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Emotions should not affect our trade management systemTrader should identify emotions that are affecting our trading management decisions, and find genuine solution to over come from the same to become a better trader. Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Disclaimer. I am not sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses.
NSE:NIFTYEducation
by RK_Chaarts
4
How To Follow Market News Like a ProAs a member of TradingView, you have access to more than 100 news providers. Our excellent news providers cover every asset class. Learning how to manage market news is an important informational edge that takes time and practice - always know the latest stories about your favourite symbols and be in the know about what traders are talking about. In this post, we want to share a few tips for managing your news flow. 🗞️🎯 Before we get started, let us remind everyone how we recently enhanced our news by giving our members access to one of the world's preeminent news organizations - Dow Jones Newswire including the Wall Street Journal, Marketwatch, Barron's, Dow Jones Commodity Trader, and more. Where To Find News On TradingView 📰 To get started with news, first make sure you're logged into your account. Once you're logged in, there are several ways to access news. Let's take a look at each method. - Symbol pages have dedicated news sections that cover that symbol in great detail. For example, here's every important story about Apple and here's the latest breaking news about Tesla . Go to any symbol page of your choice, click News, and start reading. - Check out our global news flow page that brings all of our sources to one place. Once you've arrived, filter by the asset class of your choice. - Our corporate news page brings insider buying & selling, company press releases, and official financial filings all to one page. As an equity trader or investor, this page will keep you updated about key events happening in the corporate world. How To Find News On The Chart 📈 News can also be accessed directly from the chart. As everyone knows, breaking news can impact markets in a variety of ways. Open the chart and watch price, volume, and news all at once. This is an effective combination of tools that combines the biggest headlines with real trading activity. Here's how to get started: - Open your watchlist, select a symbol, and then look for the latest news headline as demonstrated in the image below. Click the headline to open a dedicated news feed for that symbol. And just like that you'll have markets news and the chart open at once: - Another way to add news to your chart is to open the Settings menu, click Events, and then check the box that says "Latest news." This box will display the latest market news directly on the chart you have open. Follow the instructions shown on the image below to get started. Go Deeper With Specific News For Your Needs 🌐 Depending on your style of trading or desired asset class, there are additional news resources for you to harness. Check out the list below for more pages where market news can be found: - Bond market news - Futures market news - Global market news Read News From Anywhere With Our App 📱 The official TradingView mobile app for iOS and Android is free to download and market news is available to all members. Once downloaded, you can follow global market news or news about your favourite symbols. The app allows you to sort by top stories, asset class, and the world economy. If you still don't have our app, get it here ! Thanks for reading! We hope this post helps you become a market master for following the latest news. Please let us know if you have any questions or comments. — Team TradingView ❤️ Feel free to check us out on Instagram , Telegram , and Twitter for more awesome content! 🙂
MCX:GOLD1!Education
by TradingView
2
'STATES' of 'MARKET' - forms in which market can existProbably all of you have might have heard of 'states' of 'matter', let me remind you once again "state of matter is one of the distinct forms in which matter can exist" but why am I talking about this stuff it's because the Market also has 'states' of 'market' you can define them in the same way " state of the market is one of the distinct forms in which market can exist". I know many of you can't grasp it now but I can ensure you that by reading the entire article you would surely encounter one of the most striking observations. As we all know fundamental states of matter are:- -> Solid -> Liquid -> Gas So what are the fundamental states of the market? let me recap the definition once again "state of the market is one of the distinct forms in which market can exist". Okay, now I think many of you have figured out the 'states' of 'market', they are the following:- -> Sideways -> Downtrend -> Uptrend Yes, ' states' of 'market' are the trends cause the market can exist only in any form. If I wanted to talk about trends I could have simply described trends but that's not the case cause this publication will establish a relation between the 'states' of 'matter' and 'states' of 'market'. How are 'states' of 'matter' and 'states' of 'market' related? Let me relate them by their properties- -> Relation between Solid and Sideways - Solid The property of solids is they cannot move freely but vibrate due to strong intermolecular force. Solid has a stable and definite shape and requires external force when it's to be molded. - Sideways The property of a sideways market is that in a sideways market price doesn't move freely but consolidates in a range due to strong calls and put writers who bound the price in a range. The sideways market is stable and definite and requires an external buying/selling force to break the range in either direction. -> Relation between Liquid and Downtrend - Liquid The liquid being a fluid tends to flow. The density of liquid a quite high compared to gas hence it requires no external force while flowing downstream but requires a strong force to keep it flowing upwards. The speed of liquid downstream is always greater than upstream due to gravity in action. -Downtrend In a downtrend price also flows down the same as a liquid flowing downstream without any external force. Usually, the price plunges much faster as compared to the rise in price. If somehow a rise is witnessed in a downtrend then it fades out quite fast because to keep the price flowing upward a huge buying force as compared to the selling force is required. This is also the case when liquid flows downstream. -> Relation between Gas and Uptrend - Gas The gas being a fluid tends to flow. The density of the gas is quite low hence it rises naturally but requires external pressure in a downward direction to keep it flowing downwards. Gas has a very large intermolecular space hence its movement in a particular direction is quite slow and random. - Uptrend In an uptrend price naturally rises without any external force. Usually, the price rises much slow as compared to the fall in price. The nature of price in an uptrend is much similar to gas, as price movement in an uptrend is slow and random. Random because in an uptrend price gives more jerks as compared to a downtrend. Phase/Trend Transition:- Sideways <-> Uptrend (transition from sideways to uptrend market and vice-versa) - RSI can be used to identify the transition, in a sideways market RSI usually trades in the band of 40 - 60, when RSI crosses above 60 along with breaking the range indicates the beginning of an uptrend. - We can also term this transition as 'sublimation' cause the solid is changing to gas. - Same for vice-versa just the term would be changed to ' deposition ' as the gas is changing to solid. Sideways <-> Downtrend (transition from sideways to downtrend market and vice-versa) - RSI can be used to identify the transition, in a sideways market RSI usually trades in the band of 40 - 60, when RSI crosses below 40 along with breaking the range indicates the beginning of a downtrend. - We can also term this transition as 'melting' cause the solid is changing to a liquid. - Same for vice-versa just the term would be changed to 'freezing' as the liquid is changing to solid. Uptrend <-> Downtrend (transition from uptrend to downtrend market and vice-versa) - RSI can be used to identify the transition, when a divergence is witnessed in RSI and price chart this indicates the loss in strength of the internal force i.e. exhausting buying interest but still to confirm we could use 20 EMA if the price breaks below moving average with RSI divergence then it's quite possible a beginning of downtrend so what can we do is book our profits. - Downtrend is only confirmed when RSI starts trading below 40 but we can't wait till then and let our profits vanish so as soon as you get an indication book your profits. - We can also term this transition as 'condensation' cause the gas is changing to a liquid. - Same for vice-versa just the term would be changed to 'vaporization' as the liquid is changing to gas. In my prior post, I tried to relate "As above so below" harmony of nature with the market and now "States of Matter" with market trends this is all to make everyone know that 'Stocket' science is equally difficult as 'Rocket' science probably more cause here 'emotion' also comes in play which any other science lacks . Now, answer yourself do you still have a fantasy about 'Rocket' science or 'Stocket' science is enough to fulfill anyone's fantasy and do you know what's the best part of 'Stocket' science? it's everchanging .
