Trading and Technicals ( India Specific )

As we have indicated earlier in our posts, our emphasis shall be on emerging markets and on ways by which investor/traders can learn improve their returns in the market. 

Now while we do know, and wish our readers to know as well that making money in the market is not an easy task a scientific approach towards securities  followed with utmost discipline over a period of time promises decent return as compared to the markets. 

In this blog we take a different path as compared to our usual posts, and as a disclaimer want readers to know that while all can invest intelligently trading is not everybody's cup of tea.

Before we delve ourselves into the world of trading, we need to understand what trading is, and how is it different from our usual approach.( i.e investing)

Trading: Trading is noting else but buying (selling) a stock, bond, derivative with the hope of selling(buying) it back later at a higher(lower) price.Whereas in investment the underlying play a significant role as to the decisions leading upto investment, trading is solely based on factors including the psychology and emotions of markets as well as people in the market.

While many may believe the process akin to gambling , some scientific approach to it can improve speculation and speculators profit.Trading in a simpler language is nothing less than intelligent speculating. Which requires one to do his/her work and make decisions accordingly. 

Deciding onto peoples emotions is a hard guess, but interpretation of their actions when and as seen in the markets is a trading advantage.What are these trading advantages or emotional tests a trader shall or does use to get himself ahead of the market ? 

While there are many tools out there in the technical space we deal with a few that we think are highly important and affect the Indian Markets. We might and do reserve the right to add/change/delete or modify these variables depending on how they span out in the markets , and or if they still remain valid from a traders perspective.

Now without much of a wait let us just get to a few important trading parameters : 

1) Margin Trading 

2) FII/DII Trading within the markets

3) NSE Open interest

4) Advances Declines

5) Volumes / Market Capitalization 

6) PE Ratios ( Change in Earnings , Prices and overall Change ) 

7) Insiders buying/selling

8) Pledged and Un-pledged Shares
9) Cash levels at Mutual Funds , and Mutual Fund Activity

We shall look at each one of them individually and learn what they are and how they can aid a trader in his or her trading on a day to day basis. 

For the convenience of our readers , we shall do our best to keep the data updated on a daily basis as well as go back to the maximum date we can so that it helps in the analysis of individual securities at hand.