dealers, which is the definition of an over-the-counter market.

read less
Comments
Dislike Bookmark

Lesson Posted on 16 Feb Financial Planning/Stock Market Investment

Commodity

BHAVANI PRASAD MADDALA

I have been giving training's and advisory services in the stock markets since 15 years and I am Certified...

What is a 'Commodity'? A commodity is a basic good used in commerce that is interchangeable with other commodities of the same type; commodities are most often used as inputs in the production of other goods or services. The quality of a given commodity may differ slightly, but it is essentially uniform... read more

What is a 'Commodity'?

A commodity is a basic good used in commerce that is interchangeable with other commodities of the same type; commodities are most often used as inputs in the production of other goods or services. The quality of a given commodity may differ slightly, but it is essentially uniform across producers. When they are traded on an exchange, commodities must also meet specified minimum standards, also known as a basis grade.

Breaking Down 'Commodity':

The basic idea is that there is little differentiation between a commodity coming from one producer and the same commodity from another producer. A barrel of oil is basically the same product, regardless of the producer. By contrast, for electronics merchandise, the quality and features of a given product may be completely different depending on the producer. Some traditional examples of commodities include grains, gold, beef, oil and natural gas. More recently, the definition has expanded to include financial products, such as foreign currencies and indexes. Technological advances have also led to new types of commodities being exchanged in the marketplace. For example, cell phone minutes and bandwidth.

Commodities Buyers and Producers:

The sale and purchase of commodities is usually carried out through futures contracts on exchanges that standardize the quantity and minimum quality of the commodity being traded. For example, the Chicago Board of Trade stipulates that one wheat contract is for 5,000 bushels and also states what grades of wheat can be used to satisfy the contract.

There are two types of traders that trade commodity futures. The first are buyers and producers of commodities that use commodity futures contracts for the hedging purposes for which they were originally intended. Theses traders actually make or take delivery of the actual commodity when the futures contract expires. For example, the wheat farmer that plants a crop can hedge against the risk of losing money if the price of wheat falls before the crop is harvested. The farmer can sell wheat futures contracts when the crop is planted and guarantee a predetermined price for the wheat at the time it is harvested.

Commodities Speculators:

The second type of commodities trader is the speculator. These are traders who trade in the commodities markets for the sole purpose of profiting from the volatile price movements. Theses traders never intend to make or take delivery of the actual commodity when the futures contract expires. Many of the futures markets are very liquid and have a high degree of daily range and volatility, making them very tempting markets for intraday traders. Many of the index futures are used by brokerages and portfolio managers to offset risk. Also, since commodities do not typically trade in tandem with equity and bond markets, some commodities can also be used effectively to diversify an investment portfolio.

read less
Comments
Dislike Bookmark

Looking for Stock Market Investing classes

Find best Stock Market Investing classes in your locality on UrbanPro.

FIND NOW

Lesson Posted on 16 Feb Financial Planning/Stock Market Investment

Supply And Demand Theory

BHAVANI PRASAD MADDALA

I have been giving training's and advisory services in the stock markets since 15 years and I am Certified...

Supply schedule: A supply schedule is a table that shows the relationship between the price of a good and the quantity supplied. Under the assumption of perfect competition, supply is determined by marginal cost. That is, firms will produce additional output while the cost of producing an extra unit... read more

Supply schedule:

A supply schedule is a table that shows the relationship between the price of a good and the quantity supplied. Under the assumption of perfect competition, supply is determined by marginal cost. That is, firms will produce additional output while the cost of producing an extra unit of output is less than the price they would receive.

A hike in the cost of raw goods would decrease supply, shifting costs up, while a discount would increase supply, shifting costs down and hurting producers as producer surplus decreases.

By its very nature, conceptualizing a supply curve requires the firm to be a perfect competitor (i.e. to have no influence over the market price). This is true because each point on the supply curve is the answer to the question "If this firm is faced with this potential price, how much output will it be able to and willing to sell?" If a firm has market power, its decision of how much output to provide to the market influences the market price, therefore the firm is not "faced with" any price, and the question becomes less relevant.

Economists distinguish between the supply curve of an individual firm and between the market supply curve. The market supply curve is obtained by summing the quantities supplied by all suppliers at each potential price. Thus, in the graph of the supply curve, individual firms' supply curves are added horizontally to obtain the market supply curve.

Economists also distinguish the short-run market supply curve from the long-run market supply curve. In this context, two things are assumed constant by definition of the short run: the availability of one or more fixed inputs (typically physical capital), and the number of firms in the industry. In the long run, firms have a chance to adjust their holdings of physical capital, enabling them to better adjust their quantity supplied at any given price. Furthermore, in the long run potential competitors can enter or exit the industry in response to market conditions. For both of these reasons, long-run market supply curves are generally flatter than their short-run counterparts.

