Stock Market Basics to Advance : Lecture 15
Inside candles helps to show the direction of
institutions.
Continuous
Graph
- Continuous Graph is where previous candle closes at a point, at same point next candle opens.
- For inside candle we have to check in Continuous Graph
Discontinuous
Graph
- In Discontinuous graph, new candle not opens where previous candle closes.
Inside
Candles
- Inside candles helps to show the direction of institutions
- If in first candle body, second candle will lie then it is said to be inside candle.
Case 1. Suppose if first candle is big green and second candle lie in between first candle on top side (it can be either red or green) then initiate call side trade by keeping stop loss as big candle low.
Case 2. Suppose if first candle is red and second candle lie in between first candle
on bottom side (It can be either red or green doesn’t matter) then initiate put side trade by keeping stop
loss as big candle high.
Trading
Trading is zero sum game; if one is gaining money then other must be
losing money.
Profit = Loss
As a common thing, 99 % Retailers make losses in trading while FII and DII makes profits because they have huge money. It’s obvious thing that if they are putting huge money in market means they won’t easily allow to go their positions in red. If you want to be profitable, then it’s important to have control on risk management and greed.
Remember one thing; don’t buy penny stocks because chances of becoming this stock into multibaggar stock are almost negligible. Still if anybody wants to buy penny stock then put as money as you can ready to lose.
Compounding:
It is best for long term perspective. Use HDFC life compound interest calculator for calculating the investment.
Market Trend
Market performs on
Global ques – Good news,
Bad news
Local ques – Good news, Bad news
Global sentiments: Investing.com is the site to check global sentiments
- FTSE 100 – London ,UK
- DAX – German Index
- S&P 500 – US index
- Dow jones – US Industrial giant index
- Nasdaq 100 – US Tech giant index
Asian markets
- Nikkei 225 – Japan index
- Shanghai – China
- Hong seng – Hong kong index
- Kospi – South Korea
- Nifty 50 – India
FII’S and DII’s
FII’s and DII’s are important to direct the market
FII = Foreign Institutional Investors
DII = Domestic Institutional Investors
