webull

                                                                          webull

 Stock market is a place where shares of pubic listed companies are traded. The primary market is where companies float shares to the general public in an initial public offering (IPO) to raise capital. ... A stock may be bought or sold only if it is listed on an exchange.

A lot of people call or believe investing in stocks is gambling. A true investor would appreciate it being called risky. It’s like the belief, that getting into sea waters or a pool is risky. But someone with the right swimming skills would know, when and where to swim to enjoy it or in other words we can say that if we are wondering near the ocean we cannot know how deep its and without dip on sea we cannot  find the pearls .its its totally based upon true knowledge and without knowledge  if you trade in stock market you are doing nothing but  firing your hands.  I met with many people’s not even a single trader I have seen in lifewho says iam in profit that’s why its called the ocean of sarrow by traders . So what the trader  actually do  he will get services from some  technically analyst  and mostly they  fail in the market because  their main aim to get client and take money from them for their services .Now A DAYS ITS BIG SPAM IS  DONE BY INDORE TECHINALLY ANALISITS  THEY ARE GIVING ALL WRONG CALLS. AND SO MNAY TRADERS HAVE  LOST THEIR MONEY .

Now the question arises how to get proper knowledge and how to use it practically  so that we can enjoy stock market  and make it our part time or full time bussiness.First of all we must know Some Basic Terms of Stock Markets without it we cannot stand in stock market its necessary for all investor and trader.

Before we get to the art of picking worthy stocks to invest in, let’s get to know some of the basic fundamental terms. Below terms are not parts of the criteria to filter and pick good companies to stay invested in. I am only explaining them, as i would be referring these terms in the later sections. Also, you don’t need to be calculating or know mathematics, to find these values for each company. All values are available in websites like www.moneycontrol.com ... You just need to know what they mean. So, don’t worry about the mathematics involved at all to be a good investor. If you find this section confusing, just run through it fast. I am serious. It will all make sense when you finish reading this book. You can come back and read this chapter later, for more clarity.

In short- Beware of the “I know it all” syndrome as it may lead to huge losses. There is no trader in the world who has never lost money in stock markets. Loss is a part of this game. Losses are bound to come but our aim is to minimize losses and maximize profits. Accepting the loss and moving ahead is a major part then only can you sail through the stormy winds of stock market.

Remember that your money is hard earned, don’t invest it without acquiring sufficient knowledge. Many people think that they can never lose in stock market as they have knowledge about how to trade. This is a wrong attitude as merely having access to a chart does not give you the ability to understand what is right and what is not. If this would have been the way, then everybody in a hospital would have become a doctor. Trading requires knowledge, experience, patience as well as risk management.

People get attracted to stock markets because they are under the impression that this is where they can make a fast buck. In other words, they are attracted by the aspect of quick, big profits. People come to stock market with only one objective and that is making money, forgetting all that is required for doing so successfully. They forget that it is there hard earned money and forget the mental torture that a person has to go through if it does not work out properly.

This casual attitude surprises me. When it comes to buying a mobile phone, the same people would thoroughly check the pros and cons of the device. But when it comes to stock markets, we only see the pros and not the cons. This is a recipe for disaster.

Therefore I believe that before you decide to enter the stock markets, you should consider these three factors :-

1.Are you mentally prepared for stock market?

2.Are you physically fit for the stock market?

3.Are you financially fit for the stock market?

Once you start investing, there are many indicators, charts and techniques that tell you what should be done next. There are various sites where you get daily calls but I would suggest you to rely only upon your information, knowledge and experience.

                                  Some Golden rules of stock market

Rule 1: Don’t Put all of your eggs in 1 basket…… The first basic rule of investing is to spread the risk around. The biggest mistake you will ever make is to invest too much money into any one stock. Even Warren Buffett gets it wrong! So don’t ever get ahead of yourself. Be smart. Diversify your risk!

Rule 2: Know your Investor Profile…….. In order to set yourself up for success in the stock market you need to know what type of investor you are and what type of risk tolerance you have. As a general rule of thumb, the greater the reward, the greater the risk you must take. Most people don’t want to lose money but would like to make a lot. Unfortunately, there is no such thing as a free lunch in the stock market. In order to profit, you must take some degree of risk. Finding that balance between risk and reward is critical. Taking a reality check now will set you up for success in the future. You need to identify your tolerance for risk. Take 5 minutes to complete this Investor Profiling exercise……… Answer the following 12 questions. Write down the number of the answer to each question which most accurately reflects you. There is no right or wrong answer here just answer honestly for yourself.

 Rule no 3----: Invest in Fundamentals not charts! The fundamentals of a company will drive the share price. Technical Analysis/Charts do not offer you any statistical advantage when buying shares. Charts are a ‘get out’ for lazy investors who are looking for quick and easy ways to find reasons to buy or sell a stock. Charts can be very useful to get a picture of the ‘past’, but that is all you will get, charts are not a predictor of the future. If you want to gauge the future value of a company you need to do a bit of research - there is no shortcut. It will ultimately boil down to the expected future growth rate of the sales and profits of a company. This is not rocket science. It is a process of the asking yourself some very basic questions and more importantly answering the questions: 1. What does the company do and how do they make money? 2. How big is the company? 3. How long has the company been in business? 4. How competitive is the market? 5. Does the company have a track record of delivering sales and profit growth? Growth is the key word. 6. What are the debt levels of the company? 7. Does the company pay a dividend? What is the Dividend Yield? Is the Copyright 2017 www.sharenavigator.com dividend sustainable? 8. What are the future sales and profit growth projections? 9. How is the company valued versus their competitors of similar size?

