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What is trend trading or trend-following?

Hello friends lets  understand. Trend trading because trend is your  friend. What is trend trading or trend-following? Trend trading is defined as a market trading strategy, involving the use of various technical indicators that help identify the market momentum direction. The strategy is founded on the premise that the trading market has an element of predictability, which traders can analyze and use to their advantage.  It is based on the idea that if traders ride the trend, then they can avoid losses. As such, they buy securities before the price goes up and sell them before the price goes down. Trend followers typically implement proper risk management strategies before investing. Such traders do not aim to predict or forecast a trend; they believe in following the existing trends and keeping an eye for any emerging trends in the market. Identifying trends – types and examples Trend trading strategies can help traders identify trends so early in a trade, tha...

Tools for Assessing Financial System Soundness

Tools for Assessing Financial System Soundness   Hello friends. let's understand the most important factor of financial system. if you are into very keen to understand banking & finance you must read this article Financial Sector Assessment Program Financial Sector Assessment Program (FSAP), introduced in May 1999. Many other national and international institutions have also initiated or intensified monitoring work.   The ability to monitor financial sector soundness presupposes the existence of valid indicators of the health and stability of financial systems. These macro prudential indicators (MPIs) matter for several reasons. They allow for assessments to be based on objective measures of financial soundness. If MPIs are made publicly available, they enhance disclosure of key financial information to the markets. In addition, if the indicators are comparable across countries —which is possible if countries adhere to internationally agreed prudential, acc...

What is Nifty Bees ?

 Hello friends. let's understand passive. Nifty Bees is the very first exchange traded fund (ETF) launched in India, and it tracks the Nifty 50 Index. It was introduced in India by Benchmark Asset Management in December 2001. After some change of hands, it now belongs to Nippon India Mutual Fund. The “Nifty” in its name represents the index that it tracks and Bees is short for ‘benchmark exchange traded scheme’. Let’s take a step back and take a quick look at ETFs and the Nifty 50 index. Nifty 50 Index The Nifty 50 index is one of the two most widely used indices for the Indian markets, with the other being the Sensex. The Nifty (a combination of NSE and Fifty) 50 indices , is a diversified benchmark index that tracks the performance of the top large-cap companies listed on the NSE. It is owned and managed by NSE Indices Limited and as the name indicates, comprises 50 stocks covering 13 sectors. It is computed using the free float market capitalization method and its value is calcu...

What Is Breakout Pattern in Technical Analysis?

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 Hello friends. lest s understand most demanding pattern in stock market  Breakout Pattern    Breakout in Technical Analysis refers to when the price of an asset moves above a resistance area or moves below a support area. Breakout Patterns are commonly associated with ranges or other chart patterns. This includes triangles, wedges, head and shoulders, flags etc.  Breakout patterns may initiate long positions or exit short positions if the price breaks above the resistance.  Breakout patterns may initiate short positions or exit long positions if the price breaks below support. Learning about Breakout Patterns and identifying potential breakout stocks gives traders one more tool that they can use to generate profits. Price action within the share market is affected by supply and demand when a breakout signal occurs this usually means here the buyer has succeeded in pushing the stock’s price above the resistance level. If there is a downside or negative brea...

How to Use a Trading Journal to Improve your Trading skills

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 Hello friends. let's understand. the most    needed  How to Use a Trading Journal to Improve your Trading skills Introduction A trading diary is a detailed account of what happened during the course of a trading day. It can be used to track and analyze the trader's performance and help improve it. A trader can use this diary to keep track of the trades they made, the reasons behind them, their emotions at the time, and their thoughts and feelings throughout the day. The trading diary is one of the most important tools in a trader's arsenal. It allows them to see how they are performing in real-time as well as to identify any patterns that might exist in their trading habits. Daily-Trading Strategies The first thing that you need to do before starting to trade is to set up a trading plan. The second step is to create your day trader journal template. It should include the following: Date and time - Entry and exit points for the trade, as well as profit or...