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...]
Ten golden rules for Traders
Ten golden rules for Traders 1. Forget the news, remember the chart. You're not smart enough to know how news will affect the price. The chart already knows the news is coming. 2. Buy the first pullback from a new high. Sell the first pullback from a new low. There's always a crowd that missed the first boat. 3. Buy at support, sell at resistance. Everyone sees the same … [Read more...]
What Is A Trailing Stop Loss?
What Is A Trailing Stop Loss? A trailing stop loss is a useful tool for those doing momentum based stock trading. It may be easiest to explain with an example: On Monday John purchases 100 shares of stock at 100 per share (that’s 10,000.) He then immediately places a 10% “trailing stop loss” sell order on those 100 shares of stock. From the point of purchase 10% is of course … [Read more...]