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Month: June 2024
What is Indicator? & Importance in Share Market
Hello everyone,
This is Omkar from eMS Stock Market Institute.
In previous Blog you have learnt various Order Types. Basically, there were shar market total 4 types of order.
- Market Order.
- Limit Order.
- SL Limit.
- SL Market.
EMS STOCK MARKET CLASSES will discuss about Indicators. There are too many indicators. But today we will focus only on 1 Indicators, which we primarily use here in our eMS Stock Market Institute whileteaching and trading. We will see remaining indicators in our further meeting.
But before that lets understand, what is Indicators?
what is Indicator? & Importance in Share Market
We will understand it by an example. Assume that, you are driving a car. And there is another car in front of you. Car driver in that car wants to turn right side. Hence, he will give indication to the cars which are behind to him. How? By switching on the right indicator. This is to notify you that, car in front of you is turning right side. Stay cautious.
Now, you know that, next car is getting turned to Right side. So, you will slow down your car and let that next car turn to right side.
In this example, we can say that, indicator has worked like a signal. Front car has given a signal to the cars which were behind to him.
i.e., Indicator = Signal.
Indicator which we are going to learn today is: –
WHAT IS MOVING AVARAGE & IMPORTANCE IN SHAR MARKET
Moving Average: –
While trading in stocks, whether it is Intraday Trading or Delivery Trading, you need to be perfect. Then only you will get good amount of money as a profit. Otherwise, you will end up your trading by making huge losses. To avoid such losses, you need a confirmation signal about the Trend. And here, Moving Average comes into the picture. Moving average will tell you that, whether stock is in Uptrend or in the Downtrend.
Basically, Moving Average is an average of previous few candles. (Depends on what period you have mentioned) For ease of our understanding, let’s take the period of last 10 Days.
In above example, I have mentioned Stock XYZ, Its closing Price of last 10 days, and its average of 10 days.
Date | Closing Price | 10 Days Average |
01/01/2022 | 510 | – |
02/01/2022 | 515 | – |
03/01/2022 | 499 | – |
04/01/2022 | 527 | – |
05/01/2022 | 534 | – |
06/01/2022 | 540 | – |
07/01/2022 | 535 | – |
08/01/2022 | 542 | – |
09/01/2022 | 550 | – |
10/01/2022 | 558 | 531 |
Here, CMP of XYZ company is 558. But the 10 Days Average Price of XYZ company is 531 as on 10/01/2022.
In this example, we can say that CMP (558) is more than Its 10 Days Average Price (531). Hence, this is an Uptrend. The stock will keep moving up its price, until and unless CMP comes below the 10 Days Average Price. Unfortunately, if it comes below the average price, then we can say – it is a Down Trend.
i.e., CMP > Simple Moving Average = Uptrend
CMP < Simple Moving Average = Down Trend
This is how we identify the trend.
Important Tip: – Moving Average Line also works as a Support and Resistance.
This is sufficient for today.
If you want to learn it Practically, you can enroll for our EMS SHARE MARKET CLASSES IN PUNE CITY ( Basics to Advance Single Super Course.)
In this, you will learn Intraday Trading, Delivery Trading, Equity Trading, Futures and Options Trading , Currency market , Commodity market etc.
For more information visit our website http://sharemarketclasses.in/ Or you can contact us ems share market courses in pune on 7796881234.
From next article, we will see another Indicators in share market for maximizing our profit.
Thank you.
Regards,
eMS Stock Market Institute in pune .
Trendlines… …simple yet effective Technical tool.
In Technical analysis, we study past prices of an index/ Stock, Commodity or Currency with the assistance of certain mathematically derived tools to forecast future price movements. However, the simplest & most effective tool devoid of mathematical applications which identifies and confirms a trend is called a trendline and drawing channels.
We at EMS Stock MARKET Institute in Pune teach this tool as it is very important and the very basic tool.
Stocks move up on Demand(buying) and go down because of supply (selling) or sideways because of a close fight between buyers & sellers. A trendline in most occasions will tell you all.
