Options let investors optimize their risk adjusted returns.
It is not necessary and financially feasible for an investor to carry a hedge at all points of time. But normally a crisis or a fall leaves enough tell-tale signs.
Use of mathematics in trading can range from very basic to extremely complex.
Many events in daily life of humans, animals and in nature display a repetitive pattern. Patterns are seen in stock markets too.
If you know these concepts you can trade better in options.
A sector with a high growth rate will deserve a higher PE while a matured sector will always get a lower PE.
Before checking on what history tells us about war and its impact on the economy and markets, we need to understand what actually happens in war
There is an escalation of tensions in Indo-Pak relations and if there is a war, it will be an important factor with consequences for investments.
Bond market affects almost everything under the sun. Bond markets are the fundamental base for all markets.
Most successful investors have the ability to call the cycle right. For them fighting for the last rupee for a good entry or a good exit is not important.
India is relatively better placed compared to the broader emerging market pack. The Indian economy has seen significant improvement over last few years.
Trading is often compared to performance sports. And why not since both have commonalities in terms of fear, anxiety, confidence and risk taking.
Retail investors generally enter the markets in euphoria, when â€˜easy money‘ is being made. They can better their performance by being a bit wiser.
Most retail investors enter the game of trading and investing in the hope of making a quick buck. But rarely they have a plan in place.
Trading offers the chance of an individual to be the casino rather than betting against it. All you need is a slight edge.
The factor-based investment strategies have been in existence for a while now. They are also offered via the passive route through the factor-based exchange traded products/funds.
Many believe that a good trading system will make them an ace trader. However, it is the money management that calls the shots.
Market leaders are fundamentally strong companies that have demonstrated their ability to live through ups and downs. These companies can offer long term value.
Here is a discussion on using technical and fundamental tools to identify tops and bottoms of the stock markets.
In order to identify bottoms, a study of how previous bottoms were made is necessary.
A diversified portfolio reduces the volatility risk and ensures that losses from one asset class are made good by better performance of others.
Learning from one‘s own mistakes can be costly. Stock market is surely not the place where one can learn from his own mistakes.
Various behavioural biases have made investors lose money, or not pocket the return they should be getting. Here is how to overcome these biases.
In the long term diversified equity mutual funds have outperformed all other asset classes.
Promoters pledge their own stake in the company to raise money. It connotes a lot to smart investors. One should check the promoter pledge among other factors before initiating a trade in a stock.