 Rule no 4---Have a Target ‘Buy’ Price and a Target ‘Sell’ Price The example with Apple gives you an idea of the some of the basic research you need to do before you invest in a company. This is how you identify potential ‘value’. When you do this, your success rate in the markets will soar. Too many people invest on a tip from a friend or because a chart looks like it is giving a buy signal. This is not smart. We all have companies that we love ……. Google, Face book, Amazon...the list goes on. ● But are they good value? ● What price should you buy them at? ● What is the future growth potential look like? ● What is the target price for the stock? This is the one question most amateur investors fail ask and answer. ● You need an exit strategy...at some point stocks can become too expensive and it’s time to get them out of your portfolio. We sold Apple at $130.05. We felt at that stage the value was not longer there in the company with the information on hand. Since then Apple has risen further to $160. Hindsight is a wonderful thing… am I annoyed… no...because I have set rules that I follow, the information available at the time suggested a stock that was fully valued. Remember...you do not have a crystal ball… follow your value investing principles and you will do just fine over time

 Rule no 5----Evaluate the Stock at Earnings Every quarter publicly quoted companies make an ‘earnings’ announcement. This is where the company informs the market and investors as to how their sales and profits have performed for the past 3 months. During an earnings release the company will also guide their expected performance for the next quarter and in some cases the next year. This allows you then to reassess the fundamentals of the company.

Summary……... 1. Diversify your risk - Do not put all of your eggs in one basket. 2. Know your investor profile - This will help narrow down the stocks you should be look for. 3. Find stocks that meet your investor profile - we can show you how. 4. Don’t invest based on a chart - there is no advantage to you! 5. Invest in the fundamentals - we will show you how to do this. 6. Find quality stocks at the right price to buy - we will show you how. 7. Have a target price for every investment - This will keep you focused and remind you of why you are investing in the company. 8. Get educated - like everything in life, there is a right way and there is a wrong way. Learn the right way! 9. Take a free trial - You have nothing to lose and everything to gain!

Market Capitalization----- A Company is divided into numerous shares and this number varies from company to company. For example, Infosys is divided into over 57 Crore shares and each share price is worth over Rupees 2500today. TCS has over 195 Crore shares and each share price is worth over Rupees 1000 today. Market capitalization is nothing but the total value of a company (Total number of shares multiplied by current share price). As the share price varies from time to time, so does the market capitalization. One way to look at market capitalization is:Let’s say, if you have Rupees 1,42,500 Crores in hand, you can technically buy all shares of Infosys and be the sole owner of Infosys. Thing to note here is, share price of Infosys (Rupees 2500) is more than the share price of TCS (Rupees 1000). But, TCS is the bigger company in terms of valuations or market capitalization. In a good company, majority of the shares are held by promoters& their families (Founders of the company), FII's (Foreign Institutional Investors), Mutual Funds and HNI's (High Net worthIndividuals). The common public holds only a very little portion.

Earnings Per Share (EPS) & (P/E) Earnings per share or EPS is an important financial measure, which indicates the profitability of a company. It is calculated by dividing the company's net income with its total number of outstanding shares.

PE is calculated by dividing current market price by EPS (ttm). ... It is calculated bydividing the current market price of the stock by its earning per share (EPS). It shows the sum of money you are ready to pay for each rupee worth of the earningsof the company.

Earnings per share (EPS) are nothing but, profits or losses made in the last 12 months divided by the total number of shares. Mathematically, it’s defined as below:

Earnings per share (EPS) = (Profits or Losses per year) / (Total number of shares)

In every three months the EPS will change because its totally based upon the  finacial results announced by the company if resultes are good the EPS will rise and vice versa. Now, let’s take the example of TCS. TCS made profits of Rupees 7570 Crores in 2011 (FY 2011). We know that TCS is divided into 195 Crore shares. So, what does EPS of TCS in 2011 mean? It means that,each share of TCS worth Rupees 1000, earned or made profits of Rupees 38, in 2011. Now, P/E is a derived term from EPS. P/E is mathematically defined as below: Since, share price changes every day, so does its P/E. IT companies normally have a P/E of around 25. Steel companies normally have a lower P/E of 6. P/E varies from sector to sector and from company to company, based on various factors which cannot be analyzed or reasoned with. So don’t worry about it. P/E is similar to price of a land per square feet [ (Price of Land) / (Total Area of Land) ]. Land price in a City will always be higher than that of price of land in a Village. The common mis-understanding among amateur investors is that, lower P/E is cheap valuations and higher P/E is expensive valuations. This is so wrong. P/E is an immaterial factor, to find good worthy stocks for investing. Earnings per share (EPS) = (Profits or Losses per year) / (Total number of shares) EPS of TCS in 2011 = (TCS profits in 2011) / (Total number of share in TCS) = (7570 Crores) / (195 Crores) = 38 Rupees per share.

1. Annual Report

An annual report is a report prepared by a company that’s intended to impress shareholders. It contains tons of information about the company, from its cash flow to its management strategy. When you read an annual report, you’re judging the company’s solvency and financial situation.

2. Arbitrage

Arbitrage refers to buying and selling the same security on different markets and at different price points. For instance, if stock let  suppose Vedanta  is trading at 190 on one market and 192on another, the trader could buy Vedanta shares for $190 and sell them for 192on the other market, pocketing the difference.

3. Averaging Down

When an investor buys more of a stock as the price goes down. This makes it so your average purchase price decreases. You might use this strategy if you believe that the general consensus about a company is wrong, so you expect the stock price to rebound later.

4. Bear Market

Gold cast statuette depicting a stylized bull and a bear in dramatic contrasting light representing a financial market trends created by Inked Pixels – Shutterstock.com

Trading talk for the stock market being in a downward trend, or a period of falling stock prices. This is the opposite of a bull market. If a  stock price plummets, it’s very bearish.

