Technical analysis is useful in a variety of situations. It can be used to trade stocks, futures, and commodities, as well as fixed-income securities, FX, and other financial instruments. Technical analysis is the art and science of predicting future prices based on the analysis of historical price movements. Using historical market data, mass investor psychology is examined. The data set comprises information about the price, the date, and the volume. A price chart provides the most useful information for reading a historical description of a security's price movement over time. Charts are significantly more readable than a table of numbers. Volume bars are shown at the bottom of most stock charts. It is simple to recognise market reactions before and after major events, past and present volatility, historical volume or trade levels, and relative strength of the company vs the index using this historical image. Before we get into the importance of technical analysis indicators, you need to have the right technologies. At Zebu, one of the fastest-growing brokerage firms in the country, we have created the best Indian trading platform with the lowest brokerage for intraday trading. If you would like to simplify your option trading and investment game, we are here to help you out. The following are five indicators that every investor should be aware of: 1) The Relative Strength Index (RSI) The RSI is a momentum oscillator that measures the amount and pace of directional price changes. RSI calculates the momentum of a stock with the rate at which a price rises or falls. The RSI calculates momentum by dividing the number of higher closes by the number of lower closures. The RSI of stocks that have experienced more or stronger positive movements is greater than the RSI of equities that have experienced more or stronger negative changes. The indicator has a 70-point top line, a 30-point lower line, and a 50-point dashed mid-line. When a price rises rapidly, it is called overbought at some time (When the RSI crosses 70). Similarly, when the price falls swiftly, it is termed oversold at some point (when the RSI passes 30). The RSI level is a gauge of the stock's recent trading strength. The slope of the RSI is proportionate to the rate at which a trend changes. The RSI's move is directly proportional to the degree of the movement. 2) Moving averages In technical analysis, moving averages are one of the oldest and most useful technical indicators. When used in conjunction with other oscillators such as MACD and RSI, moving indicates a trend in a "smoothed" manner and can provide trustworthy signals. The three types of moving averages are simple moving average (SMA), exponential moving average (EMA), and weighted moving average (WMA). Moving averages for stocks are commonly used for 10 days, 21 days, 50 days, 100 days, and 200 days. The simple moving average is the most widely used moving average (SMA). Single SMAs can be utilised to spot a trend, but we found that using a dual or triple moving average is more effective. 3) Stochastic Oscillator The Stochastic Oscillator is a momentum indicator that depicts the current close's position in relation to the high and low ranges across a set of periods. Closing levels that are constantly near the top of the range suggest accumulation (buying pressure), while those that are consistently towards the bottom of the range indicate distribution (selling pressure). The premise behind this indicator is that prices tend to close near their highs in an upward-trending market and near their lows in a downward-trending market. 4. Bollinger Band John Bollinger developed Bollinger Bands as a technical trading technique in the early 1980s. Bollinger Bands are used to define high and low points relative to each other. Prices are high in the top band and low in the lower band by definition. This definition can help with pattern recognition and can be used to compare price action to indication behaviour. Bollinger Bands are a series of three curves that are drawn in connection to stock prices. The middle band, which is usually a simple moving average that acts as the base for the higher and lower bands, is a gauge of the intermediate-term trend. Volatility, which is often the standard deviation of the same data used for the average, determines the gap between the upper and lower bands and the central band. You can change the default parameters, which are 20 periods and two standard deviations, to fit your needs. 5) Parabolic SAR (Parabolic Stop and Reverse) SAR, or stop-and-reversal, is a technical analysis strategy that uses a trailing stop and reverse method to discover appropriate exit and entry locations. J. Wells Wilder came up with this strategy. Basically, one should sell if the stock is trading below the parabolic SAR (PSAR). If the stock price is higher than the SAR, it is a good time to buy (or stay long). As we mentioned before, investing or trading you need the right tools. We at Zebu offer the best Indian trading platform and the lowest brokerage for intraday trading. As one of the best brokerage firms in the country, we have created a powerful trading platform that makes investing easy for you. To know more about its features, please get in touch with us now.
