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...]
What Is Active Trading?
Trading refers to the practice of buying and selling financial instruments within the same trading day such that all positions are usually closed before the market close for the trading day. Traders that participate in day trading are called active traders or day traders. Some of the more commonly day-traded financial instruments are stocks, stock options, currencies, and a … [Read more...]
How Important are your timely Exits when Trading?
As we all know , the outcome of every trade is dependent on the exit. If you enter in a timely manner and then exit poorly, the trade could very easily be a loss. If your entry happens to be poor but your exit is good, you might actually still salvage a profit, or at the worst, minimise a loss. The exits, and not the entries, determine the outcome of your trades. One of the … [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 Company Funds Flow?
Company Funds Flow Company funds flow is used to purchase these assets it utilizes to some extent, the sources of funds borrowed in the form of loan and unsecured loans. The assets should not be purchased through short-term loan, but financing through equity capital indicates very sound position of the entity. But the debt-equity ratio is calculated 57% and thus the company … [Read more...]