5. Beta

A measurement of the relationship between the price of a stock and the movement of the whole market. If stock XYZ has a beta of 1.5, that means that for every 1 point move in the market, stock XYZ moves 1.5 points, and vice versa.

6. Blue Chip Stocks

The stocks behind large, industry-leading companies. They offer a stable record of significant dividend payments and have a reputation of sound fiscal management. The expression is thought to have been derived from blue gambling chips, which is the highest denomination of chips used in casinos.

7. Bourse

This stock market term is a little murky. Technically, it’s just another name for the stock market and originates from a house in which wealthy men gathered to trade shares. However, when you hear it in today’s conversations about the stock market, it usually either refers to the Paris stock exchange or to a non-U.S. stock exchange.

8. Bull Market

When the stock market as a whole is in a prolonged period of increasing stock prices. It’s the opposite of a bear market. A single stock can be bullish or bearish too, as can a sector, which I’ll describe later on.

9. Broker

A person who buys or sells an investment for you in exchange for a fee (a commission).

10. Bid

The bid is the amount of money a trader is willing to pay per share for a given stock. It’s balanced against the ask price, which is what a seller wants per share of that same stock, and the spread is the difference between those two prices.

11. Close

THE NSE AND BSE close at 3.30 p.m.,. The close simply refers to the time at which a stock exchange closes to trading.

12. Day Trading

The practice of buying and selling within the same trading day, before the close of the markets on that day, is called day trading. This is my primary trading strategy, although I have a long-term portfolio, as well. Traders who participate in day trading are often called “active traders” or “day traders.”

13. Dividend

A portion of a company’s earnings that is paid to shareholders, or people that own that company’s stock, on a quarterly or annual basis. Not all companies pay dividends. For instance, if you trade penny stocks, you’re likely not after dividends.

14. Exchange----Organized and regulated financial market where securities (bonds, notes, shares) are bought and sold at prices governed by the forces of demand and supply. Stock exchanges basically serve as (1) primary markets where corporations, governments, municipalities, and other incorporated bodies can raise capital by channeling savings of the investors into productive ventures; and (2) secondary markets where investors can sell their securities to other investors for cash, thus reducing the risk of investment and maintaining liquidity in the system. Stock exchanges impose stringent rules, listing requirements, and statutory requirements that are binding on all listed and trading parties.

Trades in the older exchanges are conducted on the floor (called the 'trading floor') of the exchange itself, by shouting orders and instructions (called open outcry system). On modern exchanges, trades are conducted over telephone or online. Almost all exchanges are 'auction exchanges' where buyers enter competitive bids and sellers enter competitive orders through a trading day. Some European exchanges, however, use 'periodic auction' method in which round-robin calls are made once a trading day. The first stock exchange was opened in Amsterdam in 1602; the three largest exchanges in the world are (in the descending order) New York Stock Exchange (NYSE), London Stock Exchange (LSE), and the Tokyo Stock Exchange (TSE). Called also stock market. See also exchange.


15. Execution

When an order to buy or sell has been completed, the trader has executed the transaction. If you put in an order to sell 100 shares, this means that all 100 shares have been sold.

16. Haircut

In its most simplest stock market terms, a haircut is an extremely thin spread between the bid and ask prices of a given stock. It can also refer to a situation in which a stock price gets reduced by a specific percentage for margin trades or other purposes.

17. High

A high refers to a market milestone in which a stock or index reaches a greater price point than previously. Record highs can signal that a stock or index has never reached the current price point, but there are also time-constrained highs, such as 30-day highs.

18. Index

A benchmark that is used as a reference marker for traders and portfolio managers. A 10 percent return may sound good, but if the market index returned 12 percent, then you didn’t do very well since you could have just invested in an index fund and saved time by not trading frequently.

19. Initial Public Offering (IPO)-- The process for making shares of a private company available to the public for the first time is called an initial public offering or IPO. The company selling the shares is called the issuer and will usually work with an investment bank or multiple banks to conduct the IPO.

An IPO is the first sale or offering of a stock by a company to the public. It happens when a company decides to go public rather than remain solely owned by private or inside investors. The Securities Exchange Commission (SEC) has strict rules that companies must follow before issuing an IPO.

20. Leverage

I’m not a fan of leverage, but it’s good for you to know this stock market term. When you use leverage, you borrow shares in a stock from your broker with the goal of increasing your profit. If you borrow shares and sell them all at a higher price point, you return the shares and keep the difference. It’s a dangerous game that I urge you to avoid playing.

21. Low

Low is the opposite of high. It represents a lower price point for a stock or index.

22. Margin

A margin account lets a person borrow money (take out a loan, essentially) from a broker to purchase an investment. The difference between the amount of the loan and the price of the securities is called the margin.

Trading on margin can be dangerous because, if you’re wrong about the direction in which the stock will go, you can lose significant cash. You must often maintain a minimum balance in a margin account.

23. Moving Average

A stock’s average price-per-share during a specific period of time is called its moving average. Some common time frames to study in terms of a stock’s moving average include 50- and 200-day moving averages.

24. Open

In the INDIA, the stock market opens at 9:15 a.m. It’s based on the trading hours of the NSE and BSE. Pre-market trading hours begin at 9.00a.m. but most traders don’t begin paying attention until about 8 a.m. Essentially, open refers to the time at which people can begin trading on a particular exchange.

25. Order

An investor’s bid to buy or sell a certain amount of stock or option contracts constitutes an order. You have to put an order in to buy or sell 100 shares of stock, for instance.