Apr 11, 2022
Paytm is a startup that has gained a lot of attention for the way it has made it possible for Indians to recharge their phones and pay their bills online. Vijay Sharma, the founder, is the face of pure inspiration. He is a typical 'small-town lad' who had huge goals and worked late to build his firm. Many in the industry were looking forward to Paytm's first public offering (IPO), but it fell short of expectations and disappointed most investors. However, like with any failure, there are lessons to be gained from the Paytm IPO disaster, which should be remembered when investing in future IPOs. Are you planning to invest? Before you start investing, it is important that you do so with one of the best share brokers in the country. At Zebu, we have the lowest brokerage for investments and also support you with a highly advanced online trading platform to help you analyse stocks and execute your trades. The history Investing in an IPO should be a well-considered decision, and investors should do their homework before devoting cash to any IPO, whether it is a well-known firm or not. The prospect of an IPO was clearly attractive in the case of Paytm, and the company's exponential growth after demonetization is well documented. However, the corporation did make several mistakes, which analysts now recognize. Some of the corporate transitions, for example, were savvy and took advantage of opportunities, while others were risky. Learning Lesson Many experts consider Paytm to be a very new-age business strategy. As a result, the same experts think that when investors choose to join into any transactions with such firms in mind, such as making IPO investments, they must understand the company's dynamics, understand prospective valuations, and evaluate the company's future plans and growth strategy. As a result, investors who invest in an IPO cannot blame the IPO's failure on their own lack of understanding prior to investing. The most important thing to remember when investing in an initial public offering (IPO) is to be tremendously confident in the firm. Second, a small number of radical businesses/companies have specialty technology and market share. Although some companies do well, such as Zomato and Nykaa, some do not have such blockbuster lists. The Paytm IPO was expected to be a blockbuster, but values were pushed well past their limitations. Investors frequently make mistakes in how they evaluate a firm and base their assumptions on that, rather than conducting a thorough fundamental analysis. Educate yourself and make wise investments. Paytm's stock plummeted by 58 percent after the business was listed on the stock exchange. It went from a $20 billion valuation to a meager $7.8 billion valuation. Now, the company is frantically trying to persuade investors of its steady growth trajectory in the hopes of regaining some funds. However, when it comes to IPO investment, people aren't thinking about Paytm because the company's mounting expenses and a global sell-off of its stock have cast a pall over its future prospects. Going forward, the most important lesson is to understand the business and then the valuation. If it does not seem fair to you, do not put your hard-earned money into it. Two of the most important checklists for first-time traders and investors are the right online trading platform and the lowest brokerage for investments. As one of the best share brokers in the country, we at Zebu will give you all of this and more. To know more about our services and products, please get in touch with us now.
Apr 10, 2022
Despite the fact that many institutional investors exited the market during the early stages of the epidemic, retail investors flooded in and gained handsomely, particularly in booming technology companies. Playing the market, of course, involves some risk. During the stock market's unrelenting rally, reports of novices making rookie blunders and seasoned investors falling short came out. Before you start investing or trading, always consider going with one of the best brokerage firms in the country like Zebu. As a top broker in share marketwe have created one of the best stock trading platforms for you to use and invest. Here are six investing blunders you should avoid: 1. Being in a Love-Hate Relationship With a Stock It's all too easy to fall in love with a stock we've invested in and forget why we bought it in the first place when we see it do well. Always remember that you purchased this stock in order to profit from it. If any of the fundamentals that prompted you to invest in the company change, you should consider selling the stock. 2. A Lack of Patience If you gradually and steadily build your portfolio, your long-term returns will be higher. Expecting a portfolio to do something it wasn't designed to accomplish is a recipe for disaster. This implies you'll need to keep your portfolio growth and return goals in check, as well as having a realistic time horizon in mind. 3. Concerns About Investing One of the world's most powerful investors, Warren Buffett, recommends against investing in companies whose business strategies you don't understand. The safest method to avoid this is to invest in a diverse portfolio of exchange-traded funds (ETFs) or mutual funds. If you opt to invest in specific stocks on your own, be sure you have a thorough understanding of the firm. 4. Entering without a strategy Going through with investments without considering issues such as one's financial goals, risk appetite, or investing time horizon is not recommended. These are key considerations to address before beginning your financial adventure. As a result, it's critical to keep track of these aspects, perform the appropriate back calculations, and ensure that one's portfolio is on track to accomplish those objectives. It is suggested that you seek the advice of a financial advisor in this regard. 5. Attempting to Forecast the Market If you don't have the proper information, attempting to time the market might have a negative impact on your returns. It's extremely difficult to time the stock market perfectly, and there are numerous biases at play while attempting to do so. Even institutional investors have difficulty precisely predicting this. Other approaches, such as SIPs, are therefore recommended for averaging out one's investment over time. Furthermore, it is critical to allow your assets to compound and let the force of compounding to work its magic. 6. Waiting for a Break-Even Situation Getting even is another approach to ensure that any profit you've made is wiped out. It suggests you're delaying selling a loser until its original cost base is reached. In behavioural finance, this is referred regarded as a "cognitive malfunction." When investors fail to recognize a loss, they lose in two ways. To begin with, they don't want to sell a loss since it will continue to devalue until it is no longer worth anything. Second, there's the lost opportunity cost of not putting those funds to greater use. Coming to a close... Making mistakes is unavoidable in the world of DIY investing. Knowing what they are, what you're doing to make them, and how to stop them will help you succeed with your investments. Make a well-thought-out, planned stock market guidance strategy and stick to it to avoid making the blunders described above. It is advisable to avoid DIY without understanding and seek the advice of a financial counselor to fulfill one's financial goals, just as one would not self-diagnose an illness and go to a doctor. As one of the top brokers in share market, we have created the best stock trading platforms for you to invest in wisely. Our tool is designed to help investors and traders alike to analyse a company with a wide range of indicators and screeners as per your strategy. As one of the best brokerage firms in the country, we invite you to open a trading and investment account with us.