If you observe lane discipline and travel by the sign boards while driving, you reach your destination safe & sound. Similarly Trendlines help you reach your goals in the markets in a safer way.
A trend line is a straight line that connects two or more price points and then extends into the future to act as a line of support or resistance.
Uptrend Line(Demand line)
An uptrend line has a positive slope and is formed by connecting two or more low points. The second low must be higher than the first for the line to have a positive slope. Uptrend lines act as support and indicate that net-demand (demand less supply) is increasing even as the price rises. As long as prices remain above the trend line, the uptrend is considered solid and intact. A break below the uptrend line indicates that net-demand has weakened and a change in trend could be imminent.
Downtrend Line (Supply Line)
A downtrend line has a negative slope and is formed by connecting two or more high points. The second high must be lower than the first for the line to have a negative slope. Downtrend lines act as resistance, and indicate that net-supply (supply less demand) is increasing even as the price declines. As long as prices remain below the downtrend line, the downtrend is solid and intact. A break above the downtrend line indicates that net-supply is decreasing and that a change of trend could be imminent.
As long as the larger trendline is intact, each sideways move will get resolved in favour of the main trend.
The magic of trendlines unfold into Channels when parallel lines are drawn and these channels give you often the “targets” to book out.
As the steepness of a trend line increases, the validity of the support or resistance level decreases.
The angle of a trend line created from such sharp moves is unlikely to offer a meaningful support or resistance level.
A balanced approach combined with some trend following Indiactor like Supertrend is our Secret of creating winning trades here at the EMS Stock Market courses in pune .
It is very beneficial in intraday as well as positional trading. Come and learn with us the art of trading here at EMS Share Market Classes in Pune. Pune.
Thank you
Ems Share market classes in Pune Contact -8530983737/3838
A Study of What is IPO
Welcome to the world of EMS stock market institute. Many students asked us the best way to invest in shares. IPO investment is one of the best ways to make money. An IPO is the short form of Initial Public Offering. An Initial Public Offering is an allotment of shares offered by a private company, for the first time, to the public at large. When a company starts its operations, shares of the company may be owned by specific individuals such as owners, angel investors and others. When a company wishes to grow itself, or expand, it has to raise capital.
Hence, it offers an IPO of its shares to the public, and then gets listed on the stock exchange. A range of investors subscribe to IPOs, and NII meaning in an IPO, is essential if you are planning to invest.
How IPOs Work
You should have a basic idea of how an IPO works. When a private company offers up an IPO for subscription to the general public, investors from the public can choose to be allotted shares of the company. Individual as well as institutional investors can select the number of shares, they would like to buy, but it is up to the company to finally allot a specific amount.
Hence, investors who are individuals who bid for shares worth over Rs. 2 Lakhs in any IPO are called NII or non-institutional bidders/investors.
NII” stands for “Non-institutional investor” or “Non-institutional bidder”. In simple terms, when any individual subscribes to an IPO for an allotment of shares in a company, they are essentially bidding for those shares, as it is up to the company to allot them.
An NII in an IPO is a non-institutional bidder with the following aspects:
- In any IPO, 15% of the offer gets reserved for NIIs
- NIIs may withdraw bids right up to the allotment date
- NIIs cannot make bids at cut-off prices
- It is not mandatory for NIIs to register with the (SEBI)
- Two groups of NIIs exist:
- sNII (those that bid under Rs. 10 Lakhs)
- bNII (those that bid over Rs. 10 Lakhs)
In both the sub-categories above, in case an IPO does not witness over-subscription, all the shares in any respective category are offered as the full allotment in that particular sub-category.
IPO is a lucrative way to invest, an upcoming IPO also balances your financial portfolio.
These may be on a promising growth path. There is nothing better in the world of investment than seeing a company grow from the ground up, and as an NII, you can do this only if you invest. Therefore, IPOs have historically proved as promising avenues for investment, and the idea is to get your allotted shares and hold them for the long term.
So please visit our EMS institute in Deccan Pune for learning more such amazing concepts of Stock Marke t & for Share Market Classes In Pune.
