*Basics of Market*
*Basics of Market* :
1. Price is determined by the demand and supply, fundamentals are one of the factors that influence demand ( even gold will fall if no buyers).
*2) only a buyer can increase the price only a seller can decrease the price ( the Final decision makers in taking or giving something).*
3) price goesup to find a seller and price goes down to find a buyer
*4) if number of sellers are more than buyers and price is still going up then the buyers are market order by institution and sellers are limit order by retailers.*
5) if a stock is having a wide gap between ask and bid but going up very fast with very less volume then it's getting operated to attract buyers (simply short when ask bid difference is narrowed)
6) futures and options positions are made first then followed by cash buying
7) if you find huge volumes in very far options which are guaranteed to become zero then the stock is being dragged to f&o ban (usually buyer and seller will be same)
8) fii stocks are more active in options dii stocks are more active in futures
9) stocks following traditional chart patterns or setups gives less returns due to the competition of the buyers and profit takers ( guaranteed returns like funds are always less)
10) nifty will not move up if huge lots of nifty futures are bought it only goes up if cash buying of large caps is present. (only premium may increase with future buying)
11) last but not least market should decide how much profit I am going to get but I shall decide how much loss I am going to make in a trade ( loss shall be fixed per trade profit should be unlimited).
1. Price is determined by the demand and supply, fundamentals are one of the factors that influence demand ( even gold will fall if no buyers).
*2) only a buyer can increase the price only a seller can decrease the price ( the Final decision makers in taking or giving something).*
3) price goesup to find a seller and price goes down to find a buyer
*4) if number of sellers are more than buyers and price is still going up then the buyers are market order by institution and sellers are limit order by retailers.*
5) if a stock is having a wide gap between ask and bid but going up very fast with very less volume then it's getting operated to attract buyers (simply short when ask bid difference is narrowed)
6) futures and options positions are made first then followed by cash buying
7) if you find huge volumes in very far options which are guaranteed to become zero then the stock is being dragged to f&o ban (usually buyer and seller will be same)
8) fii stocks are more active in options dii stocks are more active in futures
9) stocks following traditional chart patterns or setups gives less returns due to the competition of the buyers and profit takers ( guaranteed returns like funds are always less)
10) nifty will not move up if huge lots of nifty futures are bought it only goes up if cash buying of large caps is present. (only premium may increase with future buying)
11) last but not least market should decide how much profit I am going to get but I shall decide how much loss I am going to make in a trade ( loss shall be fixed per trade profit should be unlimited).
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