Apr 09, 2022
We Indians use apps like Google, Amazon, and Instagram on a daily basis in today's digital environment. A Dell or MacBook laptop is likely to be used by you or someone you know. Many of the world's largest corporations, including these, are headquartered in the United States but have a global presence. Have you thought about investing in such high-growth businesses but are hesitant due to their location? Let's have a look at some of the benefits of investing in US stocks as an Indian. For when you consider investing or trading in the share market, we at Zebu, a share trading company offer the lowest brokerage for intraday trading and are one of top brokers in share market. 1. Access to multinational corporations All of the major technology businesses, such as Google and Apple, as well as well-known brands like Nike and Starbucks, are based in the United States. Another thing that all of these US businesses have in common is that they are all global. These businesses are well-known all across the world. The US equities market has a market value of $47.32 trillion due to its global prominence, while the Indian equity market has a market capitalization of $3.21 trillion. As a result, investing in these businesses can help you broaden your horizons. 2. Fractional Shares The current price of an Apple stock is 173 dollars or nearly 12,500 Rupees. Similarly, an Amazon stock currently costs 3321 dollars or over 2.3 lakh rupees. One could argue that US stocks are overvalued and not a long-term investment. However, one fantastic feature of the US stock market is the ability to buy fractional shares. Let's say you only have Rs. 20,000. You can put Rs 5,000 into each of your four favorite American companies, and so on. This characteristic of fractional shares allows investors to spread their money across a number of companies. You need not own an entire share. 3. Expanding your horizons Political unrest, elections, budget cuts, and natural calamities can have a significant impact on a country's stock market. Diversifying your holdings is a fantastic way to protect your investments from a sudden drop. While gold and bonds can help you diversify your portfolio, investing in US equities can help you diversify your portfolio while also setting you up for potentially good profits. 4. The monetary value When you buy equities in the United States, you are doing so in dollars. Today's dollar-to-rupee exchange rate is 76.33. Half a decade ago, it was much less. When compared to the rupee, the US dollar has gained by more than 18% in the last five years. When you invest in US equities, you're not just betting on the stock's worth, but also on the value of the dollar. If the value of the dollar rises against the rupee, so does the value of your investment. 5. Global Reach We live in a world that needs technology to emerge every year. The United States is endowed with resources and draws talented minds from throughout the globe. Companies in the United States are always inventing to offer revolutionary solutions to the market. Companies like Tesla, Meta, and Amazon have been working on disruptive solutions in numerous fields in recent years. You can join this wave of innovation by investing in such US enterprises. Conclusion Portfolio diversification is critical for any investor. For an Indian investor looking to invest in global companies and innovative solutions, US stocks are a good choice. And with Zebu, you can do that with ease. We at Zebu, a share trading company make it easier for you to invest in the share market by offering the lowest brokerage for intraday trading and are one of top brokers in share market.
Apr 08, 2022
The purpose of investing in stocks and other securities is to accumulate wealth. For some investors, the sooner this aim is met, the better. Traders develop techniques to trade that maximize their profit in the field of trading, particularly when trading equities and shares. Of course, when trading is taking place, the stock markets and exchanges have their fair share of malpractice, and some traders will go to considerable measures to make a profit. Insider trading, as the term implies, is trading by people who have insider knowledge of a company's stock and its trends. Before we get into more about insider trading, it is important to know that you need to analyse them for maximum profits. At Zebu, one of the fastest-growing brokerage firms in the country, we have created the best Indian trading platform with the lowest brokerage for intraday trading If you would like to simplify your option trading game, we are here to help you out. 1. How insider trading works Insider trading is defined as trading in stocks, such as bonds and equities, by specified corporate 'insiders' who have unique access to information. Simply put, these insiders are aware of a unique security before any information about it reaches the general public. Insider trading occurs when insiders invest in equities while the general public is unaware of the stock. If such trade is discovered by regulatory authorities, the 'insider' will face severe consequences. 2. When is it Illegal to Trade Insider Information? According to SEBI laws, the Securities and Exchange Board of India, or SEBI, is strongly opposed to insider trading. The fact that insider trading offers some investors an unfair edge in the stock market is the explanation behind the practice being labeled as "illegal." Insider trading is usually done by people who, as a result of their job, have exclusive access to specific types of strategic information about a company's shares. Knowing a company's private information can have a big impact on whether you invest and make money or not. Insiders, for example, may know if a company's quarterly results will reveal a large profit, causing stock prices to rise. They can take advantage of this by investing a large sum of money in the stock in question, nearly ensuring a large profit. Insider trading is regarded criminal from this perspective. Insider trading, on the other hand, is not unlawful when investors buy stocks and all concerned investors are aware of certain information that has an impact on their trading profit or loss. 3. Which Information is insider information? Material information regarding a stock or a firm in the trading world refers to any information that could have a major impact on a trader's or investor's decision to trade (buy or sell) specific securities. Non-public information is information that is not formally available to the public. Insiders use substantial information that is not available to the general public to gain an unfair advantage in trading. Insider trading is prohibited regardless of how the information was obtained or whether the 'insider' is employed by the company. As an example, suppose a friend tells you about insider information (non-public information). This information is then passed on to a family member. On the said stock, the family member trades using this knowledge. In such a circumstance, all three parties implicated might face criminal charges or severe penalties. As we mentioned before, investing or trading you need the right tools. We at Zebu offer the best Indian trading platform and the lowest brokerage for intraday trading. As one of the best brokerage firms in the country, we have created a powerful trading platform that makes investing easy for you. To know more about its features, please get in touch with us now.