NSE:NIFTYEducation
by Chaser30
2
A FEW PARAMETERS TO FILTER STOCKS FOR INTRADAY TRADINGThere are few things to be considered before selecting a stock for intraday such as, 1)Volume 2)Price 3)Mimicking Stocks VOLUME: Always Select a stock which has a high liquidity, which means the stock should have at least average daily volume of above 1 million (10 lakhs). PRICE: Many would not consider this as a important parameter. but it must be considered. Choosing penny stocks for intraday is not a good choice at all. Always prefer stocks trading above Rs.100 for intraday MIMICKING STOCKS: Look for the stocks which move in sync with the index. So when the index moves upward/downward, there is a high possibility for the stock to go up/down similarly. Few such examples are 1)Nifty & Reliance, 2)Bank nifty& HDFC Bank, 3)Nifty IT & TCS. SUMMARY #Make a List of 10 stocks, which have good volume (>10 lakhs) & price above 100 #Try to Pick stocks from F&O category as they are the most liquid stocks & these stocks can't be manipulated easily by the operators. #Make sure the 10 stocks are from various industries. Because if we pick stocks from same industries, they are likely to move in tandem. #As a beginner, one should trade within only those 10 stocks every single day for at least 6 months. The reason behind is, every stock has a certain behaviour of its own & when we trade same stocks for a long time, one will get to know the in & out of the stocks & eventually be better at trading. #Another good reason is, every stock is subjected to move according to its corporate action ( Earnings, AGM, Dividends etc.,) So it becomes easy to pay attention to the news related to a particular company, when we trade very few stocks. SAMPLE 10 STOCKS LIST: Finance 1)SBI 2)ICICI Pharma 3)SUNPHARMA 4)BIOCON Auto 5)MAHINDRA & MAHINDRA 6)TATA MOTORS IT 7)INFY 8)TECHM Fmcg 9)HINDUNILEVER Metal 10)TATA STEEL Disclaimer : These are not rigid rules. All the above said are the things which am using for long time successfully. If you are successful with any other method, please continue that. Happy Profit Making, Divyaa Pugal
NSE:NIFTYEducation
by Divyaapugal
23
Let's Know Top 10 Chart Patterns With Most Success RatesBefore it, let's learn about types of chart patterns because it's important to know that the pattern is a reversal or continuation because it will help us decide whether the market is making a reversal or a continuation pattern. 1. Continuation patterns : A Pattern which gives you an indication of continuation meaning continuing the trend. For example :- flag patterns, wedges patterns or a pennant pattern can be classified into this. 2. Reversal Patterns : Patterns which give you an indication of reversal meaning if the market is going up and then a reversal pattern forms then it should go down. For Example : Head and Shoulders Pattern, Double Top and Bottom Pattern can be classified into this. Now Let's Learn about the Top 10 Chart Patterns With the most Success rates 1. Head and shoulders 2. Double top or bottom 3. J Pattern 4. Rounding bottom or Top 5. Cup and handle 6. Wedges 7. Pennant 8. Descending Triangle or Ascending Triangle 9. Bullish Flags or Bearish Flags 10. Symmetrical triangle or A Symmetrical Triangle -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 1. Head and Shoulders :- Traders use the head and shoulders pattern in technical analysis chart to anticipate likely changes in a price trend. After a bullish trend, it is common to see a bearish pattern emerge that is renowned for its accuracy in predicting a trend reversal. There are three peaks in the pattern where the middle one is the highest and the remaining two are known as "shoulders" with similar and lower heights. Once the price passes over the "neckline," which is a trendline tying the lowest points between the peaks of the two troughs, the design is finished. The head and shoulders pattern indicates the end of an uptrend, causing traders to use it as a sell signal. There is a possibility that a decline will occur afterwards. The pattern is utilized by certain traders as an indication to engage in short positions, while keeping a stop loss above the neckline. It should be kept in mind that the occurrence of a head and shoulders pattern does not necessarily guarantee a reversal, therefore traders should rely on supplementary technical analysis and implement risk management strategies before trading. 2. Double top or bottom :- A double top pattern occurs when the price of a stock reaches its peak, declines, then surges back up to the peak level but is unable to surpass it before falling once more. A resistance level formed by two peaks is encountered by the price, which is unable to break through it. When the price drops below the valley level that existed in between the two peaks, the pattern is over. The double top pattern is thought to be a bearish sign, indicating a possible price decline. A double bottom pattern, on the other hand, is the polar opposite of a double top pattern and resembles a mirror image. The price decreases to a certain level, rebounds, drops back down to the same level, but does not surpass it, and subsequently recovers again. The support level created by the two valleys is a point that cannot be breached by the price. The pattern is only finished when the price surpasses the peak level that was established between the two valleys. It is crucial to remember that depending solely on these patterns for trading decisions is not recommended, as they are only among several instruments applied in technical analysis. It is advisable for traders to take into account additional elements aside from technical analysis, such as fundamental analysis. When making investment decisions, take into consideration both market trends and the management of risk. 3. J Pattern :- The term "J pattern" denotes a distinct chart pattern that may manifest over a duration of time in the movement of a particular stock's price. The J-shaped trend seen in a company's stocks entails an abrupt decline in value that is succeeded by a more protracted rehabilitation. The name of the pattern originates from its formation on a price chart, which bears a similarity to the letter "J". Frequently, this trend can be observed in shares that encounter adverse circumstances or updates leading to the first decline in value, and later, garner support as investors regain trust in the potential profitability of the stocks. 4. Rounding bottom or Top :- In technical analysis of financial markets, there are two patterns referred to as rounding top and bottom. The pattern on a chart known as a rounding top signifies a gradual transition in the market from an upward pattern to a downward one. A gentle decrease in pricing is followed by a gentle increase, resulting in a curved contour. The pattern reveals that the market seems to be losing its force, implying that there could be a potential drop in prices. Conversely, a chart pattern known as a rounding bottom indicates a change in the market direction, from a downtrend to an uptrend. The observed trend exhibits a gentle decrease in values accompanied by a gentle growth, creating a curvilinear appearance. The indication is that the market is growing based on this trend. 5. Cup and Handle The cup and handle pattern serves as a tool in technical analysis utilized in the stock market for detecting potential chances to purchase. This formation signifies the continuation of a bull market; it is observed after a stock has undergone a notable increase and then encountered a phase of stabilization. The shape of the design, which resembles a container with a grip, is what the pattern is named for. A cup-shaped pattern forms when, following a strong upward trend in stock prices, there is a significant decrease that creates a rounded bottom resembling a U. The handle section on the chart emerges once the stock price remains within a tight range for several weeks or months without any significant rise, before finally breaking out and reaching new highs. I Think That's too much we will continue the remaining 5 in the next one I hope you learned something new if then pls do like and follow us Thank you ♥
NSE:COFORGEEducation
by MAYANKTECHRESEARCHING
4
Protecting Your Mental Health by Prioritizing Risk ManagementIn the world of trading and investing, it's common to hear the phrase "risk management" thrown around. But what exactly does it mean, and why is it so important? At its core, risk management is about protecting yourself from potential losses. This can include setting stop-loss orders, diversifying your portfolio, and carefully analyzing market trends before making trades. And while these practices are certainly crucial for preserving your capital, they're not the only benefits of prioritizing risk management. In fact, one of the most important reasons to focus on risk management is for the sake of your mental and emotional well-being. Trading can be an incredibly stressful and emotional experience, and without a solid risk management plan in place, it's easy to fall prey to anxiety, fear, and even panic. But when you take the time to establish a sound risk management strategy, you're not only protecting your investments - you're also safeguarding your mental health. By having a plan in place, you can make trades with confidence, knowing that you've taken steps to mitigate potential losses. And even if a trade doesn't go as planned, you can take comfort in the fact that you've prepared for the worst-case scenario. Perhaps most importantly, prioritizing risk management can help you achieve long-term success and sustainability in your trading career. By minimizing losses and avoiding rash decisions, you'll be able to build a portfolio that's resilient and capable of weathering the ups and downs of the market. So if you're looking to become a successful trader, don't overlook the importance of risk management. By taking steps to protect your capital and your mental well-being, you'll be setting yourself up for a lifetime of sustainable and profitable trading.
