Relative price strength (RPS) is a strategy used in technical analysis in identifying value stocks. RPS is also known as relative strength. In relative strength strategy, market participants compare the price trend of a stock in comparison to the price trend of the market or other stocks. In other words, they compare performance of two securities, or a security and an index, … [Read more...] about Relative price strength: How a stock is performing
Price to Sales Ratio: Is it the king of the value factors
In one of our earlier articles, we have discussed the price to earnings ratio, which is popularly known as P/E ratio or P/E multiple. In this article, we will tell you how to calculate price to sales ratio, and whether it is considered as the king of the value factors. The price to sales ratio is used as a profitability analysis tool to discover undervalued and overvalued … [Read more...] about Price to Sales Ratio: Is it the king of the value factors
How does supply and demand affect stocks
Cause and effect analysis is one of the oldest ways to analyse What causes prices to move? If you understand the cause then only it will be easier to understand the reality of the stock market. Supply and Demand is the main cause why the share market moves up and down. Professional technical analysts suggest that a better way to trade is to understand the cause of price … [Read more...] about How does supply and demand affect stocks
Fees, Charges, and Taxes on Stock trading – Explained
When you trade in a stock exchange through a broker, the money that you need to pay is made up of two components-the price of the stock and the fee charged by the intermediary. We have a number of charges and taxes levied on trading in the stock market. Every stock broker is different when it comes to what fees they charge to trade in the stock market. Being aware of these … [Read more...] about Fees, Charges, and Taxes on Stock trading – Explained
How Good Till Triggered (GTT) orders work in the stock exchange
You might have heard about GTC orders in the stock market. Good till cancelled (GTC) orders are valid till it is cancelled. These types of orders are basically used to place long term stop-loss and target order in a trading platform. In India, our stock exchanges do not support GTC orders. In India, all the pending orders will be cancelled at the end of the trading session. … [Read more...] about How Good Till Triggered (GTT) orders work in the stock exchange
What are DP or Demat transaction charges in the stock market
DP or demat transaction charges are levied by your stock broker when you sell stocks from your demat account maintained with a depository. A depository is an institution/organization which holds securities with it in Demat form. In India we have two depositories, CDSL (Central Depository Securities Limited) and NSDL (National Securities Depository Limited). These … [Read more...] about What are DP or Demat transaction charges in the stock market
How front running works in the stock market
Front running, insider trading, pump-and-dump and misuse of information are not uncommon in the equity market. In this article, we will be discussing what is front running and how it works in the stock market. Front running is an illegal practice where certain individuals enter into stocks or any other financial securities based on advance knowledge of non-public information … [Read more...] about How front running works in the stock market
Guide to block and bulk deals in stock market
In the stock market, you might have come across terms such as block deals and bulk deals. Let us understand these terms and how they happen in the stock market. When market participants such as institutional and retail investors trade large number of shares on the NSE or BSE in one tranche then these tyle of deals are simply referred to as Bulk and Block deals. These market … [Read more...] about Guide to block and bulk deals in stock market
What are after market orders (AMO)
After market orders (AMO) are placed in the trading platforms after the market is closed. Traders use this facility to place orders for the next trading day. Once the after market order (AMO) is placed, it will be executed on the next trading day as per the instructions given in the order. Market is live from 9:15 am to 3:30 pm. This facility is helpful for those traders … [Read more...] about What are after market orders (AMO)
Is there a Holy Grail in trading
You must have seen advertisements on social media platforms in which advertisers try to persuade the target audience to teach some kind of Holy Grail trading strategy to double the money overnight in the stock market, especially in the futures and options market. Beginners and novice traders after watching this type of claim might be thinking "WOW, they will teach us some … [Read more...] about Is there a Holy Grail in trading