Apr 07, 2022
There will be a plethora of IPOs to invest in in 2022, and there will be no shortage of allotments. This will undoubtedly be a banner year for the Indian stock market, as IPOs abound and investors scramble for a piece of the action. Investors rushed to diversify their portfolios in 2021, when more than 60 initial public offerings (IPOs) were listed. The market is excited about IPO allotment this year, and investors are eager to get their hands on the greatest firm stocks. Trading or investing can be a difficult journey without the right tools. That’s why you need the best Indian trading platform with a wide range of features. With Zebu, one of the best stock brokers in the country, your online stock trading journey will be drastically enhanced. How an Initial Public Offering (IPO) Works An IPO, or Initial Public Offering, occurs when a private firm sells its stock to the general public. Companies begin as private companies with a small number of stockholders, such as the founders and their relatives and friends. Original stockholders of a private firm can include venture capitalists and a variety of financiers. When a company has achieved a significant point in its development and has established itself in its industry, it can apply to be listed and sell its shares to the general public. When this happens, anyone can become a shareholder in the firm and place a bid for a specific number of shares. Nonetheless, even if you desire a specific number of shares, you may not receive the IPO allocation for which you bid, receiving less than you expected, or receiving none at all. You might come upon an upcoming IPO among so many of the others expected in 2022, but how do you guarantee allotment? For a large number of eager investors, this is still an open subject. Looking back not too far in time, in 2021, practically every IPO that was offered was massively oversubscribed. However, there are certain specific things you can do to improve your chances of receiving the allotment you want. How to Increase Your Chances As an investor, the fact that an IPO is coming up may excite you, but it's not a good feeling when you don't get the allocation you expected, or worse, no allotment at all. As a result, you should understand how to improve your chances of receiving an IPO allotment by using the approaches listed below: Early Application - When an initial public offering (IPO) is announced, you have three days to apply. Instead of bidding for allocation at the last minute, it's a good idea to do so within the first couple of days. If at all possible, bid on an allotment the same day it is made available. This implies you should have done your study and analysis on the firm in issue well ahead of time to ensure you desire a piece of its stock. Avoid Confusion - Many investors become confused by the phrases used during the IPO application process. If you want to be certain of receiving an IPO allotment, you need think clearly and understand these terms ahead of time. The distinction between the 'cut price' and the 'bid price,' for example, is never clear. An investor's willingness to pay any price that companies decide on at the end of the book-building exercise is referred to as the 'cut price.' After the use of the 'cut price,' the investor is obligated to bid in the highest price range. Any additional amount is reimbursed if the price is lower than predicted, so investors should buy at the 'reduced price.' Avoid Making Mistakes - Filling out IPO application paperwork should not be rushed. Errors in filing forms are common, and these might lead to rejection or the need to refill paperwork. Parent-Company Stocks - If the IPO is for a company that has a parent-company, you should first buy some parent-company stock. This raises your chances of getting an IPO allotment in the company where the IPO is being offered. Open a Demat Account With Zebu, one of the fastest growing share broker companies in India, to invest in any future IPOs as well as a variety of other securities. Simply open a Demat account and you'll be on your way to a world of benefits and fantastic returns. Like we mentioned earlier, with the right tools your share market journey can be a lot simpler. That's why Zebu brings to you the best Indian trading platform with a wide range of features.As one of the best stock brokers in the country, your online stock trading journey will be drastically enhanced.