The determinants of supply are:

  • Production costs: how much a goods costs to be produced. Production costs are the cost of the inputs; primarily labor, capital, energy and materials. They depend on the technology used in production, and/or technological advances.

  • Firms' expectations about future prices.

  • Number of suppliers.

Demand schedule:

A demand schedule, depicted graphically as the demand curve, represents the amount of some goods that buyers are willing and able to purchase at various prices, assuming all determinants of demand other than the price of the good in question, such as income, tastes and preferences, the price of substitute goods, and the price of complementary goods, remain the same. Following the law of demand, the demand curve is almost always represented as downward-sloping, meaning that as price decreases, consumers will buy more of the good.

Just like the supply curves reflect marginal cost curves, demand curves are determined by marginal utility curves. Consumers will be willing to buy a given quantity of a good, at a given price, if the marginal utility of additional consumption is equal to the opportunity cost  determined by the price, that is, the marginal utility of alternative consumption choices. The demand schedule is defined as the willingness and ability of a consumer to purchase a given product in a given frame of time.

It is aforementioned that the demand curve is generally downward-sloping, and there may exist rare examples of goods that have upward-sloping demand curves. Two different hypothetical types of goods with upward-sloping demand curves are Giffen goods (an inferior but staple good) and Veblen goods (goods made more fashionable by a higher price).

By its very nature, conceptualizing a demand curve requires that the purchaser be a perfect competitor—that is, that the purchaser has no influence over the market price. This is true because each point on the demand curve is the answer to the question "If this buyer is faced with this potential price, how much of the product will it purchase?" If a buyer has market power, so its decision of how much to buy influences the market price, then the buyer is not "faced with" any price, and the question is meaningless.

Like with supply curves, economists distinguish between the demand curve of an individual and the market demand curve. The market demand curve is obtained by summing the quantities demanded by all consumers at each potential price. Thus, in the graph of the demand curve, individuals' demand curves are added horizontally to obtain the market demand curve.

The determinants of demand are:

  1. Income.

  2. Tastes and preferences.

  3. Prices of related goods and services.

  4. Consumers' expectations about future prices and incomes that can be checked.

  5. Number of potential consumers.

read less
Comments
Dislike Bookmark

Lesson Posted on 16 Feb Financial Planning/Stock Market Investment

Volumes

BHAVANI PRASAD MADDALA

I have been giving training's and advisory services in the stock markets since 15 years and I am Certified...

In capital markets, volume, or trading volume, is the amount (total number) of a security (or a given set of securities, or an entire market) that were traded during a given period of time. In the context of a single stock trading on a stock exchange, the volume is commonly reported as the number of... read more

In capital markets, volume, or trading volume, is the amount (total number) of a security (or a given set of securities, or an entire market) that were traded during a given period of time. In the context of a single stock trading on a stock exchange, the volume is commonly reported as the number of shares that changed hands during a given day. The transactions are measured on stocks, bonds, options contracts, futures contracts and commodities.

The average volume of a security over a longer period of time is the total amount traded in that period, divided by the length of the period. Therefore, the unit of measurement for average volume is shares per unit of time, typically per trading day

Significance:

Trading volume is usually higher when the price of a security is changing. News about a company's financial status, products, or plans, whether positive or negative, will usually result in a temporary increase in the trade volume of its stock.

Shifts in trade volume can make observed price movements more significant. Higher volume for a stock is an indicator of higher liquidity in the market. For institutional investors who wish to sell a large number of shares of a certain stock, lower liquidity will force them to sell the stock slowly over a longer period of time, to avoid losses due to slippage.

read less
Comments
Dislike Bookmark

Lesson Posted on 16 Feb Financial Planning/Stock Market Investment

Price Action Tradng Strategies

BHAVANI PRASAD MADDALA

I have been giving training's and advisory services in the stock markets since 15 years and I am Certified...

Price Action describes the characteristics of a security’s price movements. This movement is quite often analyzed with respect to price changes in the recent past. In simple terms, price action is a trading technique that allows a trader to read the market and make subjective trading decisions... read more

Price Action describes the characteristics of a security’s price movements. This movement is quite often analyzed with respect to price changes in the recent past. In simple terms, price action is a trading technique that allows a trader to read the market and make subjective trading decisions based on the recent and actual price movements, rather than relying solely on technical indicators.

Since it ignores the fundamental analysis factors and focuses more on recent and past price movement, the price action trading strategy is dependent on technical analysis tools.

i. What tools are used for price action trading?

Since price action trading relates to recent historical data and past price movements, all technical analysis tools like charts, trend lines, price bands, high and low swings, technical levels (of support, resistance and consolidation), etc. are taken into account as per the trader’s choice and strategy fit.

The tools and patterns observed by the trader can be simple price bars, price bands, break-outs, trend-lines, or complex combinations involving candlesticks, volatility, channels, etc.

