Trading calls providers for stocks, futures and options
A few days back I got a call to subscribe for a service which promised to offer powerful trading calls which will help my financial planning goals. Given that I do a fair bit in the financial planning area, I probed further. They proposed a free trial for a couple of days after which I had […]
How Futures and Options Affect Share Prices?
Of course, the price of derivatives (including futures and options) has a major impact on the price of the underlying share (and vice versa). How can you as a trader benefit from this co-relation has been the subject of many books and much research work. While it is not important to trade on this basis, it is […]
Can you buy / sell stocks after market hours?
Constant news flow and major corporate announcements after market hours make many wonder if they should buy/sell their stocks as soon as the market opens? For example – when a company reports really bad quarterly results or an extremely bad news surfaces post trading hours, far too often, investors wonder if they should sell their holding […]
Futures and Options Lot Size – Margin Amount and Number of Shares
In the stock markets, participants can trade in 2 segments: (i) Cash segment; and (ii) Futures and Options (Derivative) segment. Participants in the cash market can buy/sell any number of shares of a company (i.e. they can buy anything from a single share to thousands of shares). On the other hand, in the futures and options segment, participants […]
Choosing Fundamentally Strong Stocks for Trading
I often get emails asking for what are the good shares for trading in the Indian stock markets? One particular inquirer asked me to name some – fundamentally strong stocks for trading. I think this is worth writing about. At first, to come up with any coherent answer, the question must be broken in at least […]
Buying and Selling Stocks Frequently – Common Mistakes
As the exchange commences business every morning; a range of financial news channels play a trendy adrenaline pumping music. A market opening countdown timer adds to the excitement with the millisecond number scrolling faster than the speed of light. The anchor of the show starts speaking loud and fast. Suddenly, green and red colored tickers […]
Insider Trading and Stock tips in Indian Stock Markets
On the 24th of January 2014, as the markets opened for trade, Ranbaxy share price declined 20 % on news of U.S. Food & Drug Administration’s (USFDA) ban on the company from sending its drugs and ingredients into the United States (*from the company’s production facility in Punjab). It was a sudden and sharp fall and by […]
Stock Market Operators-How Do They Do It?
Over the past 200+ years (and perhaps more) there have been many instances of dramatic rise and fall in the prices of things that are traded. At times this is market driven and prices rise and fall purely based on demand and supply; while on others, the price is made to behave that way. In the […]
How to Start Investing in Stocks in India?
Most of the trading in the Indian stock market takes place on its two stock exchanges: the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The BSE has been in existence since 1875. The NSE, was founded in 1992 and started trading in 1994. Both exchanges follow the same trading mechanism, trading hours, settlement process, etc. There are 7,000 + stocks listed […]
How share prices change – Equilibrium Price
Given what I do, it is not unusual for me to meet investors who have become extremely wealthy in the stock markets as also those who have lost a sizeable portion of their wealth. The very nature of the market is such that “for every successful investor there will be someone who lost money”. The quote below […]