26. Pink Sheet Stocks

The term “pink sheets” refers most commonly to penny stocks, which are traded at RS 5 per share or less. They’re also called over-the-counter stocks because that’s how they are traded. You can easily find them on BSE OR NSE and they’re often smaller companies.

27. Portfolio

A collection of investments owned by an investor makes up his or her portfolio. You can have as few as one stock in a portfolio, but you can also own an infinite amount of stocks or other securities.

28. Quote

Information on a stock’s latest trading price tells you its quote. This is sometimes delayed by 20 minutes unless you’re using an actual broker trading platform.

29. Rally

A rapid increase in the general price level of the market or of the price of a stock is known as a rally. Depending on the overall environment, it might be called a bull rally or a bear rally. In a bear market, upward trends of as little as 10 percent can qualify as a rally.

30. Sector

A group of stocks that are in the same industry belong to the same sector. An example would be the technology sector, which includes companies like Apple and Microsoft. Some traders prefer to trade in a specific sector, such as energy, because they know the industry well and can better predict stock price fluctuations.

Challenge idea game wooden one corporate created by Mindandi – Freepik.com

Any market in which shares of a particular company are bought and sold. The stock market is an example — and probably the most significant example — of a share market.

32. Short Selling

When you short-sell a stock, you borrow shares from someone else with the promise to return them at a point down the road. You then sell the stock for a profit. It’s a way to take advantage of a stock that you believe will decrease in price. After you sell short, you can buy back the shares at the lower price point and take the difference in price as your profit.

I use short selling on a regular basis. It’s often a smart move in a volatile market if you see patterns that indicate a sharp downward turn for a stock.

33. Spread

This is the difference between the bid and the ask prices of a stock, or the amount for which someone is willing to buy it and the amount for which someone is willing to sell it. For instance, if a trader is willing to trade XYZ stock for 210 and a buyer is willing to pay 209 for it, the spread is $1.

34. Stock Symbol

A stock symbol is a one- to four-character alphabetic root symbol that represents a publicly traded company on a stock exchange. Tatastell stock symbol is TISCO , while VEDANTA’s is VDL..

35. Volatility

The price movements of a stock or the stock market as a whole. Highly volatile stocks are those with extreme daily up and down movements and wide intraday trading ranges. This is often common with stocks that are thinly traded or have low trading volumes.

I’m a big fan of high-volatility stocks because I can make a big profit off spikes or dips, depending on how I’m trading, in a short period of time. High volatility often makes trading more exciting, but it’s also risky if you’re inexperienced.

36. Volume

The number of shares of stock traded during a particular time period, normally measured in average daily trading volume. Volume can also mean the number of shares you purchase of a given stock. For instance, buying 2,000 shares of a company is a higher-volume purchase than buying 20 shares.

37. Yield

Often refers to the measure of the return on an investment that is received from the payment of a dividend. This is determined by dividing the annual dividend amount by the price paid for the stock. If you bought stock XYZ for 40 per share and it pays a 1.00-per-year dividend, you have a “yield” of 2.5 percent.

The Bottom Line

Knowing your stock market terms will make you a better trader. It takes time to grasp the intricacies of securities trading, but once you do, the stock market terms above will become part of your daily vocabulary.

I urge you to quiz yourself on stock market terms until you’re highly familiar with them all. You can also explore other stock market terms as they pop up in your research so you don’t get confused.

If you’re interested in learning how to trade stocks, consider applying for the Trading Challenge. I’m currently hunting for my next successful student, and I look forward to working with you in the future.

Equity Trading – Fundamental versus Technical Analysis

Equity Trading – Fundamental versus Technical Analysis

The term equity trading and stock trading are sometimes used synonymously; however, there are a few minor differences between the two. Let’s start with the basic definition; equity trading is essentially the purchase or sale of company stock through one of the major stock exchanges, just as stock trading is. An equity trade can be placed by the owner of the shares, through a brokerage account, or through an agent or broker; again, similar to stock trading.

The key difference between equity trading and stock trading lies in their investment options and management firms. Equity trading firms specialize in offering in-depth market research, trading expertise, unique trading systems (even algorithmic), and have direct access to the trading floor for better executions. These equities trading firms predominately exist in the form of hedge funds and are set up to trade within a larger investment bank; such as Morgan Stanley, Goldman, Sachs, JPMorgan, and Bank of America to name a few.

Hedge Funds

Hedge funds have more leeway in their investing activities and are generally far more active than traditional mutual funds that believe in the long term buy and hold approach; however, this tends to be a double-edged sword. There have been many instances where hedge funds have significantly outperformed mutual funds and actually profited handsomely during down markets. Conversely, they take risks and these risks can wipe a large portion of your capital out if the hedge fund manager goes through a dry spell.

Hedge funds allow a fund manager with the flexibility to invest in any type of asset class that they choose, as long as it fits within their trading strategy or plan; this can include stock trading, equity trading, bond trading, equity option trading, or even foreign currency trading.

Private Equity Trading Firms

There has been a flood of private equity day trading firms which have come to market, also known as “prop” firms. These companies grow their capital by allowing successful traders to have access to the firm’s capital. In many cases, these equities trading firms will design their own formula for success and require each trader to use this formula. Others will allow their traders to have free reign to use any strategy that they choose as long as they consistently remain profitable. For the most part, private equity day trading firms utilize technical analysis and their ability to track money flow to take advantage of short-term trading opportunities in the markets.

Where Can I Trade Equities?

In the past, equity traders conducted business in-person. Back in the day, you as an investor would call your order into your brokerage firm, at which point the order would flow down to the trading floor. We all remember seeing pictures of men yelling at each other to fill orders while holding small sheets of papers in their hands. There were huge blackboards with people sliding up and down the ladder updating prices with chalk.