Psychological and behavioral interpretations and subsequent actions, as decided by the trader, also make up an important aspect of price action trades. For e.g., no matter what happens, if a stock hovering at 580 crosses the personally-set psychological level of 600, then the trader may assume a further upward move to take a long position. Other traders may have an opposite view – once 600 is hit, he or she assumes a price reversal and hence takes a short position.

No two traders will interpret a certain price action in the same way, as each will have his or her own interpretation, defined rules and different behavioral understanding of it. On the other hand, a technical analysis scenario (like 15 DMA crossing over 50 DMA) will yield similar behavior and action (long position) from multiple traders.

In essence, price action trading is a systematic trading practice, aided by technical analysis tools and recent price history, where traders are free to take their own decisions within a given scenario to take trading positions, as per their subjective, behavioral and psychological state.

ii. Who uses price action trading?

Since price action trading is an approach to price predictions and speculation, it is used by retail traders, speculators, arbitrageurs and even trading firms who employ traders. It can be used on a wide range of securities including equities, bonds, forex, commodities, derivatives, etc.

Steps used in price action trading:

Most experienced traders following price action trading keep multiple options for recognizing trading patterns, entry and exit levels, stop-losses and related observations. Having just one strategy on one (or multiple) stocks may not offer sufficient trading opportunities. Most scenarios involve a two-step process:

1) Identifying a scenario: Like a stock price getting into a bull/bear phase, channel range, breakout, etc.

2) Within the scenario, identifying trading opportunities: Like once a stock is in bull run, is it likely to (a) overshoot or (b) retreat. This is a completely subjective choice and can vary from one trader to the other, even given the same identical scenario.

Here are a few examples:

1) A stock reaches its high as per the trader’s view and then retreats to a slightly lower level (scenario met). The trader can then decide whether he or she thinks it will form a double top to go higher, or drop further following a mean reversion.

2) The trader sets a floor and ceiling for a particular stock price based on the assumption of low volatility and no breakouts. If the stock price lies in this range (scenario met), the trader can take positions assuming the set floor/ceiling acting as support/resistance levels, or take an alternate view that the stock will breakout in either direction.

3) A defined breakout scenario being met and then trading opportunity existing in terms of breakout continuation (going further in the same direction) or breakout pull-back (returning to the past level)

As can be seen, price action trading is closely assisted by technical analysis tools, but the final trading call is dependent on the individual trader, offering him or her flexibility instead of enforcing a strict set of rules to be followed.

The popularity of price action trading

Price action trading is better suited for short-to-medium term limited profit trades, instead of long term investments.

Most traders believe that the market follows a random pattern and there is no clear systematic way to define a strategy that will always work. By combining the technical analysis tools with the recent price history to identify trade opportunities based on the trader’s own interpretation, price action trading has a lot of support in the trading community.

Advantages include self-defined strategies offering flexibility to traders, applicability to multiple asset classes, easy use with any trading software, applications and trading portals and the possibility of easy backtesting of any identified strategy on past data. Most importantly, the traders feel in-charge, as the strategy allows them to decide on their actions, instead of blindly following a set of rules.

The Bottom Line:

A lot of theories and strategies are available on price action trading claiming high success rates, but traders should be aware of survivorship bias, as only success stories make news. Trading does have the potential for making handsome profits. It is up to the individual trader to clearly understand, test, select, decide and act on what meets his requirements for the best possible profit opportunities.

read less
Comments
Dislike Bookmark

Looking for Stock Market Investing classes

Find best Stock Market Investing classes in your locality on UrbanPro.

FIND NOW

Answered on 16/08/2017 Financial Planning/Stock Market Investment

SUJOY BISWAS

Trainer

1. Avoid the herd mentality,2. Take informed decision,3. Invest in business you understand,4. Don't try to time the market,5. Follow a disciplined investment approach
Answers 27 Comments
Dislike Bookmark

About UrbanPro

UrbanPro.com helps you to connect with the best Stock Market Investing classes in India. Post Your Requirement today and get connected.

Overview

Questions 63

Lessons 133

Total Shares  

+ Follow 9,686 Followers

Top Contributors

Connect with Expert Tutors & Institutes for Stock Market Investment

x

Ask a Question

Please enter your Question

Please select a Tag

UrbanPro.com is India's largest network of most trusted tutors and institutes. Over 25 lakh students rely on UrbanPro.com, to fulfill their learning requirements across 1,000+ categories. Using UrbanPro.com, parents, and students can compare multiple Tutors and Institutes and choose the one that best suits their requirements. More than 6.5 lakh verified Tutors and Institutes are helping millions of students every day and growing their tutoring business on UrbanPro.com. Whether you are looking for a tutor to learn mathematics, a German language trainer to brush up your German language skills or an institute to upgrade your IT skills, we have got the best selection of Tutors and Training Institutes for you. Read more