Dear Friends,
I was getting requests about some education or some text on stock market as many of you got involved in stock market without having proper knowledge about it. So from today we are going to start this and will try to continue in weekend (it was also my dream to start this on our website), so that once people will have primary knowledge about stock market then it will be easy for them to understand that in what business they are and what are the risk involved. So I am starting from scratch. Many of you will be aware about it but I am starting it from scratch with hope that may be many of you wouldn't be aware about many points which I am going to cover in first 2-3 post.
However it would be very difficult for me to continue it on every weekend as I dont get time for extra activity, so whenever time will permit I will do. Some of you can also put some informative text under comment section, or if you have written some good text on any subject you can email me, and we will publish here with credit to your name.
I guess once you will continue with this Pathshala, it give you another way of success.
================== The Beginning ==================
You would have often heard from a friend that he's making money in stock market, or some of you would have read in magazines or in newspaper about people making money in stock market.There are lot TV channels dedicated to stock market, and you would have seen that all big experts are just talking about money-money.
When stock market start falling it catch headlines on popular news channel, general market start reacting on that, people start talking about recession, and money start out flowing from consumer market. It makes pressure on Govt. to take necessary action, Govt. start talking about it and start taking actions or start making policy reforms to boost the economy.
Like that when stock market goes up, again it catch headline of popular news channel and money inflows into consumer market and businessmen to citizens all feel happy.
So now stock market affect our day to day life too all because now old days gone when there were only private business were in the market. Now there are industries in which public funds are involved, these are big ventures which started by big companies with the help of public money.
Like if ABC group want to setup a power plant in North India, now it require investment of 1,000 crore, and ABC group has only 500 Crore, then this group will come to stock market and will raise the balance funds from public through IPO and this way public money get involve to a particular stock or company.
to be continues...
I was getting requests about some education or some text on stock market as many of you got involved in stock market without having proper knowledge about it. So from today we are going to start this and will try to continue in weekend (it was also my dream to start this on our website), so that once people will have primary knowledge about stock market then it will be easy for them to understand that in what business they are and what are the risk involved. So I am starting from scratch. Many of you will be aware about it but I am starting it from scratch with hope that may be many of you wouldn't be aware about many points which I am going to cover in first 2-3 post.
However it would be very difficult for me to continue it on every weekend as I dont get time for extra activity, so whenever time will permit I will do. Some of you can also put some informative text under comment section, or if you have written some good text on any subject you can email me, and we will publish here with credit to your name.
I guess once you will continue with this Pathshala, it give you another way of success.
================== The Beginning ==================
You would have often heard from a friend that he's making money in stock market, or some of you would have read in magazines or in newspaper about people making money in stock market.There are lot TV channels dedicated to stock market, and you would have seen that all big experts are just talking about money-money.
When stock market start falling it catch headlines on popular news channel, general market start reacting on that, people start talking about recession, and money start out flowing from consumer market. It makes pressure on Govt. to take necessary action, Govt. start talking about it and start taking actions or start making policy reforms to boost the economy.
Like that when stock market goes up, again it catch headline of popular news channel and money inflows into consumer market and businessmen to citizens all feel happy.
So now stock market affect our day to day life too all because now old days gone when there were only private business were in the market. Now there are industries in which public funds are involved, these are big ventures which started by big companies with the help of public money.
Like if ABC group want to setup a power plant in North India, now it require investment of 1,000 crore, and ABC group has only 500 Crore, then this group will come to stock market and will raise the balance funds from public through IPO and this way public money get involve to a particular stock or company.
to be continues...
Hello sir ,
ReplyDeleteThere are many indicators which decide trend .
One of it is Open Interest(OI)
Will try to throw some light on it...
(Note:- OI is just a indicator which tells us what traders or investors are doing . There are many such Indicators which help to find a trend . But the most IMP is News or story , as every one follows it , and indirectly OI changes.)
Change in Open Interest:
Open Interest is the total number of outstanding contracts that are held by market participants at the end of the day.
How to read Open Interest and change in price:
There are four situation and the analysis is done as following -
Situation 1.
An increase in open interest along with an increase in price mostly indicates long positions being built up, except for very weak stocks where some traders may short the stock on a rally.
Situation 2.
An increase in open interest along with a decrease in price mostly indicates short positions being built up, except for very strong stocks where some traders may buy the stock on declines.
Situation 3 .
Decrease in open interest along with a decrease in price mostly indicates long unwinding.
Situation 4.
Decrease in open interest along with an increase in price mostly indicates short covering, except for weak stocks where traders may decide to book profits/cut losses at higher levels. It may also indicate delivery based buying by institutions which pushes up the price and speculators use it to unwind.
Thank you.
Though indicators I will cover later as I think first all people should know what's stock market and how it works.
ReplyDeleteBut since Don has already highlighted the subject I want to add an important point in it.
Most importantly - dont apply this theory on Intraday data, its for EOD data because at most of terminal intraday data are just speculation and not of actual trade.
For ex. if data window is showing that buyers for Sterlite are 2L and sellers are 1L then do not consider it as buyers have actually traded that qty. because this data shows that there're possible buyers for that scrip.
Lets see it this way, 2L buyers is there and CMP is 97, now try to put order for 25K shares at 96, your order will reach at exchange and OI windows will show total buyers are 2.25L, mean OI increased by 25K while trade is still not executed.