Apr 06, 2022
When determining a company's value, the price-to-earnings (P/E) ratio compares its current share price to its earnings per share (EPS). Along with P/E, the term "price multiple" or "profit multiple" can be used to describe the P/E ratio. When comparing apples to apples, investors and analysts use P/E ratios to determine the worth of a company's stock. Comparisons between companies and aggregate markets can be made against each other or over time using this metric. To calculate P/E, you can use either a trailing or forward-looking approach. For any form of trading or investing you need to have the right technologies. That is why you need the best online trading company that provides you with the best stock trading platform. We at Zebu find that it is our obligation to provide our traders with the best trading accounts so that they can invest with ease. Formula and Calculation for the P/E Ratio The following is the formula and calculation utilised in this process. Divide the current share price by the earnings per share to get the P/E ratio (EPS). If you type in a stock's ticker symbol into any financial website, you'll get the current stock price. However, this is a more concrete value that shows what investors currently have to pay for the shares. In general, there are two kinds of EPS. "TTM" stands for "trailing 12 months" and helps investors understand the company's valuation over the last year. It's common for a company's results report to provide EPS forecasts. It is a This is the company's best educated forecast as to how much money it will make in the future. The trailing and projected P/E ratios are based on different versions of EPS. Understanding the Price-to-Earnings (P/E) Ratio An investor's and an analyst's favourite way to estimate a stock's value is through its price-to-earnings ratio (P/E). The P/E essentially tells an investor if a stock is overvalued or undervalued. Additionally, the P/E ratio of one company can also be compared to that of other companies in its industry or the Nifty 50 Index. Analysts that are interested in long-term valuation patterns may use the P/E 10 or P/E 30 measures, which average earnings over the previous 10 or 30 years, respectively. Because these longer-term measurements can correct for changes in the business cycle, they are frequently used when trying to judge the overall worth of a stock index. When determining if a company's share price appropriately represents projected earnings per share, analysts and investors look at its P/E ratio. Forward Price-to-Earnings Ratios These two forms of EPS measures are used to calculate the two most prevalent P/E ratios: forward and trailing P/E. The sum of the last two actual quarters and the estimates for the future two quarters is a third, less typical form. Instead of using trailing figures, the forward (or leading) P/E employs future earnings guidance. This forward-looking measure, also known as "estimated price to earnings," is useful for comparing current earnings to future earnings and for providing a clearer image of what earnings will look like—without modifications or other accounting adjustments. However, the forward P/E metric has flaws, such as firms underestimating earnings in order to surpass the predicted P/E when the next quarter's results are released. Other corporations may overestimate their forecast and then adjust it in their next earnings report. Furthermore, outsider analysts may make forecasts that differ from those provided by the corporation, causing confusion. Trailing Price-to-Earnings Ratio (P/E) By dividing the current share price by total EPS earnings over the last 12 months, the trailing P/E is calculated. It's the most often used P/E ratio since it's the most objective—assuming the company honestly reported earnings. Because they don't trust other people's profits projections, some investors prefer to look at the trailing P/E. However, the trailing P/E has some flaws, one of which is that past performance does not always predict future behavior. As a result, investors should make investments based on future earnings potential rather than historical performance. It's also a concern that the EPS number remains constant while stock values change. The trailing P/E will be less representative of those changes if a major company event sends the stock price much higher or lower. Because earnings are only reported once a quarter, while stocks trade every day, the trailing P/E ratio will alter when the price of a company's shares fluctuates. As a reason, the forward P/E is preferred by some investors. Analysts expect earnings to rise if the forward P/E ratio is lower than the trailing P/E ratio; if the ahead P/E is greater than the current P/E ratio, analysts expect earnings to fall. As we mentioned earlier you need to have the right technologies to trade profitably. That is why you need the best online trading company that provides you with the best stock trading platform. We at Zebu are obligated to provide our traders with the best trading accounts so that they can invest with ease.
Apr 05, 2022
TA is criticised by some traders and investors because they believe it is merely a surface examination of charts and patterns with no real effect on the market. However, there are many who feel that once they've mastered it, they'll be rewarded with huge returns. Contrasting views on technical analysis have led to misunderstandings about how it is used. Misconceptions regarding technical analysis can be traced back to a lack of exposure to the subject in school. Someone who has just been taught the basics of trading may have little faith in technical analysis at all. If you have a background in technical analysis, though, you can still make money from it. These and other TA assumptions are the results of missteps and errors. For example, losses are sometimes caused by the bad use of technical indicators. That doesn't necessarily mean that the strategy is bad; it could just be that the person needs more instruction and practice. Before we get into debunking myths about technical analysis, you need to make sure that you use the best broker for trading with the lowest brokerage on offer. Zebu empowers your online stock trading journey with a state-of-the-art trading platform as well. Here are eight of the most frequent technical analysis myths—and why they're just not true. 1. Short-term trading or day trading is the only use for technical analysis Many people believe that only short-term and computer-driven trading, such as day trading and high-frequency trading, may benefit from using technical analysis in their trading. It was long before computers were commonplace that technical analysis was used by long-term investors and traders rather than day traders. From one-minute charts to weekly and monthly timeframes, several types of traders use technical analysis. 