Education
by okako_trading
1
EBITDA VS NET INCOME DETAILED Hello Everyone,🙂 Hope you are fine and doing great today i am again with an idea to give you some knowledge about EBITDA :- Earnings Before Interest, Taxes, Depreciation, and Amortization, So lets Start What is EBITDA ? EBITDA is a financial metric that is used to evaluate the financial performance of a company, especially if it is used in the context of mergers and takeover. How to Calculate EBITDA ? EBITDA can be calculated by taking a company's revenue and subtracting its operating expenses without including ( interest, taxes, depreciation, and amortization). The resulting number represents the company's earnings before expenses are deducted. Why Should We Use EBITDA? What is the importance ? It is frequently used as a measure of any company's cash flow and profitability because it provides us with an indication of how much money the company is generating before non-operating expenses are deducted. However, it's important to note that EBITDA doesn't account for all expenses, such as capital expenditures or changes in working capital, and therefore it should not be used as a sole metric for evaluating a company's financial health. What is Net Income? Net income is a financial metric that is reported on a company's income statement, which provides us a summary of the company revenues, expenses, and net income for a specific period. It is an important metric that helps the investors and analysts to evaluate a company's profitability. How to Calculate Net Income? It is calculated by subtracting all expenses and deductions from the total revenue earned by the company. Why Should We Use Net Income? What is the importance ? It can be used to provide us an indication of a company's profitability, net income is also used to calculate other important financial ratios, such as the earnings per share Thank you Pls do like and follow us
NSE:NIFTYEducation
by MAYANKTECHRESEARCHING
The Ultimate Rules for Options Day Trading SuccessNSE:BANKNIFTY Introduction If you want to be a successful options day trader, it's not just about having a good strategy. You also need to develop your expertise, seek guidance when needed, and be dedicated to your goals. To do this, you need to be disciplined and follow some options day trading rules. These rules can help you avoid common mistakes and take away the guesswork. Here are some rules that every options day trader should know and if you use them in a disciplined manner then they have been proven to help beginners become winning options day traders. Some important rules are :- Rule 1 Setting Realistic Goals for Options Day Trading One of the most important rules for success in options day trading is to have realistic expectations. Options trading is not a way to get rich quickly, but it can be a profitable career if you put in the time and effort to learn and master the craft. You need to be prepared for a learning curve and be willing to stick with it even when it gets tough. You should also expect losses, as no strategy can guarantee gains all the time. Good money and risk management can help minimize losses. Rule 2 Start Small to Grow Big When you're new to day trading options, it's important to be cautious. You're still learning about options trading and the financial market, so take your time. Don't rush into things, even if you're excited. Start by practicing with paper trading and then move on to smaller options positions. Gradually increase your positions as you become more familiar with day trading options. This approach helps you minimize your losses and develop a systematic method for entering positions. Rule 3 Know your limits You may be tempted to trade as much as possible to develop a winning monthly average but that strategy will have the opposite effect and land you with a losing average. Remember that every options trader needs careful consideration before that contract is set up. Never overtrade and tie up your Capital. Overtrading will make money for your broker not you. Rule 4 Get Prepared Mentally, Physically, and Emotionally for Options Trading To succeed in options day trading, you need to take care of your mental, physical, and emotional health. This means getting enough sleep, eating a healthy diet, exercising regularly, avoiding excessive alcohol and smoking, and reducing stress in your environment. These habits will help you stay alert and focused throughout the day. So, take the time to care for yourself and perform at your best every day. Rule 5 Do Your Homework Daily – Plan your day Before the market opens, study the financial environment and news to develop a daily trading plan. This is called pre-market preparation and it's essential to stay competitive and align your strategy with the day's conditions. Develop a pre-market checklist that includes evaluating support and resistance, checking the news, assessing volume and competition, determining safe exits for losing positions, and considering market seasonality. Rule 6 Analyse Your Daily Performance Track your options day trading performance daily to notice patterns in your profits and losses. This will help you understand why you're gaining or losing money and fine-tune your processes for maximum returns. Reviewing your daily performance will also help you make long-term decisions for your options day trading career. Rule 7 Pay Attention to Volatility Volatility is how likely the price will change over time in the financial market. It can be good or bad for an options day trader, depending on their goals and position. Many factors affect volatility, like the economy, world events, and news reports. Straddle and strangle strategies are helpful in volatile markets. There are three types of volatility: price, historical, and implied. Price is based on supply and demand, historical looks at past performance, and implied predicts future performance. Rule 8 Use Option Greeks Greeks are measures that help to determine an option's price sensitivity in relation to other factors. They are represented by letters from the Greek alphabet and are used in complex formulas to determine option pricing. Despite their complexity, Greeks can be calculated quickly and efficiently, allowing options day traders to use them to improve their trades for maximum profit. Delta, Gamma, Vega, Theta, Rho Learn about option greeks from here I hope you found this helpful. Please like and comment. Keep Learning, Happy Trading!
NSE:BANKNIFTYEducation
by SANJAYPATIDAR_
4
Mindful TradingMindfulness can be a powerful tool for day traders to improve their clarity of mind, focus, and decision-making skills. In this article, we will explore the concept of mindfulness in day trading. 🤷‍♂️What is Mindfulness? Mindfulness is the practice of being present in the moment and fully engaged with our thoughts, feelings, and surroundings. It involves paying attention to our thoughts and emotions without judgment. Mindfulness can help us to reduce stress, improve our focus and concentration, and enhance our decision-making skills. 🤷‍♂️How Can Mindfulness Help Traders? Mindfulness can be a valuable tool for day traders to improve their performance and well-being. Here are some ways that mindfulness can benefit day traders: 🚩Increased Awareness-- Mindfulness can help traders to become more aware of their thoughts, emotions, and physical sensations during the trading day. This increased awareness can help traders to identify and manage negative emotions such as fear, greed, and anxiety, which can impact their decision-making and trading performance. 🚩Improved Focus and Concentration-- Day trading requires traders to maintain focus and concentration for an extended period of time. Mindfulness can help traders to improve their ability to stay present and focused during the trading day, reducing distractions and improving their decision-making skills. 🚩Reduced Stress-- Day trading is a high-stress activity, and stress can negatively impact trading performance as well as social life. Mindfulness can help traders to reduce stress by teaching them techniques to manage their emotions and stay calm and focused during periods of market volatility. 🚩Enhanced Decision Making-- Mindfulness can help traders to make better decisions by improving their awareness and ability to stay focused and calm. Traders who practice mindfulness may be more likely to make rational and well-informed decisions, even in high-pressure situations. 🚩Improved Well-Being-- Practicing mindfulness can also improve a trader's overall well-being, including reduced anxiety levels and depression, improved sleep quality, and enhanced overall mental health. ⚡Basic Mindfulness Techniques 🚩Breathing Exercises-- Breathing exercises are a simple yet effective way to practice mindfulness. Deep breathing can help traders to calm their mind, reduce stress and anxiety, and increase focus and concentration. Traders can take a few deep breaths before making a trading decision or during periods of market volatility to stay calm and centered. 🚩Meditation-- Meditation is a powerful mindfulness technique that can help traders to develop mental clarity and focus. Traders can practice meditation for a few minutes (preferably before the market open) each day to improve their ability to stay present and focused during the trading day. Meditation can also help traders to manage negative emotions. 🚩Visualization-- Visualization involves using mental imagery to create a positive mental state. Traders can use visualization techniques to imagine successful trades, visualize market movements, and develop a positive mindset. Visualization can also help traders to manage fear and anxiety. ⚡Mindful Trading Mindful trading is the practice of applying mindfulness techniques to the trading process. Here are some ways in which mindfulness can improve trading practices. ✅Start the day with a clear mind. ✅Stay focused in the present rather than getting lost in good or bad experiences of past trades. ✅Practice acceptance of uncontrollable variables of trading such as, market conditions and outcomes. ✅Manage extreme emotions such as fear and greed and hence improve decision making. ✅Taking regular breaks during the trading day maintains mental clarity and help in recharge and refocus. Thanks for reading. Hit the 🚀 button for more educational posts in future. Disclaimer: I am not a pioneer/creator of Mindfulness concepts.