Smartly investing in InvITs
In EMS stock market classes we look at many ways to diversify your Portfolio. INVIT is one such option. InvITs list on the stock exchanges to raise capital for the purchase of a portfolio of operational infrastructure assets that are already producing consistent cash flows. It is like a hybrid product―with equity and fixed-income characteristics
Infrastructure investment trusts, or InvITs, have been around for a while but many investors are still unaware of this option for investing that may very well replace some, if not all, of their debt investments with a little different flavour and a higher risk-reward ratio.
Should individual investors think about investing in InvITs? Before choosing to invest in this new asset class, let’s go through the basics.
InvITs look like mutual funds
InvITs, which function similarly to mutual funds (MFs), provide investors with units in exchange for their investments and allow for the pooling of capital from multiple investors, with specific management in charge of the assets.
The key distinction between an InvIT and an MF is that in the former, the funds are invested in infrastructure projects, while in the latter, the funds are in invested in diverse equity and debt instruments.
What types of infrastructure projects do InvITs invest in?
InvITs usually invest in roads and operating highways, besides power generation, distribution, and transmission units. InvITs may own and manage some of these assets. To put it simply, any infrastructure project ― as the name of the investment suggests ― is an option for an InvIT.
Why InvITs are less risky than direct infra stocks/MF schemes?
InvITs are matured, stable assets; the stage of conceptualisation and implementation of the infrastructure project would already be over before the InvIT scheme comes into action. InvITs aim to optimise the matured operations, and hence, render them safer than investment in direct infra stocks/MF schemes.
Let’s take an example. Let’s assume that a road has already been built, meaning that the said road project’s conceptualisation and execution phases are over. With the implementation risk eliminated, a significant safety net comes into play. Then we look at the number of vehicles currently using the road. With this data in hand, you can calculate the toll collection. These mature assets are listed on the company’s balance sheet.
You may also relate it to Real Estate Investment Trusts (REITs), where business operations start after a structure, for instance, a building project, is built. Learn about such new investment Ideas in ours classes. Located in Deccan Pune. EMS classes are one of the best rated classes on google, because we encourage students to build a wholesome portfolio.
Hard Facts and Truths About Investing
1. A great Company may not give great returns. The gulf between a great company and a great investment can be extraordinary.
2. Markets go through at least one big pullback every year, and one massive pullback every decade. Get used to it. It’s just what they do.
3. There are tens of thousands of professional money managers. Statistically, a handful of them has been successful by pure chance.
4. During Recessions, Elections, and Reserve bank Policy Meetings, people become unshakably certain about things they know nothing about.
5. The more comfortable an investment feels, the more likely you are to be slaughtered.
6. Not a single person in the world knows what the market will do in the short run. End of the story.
7. The analyst who talks about his mistakes is the guy you want to listen to. Avoid the guy who doesn’t — he is much bigger.
8. There will be 7 to 10 recessions over the next 50 years. Don’t act surprised when they come.
9. Warren Buffett’s best returns were achieved when markets were much less competitive. It’s doubtful anyone will ever match his 50-year record.
10. Most of what is taught about investing in university is theoretical nonsense. There are very few rich professors.
11. The majority of market news is not only useless but also harmful to your financial health.
12. Professional investors have better information and faster computers than you do. You will never beat them in short-term trading. Don’t even try.
13. The decline of trading costs is one of the worst things to happen to investors, as it made frequent trading possible. High transaction costs used to cause people to think hard before they acted.
14. The phrase “double-dip recession” was mentioned 10.8 million times in 2010 and 2011, according to Google. It never came. There were virtually no mentions of “financial collapse” in 2006 and 2007. It did come.
15. The best investors in the world have more of an edge in psychology than in finance.
16. What markets do day to day is overwhelmingly driven by random chance. Ascribing explanations to short-term moves is like trying to explain lottery numbers.
17. If you have credit card debt and are thinking about investing in anything, stop. You will never beat 30% annual interest. Do not trade borrowing money on Credit cards. 18. The most boring companies — toothpaste, food, bolts — can make some of the best long-term investments. The most innovative, some of the worst. Visit our website for more information-http://sharemarketclasses.in