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
Finance
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
What is ABCD Patterns and how to trade it
In technical analysis, we have different chart patterns to understand crowd psychology. One of such chart pattern is known as ABCD. ABCD pattern forms when prices move higher or lower, followed by a flag pattern and then continue in the direction of the prevailing trend. The ABCD pattern is based on the principle that stock prices move in waves. You will find this … [Read more...] about What is ABCD Patterns and how to trade it
Retail Traders vs. Institutional Traders: What’s the difference
In this article let us look at the different types of traders who are trading in the market. We have teo different types traders: retail and institutional. Retail traders are independent individual traders like you and I. These people basically trade part time or full-time from their own money, not on behalf of a firm or institution. On the other hand, we have biggies … [Read more...] about Retail Traders vs. Institutional Traders: What’s the difference
What is open Interest (OI) in futures
The total number of outstanding or unliquidated contracts at the end of the day is known as open Interest. This means, by knowing open interest (OI) numbers, you will know how many contracts are currently open or held by buyers or owed by sellers in any derivative market, such as futures or options.. Open interest applied primarily to future markets. A contract must … [Read more...] about What is open Interest (OI) in futures
Moving average crossovers-Is golden and death cross an effective indicator to trade
A moving average in technical analysis is used as a tool that smooths out price data by constantly creating updated average prices. In general, common moving average (MA) lengths are 8, 9, 10, 13, 20, 21, 34, 50, 55, 100 and 200. Traders prefer to use two short-term and one long-term moving averages in their charts. You can even use one short-term and one … [Read more...] about Moving average crossovers-Is golden and death cross an effective indicator to trade
How to choose a stock broker to trade and invest
As a retail investor or trader, the only way to buy and sell shares or any other listed securities from the market is through a stock broker. Stock broker is a registered intermediary that acts as mediator between buyers and sellers. You must open your account with a good stock broker to buy or sell stocks. A revolutionary change in the brokerage industry occured … [Read more...] about How to choose a stock broker to trade and invest
3 best trend reversal chart patterns for traders and investors
Reversal price chart patterns allow you to spot trend reversals on a long or shorter timeframe. It allows you to take profit when the market is changing from bullish to bearish or bearish to bullish. In our earlier article, we have discussed about classic continuation chart patterns that traders love to trade. The double top and bottom, triple top and bottom, and the … [Read more...] about 3 best trend reversal chart patterns for traders and investors