Tuesday, 17 May 2016
The use and deployment of charts has increased with the increase in popularity of technical analysts. The patterns formed in the chart by the application of indicators and oscillators are called chartpatterns. The chart patterns are the signals representing the market trend and the price of stock moving in one direction.
There are various types of formation in the charts, like cup and handle pattern, head and shoulders pattern, double top and double bottom and many others. There are two types of pattern types: reversal and continuation. A reversal pattern indicates that previous trend will be reversed as soon as the pattern completes. The continuation patterns indicate that previous trend will keep on continuing in the same direction, even after the pattern is completed.
One of the most popular patterns is cup and handle pattern. The pattern formed is like a cup with a handle. This pattern shows bullish continuation trend. Pattern shows the break of uptrend and it continues to trade down, but the stock will continue in an upward direction after the completion of the patterns. This pattern generally ranges from few months to years.
There are few important facts involved in the formation of the cup and handle pattern. First and foremost thing every technical analyst must know is that before the formation of the cup and handle pattern there is an upward trend. The more the previous trend lasts before the pattern the lower will be the potential for larger breakout after the pattern has been completed. The cup and handle pattern must be formed by proper semi circle formation. The cup and handle formation shows the signal of strengthening of position within a trend. In this scenario, the weak investor leaves the market and sells its stocks and securities. However, the new buyer does not leave the market, they hold on their position.
The technical analysts of Money Classic Research are experts in studying the technical charts well and thus offer the best and accurate advice to their customers.
Wednesday, 11 May 2016
Apart from these strategies there are many more strategies used by the technical analysts. Money Classic Research is a leading advisory firm which acts as knowledge hub for these strategies.
One of the most frequently practiced ways of trading is stock future trading. This type of trading is based on future contracts. Future contracts are contractual agreement between the two parties. One of the parties is who sell the contract and the other who buy the contract. This contract to buy or sell the stock or commodity at a determined price for future is the future contract. This type of trading is called stock future trading. The person who trade or invest in the market by agreeing for these standardized contracts is called future traders.
There are many technical analysts who get confused between future market and forward market. Theoretically, both the future market and the forward market are executed in the similar manner. Equally, the markets allow a trader or investor to buy or sell the stocks at a definite time at a specified price. However, the only difference between the two markets is that the future market is regulated by the Exchanges, which is standardized. Whereas, the forward market is a private contract between the two parties and are not standardized. These types of contracts are flexible in terms of rules and regulations.
There are many indicators and oscillators used in stock future trading to gauge the market trend. Trading strategy is a fixed module of trading that is designed in way to achieve the maximum benefit out of stocks, whether you go for long or short term trading. Looking on various aspects and consequences of trading techniques experts have already decided and fixed several protocols in order to overcome the risk of loss and benefit maximum. Stock future trading strategy is a bit complex process that cannot be understood easily with the beginners.
Some of the commonly used trading strategies are Average True Range, Volume on the Ask, Volume on the Bid and Ask, Bollinger Band, Bar Value Area, Bid Volume, Band Width, Commodity Channel Index, Chande MomentumOscillator
Tuesday, 3 May 2016
The stock market provides a reliable indication on the actual value of the companies that issue stocks. The values of stocks are based on reliable financial data that is to say assets, growth and sales statistics. Stock market is a specific area that one cannot predict. A trader can never know when he is going to receive profit or some time a loss too.
Stock market trading is something that one should be aware of the market before making any investments. It is like a road where it can take people to their destiny that they are really looking to improve their financial safety. There are many people who do not take the stock market seriously and later on they howl for their money that has gone waste. So, one should be very serious when he comes to trading in the stock market.
For stocks, it is always desirable to look for the new products that are offered in the market. This will provide the trader to have a good idea on buying shares of stock in that company. It would assist the trader to judge whether or not it would be beneficial for. In short, a trader must know how Indian stock market functions. If one need to invest in a stock market, then it is better to know at least the basic concepts of the market so as to get success in the trade.
Short range investors also have a good scope in the stock market. The whimsical market, even without a financial foundation, can cause the rapid fluctuation of prices. Investor psychology may also lead to cause the prices of the stocks to either descend or ascend.
There are many people who seek to know how stock market works and how they have chances of getting benefits. People always keep an eye on to succeed in their venture, but a mistaken decision can let a trader to lose money. Hence, it is important to get a professional help and good market survey to win the battle. A trader, especially a beginner, should never be intolerant and try to capture good decisions before he starts to invest in stocks.
Whatever option of trading a trader chooses to do, the first and foremost factor is to identify the stocks that will give returns according to the expectation of the trader. Stockmarket Trading is a profitable business, if traders adhere to proper strategies. There are prominent stock advisory firms who provide accurate stock market tips to their clients for successful trading. MoneyClassic Research resorts reliable stock market tips and strategies for the traders to successfully operate business in the stock market.
Monday, 2 May 2016
A future trading is a business platform that gives the trader everything he has ever wanted from a business of his own. It offers the prospective for unlimited earnings and real wealth. A trader can run it working at his own times as well as continuing to do whatever he is doing now.
The futures option in Stock market trading is an option contract where the principal is a single futures contract. It is a uniformed contract which provides the delivery of a specific quantity of product at some time in the future at a predetermined price. A trader of the future option contract has the choice to assume a particular future position at a strike price, any time before the expiry of the option.