NSE:NIFTYEducation
by Bravetotrade
12
MFI indicator and how to work with itHello everyone, letit is in touch and today we want to tell you about one very cool indicator. MFI - (money flow index) is a technical indicator designed to demonstrate the intensity with which money is invested in a security and withdrawn from it by analyzing trading volumes and the ratio of typical prices of periods. it shows how attractive the asset looks. That is, the degree of intensity of investing money in it. At the same time, only the dynamics of the indicator is important, its value at a particular moment in itself does not matter much. That is, speaking in simple terms, there is a similarity with rsi, but here it is not so strict in terms of divergences and convergences. The indicator simply shows the discrepancy between the cash flow and the price of an asset. Now on bitcoin we can see this discrepancy. We had growth when money left the asset - this is a signal for a fall. Therefore, the team and I expect the asset to fall to the area of ​​21500-20200, and from there it will turn around. Below are some more examples of discrepancies. If you liked the article, then put a reaction and write a comment - it will help us a lot.
INDEX:BTCUSDEducation
by Letit_Trade
'Shades' of 'Trades' - color of the marketIn this color season let's have an insight into how the market plays 'Holi' with traders with its binary colors. The above line sounds fascinating but it's not let me elaborate a bit more. Yes, the market plays with colors with traders but the market uses only binary colors. Many of you may think of white and black as binary colors, but this is not the case here. The market only uses two primary colors green and red to play with traders but we play with colors only on 'Holi' it seems that markets are very fond of playing with colors so it does probably every trading day it either colors the trader's position page with the green of red. Though we have only two colors in markets which can be divided into four shades which are the following:- -> Light Green - symbolizes a small profit -> Dark Green - symbolizes a big profit ( Trader's Favorite ) -> Light Red - symbolizes a small loss -> Dark Red - symbolizes a big loss ( Hazardous to account ) In this article let's dive into the depth of these colors and the reason for incurring such colors on your position page. -->How to get light green color -- Aimed for steady and regular profits . -> Trader can incur this only if they are consistent and aims for regular profit cause markets aren't trending every day. -> Discipline is the key to consistency. I think many of you have heard of the story of sage Vishwamitra who was meditating for a purpose and Menka was used to break the meditation and misguide him from his path. The same is the case of markets if you are in the market to generate regular profits then you must be disciplined as markets have negative behavior of creating illusions to trap the traders just like Menka . -> I suggest developing a trading system or set of rules on which you are going to take the trade if you want to generate regular and steady profits cause if the system is profitable you will also be profitable. Don't rely on price action on an intraday basis unless you're a champ in the same. -->How to get dark green color -- Aimed for sporadic and occasional profits. -> Though everyone wants profits it's not obvious as said earlier markets aren't trending every day. -> But if you are keen on watching market movements, you could probably catch these sporadic days and generate big profits. -> Fear should reside out to ride big profits. I think why many of us aren't able to ride big profits because of the opulence of loss that has developed fear in our minds due to which we try to book profits early without getting any sign of weakness in our trades. Our mindset says to us "Something is better than nothing". -> To overcome this fear I suggest backtesting your trades which can help you in gaining self-confidence if anyhow you can develop faith in yourself then fear naturally resides. -->Reasons to get light red color -- Quite obvious as a part of the game. -> It's quite obvious if you getting small losses as loss is a part of the trade game. -> There is nothing to be stressed about or to ponder upon these small losses if it comes along with profits as there is no such trading system or trader which only gives or generates profit. -> This usually happens when stop-loss is hit and you must be thankful to yourself that you had placed a stop and accept the small loss. Markets reward traders who admit their errors and change their ways whereas punish traders who are obstinate and won't change. I think everyone must check the reason for each loss they incur if it's due to the system you are following and the system is profitable in long run then the loss is fine but if it's due to your own mistake, learn from it and rectify the same as quick as possible. -->Reasons to get dark red color -- Hazardous and may lead to termination. -> One must avoid these big losses at all costs; otherwise, you may find yourself in a situation where you are unable to pay any costs. -> Most hazardous and may sometimes lead to the termination of your trading journey. -> This usually happens due to the stubborn nature of traders where they don't accept that they are wrong or don't have the guts to book their stop losses. I think why many of us incur big losses because of neglecting the use of system stop-loss. Traders have realized the significance of stop-loss hence they decide on the sl before entering into the trade but what they do is keep sl in mind rather than the system and when the price reaches the sl level they don't have the guts to book the loss due to which small loss turn into a big loss. This is the reason why everybody should place system stop-loss as a computer doesn't have emotion. As stated earlier Markets reward traders who admit their errors and change their ways whereas punish traders who are obstinate and won't change. That means that if the trader does not recognize their mistake and book, the sl market will penalize them with a large loss. I suppose that all of you have got great knowledge of the 'Shades' of 'Trades' and an insight into all outcomes of a trade. And I think that I was able to explain to you how the market also likes to play with color and now the first line doesn't seem to be fascinating but obvious. I hope this 'Holi' market colors you all with dark green, and wish you all a 'Happy Holi'.