To my experience some times punters play this to misguide people, so whenever you see huge difference then dont get misguide, stock may fall at EOD or next day. But those stocks are different specially low volume stocks.
Again, OI is one of the indicator and not a confirmation to execute trade.
Prepare yourself for trade -
ReplyDeleteNTPC - giving SELL signal
WelCorp - is giving BUY signal
Infy - Dealers say RBI likely sold dollars via PSU banks at around Rs 55.50 per USD: Reuters
This will help Infy and for short to mid term view Infy is buy on dips.
Airtel - is stuck in a range, finding hard to cross 312 (I had suggested it was buy around 276) so its just waiting for breakout of resistance, 10-15Rs. move we can see once it breakout 315.
I have just given you thought, so today you can do some homework on these scrip. Rest during market hours.
I was going through the history of AT&T the world's leading telecom service provider. It having 135 years of history of legacy in telecom business, a company established by Alexandar graham bell (I believe no introduction required). I would request to all to read this history and try to related what a business required and how we need to focus on our business (in our case trading or investment). You may feel that how it related with your trading / investment activity, but that is what core of this story.
ReplyDeleteIn 1877, Alexander graham bell and thomas A. watson founded the Bell Telephone company. They had technology but they needed a visionary to head the enterprise they found theodore n.vail. Vail was neither an inventor nor a craftsman. He was a manager. He handled patent and other administrator works. Vail believed the telephone, then a luxury, would become a necessity. He never let go of this vision. When American telephone and telegraph (AT&T) was charted in 1985, vail was named its first president, by 1887; the company shifted their focus from service to short term financial gain. Vail resigned rather than compromise his ideals. The next 20 years were difficult for the Bell system. In 1900 and in 1907 vail was asked to return. In 1907 he did. Under Vail's renewed leadership, the idea of Telephone service for all was advanced. He laid the foundation for a nationwide network with uniform procedures and technical standards. Since then AT&T have never looked back and grown it's business as per the vision defined by Mr. Vail while foundation of the company.
So, why i have shared this story? I learned couple of thing, this does not means you and me does not know these learning already, but just framing with a successful business model over period of time.
Lesson 1 - Technical sound does not mean you have capability of running successful business. We need a team of right people for our common goal.
Lesson 2 - If you do not know the technical aspect of the business that does not means you can't run the show. You just need your vision and conviction right like Mr. Vail.
Lesson 3 – do not compromise your vision for short term gain if you are really involved in serious business.
Lesson 4 - Everyone does mistake to succeed in his life. Your consolidation period may define your further success, provided you learn from your mistakes. Like AT&T learned and called back Mr. Vail on board after 20 Years. So you can see AT&T had 20 Yrs of tough period because of shifting their vision for short term financial gain.
These are my learning; you may find something as well. My point is simple keep learning from history (may be yours or others).
So, define your vision, may make mistake, learn the things and get success.
Good one Vivek, story also has a great lesson i.e. patience and one need continuous efforts towards your journey of success.
DeleteIn my life I have gone through some such incident when I founded some good business models but same like AT&T my most of time went for financial stability to that and finally I shifted to my need and left those models.
Later some organization came forward and opted that business models, also took my help in understanding my vision and today they are making billions.
Since many of you are not aware about me so it would be a bit doubtful for them to believe but its true and successful people can accept it.
Just an example - its was me who started first of its kind of Online Wed Directory in 1998 when internet was just spreading its wings in India. I was the first who had started first Online Promotion portal in Bollywood. But all this was shut due to fund management as it was too early to see a grand success in such business models and need was too big to sustain. Later around 2006/07 some people got in touch with me and then they started it and today they are growing like Industry.
Popular Just Dial.com, and other bollywood promotion sites are just example which are earning great today.
People who are in touch with me for developing our website also have glimpse of such models, as we are planning for one of the most desired and successful model for stock market where all needs can take place if we get success success to maintain our financial goals.
So I have vision but it will take time and I hope this time circumstances wont disappoint me (as happened with my few models in past), and if its true then at least 10 Millionaire/Billionaire is likely to see in next 5-7 year for sure.
One just need to have patience, trust and need to follow ideology with patience which most of people dont have.
Earlier I had time for call log, but since we switched to blog its going a bit difficult due to time management.
Our graph of visitors falling a bit, but rather than disappointment I am happy because this is departure of short gainer and I believe we are going through a good filter because my goal is not to gather crowd, but aim is to create few millionaire/billionaire who then can help us to drive this vision forward for other genuine people.
Good Luck.
New drug policy will hurt investments in the sector
ReplyDeleteIndusry says new drug policy would also adversely impact profitability of Indian pharmaceutical companies
It wont affect to all becoz mainly it include life saving drugs so companies who are into that sector will be affected a bit and not much.
DeleteSecondly its a great decision as drug maker was earning great profit only on the name of life saving drug as people hadn't had second option, companies made big profit on the name of R&D and Research and mainly on the name of patent.
So to my personal view - nothing harm if Govt. has decided it to put under certain regulation.
People who dont know - Doctors get degree only when he/she takes oath to cater and not for business, same way drug makers get license when they duly sign MOU that they will use their drug for social services and not for business (becoz Govt. allowed them to test their drug on people, they also provide many other facilities as well as financial support to them for Research)
If everybody will talk business then what would be happened to this world.