When does the market goes up? Markets moves up because market participants believe in the fundamentals behind the market. At a certain point it is seen that the fundamentals change and the market corrects, however the reason fundamentals change is not because of some external event, but because of the participants themselves. In other words, an excess of bullishness creates … [Read more...]
Use of options to replace stocks or futures for massive profits
Options trading strategies are being used widely by traders and investors. This article describe how to use options to replace stocks or futures. It also describe options trading strategies that uses stock options and futures options. Option trading strategies included in this article are call options, bull call spread, call ratio backspread, put options, bear put spread and … [Read more...]
What are the main Asset classes in India?
What are the main Asset classes in India? What is meant by Asset Allocation? Asset allocation is about diversifying your investments across different asset classes so that you can optimise the risk return balance of your portfolio. It ensures that the poor performance of any one asset will not collapse your entire investment plan. What are the main Asset classes in … [Read more...]
What are Market Corrections and Volatilty ?
Understanding Market Corrections and Volatilty What is correction? A stock market correction is a relatively short lived (a few weeks to a few months) and dramatic price decline that interrupts an upward trend in the stock market. A correction is often defined as a drop of between ten and twenty percent from a market high. A drop in excess of twenty percent is typically … [Read more...]
What Makes a Potential Investment Good?
What Makes a Potential Investment Good? What makes a potential investment good is a question that doesn’t get asked enough by most investors. If you asked your average investor that question you would get one of two answers 1-One that goes up and 2-One with good management and blah, blah, blah. If you ask an excellent trader what makes an investment a good one they would say … [Read more...]