Well, needless to say, we have progressed quite a bit from chalkboards.

Today, trading is automated and completely electronic. Many stock exchanges no longer have pits and use supercomputing to fill orders.  Traders are able to purchase stocks remotely using their computer or Smartphone.  This happens through easy-to-use trading platforms, where equity traders have access to real-life charts and market execution capabilities such as trade tickets.

Now, you can buy or sell stocks with a simple click of the mouse or push of a finger using your tablet. The only thing stopping you from placing a trade is opening an online brokerage account.

Oh, how things have changed!

Now that we have covered equities trading, let's dig into stock trading, which is where the common person will likely conduct their trading activity.

Stock Trading

If you think that you will start making money in a flash after opening a trading account, you are absolutely wrong. Stock trading is all about having the odds on your side. When trading, 100% success is a fairytale.

In order to be successful at stock trading, you must be detailed oriented and have a methodical system for interpreting market behavior.

If your analysis is sound and you are a disciplined trader, you just might have a shot at this the greatest of all games.

Now, I would like to introduce you to the two types of analysis every stock trader should be aware of prior to investing one dime in the market.

Fundamental Analysis

Fundamental analysis covers all of the financial aspects of a company which are made available to the public in the form of quarterly reports and annual statements.

Additional information sources include the quality of the executive management team, news events, and overall economic data which could impact the company’s performance.

In other words, you should be aware of micro and macro events that could impact the company’s bottom line.

I will give you an example of a Bulgarian bank. Its clients were falsely informed that the bank is performing poorly and that the company is on the brink of bankruptcy. As a result of this misinformation, there were numerous deposit withdrawals from that bank. This led to lack of operative capital and the bears were then able to run the stock price down.

The inability to secure financing due to the perceived market risk ultimately led to the bank filing for bankruptcy.

News can be a powerful market driver; therefore, you should always be abreast of what’s going on if you decide to use fundamental analysis as your method for interpreting market performance.

Develop Your Trading 6th Sense

No more panic, no more doubts. make the right decisions because you've seen it with your trading simulator, webull

Technical analysis with echocardiogram technique.

Everyone has a technique in life to get Success in the field he works either its learned from someone,copied  or invented ,similarly I have invented a technique to face the stock market and to become full time traders its very easy and 100% successful one by one will w explain the theory with practical examples I will teach my theory to all who wants to gain only in stock market, no doubt lit bit efforts we needed to learn and to apply in real life I mean in stock market.

All game starts from electrocardiograph –so first we must know what is electrocardiograph

What is an ECG? An ECG is a paper or digital recording of the electrical signals in the heart. It is also called an electrocardiogram or an EKG. The ECG is used to determine heart rate, heart rhythm and other information regarding the heart's condition. ECGs are used to help diagnose heart arrhythmias, heart attacks, pacemaker function and heart failure.

P-wave: The first little “hump” or “bump” you see is known as the P-wave.

The P wave is a summation wave generated by the depolarization front as it transits the atria. ... Depolarization originating elsewhere in the atria (atrial ectopics) result in P waves with a different morphology from normal.

Study tip: The P-wave represents ATRIAL DEPOLARIZATION (depolarization is a big, fancy word for CONTRACTION).

QRS Complex: The next area you see is a big spike. This spike is called the QRS complex. The bundle of His, bundle branches, and Purkinje fibers are responsible for this.

Study tip: The QRS complex represent VENTRICLE DEPOLARIZATION (contractions of the ventricles)

T-wave: After this spike, you will see a “bump” shortly after the complex. This “bump” is called the t-wave and is caused by the ventricles relaxing. The ventricles are so large that when they contract (depolarize) the form a large electrical impulse that presents the QRS complex. Therefore, (because they are so large) when they relax (repolarize) they form a small electrical impulse that presents as the t-wave.

Study tip: What area of PQRST EKG reading represents ventricle repolarization? T-wave

ST segment: This segment starts at the J-point. The J-point is where you start to see an upward stroke after the S wave. The segment ends at the beginning of the T-wave. The ST-segment represents when the ventricles are relaxing, also called repolarizing.

The now the main question is how we can fit that technique into stock market.  If you are a trader or investor. Whenever you have time you will watch CNBC or ZEEBUSSINESS. In a single day there is kumbmela of technical teachers they use different technical methods to study stock I use only electrocardiogram method to study it simply it’s the technical method   and that fit 100%.now I will explain how we can use that technique to stock trading that’s is very interesting and adventurous.

The main question is that how to find p-wave in stock market graph (p wave---- The P-wave represents ATRIAL DEPOLARIZATION (depolarization is a big, fancy word for CONTRACTION).

Meaning of CONTRACTION in money market…..(CONTRACTION)---situation in which less money is being earned, spent, or invested in a market or economy: we will assume p wave is the opening price of nifty   the opening price of the nifty is 10759 on 21 February  on 2019  it mean p wave is made at 9.15am when nifty open after that The next area you see is a big spike. This spike is called the QRS complex. As per above picture we can see nifty is 10769.60 here its making q wave and after few minutes it comes to 10763 which is S save   And show here spike for bull run and immediately its making R wave and touched to 10799.20  

  We have to locate this waves and identify where the stock or nifty is going if we are 100%   correct the profit will kiss our feet ..

       Now I am comparing with  one the nifty stocks apply same theory.

we will assume p wave is the opening price of nifty   the opening price of the Vedanta is 165.45 on 21 February  on 2019  it mean p wave is made at 9.15am when NSE open after that The next area you see is a big spike. This spike is called the QRS complex. As per above picture we can see VEDANTA is 166.50here its making q wave and after few minutes it comes to 164.50 which is S save   And show here spike for bull run and and immediately its making R wave and touched to 169.95 We have to locate this waves and identify where the stock or nifty is going if we are 100% correct the profit will kiss our feet.

