We keep hearing lot of jargons like automated system, semi-automated system, manual trading system and algorithmic trading. At the very high level there are 6 components involved in any trading system and each one in turn has many sub components. Some of the features might cut across the components.
During 1990s majority of the trading was happening in Regional Stock Exchanges, but now hardly any trading happens here and most of the trading have moved to major national exchanges like BSE and NSE. Regional Stock Exchanges story is not a happy ending one and now they are forced to shut shop due to their inability of meeting the requirements set by SEBI to be in business.
Stock market usually represent the whole market and sometimes you might need to know how a particular sector or group of stocks are performing. This is when an Index of stocks based on a sector is created and you can track this index to understand the behaviour of the sector it represents.
Effective 31st Oct, 2014 market lot of NIFTY derivative contract would be reduced to 25 from 50 and market lot of NIFTYMCAP50 derivative contract would be reduced to 75 from 150
Selection of right kind of stocks is very important to be successful in trading. As day traders and swing traders look for short term movement they need to look for stocks that are very liquid and has enough volatility
Quantitative Analysis is application of mathematical models and statistical methods on financial data and this data can be both static and real time. Quantitative Analysis in trading is mainly used for identifying trading opportunities and risk management. You make use of computer simulations to do analysis, backtesting and validation.
Quantopian is an algorithmic trading platform where you can develop trading algorithms using Python language and then back test them. The whole application runs on a browser and you don’t need any installation.The whole application is cloud based and by default Quantopian provide 12 years of stock data (only US stocks) which can be used for back-testing.
Mechanical trading system is catching up and we have lot of traders who rely on this for day to day trading. This article deals with 4 main pros of using a mechanical trading system
Day trading is a complex business until you get hang of it, but once you master day trading it can be very rewarding. There are lot of advantages in making day trading as a full time profession and at same time there are lot of disadvantages in day trading business. This article deals with some of the pros and cons of day trading.
Complete guide to day trading. Contains information on day trading trading patterns, day trading pros and cons, day trading strategies, day trading plan, stock selection criteria, money and risk management and other resources to help a day trader.
Whether you are a day trader or a swing trader or a position trader or an investor one thing that is required is a trading account with a good online stock brokerage firm. In India you have lot of brokerages that offer online trading account and this articles looks into 10 important factors that needs to be evaluated before opening an online trading account
If you are a part time day trader and finding it difficult to manage your open positions or if you have multiple positions open intraday then start using Bracket Orders to manage your trades more efficiently with less time. This article explains what is bracket order and how to use it for efficient trade execution
India VIX is a volatility index modeled in line with CBOE VIX which indicates the near term implied volatility of the index. India VIX is calculated using out of the money option contracts of Nifty
TRIN or Arms Index is a market breadth technical indicator used by short term traders and used to identify overbought and oversold areas.TRIN or Arms Index also uses the associated volume for calculation.
Even though the actual actions involved in trading is simple, i.e buy or sell a stock, the processes involved in deciding these actions are not simple and especially the one related to the trader himself - psychology