NSE:NIFTYEducation
by Chaser30
6
As 'Above' so 'Below' - the harmony of natureIn this real world, there is various philosophy that tries to explain the "As above, so below" harmony is the great law of nature but none can prove this law hence it's still a hypothesis. The law of nature works on everything and the stock market is not untouched by nature. I am not here to give a lecture on this law of nature but to prove how this harmony of nature is preserved in the stock market and to share my research work on 'Stock-et' science which is equally difficult as 'Rocket' science. Many of you have heard of these famous patterns:- 'Head and Shoulder' 'Cup and Handle' 'Rounding Top/Bottom' 'Flag/Pennant' 'Double Top/Bottom' Do you all observe some correlation among them? They all are candlestick patterns that either decide reversal or continuation, if this was your observation then probably you are correct but I wasn't indicating this. Let me explain to you what kind of relationship I was talking about. How do we estimate the target of these patterns? To the target level, we first measure the depth of the pattern i.e. how deep it's below the breakout level. As its depth is below so will the height above. Now, I think you all can draw how this law of nature is respected here in the candlestick pattern or more precisely in the stock market. Let’s have an example to be more sound:- The above chart describes how the CUP pattern works following this law of nature. The stock after the breakout rallied non-stop to attain the e height of +94% which was the depth of the cup pattern. After attaining the target or say 'equilibrium' stock witnessed a jerk, not before that. This proves how the market preserves "As above, so below" harmony, the great law of nature. Still not convinced then look to another example, This is the vice-versa of the previously explained example, here stock attains the depth of -17% i.e. ' equilibrium' after forming a Head and Shoulder pattern with a height of shoulder +17%. This proves how the market preserves "As below, so above" harmony, the great law of nature. Now let's look at this concept with different dimensions i.e. dimensions of mathematics, physics, and chemistry. Don’t be afraid I'm not going to talk about 'rocket' science but 'stock-et' science. [list [ In math, we all have read negative and positive cancels out i.e. (-3+3=0) same in candlestick patterns if the stock has a pattern depth of then the pattern target would be +30% to attain '0' or say 'equilibrium'. In physics, we all have read that negative charges neutralize the positive charge to attain 'equilibrium' same in the stock market. In chemistry, we all have read that all chemical changes occur in nature to attain 'equilibrium' i.e. two elements share their electrons to attain 'stability' (H2O, here two hydrogen molecules share their 1 electron with 6 electrons of oxygen to attain equilibrium) this same happens in markets all market movements occur to attain 'stability'. Generally, people have fantasies about 'Rocket' science but we traders have fantasies about 'Stock-et' science. Please drop comments on whether you have a fantasy for any of the above science. Also, let me know how many of you believe that the stock market doesn't work on speculation but has its science let's call it 'Stock-et' science.
NSE:NIFTYEducation
by Chaser30
2
Stock Market Risks: A Brief Guide to Get ThroughThe stock market can be an exciting and potentially lucrative place to invest, but it also carries significant risks, particularly in the futures and options segment. While the potential for high returns is a major draw, it is essential to understand the risks and take appropriate measures to manage them effectively. Risks in Futures and Options Segment Futures and options are derivative products that allow investors to buy or sell a particular asset at a specific price on a future date. This segment can be risky due to the potential for high leverage, meaning that a small investment can lead to significant losses or gains. Moreover, futures and options are often complex instruments that require a solid understanding of the underlying asset. Risk Aspects in Investment Investment in the stock market also carries inherent risks, such as market volatility, company-specific risk, and currency risk, among others. These risks can impact the overall performance of your portfolio in the long run. Risk Aspects in Day Trading In day trading, an instrument is bought and sold on the same day so as to make a quick profit. While day trading can be profitable, it also carries significant risks due to the high volatility and leverage involved. Day traders need to have a deep understanding of the market and should use technical analysis to make informed decisions. Step-by-Step Guide for Surviving the Stock Market 1. Educate Yourself: The first step to surviving the stock market is to educate yourself about the risks involved, market trends, and investment strategies. You can attend seminars, read books, and consult with experienced investors or brokers. 2. Set Realistic Goals: Setting realistic financial goals based on your investment horizon, risk appetite, and financial situation is crucial. This not only helps in avoiding impulsive trading but also in staying focussed. 3. Diversify Your Investments: Diversifying your portfolio across different sectors, geographies, and asset classes can help mitigate risks and balance your returns. 4. Have a Disciplined Approach: Avoid chasing quick returns or taking unnecessary risks. Have a disciplined approach to investing, and stick to your investment plan. 5. Manage Your Risks: Use risk management tools such as stop-loss orders and limit orders to minimize losses. Moreover, one should always try to invest only that much money which one can afford to lose. Other than that there is always need to maintain a cash buffer for emergencies. In conclusion, the stock market carries significant risks, especially in the futures and options segment. However, with a disciplined approach, a sound investment strategy, and effective risk management, new and struggling traders and investors can survive and thrive in the stock market. Thanks for reading.
NSE:NIFTYEducation
by Bravetotrade
10
What is a crypto card?Crypto cards enable you to pay with cryptocurrency in stores and withdraw cash from almost any ATM worldwide. Additionally, each business that issues these cards offers a set of benefits for cardholders. What is a crypto card? If you own cryptocurrency, you've probably considered how to use it in everyday life. Currently, in order to convert Bitcoin into dollars, you must transfer BTC to a centralized exchange, convert it to USD, and then withdraw the funds to a bank card. You can also use an exchanger, but you run the risk of falling victim to scammers. The lengthy withdrawal process makes it difficult and less desirable for regular users to use cryptocurrency as a payment method. A crypto card could be the solution. It functions exactly like a traditional debit card. In fact, you can use a crypto debit card to pay for the same products: Bitcoin is deducted from your wallet in the amount equal to the purchase price (an automatic conversion to a specific currency occurs). Several centralized exchanges and payment processors have already produced their own crypto debit cards. The use of such cards greatly simplifies the interaction between the traditional and cryptocurrency financial systems. When you get paid in bitcoin, you can use that money right away to make purchases for things you need on a daily basis, like food, gas, clothing, and other essentials. And since it's a debit card, you won't be able to spend more than you have. Another significant benefit is a cashback. Cashback percentages range from 1% to 8% and are applied to purchases. The procedure for obtaining a crypto debit card varies according to the provider, but it is very simple and quick. Some providers only offer a virtual card that you can link to your Apple Pay or Google Pay wallet or use to make purchases online. A physical card can also be issued through certain services, like BitPay. The best crypto debit card for you will be determined by your needs and where you live. Some businesses provide cards with restrictions and daily limits. At the same time, the number of supported cryptocurrencies and the lack of regional restrictions are important factors. Due to the fact that Visa and MasterCard support the majority of crypto cards, they are accepted at shops and ATMs throughout the world. In the following section, we'll examine and contrast the three most widely used crypto debit cards. Crypto.com Visa The Crypto.com card operates on the Visa network, accepts more than 100 cryptocurrencies, and is available in more than 100 countries worldwide. Customers are offered cards of five different levels, each with its own set of terms and remuneration structure. Obsidian's most premium card, for example, provides 5% cashback and unlimited access to airport lounges through the Lounge Key programs. This card also provides refunds on Airbnb and Expedia bookings, as well as 100% cashback on Spotify, Netflix, and Amazon Prime subscriptions, among other benefits. However, the person must stake CRO tokens worth $400,000 in order to obtain this specific card. Binance Visa Card This card operates on the Visa network as well, but it is only available to European customers. The user can receive up to 8% BNB cashback on each purchase and withdraw funds from ATMs without paying any fees. Both virtual and physical cards are available for free. Coinbase Visa The Coinbase card is available to all residents of the United States (except Hawaii) and offers up to 4% cashback on purchases. At the same time, users are not charged for servicing the card or withdrawing funds from an ATM. In the picture you can see a comparison of these three cards according to the main characteristics: Crypto cards significantly simplify the use of cryptocurrencies for the average user, and they do not have the same limitations as traditional bank cards. Using cryptocurrency as legal tender is a long-held desire of crypto enthusiasts, made possible by the functionality and accessibility of crypto cards.
