Unexpected events in financial markets is referred to as ‘Six sigma’ or ‘six standard deviation’. A huge fall or a sudden rise, which is anything that is not ordinary. In historical terms, six sigma events are those which makes the market to drop down in red more than 9.5% a day. Theoretically a six sigma event happens once in 796 years, but not in practical.
Remember StockCharts? One of the top leaders in web based charting provider in the world is currently offering Indian Stock Charts. Stockcharts is famous for their Free Charting Platform, Classical Technical Indicators, Point and Figure Charts, Renko Bars, Seasonality Charts, Education on Technical Indicators, RRG Graph, Realtime Charts, Perf Charts, Seasonality Charts and lot more. And now Indian stock market investors can take advantage of those features enabled for Indian Stock Markets.
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.
For most people, it is not easy taking a loss and there is a strong tendency to “book profits” whenever you get profits. Unfortunately, this approach will never help you earn big money and more often you will see that after running a lot you are still in the same place. Your broker has however been earning slowly but steadily.
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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!
Most of us invest based on our gut feeling or intuition also called instinctive impulses.Psychological factors such as greed ,fear ,hope and pride or Ego dominate our investing decisions.We sometimes go by tips or advice of some body or jump with news on TV or news papers.Our assumption of certainty of outcome is based on knowledge gained from various sources which we tend to believe or just give a try.This is irrational investing process as certainty of outcome is based on our belief of information where outcome is always binary and not predictable.
Successful investment involves professional approach or systemic approach to save time ,ensure disciplined approach and avoid unnecessary repetition and to prevents us from discretion trading .Following steps are just example of my approach to building a portfolio.Any one can have his choice of contents under sequence of broad framework outlined below.
The core challenge as an investor is setting aside instinctive physiological and emotional responses at the root of our brain’s decision-making processes. Though they are perfectly suited to protect us from physical harm, they have little value in modern investing
Demat accounts are electronic account forms where you can store all the fund, equities and shares you have purchased from the stock market. Therefore, you need not keep all the share certifications with you. You can convert your physical shares into dematerialized form and keep them in the demat account.
If you are a stock market enthusiast, then you have evolved with the trends of the stock market. Having strategies to fall back on when the stock market is volatile, is one of the important aspects for any investor in the stock market. With the increasingpace of the stock market, the idea of having multiple accounts is revolutionary. Let’s take a look at the various reasons to have multiple trading accounts: