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CBSE - Class 11 Physics Oscillations Worksheet
Between Index and Stocks, Index has a lower risk profile as a result of of risk diversification by the pool of underlying stocks
An upcoming RBI policy annoucement has made you think about whether not to trade in banking stocks just before the annoucement. What is your best strategy?
Accept risk and manage
b.Avoid
c.Eliminiate
d.Ignore
An air chamber of volume $V$ has a neck area of cross section $a$ into which a ball of mass $m$ just fits and can move up and down without any friction (Fig.14.27). Show that when the ball is pressed down a little and released , it executes SHM. Obtain an expression for the time period of oscillations assuming pressure-volume variations of air to be isothermal [see Fig. 14.27].

A spring having with a spring constant $1200 N m^{-1}$ is mounted on a horizontal table as shown in Fig. 14.24. A mass of 3 kg is attached to the free end of the spring. The mass is then pulled sideways to a distance of 2.0 cm and released. Determine (iii) the maximum speed of the mass.

When you're entering into a trade, which of these is KNOWN (for the most part)?
Risk
b.Reward
Figure 14.26 (a) shows a spring of force constant $k$ clamped rigidly at one end and a mass $m$ attached to its free end. A force $F$ applied at the free end stretches the spring. Figure 14.26 (b) shows the same spring with both ends free and attached to a mass $m$ at either end. Each end of the spring in Fig. 14.26(b) is stretched by the same force $F$. (a) What is the maximum extension of the spring in the two cases ?

A spring having with a spring constant $1200 N m^{-1}$ is mounted on a horizontal table as shown in Fig. 14.24. A mass of 3 kg is attached to the free end of the spring. The mass is then pulled sideways to a distance of 2.0 cm and released. Determine (ii) maximum acceleration of the mass,

Figure 14.26 (a) shows a spring of force constant $k$ clamped rigidly at one end and a mass $m$ attached to its free end. A force $F$ applied at the free end stretches the spring. Figure 14.26 (b) shows the same spring with both ends free and attached to a mass $m$ at either end. Each end of the spring in Fig. 14.26(b) is stretched by the same force $F$. (b) If the mass in Fig. (a) and the two masses in Fig. (b) are released, what is the period of oscillation in each case ?

A spring having with a spring constant $1200 N m^{-1}$ is mounted on a horizontal table as shown in Fig. 14.24. A mass of 3 kg is attached to the free end of the spring. The mass is then pulled sideways to a distance of 2.0 cm and released. Determine (i) the frequency of oscillations,

Between intraday and swing, the risk in swing trades are harder to manage because of potential gap ups and gap downs (assume same position size).
Worksheet Answers
Solution:
Diversification reduces risk. The same concept that is applied in investing works in trading as well.
A stock in itself can go up or down 5-10% in a day and noone would be surprised whereas NIFTY or Bank NIFTY will never make that kind of a wild move. Therefore, a lot of professional traders prefer to trade in the indices rather than individual stocks because it is easier to manage risk and there is higher predictability.
Solution:
Avoidance is the best risk mitigation strategy here. What's the point in unnecessarily taking the risk?
Solution:
The reward is something that the market decides- we have no idea or control over it. All that is in our hands is knowing and managing the risk. Again, it goes back to dilligently following your Trading Plan.
Solution:
Yes, swing trading is actually riskier than intraday trading because a trader is always exposed to overnight risk. Any advserse news from US market or trade wars or oil prices or political development can cause the market next day to open much lower.
There are ways to mitigate that risk (by hedging with call/put options) but there is a price to be paid for managing this risk.