2. Technical analysis is only used by retail traders. Individual traders utilize technical analysis, but so do hedge funds and investment banks. Technical analysis is used extensively by the trading departments of investment banks. High-frequency trading is primarily reliant on technical ideas and accounts for a significant portion of stock exchange trading volume. Technical analysis has a low rate of success Successful market traders with a long track record of trading disprove this urban legend. A large number of successful traders attribute their success as a result of technical analysis and patterns. They do, however, attribute their success to strict discipline. 3. Technical Analysis Is Quick and Efficient Trading success can be had by following a variety of technical analysis courses available on the internet. Despite the fact that many people begin trading by using simple technical indicators, long-term success in trading takes much education, practice, solid money management, and a strong sense of self-discipline. Technical analysis is merely a tool, a small portion of the larger picture to be considered. 4. Price Predictions Based on Technical Analysis Are Accurate Many newbies expect technical analysts or software patterns to provide 100% accurate advice, which is not always the case. It's common for new investors to expect a prediction like "stock ABC will hit Rs 200 in two months." Technical analysts, on the other hand, tend to avoid quoting exact prices. They would rather give range-based predictions like a stock to move between 180 and 200 by the end of next week. Traders who place their bets based on technical analysis should be aware that it only provides a range of possible outcomes, not a specific value. When it comes to technical analysis, there are no assurances. Even if something doesn't function 100% of the time, it can still be very profitable if it works more often than not. 5. Technical Analysis should have a higher success rate Despite popular belief, it is not necessary to have a large percentage of successful trades to be profitable. In this hypothetical example, Peter has four successful transactions out of five, whereas Molly only has one win out of those same five trades. Who is the most successful person in their field? But even if the majority of people say Peter, we won't know for sure until we have further details. Profitability is a function of victory rate and risk-to-reward tradeoff. It doesn't matter if Peter wins Rs 20 and loses Rs 80; he still loses Rs 60. If Molly wins Rs 50 and loses Rs 10, she has a net profit of Rs 10. Even though she has had fewer victories, she is in a better position than she was before. Even if there are only a few winners in a deal, it can still be profitable. In conclusion Traders can use a wide range of tools and principles from technical analysis. There are successful traders who do not use it, and there are successful traders who do. Others argue that technical analysis is erroneous and theoretically unsound, despite the fact that many traders swear by it. Now that you have understood more about technical analysis, you also need to ensure that you use the best broker for trading with the lowest brokerage on offer. Zebu empowers your online stock trading journey with a state-of-the-art trading platform as well.
Apr 04, 2022
Many indicators are used by traders and analysts to monitor volatility and decide the best time for entering or exiting a trade. Increased fear in the market amid significant market movements can give ideal trading ground for experienced investors, while high volatility is typically a barrier to reckless trades. Low volatility and complacency among investors, on the other hand, can signal a bubble in the market and a possible market top. It is usual to utilise the volatility index (VIX), ATR and Bollinger Bands to measure volatility relative to other indicators. At Zebu, we understand that traders and investors with very high aspirations need nothing short of the best Indian trading platform with its plethora of features and scanners. As one of the top brokers in share marketin India, we have the privilege of providing our users with their best trading accounts. VIX Volatility in the market is measured by the Volatility Index. Volatility in Nifty 50 can be measured by a ticker symbol known as VIX, which is updated throughout the trading day and reflects the current implied or expected volatility. Other traders use large institutions' volatility perceptions (as indicated by VIX) to help them gain an idea of the expected volatility of the market in the days to come. While numbers in the low teens imply minimal volatility, VIX rates above 30 indicate increased volatility. Average True Range Any stock, exchange-traded fund, FX pair or commodity can be used to apply the average true range indicator established by J. Welles Wilder Jr. ATR is a 14-day exponential moving average (EMA) of what Wilder called the "true range" of an asset's price movement. One of three following equations produces the greatest number, which is used to determine the true range. Current day's high minus the current day's low Current day's high minus the previous day's close Previous day's close minus the current day's low Finally, an EMA is produced using the ATR (computed using the highest value found when the three equations are solved). The greater the ATR, the greater the volatility of the market. There is a correlation between ATR values and quiet trading periods. Bollinger Bands There are two bands or lines that are two standard deviations above and below a 20-day moving average, which shows as a line in between the two bands, in the Bollinger Bands indication, which is another charter indicator. The wider the bands, the more volatile the market is, and the narrower the bands, the less volatile the market is. Bollinger Bands, like ATR, can be applied to any chart of a stock or commodity. You can get one of the best Indian trading platforms with its plethora of features and scanners to build your investment portfolio. As one of the top brokers in share marketin India, we have the privilege of providing our users with their best trading accounts.
