Smart traders in anticipation of a rate hike have already buildup short positions in the financial stocks as the spread between the 10 year G-Sec and RBI repo rate widens.
Insider trade is an important parameter tracked to gauge a stock’s performance. It becomes a critical factor especially when the promoters of the company indulge in either buying or selling the stock in the market. On tracking this factor, two stocks managed to stand out in our analysis wherein the promoters have been acquiring shares on a regular basis since last two months.
Timeframes are an extremely significant component that a trader is required to focus on. Traders are broadly classified based on the timeframe they trade in .The trading strategy of a trader is also interlinked to the timeframe in which he trades.
The difference between underlying securities current spot price and strike price represents the profit/loss that the trader makes upon sale or exercise of the option.
Higher top higher bottom or lower top lower bottom is the most significant principle of Dow Theory. In lay-man terms it says that you should never exit your long positions in an underline asset if the asset is making higher highs with higher lows in a bull market or vice-versa.
Investors tend to build a preconceived notion that since Tata Teleservices is from such a well know organization it is safe to place their bets on this stock.
Dividend yield is an annual return that the stock pays in the form of dividends. The dividend yield is calculated by dividing dividend per share by the current market price.
Rollover is carrying forward a particular month’s futures positions to the next month. This is done by closing the existing futures position of the current month and simultaneously taking a similar position in the subsequent series.
Exit a trade as soon as you recognize that it has gone wrong. Don’t try to manage the losses. Many floor traders believe the smartest trader is the first one out. Do the exact opposite when you are on the winning side of the trade.