BEducation
by SpaceFinance
1
10 Reasons why Most traders lose moneyHey everyone!👋 Trading & investing is not easy. If it were, everyone would be rich. Here are a couple of time-honored tips to help you get back to basics. Lack of knowledge 📘 Many traders jump into the market without a thorough understanding of how it works and what it takes to be successful. As a result, they make costly mistakes and quickly lose money. Poor risk management 🚨 Risk is an inherent part of trading, and it's important to manage it effectively in order to protect your capital and maximize your chances of success. However, many traders don't have a clear risk management strategy in place, and as a result, they are more vulnerable to outsized losses. Emotional decision-making 😞 It's easy to feel strong emotions while trading. However, making decisions based on emotions rather than rational analysis can be a recipe for disaster. Many traders make poor decisions when they are feeling overwhelmed, greedy, or fearful and this can lead to significant losses. Lack of discipline 🧘‍♂️ Successful trading requires discipline, but many traders struggle to stick to their plan. This can be especially challenging when the market is volatile or when a trader is going through a drawdown. Create a system for yourself that's easy to stay compliant with! Over-trading 📊 Many traders make the mistake of over-trading, which means they take on too many trades and don't allow their trades to play out properly. This leads to increased risk, higher brokerage costs, and a greater likelihood of making losses. Clearly articulating setups you like can help separate good opportunities from the chaff. Lack of a trading plan 📝 A trading plan provides a clear set of rules and guidelines to follow when taking trades. Without a plan, traders may make impulsive decisions, which can be dangerous and often lead to losses. Not keeping up with important data and information ⏰ The market and its common narratives are constantly evolving, and it's important for traders to stay up-to-date with the latest developments in order to make informed decisions. Not cutting losses quickly ✂️ No trader can avoid making losses completely, but the key is to minimize their impact on your account. One of the best ways to do this is to cut your losses quickly when a trade goes against you. However, many traders hold onto losing trades for too long, hoping that they will recover, and this can lead to larger-than-expected losses. Not maximizing winners 💸 Just as it's important to cut your losses quickly, it's also important to maximize your winners. Many traders fail to do this, either because they don’t have a plan in place, telling them when and how to exit a trade. As a result, they may leave money on the table and miss out on potential profits. Not Adapting 📚 Adapting to changing market conditions is paramount to success in the financial markets. Regimes change, trading edge disappears and reappears, and the systems underpinning everything are constantly in flux. One day a trading strategy is producing consistent profits, the next, it isn't. Traders need to adapt in order to make money over the long term, or they risk getting phased out of the market. The majority of traders can improve their chances of success by educating themselves, developing a solid trading plan, planning out decisions beforehand, and avoiding common pitfalls. I hope you enjoyed this post. Please feel free to write any additional tips or pieces of advice in the comments section below! Happy learning. Cheers! Rajat Kumar Singh (@johntradingwick) Community Manager (India), TradingView
NASDAQ:TSLAEducation
by johntradingwick
9
Circular patterns Publishing herewith my idea about circular patterns for education purpose i use these patterns in my everyday analysis and getting excellent results circular pattern helps me in finding the resistance and support levels in advance curve pattern is my friend i use it to find high growth trade and also a very quick trade up/down i mostly use it in 1 minute time frame to find a very fast trade, actually always in look for this pattern in every time frame OM VATS
BSE:RELIANCEEducation
by omvats1
How to subscribe to the TradingView newsletter?Hey everyone! 👋 Our weekly newsletter is built for one purpose: to keep you up to date in the markets. We include educational posts and ideas from our community, top scripts, an earnings calendar, an economic calendar, and more to prepare you for each week. How to subscribe to our weekly newsletter? 1. Go to the top right-hand side of your screen, click on the display picture, and then select “Profile settings”. 2. Then click on the “ Notifications ” tab. 3. Once you open the notifications, you will see various options under the “ Email preferences ” tab. Just check the “ Weekly digest ” option and save changes. That’s it, you are good to go! 4. Once you are done subscribing to the newsletter, just sit back, and relax. We send our newsletter each Monday morning at 9 AM . Make sure to open the next newsletter! ❤ Oh, and please feel free to send us any feedback about our newsletter. We especially want to hear if you enjoy it or if there’s anything you would like to see added! Let’s go! ❤ – Team TradingView
NSE:NIFTYEducation
by TradingView
Unlocking Secrets of Booming Hotel Industry: Essential Research!Discovering the Potential of the Booming Hotel Industry: Vital Perspectives for Hotel Industry Research! Overview of the Tourism and Hotel Sector ~ Tourism has become very important in India. It brings in a lot of money from other countries and helps create jobs. The increase in tourists also means more business for hotels. ~ India is becoming a popular tourist destination and is ranked 6th in tourism and hospitality by the World Economic Forum. This is according to a report by the World Travel and Tourism Council (WTTC). ~ The tourism and hospitality industry in India is one of the top 10 industries that receives the most foreign investment. According to government data, the hotel and tourism sector received around $16.6 billion of foreign investment from April 2000 to September 2022. ~The Indian government is trying to make India a big tourism destination. They have a plan called " Project Mausam " to connect with other countries in the Indian Ocean and bring back old cultural and economic ties. Also, they have made it easier for tourists from 161 countries to visit India by offering electronic visas. ~A significant surge in India, thereby propelling the hospitality sector to thrive. This is primarily due to a marked increase in the volume of foreign and domestic travelers, leading to a corresponding increase in the demand for lodgings. Budget hotels have emerged as prevalent trend in India. Furthermore, international hotel companies have increasingly commenced considering the establishment of such hotels in India, given the latent source of growth that arises from the extant disparity between the burgeoning influx of tourists and the insufficient number of rooms to accommodate them. -=-=-=-= "Supply" ⁎ It has been predicted that the hospitality sector will be unable to keep pace with the sustained growth of the economy, projected to grow at an annual rate of 7%. In the coming five years, it is anticipated that around 40 multinational corporations within the hotel industry will establish a presence in India, yet the industry still remains unable to fulfill the long term demand. -=-=-=-= "Demand" ⁎ The burgeoning nature of tourism industry in India can be attributed to the burgeoning influx of both business and leisure travelers, along with the noticeable proliferation of medical tourism. During the apogee of the tourism season, from November to March, there is a discernible increase in demand. This can only be comprehended by those with an erudite background in the field. -=-=-=-= "Entrance Hindrances" ⁎ High Capital Intensity, Brand Recognition, Zoning and Regulatory Restrictions, Strong Competition, Economies of Scale, Customer Relationships -=-=-=-= "New cycle begun" ⁎ Travel within India is starting to recover and travel businesses have seen a big increase in earnings. Right now, the industry is almost back to its normal levels with occupancy at 63-65%. This new trend is just starting, India to host G20 Summit in Sept 2023, hold over 200 meetings. international travelers geopolitical events and global economy, which should support the hotel RevPAR growth. which will help hotels earn more money. -=-=-=-= ⁎ The IMF predicts that India's economy will grow rapidly in the next few years. They expect India to have the highest growth rate, with a projected 7.4% in FY22-23 and 6.1% in FY23-24. ⁎ After removal of international travel restrictions, domestic travel remains the preferred choice for Indian nationals. Travel is not limited to pilgrimages only anymore and to places of one’s relatives as travellers are now more inclined to visit leisure and holiday destinations. Corporate travel has taken a new leap in the country, factoring in the growing economic activities. In fact, the pandemic has evolved a new work cum travel option in the form of workations, staycations and bleisure travel, which has further aided the domestic travel and hotel industry. Young people are starting to save money for travel and taking their trips more seriously. ⁎ Social media is also making people more aware of new places to visit. India has many places that could become