Apr 03, 2022
VIX is a contract that you've likely heard of if you've ever traded futures or options. The NSE VIX futures contracts can be traded in the same way that index and equity futures and options are. To begin, what precisely is a VIX contract? The volatility index (VIX) is a metric for market volatility, thus its name. Since a high VIX implies a high amount of fear in the market and a low VIX suggests a high level of confidence, it is commonly referred to as the Fear Index. Examine some strategies for trading the VIX in India and some methods for trading the VIX in general. Do you realise that the India VIX and the Nifty are negatively correlated? What you should know about VIX is summarised below. Before we get started on how you can use VIX, it is important that you have the right tools to trade efficiently. That is why as an online trading company we have created a high-end online trading platform with the lowest brokerage for you to maximize your returns from the market. It's important to keep in mind that the VIX measures market expectations for volatility. To compute the VIX, VIX typically employs options expiring in the current month and the following month. According to the VIX, it is assumed that the premium on important Nifty options indicates the market's implied volatility. Because of this, you can get a fair sense of how volatile the options are by averaging them. Expectations of more volatility are typically reflected in the price of options (both calls and puts). Nifty option order books are used to construct the India VIX. When determining the best bid-ask prices, we look at both the near-month and next-month Nifty options. As an indicator of how volatile India's stock market is projected to be in the following 30 days. This is how the India VIX is computed: NSE calculates and distributes the VIX on a real-time basis, hence the formula is only for educational reasons. In order to fully grasp the VIX, it is necessary to understand how it is interpreted and what it means. How to use VIX in practise is a more important subject than its simple depiction of projected volatility or risk. This is how you can accomplish it: For equities traders, the VIX is an excellent and reliable indicator of market risk Stock traders who trade intraday and for the short term might use this information to gauge whether the market's volatility is rising or falling. They'll be able to fine-tune their approach. Intraday traders, for instance, run the danger of stop losses being swiftly triggered when volatility is projected to go up sharply. Consequently, they have the option of either reducing their leverage or widening their stop losses. For long-term investors, the VIX is a great indicator. Most long-term investors are unconcerned by the volatility of the stock market. The risk and MTM losses of institutional investors and proprietary trading desks, however, are limited. To play the market both ways, they can boost their hedges in the form of put options when the VIX shows a rise in volatility. Traders of options can potentially benefit from VIX as an indicator. When deciding whether to buy or sell an option, volatility is typically taken into account. In times of high volatility, options become more valuable and buyers are likely to profit more. Option sellers stand to gain when the VIX declines since more time value will be wasted. Volatility trading is also important. Consider buying strangles or straddling if you think the market will be more volatile in the future. However, when volatility is expected to rise, these become extremely expensive. In order to reap the benefits of volatility without having to worry about the direction of the market, you should buy futures on the VIX index itself. This index's volatility is well-captured by the VIX. You can clearly detect a negative link between VIX and the Nifty if you map their movements over the previous nine years from the beginning of VIX. The volatility index (VIX) tends to rise and fall in tandem with the market's overall performance. Index traders can use this data as an input. Portfolio and mutual fund managers can greatly benefit from the VIX index. When the VIX reaches its all-time high, investors can aim to increase their exposure to high beta companies, and when the VIX reaches its all-time low, investors can increase their exposure to low beta stocks. Although the India VIX has only been around for a little over a decade, it has already become a reliable indicator of market risk and volatility. As we mentioned earlier it is important that you have the right tools to trade efficiently. That is why as an online trading company we have created a high-end online trading platform with the lowest brokerage for you to maximize your returns from the market.
Apr 02, 2022
Day trading podcasts can provide you with the best benefit of all: the interviewees can often provide a wealth of knowledge in a certain sector that would otherwise go unnoticed. In a nutshell, they're a terrific source of fresh information and can help you make better decisions while you're in the midst of a trade. Here are a few of the best ones you should follow. 1. FREAKONOMICS Steven Dubner, the author of the bestselling book Freakonomics, hosts a podcast by the same name. Many people throughout the world have praised the book for its ability to explain economics in a way that is understandable to the general public. The Freakonomics podcast is listened to by thousands of people around the world every Thursday morning. The podcast itself has nothing to do with investing or trading. This is not the case, however, as he covers a wide range of issues and provides an economic perspective. The World Bank President Jim Yong Kim, TV celebrity Charlie Rose, and Vanguard founder Jack Bogle have all been on Dubner's show. If you're a trader, Freakonomics won't tell you how to make the best investments. To the contrary, it will open your eyes to the small things that can improve your financial situation. 2. FINANCIAL TIMES MONEY SHOW PODCAST It's a weekly show, and it's packed with useful information about personal finance. You and your wallet are in good hands with Claer Barrett and her team of FT Journalists (obviously) and prominent industry pundits. The Financial Times has a number of podcasts you can listen to in order to improve your day trading skills. 'News in Focus' and 'Banking Weekly podcast' are two other options for keeping up to date on the latest developments in the financial industry. 3. TWO BLOKES This is a great podcast for beginner traders who are interested in the forex market, and it's also a lot of fun to listen to. With a conversational tone in which they discuss their trading, Tom and Brandon prefer to talk about their own experiences rather than theory. Tom and Brandon conduct interviews from time to time, learning by doing so with the help of industry professionals they've invited on as guests. The Two Blokes trading podcast also includes evaluations of various trading tools and software, book reviews, and other topics. 4. CHAT WITH TRADERS The host, Aaron Fifield, interviews day traders from around the world on a weekly basis in this podcast. Because this podcast shows you to parts of trading that you won't find anyplace else, it is extremely significant. Sheelah Kolhatkar, the author of the previously stated book on Steve Cohen, was one of Aaron's interview subjects. Morgan Slade, Nell Sloane, and Darren Reed are among the other merchants he has interviewed. 5. RICH DAD RADIO SHOW This podcast, hosted by Robert Kiyosaki, is released every week. He meets with experts from a wide range of economic (financial, investment, and commercial) and personal development fields. Unlike many other shows, his thoughts on money, investment, and the economy are unapologetic, offering listeners a variety of perspectives on how to best position themselves for financial success. It's a great method to motivate individuals to take charge of their own destinies and to provide guidance on how to reach their financial objectives. Which of these is your favourite?