The main thing in the market which nobody knows when  to enter and  when to exit  .In simple way what is the stop loss and what is the target price that is very interesting thing and its very simple according to the electrocardiogram technique  the I have given the two examples above and I will try to use the nifty graph and Vedanta graph to solve the query.

the opening price of the nifty is 10759 on 21 February  on 2019  it mean p wave is made at 9.15am when nifty open after that The next area you see is a big spike. This spike is called the QRS complex. As per above picture we can see nifty is 10769.60 here its making q wave and after few minutes it comes to 10763 which is S  wave  we will use here simple mathematic  formula s wave- p wave +10(s wave10763-10759+10= 14) 14 point is stop loss of nifty means 10749 now second point is how to set target  when stock or nifty is making r wave(r wave denotes the bull trend of the stock and it always go high side on graph)10775 showing the r wave (r wave +14 Points 10775+14=10789  its considered first target if we add 14 points more in it it will becomes second target. The second target of nifty is 10803. 

t

The theory of stop loss and target is littalbit change in case of stocks because the trading in stock and trading in nifty is quite different. we will assume p wave is the opening price of nifty   the opening price of the Vedanta is 165.45 on 21 February  on 2019  it mean p wave is made at 9.15am when NSE open after that The next area you see is a big spike. This spike is called the QRS complex. As per above picture we can see VEDANTA is 166.50here its making q wave and after few minutes it comes to 164.50 which is S save. And show here spike for bull run and and immediately its making R wave and touched to 169.95 when the stock comes near to the s wave it mean it goes either side from here  the simple formula of calculating Stop loss  is (p wave-s wave multiply by 2 (166.45-164.50=1.95x2 =162.55 stop loss ) ( target from p wave to add1.95x2 =165.45+3.9   (169.35 target price)

Basic Concept of Technical Analysis

SUPPORT AND RESISTANCE--------------Support and resistance is a concept of technical analysis that the movement of the price of a security will tend to stop and reverse at certain predetermined price levels.

Support----Support is the price level at which demand is thought to be strong enough to prevent the price from declining further. The logic dictates that as the price declines towards support and gets cheaper, buyers become more inclined to buy and sellers become less inclined to sell.

Resistance----- Resistance is the price level at which selling is thought to be strong enough to prevent the price from rising further. The logic dictates that as the price advances towards resistance, sellers become more inclined to sell and buyers become less inclined to buy.

                                      What is a Breakout?

A breakout refers to when the price of an asset moves above a resistance area, or moves below a support area. Breakouts indicate the potential for the price to start trending in the breakout direction. For example, a breakout to the upside from a chart pattern could indicate the price will start trending higher. Breakouts that occur on high volume (relative to normal volume) show greater conviction which means the price is more likely to trend in that direction.

Key Takeaways

• A breakout is when the price moves above a resistance level or moves below a support level.
• Breakouts can be subjective since not all traders will recognize or use the same support and resistance levels.
• Breakouts provide possible trading opportunities. A breakout to the upside signals traders to possible get long or cover short positions. A breakout to the downside signals traders to possibly get short or to sell long positions.
• Breakouts with relatively high volume show conviction and interest, and therefore the price is more likely to continue moving in the breakout direction.
• Breakouts on low relative volume are more prone to failure, so the price is less likely to trend in the breakout direction.

What Does a Breakout Tell You?

A breakout occurs because the price has been contained below a resistance level or above a support level, potentially for some time. The resistance or support level becomes a line in the sand which many traders use to set entry points or stop loss levels. When the price breaks through the support or resistance level traders waiting for the breakout jump in, and those who didn't want the price to breakout exit their positions to avoid larger losses.

This flurry of activity will often cause volume to rise, which shows lots of traders were interested in the breakout level. The higher than average volume helps confirm the breakout. If there is little volume on the breakout, the level may not have been significant to a lot of traders, or not enough traders felt convicted to place a trade near the level yet. These low volume breakouts are more likely to fail. In the case of an upside breakout, if it fails the price will fall back below resistance. In the case of a downside breakout, often called a breakdown, if it fails the price will rally back above the support level it broke below.

Breakouts are commonly associated with ranges or other chart patterns, including triangles, flags, wedges, and head-and-shoulders. These patterns are formed when the price moves in a specific way which results in well-defined support and/or resistance levels. Traders then watch these levels for breakouts. They may initiate long positions or exit short positions if the price breaks above resistance, or they may initiate short positions or exit long position if the price breaks below support.

Even after a high volume breakout, the price will often (but not always) retrace to the breakout point before moving in the breakout direction again. This is because short-term traders will often buy the initial breakout, but then attempt to sell quite quickly for a profit. This selling temporarily drives the price back to the breakout point. If the breakout is legitimate (not a failure), then the price should move back in the breakout direction. If it doesn't, it's a failed breakout.

Traders who use breakouts to initiate trades typically utilize stop loss orders in case the breakout fails. In the case of going long on an upside breakout, a stop loss is typically placed just below the resistance level. In the case of going short on a downside breakout, a stop loss is typically placed just above the support level that has been breached.

Now iam giving the the example of support resistance and Breakeven point with the help of live charts of March 1 2019.

First of all we have to open graph lets us find the support of the REPCO HOME FIANANCE

The p wave is 334.95 and and immediately it fallowed by r wave and it leads to 346.42 now the stock started consolidated at 347 to 346 from one hour and we will consider the r wave its support level 346the orange line indicated it than the stock move 347 to 350 level and hovering around at least 1 hour here which makes its resistance when it crossed 350(the breakeven point) immediately it moves to 359 which was set as a target.

