All right, its time to tackle some important questions and controversies. Do cycles exist in financial markets? Even if they exist, can we trade them profitably? Perhaps it’s often debated only on first scale and completely ignored on second scale basis. Let me take a dip into the topic and some insights alongside.
Recently, Indian govt announced a particular scheme in their budget notes which took a lot of attention, especially gold merchants and speculators. With gold prices tumbling since last couple of years, the new scheme-if it works, would not only increase the supply of precious metal at domestic level, in-turn cuts our international gold imports which further depresses the price at global scale.
In My last article, I mentioned about trading budget and market related to budget. In this one I will shed light on the stocks in my radar screen which I feel would provide some trade opportunities post budget.
Government spending policies that influence macroeconomic conditions. Through fiscal policy, regulators attempt to improve unemployment rates, control inflation, stabilize business cycles and influence interest rates in an effort to control the economy. Fiscal policy is largely based on the ideas of British economist John Maynard Keynes (1883–1946), who believed governments could change economic performance by adjusting tax rates and government spending.
Since strength of INR (Falling USD/INR Chart) is more or less vertically followed by rising Nifty and Bank nifty –it is safe to assume that FII’s are dominant in present market situations and more likely, USD Fluctuations are prone to create risks in the above mentioned assets.
As with every field in finance there is a large amount of misconception about discretionary trading, which is highly profitable and led some to believe such a type of trading is purely subjective-No! People have misunderstood the concept and definition of discretionary trading. Even if you are systematic trader you can use the power of discretionary trading for your advantage.
Yeah, if you believe that I am good at writing controversial articles, I can’t say no. But while doing so, I try to expose real face of the markets and some of the most used conventional wisdom which is nothing but just a useless trap. Today let me stir a bit on Chart patterns and why the so-called “Patterns” are useless to make money. Before doing so I would like to warn the average reader that chart patterns are useful only if you’re making money out of it or else throw them away.
A large parabolic movement which follows an event such as earnings announcement, Economic reports etc.called ” Event spike “. This move is all about feeding frenzy or herd behavior of market participants are influenced by price moment itself! Some people even refer to this as price reflexive.
Fat fingers, big pockets or Mystical market movers, call them whatever you like. But it is important to understand the large players in Indian market specifically. Most of us already know that smart money is everything although some of you might have no idea about these mystical players! Their origin and tactics, for what purpose they play in the market
If you are a regular reader of my articles, then you know “I hate technical indicators”. They are a derivative of price action, nothing more than a mathematical complex paralysis. My clients frequently question me-“Hey do you use any indicator”? Most probably my reply will be no-because majority of you guys know, I am a pure Price action trader!
Global economic and geopolitical events lined up in a different way this time ever since 1982 commodity glut. The best way to approach this year is being a skeptical contrarian Investor and I hope this article will shed some light into most important and less known method
Dow Theory is one of the most important trend following theories ever. As market evolved, the concepts of Technical analysis became more elaborated and complex, most essential foundation was forgotten in the Market literature.Even with much complexity nothing beats the Dow Theory on odds and logic. It’s around for over 100 years and still important as it is, even today