great tourist destinations if developed. The demand for hotel rooms in India has increased dramatically, going up from 25,000 rooms per day to 90,000 rooms per day. This suggests that more and more people are traveling and choosing to stay in hotels, which is a positive trend for the tourism industry in the country. -=-=-=-= We will learn how to differentiate between a fundamentally strong hotel from a weaker one. ⁎ Examination of the Comprehensive Structure of India's Hotel Industry at a Macro Level. The Indian hotel sector is characterized by a highly fragmented landscape, with each city accommodating a mixture of both domestic and international chains and a considerable number of unbranded, predominantly family run establishments. The Ministry of Tourism classifies these establishments via the allocation of stars, such as standard, star, and heritage. In the branded segment, while the majority of the supply was once concentrated in high end properties, the shift towards a greater number of domestic travelers over the last decade has resulted in the proliferation of mid range branded hotels, which has accordingly expanded the room supply. This increase in supply has been derived from the conversion of non branded establishments and new construction projects. the Indian hotel industry operates in a crowded environment. This further constrains the pricing power of the industry. ⁎ The demand for hotels changes depending on the economy and the time of year. When the economy is doing well, people have more money to spend on vacations or business trips, which means more business for hotels. But when the economy is not doing well, people spend less money on these services, which can make it difficult for hotel companies to make money. This can be a big risk for the hotel business. ⁎ In the hotel industry, the demand for rooms can vary greatly throughout the year. Despite this, expenses such as power, lighting, and salaries are constant and can make up to 70% of a hotel's costs. Investors should be aware of this volatility and the fact that a hotel's quarter on quarter performance may fluctuate. ⁎ Starting a hotel requires a substantial amount of capital, including the cost of acquiring land and constructing the building. The process also involves obtaining local government approvals, negotiating contracts, and can take anywhere from four to six years. The long gestation period and two to three years it takes for a hotel to reach optimal operations makes the industry challenging. ⁎ There are ways to reduce the capital requirements, such as through a management contract model where the management of the hotel is separated from its ownership. This allows for the risk of operating a hotel to be shared among different entities, though the macro business risks of competition, funding cycles, and seasonality still remain. Despite these challenges, the hotel industry remains attractive. -=-=-=-= Some point to help us understand the comparison between different hotel companies. First Revenue Per Available Room (RevPAR) . The Revenue Per Available Room (RevPAR) depicts the revenue generated from a single room, regardless of its occupancy status. It encompasses unsold or unoccupied rooms, thereby providing a precise representation. The four major hotel companies in the study, NSE:INDHOTEL , NSE:CHALET , NSE:EIHOTEL & NSE:LEMONTREE , All strive to maximize their RevPAR, as it reflects not only the pricing of the rooms but also their occupancy rate. The company Charlotte has already surpassed its pre-COVID-19 RevPAR levels. Let's look at example The average sales price is approx. Rs. 4600 and unit costs are Rs. 1800 per room while occupancy rate is 80%. We can calculate RevPAR as follows: 200*(RevPAR/Unit Costs)+(1800/Unit Costs) = 1000+3400=3472 -=-=-=-= Second the Occupancy Rate . The Occupancy Rate is the number of Occupied rooms divided by the number of available rooms. when the COVID-19 pandemic hit, the Occupancy Rate for both branded and unbranded hotels went way down in FY22. We will see some major hotel companies. NSE:INDHOTEL "IHCL" includes (Taj Hotels, Vivanta Hotels, Ginger Hotels & Seleqtions Hotels) NSE:EIHOTEL include (Oberoi Hotels, Trident  Hotels & Maidens Hotels) NSE:CHALET include (The Westin, Novotel Hotel and Resort, Marriott Hotels & Four Points) Lemon Tree Hotels Include (Aurika Hotels, keys Select & Redfox) There has been a substantial improvement in occupancy rates, Some companies already. reached pre COVID-19 levels high. Let's look at example Hotel has total 100 rooms and the average room rate (ARR) is 2,500 INR per room. The hotel's total room revenue for a given day is 100 rooms * 2,500 INR = 2,50,000 INR. Hotel has an occupancy rate of 80%, this means that 80 rooms are occupied and the hotel earns 80 rooms * 2,500 INR = 2,00,000 INR in revenue from occupied rooms (Revenue from occupied rooms / Total room revenue) * 100 -=-=-=-= Third Average Room Rate (ARR). The ARR calculates the average rental revenue per occupied room dividing the total revenue by the number of rooms occupied. COVID-19 pandemic had an impact on the ARR. Indian Hotels falls under the luxury and upscale category, Lemon Tree is a mid scale or economic brand, And Oberoi, Trident Hotels, are undergoing a process of reestablishment, with Indian Hotels having already reached its desired state. Let's look at example The Average Room Rate (ARR) is the average rate of a hotel room per night. Calculated by dividing the total revenue generated from the sale of rooms by the number of rooms sold. If hotel generates revenue of ₹500,000 from the sale of 100 rooms in a month, the ARR would be ₹5,000 per room per night (500,000/100). -=-=-=-= Sector overview or Business overview The hotel industry experiences marked fluctuations in profitability margins due to its cyclical nature. As a quadrant business, the evaluation of performance should be based on two key metrics: EBITDA margin and Return on Capital Employed (ROCE). The EBITDA margin, which represents the proportion of profits within a company's sales, holds significant significance across various industries. The four major hotel chains, including Lemon Tree, have experienced an improvement in margins through cost reduction measures. The objective for these companies is to attain a 33% EBITDA margin by 2025. The efficiency with which hotels allocate capital is equally important, as demonstrated by the ROCE metric. With the recent normalization, increase in consumer demand, and heightened operating margins, it is anticipated that the ROCE will settle within a range of 12-15%, after considering debt reduction. We have leveraged expectations. This is an important aspect because hotels are capital intensive. A company's balance sheet determines the level of stress its cash flows can sustain, especially during downturns. High leverage reduces a hotel company's financial flexibility, which also dilutes its efforts to raise funds for future projects. -=-=-=-= Key Ratios Analysis 1. Leverage Ratios The Debt to Equity ratio is a financial metric that compares a company's total debt to its total equity. It is used to measure a company's financial leverage and its ability to pay off its debt obligations. ⁎ Debt/EBITDA ratio is a financial metric that measures a company's ability to pay off its debt obligations with its earnings before interest, taxes, depreciation, and amortization (EBITDA). This ratio is used to evaluate the financial health of a company, particularly its debt burden and ability to service its debt obligations. 2. Liquidity Ratios The current ratio used to determine a company's ability to pay its short term obligations. It is calculated by dividing the company's current assets by its current liabilities ⁎ The Cash ratio is financial ratio that measures a company's ability to pay off its current liabilities using only its most liquid assets, such as cash and cash equivalents. This ratio provides an indication of a company's liquidity and short term financial health. When evaluating a hotel investment, it's important to consider whether there is a well-established and financially strong promoter group backing the company. promoter can help the hotel deal with difficulties in a more timely manner and even negotiate better rates from suppliers. This can be the difference between survival and bankruptcy, as we saw in the past when as many as 40% of hotels and restaurants in India shut down permanently. Indian Hotels Limited and Lemon Tree Hotels, among other prominent hospitality companies in India, enjoy the advantage of having formidable backing from influential promoters and substantial institutional support, respectively. As of December 2022, the percentage of promoter stake in Lemon Tree Hotels that was pledged had declined from 29.39% (December 2021) to a current value of 11.9%. Thank you for reading my analysis of the hotel industry. I hope it provided valuable insights into the performance and trends of the sector. If you have any questions or comments, feel free to leave them below. Jai hind 🇮🇳
NSE:INDHOTELEducation
by NARAYANTAPARIA
2