                   The  second example of Mind tree. The p wave is 907 and immediately it fallowed by r wave and it leads to 920 now the stock started consolidated at 922 to 918  few minutes  and we will consider the r wave its support level 920 the orange line indicated it than the stock move 921 to 924 level and hovering around at least 1 hour here which makes its resistance when it crossed 926(the breakeven point) immediately it moves to 935 which was set as a target.

                                                Indicators

                                            Volatility---There are several volatility indicators available for stock traders and analysts to use when determining entry and exit points for trades. Volatility is often used as a deterrent for a risky trade, but increased fear or complacency in the market can make for an exceptional trading ground for experienced investors. Some of the most commonly used tools that determine volatility are the volatility index (VIX), the average true range (ATR) indicator and Bollinger Bands.

                                    Volatility terminology

The natural rhythm of the market is not only trending and consolidation but we have to also deal with different types of volatility.  This is where understanding and using volatility indicators can help you trade more effectively and keep your expectations in check.

Volatile periods in the markets can, in the worst scenario, create wild and sharp swings in the markets which can make them difficult to trade.  We often see extreme volatility after certain news releases and world events that are extreme in nature and this type of action is easily seen on the chart.

Volatility can be more subtle which we see during extended runs during trending markets and more muted volatility during the consolidation phase of the market.  Each of these types of environments are going to have different types of market approaches that can be used.

High Volatility

·         Trending types of systems looking to take advantage of individual swings or longer positions until there is a change in trend

·         Breakout systems will take advantage of the volatility that arises when there is a true breakout of a consolidation

Low Volatility

·         You can utilize a channel trading system which can be trend line channels or some types of bands

·         Reversion systems will have you taking positions when markets reach a support or resistance zone the contains the consolidation

Knowing what phase the market is in will assist you in using the “right tool” for the job.  You probably don’t want to look for longer term trending plays inside of a low volatility consolidation area.  You would be letting positions ride when the reversal takes place which will have detrimental impact on your trading account.

Inside of every charting platform, there are tools called volatility indicators that will help you objectively measure the level of the volatility and it’s important to fully understand the tool you are going to use.  Keep in mind there is no best volatility indicator to use so don’t spend too much time picking and tweaking the indicator.  This applies to any market including Forex and Futures. Apply it to your chart using the standard setting and that should help you begin to learn how to see volatility in price action.

   

                                       Indicators volume

Volume is a measure of how much of a given financial asset has been traded in a given period of time, or how many times the asset has been bought or sold over a particular span. It is a very powerful tool but is often overlooked because it is such a simple indicator. Volume information can be found just about anywhere, but few traders or investors know how to use this information to increase their profits and minimize risk.

For all buyers in the market, there needs to be someone who sells them the shares they bought in order to have a trade, just as there must be a buyer in order for a seller to get rid of his or her shares. This battle between buyers and sellers for the best price in all different time frames creates short-term price movement while longer-term technical and fundamental factors play out. Using volume to analyze stocks (or any financial asset) can bolster profits and also reduce risk.

Mike Tyson probably wasn't thinking of markets when he said "Everyone has a plan until they get punched in the face."  But that's exactly what volatility does to an investor's plan for his portfolio.  

                                  Indicator movementem

 In finance, moventum is the empirically obseerved tedency  for rissing asset prices to rise futher. For instance it was shown that the stocks with strong past performance countinue to outperfom stocks with poor past performance in the next peroid with an averge excess return of about 1%per month .

 The existance of movementems is a market anomaly which finance theory struggles to explan. The diffculity is that an increase in assect prices in hand and of itself,should not  warrant futher increase. Such increase, according to the efficient- market hypothesis, is warranted only by chanfe in demand and supply for new information( cf. fundamental analysis.)

                                       Relative strength index

The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. It is intended to chart the current and historical strength or weakness of a stock or market based on the closing prices of a recent trading period. The indicator should not be confused with relative strength.

        

   The stock shows overbought and oversold conditions.

For example let us suppose the RSI hits 100 and pulls back to 95, than rises to 103 and if again  falls below 95 this is called faliture swing. If your are invester or a trader you can apply same words to dhfl stock same thing happned here its clearly menthoned in the charts.

In simple words we can say that the chart formations and the areasof support and the resisitance could sometimes be more easily seen on RSI charts as opposed on the price chart.the center line for the relative strength index is 50, which is ofen seen as both the support and resistance line for the indicators.  If the RSI is below 50, it generally means that the stock”s losses greater thanthe gains. When the RSI Index is above50, it gernally means that the gains are the greater than the losses.

                                Uptrends and downtrends

5 types of RSI range propounded by Andrew Cardwell

The following are 5 types of Relative Strength Index range that help to determine the trend of the underlying asset.

1) Bullish Range– It has been observed that in the Bullish Range, Relative Strength Index tends to oscillate in 40-80 range. When RSI reaches 40, it’s an oversold zone and whenever RSI reaches 80, it’s an overbought zone.

2) Super Bullish Range– It has been seen in the Super Bullish range, Relative Strength Index tends to oscillate between 60-80 zones. So, whenever RSI reaches 60-65, it’s a good opportunity to buy and it’s very likely market may bounce back from these levels.

3) Bearish Range– It has been observed that in Bearish Range Relative Strength Index tends to oscillate between 20-65 zones.

Accordingly, when RSI reaches 60-65 zone it’s an overbought area (acts as a good selling point for targets of 40 and 20 on RSI) and RSI reaches up to 20 is an oversold zone and this could be used to enter into a long position for a pullback.