Different from other kinds of investments, such as stocks and bonds, when the trader enters into the trade futures, he does not actually buy anything or own anything. He speculates on the future path of the price in the security he is trading. The phrase buy and sell merely indicate the direction he expects future prices will take.
The futures option generally expires at the end of the month that proceeds the delivery month of the underlying futures contract. The strike price is the price at which the futures position is opened in the trading accounts for both the buyer and the seller if the futures option is triggered.
The Futures contracts are traded in futures exchanges globally and it covers a variety of choice of commodities like as agriculture products, financial products, livestock, metals, energy, and such as market indices, interest rates and currencies.
An investor can trade in the futures market in different ways, but he must be convinced of the amount of risk that he is willing to take. As a futures trader, the trader should have a clear understanding as to how the market and contracts work.
A constant attention, research and determination can be the deciding factors for a successful trader. It is advisable to consult with a good Advisory firm and ask questions before opening a futures account. Money Classic Research is a reputed advisory firm providing accurate equity tips and Intraday Trading Tips.
Saturday, 30 April 2016
StockMarket is a lucrative business for many people. Different traders approach the Stock market to gain benefit from the regular price movements involved. There are many strategies which are common in the Stock Trading.
There are people which are involved in to it. Some common strategies involved are indicator based strategies, money management based techniques, risk management technique and other self devised techniques.
This is an article about some of the common strategies which are used in the StockMarket. The first hour breakout strategy, the pair strategy, the grid strategy and spread techniques are some of the common strategies involved in the Stock market.
In the first hour strategy, the market movement in the first hour is observed. The range of the market, i.e the high and low in the first hour is identified and the breakout from the range is watched for. If the breakout from the high is observed, the uptrend is anticipated.
Similarly if the breakout from the low is watched the downtrend is anticipated to continue. Thus the appropriate long and short positions can be taken on the start of uptrend and downtrend.
In the pair strategy, a pair is first selected which has similar behavior and characteristics.
Thus if the two stocks are selected as a pair, the two stocks will show similar behavior in similar market conditions. The deviation from the pair is observed and once the divergence has been observed, the movement towards the mean position can be utilized to benefit from the buy and sell trades.
In the grid strategy a grid of the buy and sell calls is placed around the current market price. The buy and then sell calls are placed above the CMP and sell and then buy are placed below the CMP. The grid strategy is a high probability strategy.
where the traders can be benefitted from the general market conditions.The above strategies are extensively used to generate accurate stock market tips and intraday trading tips.
Friday, 29 April 2016
Tagged under: MACD
The divergence strategy is one of the most important strategies, which can be utilized to trade profitably in the Stock Market. In the Divergence based technique, the divergence between one of the momentum indicators and the price is observed and the trend reversals are anticipated.
Both RSI and MACD can be used as the indicators for the divergence technique. RSI stands for Relative Strength Index and MACD stands for Moving average Convergence and Divergence.
In case of divergence technique, a divergence between the price and the indicator is searched for. The divergence can be bullish divergence or bearish divergence. The bullish divergence indicates the start of an uptrend. Similarly the bearish divergence indicates the start of bearish trend.
The above strategy can be used to generate accurate stock market tips. MACD is extensively used for the divergence analysis. The histogram of the MACD is drawn and the lines indicating the divergence between the peaks of the histogram are drawn.
The indicators like CCI are also extensively used in Divergence analysis. The divergences are also of types, hidden divergence and absolute divergence. While using the divergence it should be clear that the success rate of the divergence trading is between 70 to 80 Percent.
Not all the trades are profitable, but if the trader decides a favorable risk reward ratio, it will lead to the overall success of the traders. One can decide the Stop Loss of the trades little below or above the previous peak.
The above strategy is extensively used by the Technical analysts and one can take help of reputed advisory firm like Money Classic Research which provides complete support and advices over the type of strategies discussed above. Money classic Research is an advisory firm which is reputed and also ISO certified. They provide accurate equity tips with proper stop loss levels.
Wednesday, 27 April 2016
Different traders trade in different fashion to get the benefit out of the market movement. Some traders rely on technical analysis and other use the advice and support of some advisory firm. There are many other traders who employ the strategy based on risk management and wealth management to get benefit from the market.
The grid strategy is one of the strategies which can be used to get good profits from the market. In this strategy a grid of buy and sell signals is placed around the current market price. Thus above the current market price, the buy and sell signals are placed at regular intervals. Similarly below the current price level first the sell and buy levels are placed at regular intervals. Thus in this strategy, a grid is formed which is found beneficial in most of the cases.
The grid found in the grid strategy is a probabilistic grid which has a high chance of success. The grid is beneficial the most in case when the market is in strict uptrend and strict down trend. The grid gives the loss in case of strict range bound market. The grid strategy is a high probability strategy in which the chances of success are more than the failures. However, in the extreme situations, a big loss can be incurred which can neutralize all the profits made. Hence one must take the grid strategy with caution.
One can take the help of reputed advisory firm likeMoney classic research for practicing the strategy like stated above. Money Classic Research is an advisory firm, which is reputed and also ISO certified. They act as knowledge hub for the strategies and tactics to trade effectively in the Stock Market. They provide accurate intraday trading tips and equity tips with proper stop loss.