If you are not 'INSIDE' you are 'OUTSIDE' In the stock market, if you are not inside, you are outside. I expect all those reading this article wants to be inside the market. So, if you want to participate in the market then you must develop a deep insight into the key market players i.e. your competitors who drive day to day movement of the market. Key Market Players:- The following are the three types of market participants. ->Retail - general public also called clients ->High Net Worth Investors - commonly known as HNI clients. ->Proprietary Trading - also called 'Pro' are firms. ->Institutions - referred to as trading organizations. Let's dive into the details of each of them listed above . Retail Investors :- They are the general public who invest or trade in the market individually with very small capital as compared to other participants. They are at the bottom of the market food chain when considered individually but in recent few years, the retail participants as a whole have seen a significant rise in numbers. High Net Worth Investors: - They are also an individual but with big sums in their pockets. They have a deeper access to the markets, inside news, and all. They don't participate in day-to-day trading. Proprietary Traders :- Also known as 'Pro 'are those firms/banks which also trade in the daily market with the firm's funds. They are at the middle of the market food chain i.e. above retail but below institutions. Actively participate in daily market movements. Institutional Investors :- They are organizations taking part actively in market movements. They are at the top of the market food chain. They can be further divided into two groups: ->FII (Foreign Institutional Investors): Institutions whose origin is outside India but still they invest in Indian markets. Actively participate in daily market movements. ->DII (Domestic Institutional Investors): Institutions whose origin is India. They are inactive in the derivatives segment. Among the participants listed above Retail, Pro & FII are actively involved in the daily market trading and encourage derivatives segment. We all have seen everyone in markets talking about FIIs that are bearish/bullish on markets but why? The above figure is of FII+Pro & Client correlation with nifty, this describes the reason why the positions of FII are significant. We can draw the following conclusion:- 1. Majority of the time FII is correct to predict the market movement. 2. Clients generally build position against FII and max times have an opposite correlation with market movements. Now, have a look at how the FII and client positions affect the market movement The above figure justifies the correlation. We can draw the following conclusions:- 1. Maximum time FII are net short in nifty whereas clients are net long in nifty. 2. When FII cover their shorts and deploys the longs we see an uptrend but at the same time, the client unwinds long and deploys shorts which are generally against the trend i.e. client likes to drive in opposite direction. 3. And when FII positions converge with the Client there is previous trend exhaustion and the arrival of a sideways market or sometimes a new trend. As of now the index is clearly explained but what about stocks how much significant is FII in stocks? To answer the above question let's take an example of a very famous stock ITC:- The above figure says that FII has increased holding in the interval of Jun2022 - Sep2022 from 12.7% to 44.5% and by the time client has decreased the holding from 44.5% to 14.8%. Does the change in position affect the stock price of ITC? let's have a look Now it's clear that FII have ultimate power because when they started to increase their holding in ITC the price shoot up during this time Public who were holding it for the last 2yrs exited when ITC has just begun to move. Hope the readers had understood the mightiness of FII and the oppositeness of the Public and also have got a deep insight about their competitors . Also, thanks to @biswapatra for requesting me to write an article on this topic. You can also suggest an topic on which you want to have analysis.
NSE:NIFTYEducation
by Chaser30
15
POWER OF COMPUNDING IN TRADING AND INVESTMENT Hello guys here I am sharing a very interesting topic for which we heard and discuss many times and that is Compounding my dear friends so I am trying to share few things about it below-: WHAT IS COMPOUNDING-: Compounding is the concept of continually reinvesting the earnings from an investment to generate more earnings, which are also reinvested to earn more, thereby growing the value of the investment over time. To put it differently, compounding is the process of generating earnings from both the initial capital and the earlier earnings on the capital. The term compound gains refers to the sum of the accumulated earnings over the specified period. That is, the gains earned on the principal amount is reinvested, and it earns an additional gains — the accumulation of both the interest on the principal and the gains on the earlier gains is called compounding gains. So, compounding is basically a process of earning compound returns on an investment. Compounding is a simple concept but very powerful because it has a multiplier effect on the initial capital — the ability of the investment to generate earnings from not only the initial principal invested but also the subsequent returns earned over the coming period. No wonder Albert Einstein referred to it as the 8th wonder of the world: “The magic of compounding lies in the fact that it can help investors multiply their returns over the long-term”. WHAT COMPOUNDING REQUIRES AND HOW IT WORKS-: Compounding requires three things: 1- The original investment remains invested 2- The reinvestment of earnings 3- Time The more time you give your investments, the more your earnings would accumulate. So, to take full advantage of the power of compounding, you have to start investing early so that your investment will have enough time to accumulate and compound earnings. However, what you earn depends on the rate of returns, as that is what accelerates the income potential of your original investment. To understand how compounding works, let’s take a look at this example. Assuming you invest $100 at a 10% return, you’ll have $110 at year’s end. If you don’t reinvest the 10 you earned, your return at the end of year 2 will still be just $10 (10% of the initial 100), and you will have only $120. But if you reinvest that $10 you earn the first year, you will also make a 10% return on it in year 2, so your total return on year 2 will be $11 instead of just another $10, and you will have $121 instead of $120 as you would if you weren’t compounding your earnings. See the two tables below for non-compounding investment and compounding one for a 10-year duration. HOW TO GROW TRADING ACCOUNT BY COUMPOUNDING-: The same way the power of compounding is used to grow investments, you can use it to grow your trading account because your trading capital is an investment on its own. But since trading is an active process and with no consistent rate of returns, you need to know how to actively make compounding work for you. Before we go into details, let’s examine some important trading concepts you should know, which are necessary for implementing a growth plan. These are the three key ones below Account risk percent: This refers to the percentage of your trading account you risk per trade. This can be 1%, 2%, 5%, or even 10% if you are an aggressive trader. Most experts advise traders to risk only 1% or 2% of their account capital in each trade to reduce the possibility of blowing their accounts in no time. Once you have chosen the right percentage to risk in each trade, you may want to keep it constant. Position size: This is the quantity of the instrument you carry in each trade. For stocks, it is the number of shares you buy, while for futures, it is the number of contracts you want to trade. In forex trading, it is called lot size. Whichever the market, your position size is a function of how much you want to risk in that trade. To get your position size, you need to convert your account risk percent to the dollar amount. For example, if you have a $10,000 account and decides to risk only 1% of it in each trade, it would translate to risking only $100 in each trade. With this, you can calculate your position size if you have decided where to place your stop-loss order. Here’s the formula in the case of stock trading: Position size = account risk (in dollars)/ (stop lose size x the share price). Assuming the account risk is $100, the share price is $5 per share, and the stop loss is 10%, the position size (number shares to buy) is 200 shares (100/ ). Thus, as your account balance grows, your position size increases without increasing your account risk percent. Reward/risk: This is the ratio of what you stand to make for any risk you take. It depends on your trading strategy. You can have a trading strategy that allows you to have your profit target at 2 times your stop loss size. For instance, if your stop loss is a 10% drop in share price, your profit target can be a 20% gain in the share price. So, if your strategy has a fixed stop loss and profit target, you can only increase your earning by increasing your position size, which you can do only when your account balance increases so that you don’t increase your account risk percent. So that is it friends mates and respected seniors I have to bind up this article already it has been lengthy so going to share one last point and that is the difference between compounded or non compounded returns-; NON COMPOUNDED INVESTEMENT COUMPOUNDED INVESTMENT
NSE:HCLTECHEducation
by AMIT-RAJAN
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