Apr 01, 2022
While it is natural for us to feel less bothered at the start of the financial year, reviewing your finances is an exercise you can conduct in April to ensure the remainder of the year is similarly stress-free. This analysis will help you in determining how well you handle your finances in the previous year and where you stand now. It will also assist you in taking the necessary actions to manage your finances properly in the short and long run. In this article, we'll go over seven crucial things that should be included in your yearly start-of-financial-year assessment, as well as how to go about doing it. But before we get into that you need to understand that investment is also about choosing the right technologies. As one of the top brokers in share market, we at Zebu offer trading accounts with lowest brokerage, and an online trading platform to help you focus only on executing your strategies efficiently. 1. Review your asset allocation and, if necessary, rebalance The first step toward improved money management is to analyse your portfolio across multiple asset classes and rebalance if your asset allocation has changed significantly. Assume you started the year with a 70% allocation to equities, a 25% allocation to debt, and a 5% allocation to gold. Equities are up roughly 21% in FY22, debt is up 5.5%, and gold is up 15.4%. As a result, your portfolio is slightly more biased towards equity, with shares accounting for approximately 72.5% of your portfolio, 22.6% for debt, and 4.9% for gold. To get back to your original asset allocation, you'll need to rebalance your portfolio. Because your equity allocation has increased, you will need to register profits in equities and reinvest the proceeds in Debt and Gold in this case. Alternately, you might restructure your monthly SIPs to include more Debt and Gold. This activity guarantees that your portfolio's risk is balanced, allowing you to better manage drawdowns. 2. Examine Your Objectives The beginning of the fiscal year is an excellent opportunity to assess your progress toward your objectives. It's likely that the amount you'll need has risen more than you expected when calculating the amount you'll need. If you were planning to buy a car, for example, excessive input costs may have caused prices to rise above average. In this case, you'll need to recalculate how much you'll need to invest each month in order to have the money you'll need when the time comes. 3. Evaluate Your Portfolio While long-term investing is essential for wealth accumulation, this does not mean you should invest and forget. A portfolio review should be done on a regular basis, and the beginning of the financial year is an ideal time to do so. A review will show you which funds have outperformed, which have performed as expected, and which have underperformed. While it's tempting to get rid of laggards, you should be cautious about how you go about doing so. You should ideally only evaluate funds that have been underperforming for a long period (say at least 1.5 years). If the entire segment has fallen, a fund with negative returns may not be underperforming. As a result, you must compare the fund's performance to that of the category as a whole. For example, if the fund has declined but not as much as the category average, you may choose to continue with it due to its stronger downside protection qualities. When your goals change, it's also a good idea to review your portfolio. For example, when you were 10 to 15 years away from retirement, you began investing in an Equity Fund. However, you've nearly reached your goal amount and are only two years away from retiring. In this case, you'll need to devote a larger portion of your collected wealth to fixed-income investments. 4. Examine Your Life Insurance Requirements Your obligations expand dramatically after major life events such as marriage, becoming a parent, purchasing a home, and so on. You must ensure that your life insurance policy is adequate to meet all of these new duties. So go back to the calculations you used to determine the correct coverage for yourself, add the amount you'll need to cover the additional duties and get any additional coverage you require. Remember that your coverage should be sufficient to give a monthly income to your dependents, pay off any debts, and leave money aside for future one-time large needs such as your children's education. 5. Look over your health insurance policy Major life events such as marriage and becoming a parent requires a review of your health insurance coverage. If you purchased a policy before getting married, you most likely purchased an individual policy with an adequate quantity of coverage. With more family members, you'll need not simply a larger policy, but you'll also want to be sure they're protected. Converting your health insurance policy to a family floater and boosting the coverage is the simplest way to accomplish this. This ensures that the coverage remains in effect and that you do not miss out on any advantages. 6. Begin Your Tax Preparation It's ideal to begin tax preparation early in the fiscal year. That's because you'll have enough time to figure out how much you'll need to invest to save the most money on taxes and weigh all of your possibilities. Furthermore, because you have the entire year to invest the funds, you can spread them out. If you plan to invest in market-linked products like ELSS and NPS, tax planning at the start of the year is even more important. Having a SIP that helps you save tax throughout the course of the year ensures that you benefit from market ups and downs. If you wait until the last minute, though, you will be forced to invest even if the markets are at an all-time high and there is a chance that they will fall. Furthermore, the money you will invest will be substantial. 7. Increase the amount of money you put aside each month With an increase in your salary, you should increase your SIP investment by 10% per year. This will assist you in achieving your financial objectives more quickly. Other investment options include the National Pension System (NPS), which provides an extra Rs. 50,000 deductions in addition to the Rs. 1.5 lakh deduction provided under Section 80C. You can register a Sukanya Samriddhi Yojana account for your daughter if she is under the age of 11. This plan will give you a better return than the PPF or other small savings plans. These methods will assist you in improving your financial situation and ensuring a smooth financial journey in the future.
Mar 31, 2022