4) Super Bearish Range– It has been observed that Relative Strength Index tends to oscillate between 20-40 zones in the super bearish range

 Whenever RSI reaches 40 levels it’s a sell for 20 Relative Strength Index as a target.

5) Sideways Range– In sideways range, it has been observed that Relative Strength Index tends to oscillate between 40 to 60-65 zones which basically help us to determine that an asset or market is in sideways.

Hence, we should avoid trading when Relative Strength Index is under sideways range.

Based on the above discussed Relative Strength Index or RSI range parameters, one can easily trade the underlying asset.

                                                     Williams % R

Like most other technical indicators, you can probably find the Williams %R in your favorite charting package. While you do not need to calculate the raw values by hand, there are many good reasons why you should probably thoroughly understand the Williams %R formula. It is always a good idea to pay attention to how a technical indicator generates its signals as you are about to risk a lot of your hard earned money based on its signals.

In this formula, the highest high would be the highest recorded price of the security for the number of time periods you are calculating the Williams %R. On the other hand, the lowest low would be the lowest price during the same period. The close in the formula represents the closing price of the last bar or time period.

This is why professional traders recommend that you should always wait for the bar to close before considering a signal generated by the Williams %R indicator. During extremely volatile market conditions, the closing price can change quickly and the signal can reverse after you have placed an order.

                                              Indicators other

Advances and declines-------Advances and declines refers to the number of stocks that closed at a higher and lower price than the previous day, respectively. ... Typically, a market will be more bullish if more stocks advance than decline and vice   versa .To calculate the advance-decline ratio, divide the number of advancing shares by the number of declining shares. The advance-decline ratio can be calculated for various time periods, such as one day, one week or one month.

         This the best example of advance and decline chart of bank Nifty.

The above chart is totally based on advance and decline ratio here each and everything itself exclaimed by char itself.

                                          Future and option

Futures and options represent two of the most common form of "Derivatives". Derivatives are financial instruments that derive their value from an 'underlying'. The underlying can be a stock issued by a company, a currency, Gold etc., The derivative instrument can be traded independently of the underlying asset.

The value of the derivative instrument changes according to the changes in the value of the underlying.

Derivatives are of two types -- exchange traded and over the counter.

Exchange traded derivatives, as the name signifies are traded through organized exchanges around the world. These instruments can be bought and sold through these exchanges, just like the stock market. Some of the common exchange traded derivative instruments are futures and options.

Over the counter (popularly known as OTC) derivatives are not traded through the exchanges. They are not standardized and have varied features. Some of the popular OTC instruments are forwards, swaps, swaptions etc.

Futures

A 'Future' is a contract to buy or sell the underlying asset for a specific price at a pre-determined time. If you buy a futures contract, it means that you promise to pay the price of the asset at a specified time. If you sell a future, you effectively make a promise to transfer the asset to the buyer of the future at a specified price at a particular time. Every futures contract has the following features:

• Buyer
• Seller
• Price
• Expiry

Some of the most popular assets on which futures contracts are available are equity stocks, indices, commodities and currency.

The difference between the price of the underlying asset in the spot market and the futures market is called 'Basis'. (As 'spot market' is a market for immediate delivery) The basis is usually negative, which means that the price of the asset in the futures market is more than the price in the spot market. This is because of the interest cost, storage cost, insurance premium etc., That is, if you buy the asset in the spot market, you will be incurring all these expenses, which are not needed if you buy a futures contract. This condition of basis being negative is called as 'Contango'.

Sometimes it is more profitable to hold the asset in physical form than in the form of futures. For eg: if you hold equity shares in your account you will receive dividends, whereas if you hold equity futures you will not be eligible for any dividend.

When these benefits overshadow the expenses associated with the holding of the asset, the basis becomes positive (i.e., the price of the asset in the spot market is more than in the futures market). This condition is called 'Backwardation'. Backwardation generally happens if the price of the asset is expected to fall.

It is common that, as the futures contract approaches maturity, the futures price and the spot price tend to close in the gap between them ie., the basis slowly becomes zero.

Options

Options contracts are instruments that give the holder of the instrument the right to buy or sell the underlying asset at a predetermined price. An option can be a 'call' option or a 'put' option.

A call option gives the buyer, the right to buy the asset at a given price. This 'given price' is called 'strike price'. It should be noted that while the holder of the call option has a right to demand sale of asset from the seller, the seller has only the obligation and not the right. For eg: if the buyer wants to buy the asset, the seller has to sell it. He does not have a right.

Similarly a 'put' option gives the buyer a right to sell the asset at the 'strike price' to the buyer. Here the buyer has the right to sell and the seller has the obligation to buy.

So in any options contract, the right to exercise the option is vested with the buyer of the contract. The seller of the contract has only the obligation and no right. As the seller of the contract bears the obligation, he is paid a price called as 'premium'. Therefore the price that is paid for buying an option contract is called as premium.

The buyer of a call option will not exercise his option (to buy) if, on expiry, the price of the asset in the spot market is less than the strike price of the call. For eg: A bought a call at a strike price of Rs 500. On expiry the price of the asset is Rs 450. A will not exercise his call. Because he can buy the same asset from the market at Rs 450, rather than paying Rs 500 to the seller of the option.

The buyer of a put option will not exercise his option (to sell) if, on expiry, the price of the asset in the spot market is more than the strike price of the call. For eg: B bought a put at a strike price of Rs 600. On expiry the price of the asset is Rs 619. A will not exercise his put option. Because he can sell the same asset in the market at Rs 619, rather than giving it to the seller of the put option for Rs 600.