Opening a Free Demat Account at a Shares Trading Platform Posted By :Ashlar online

Just imagine the share market having traffic signals at its various shares trading terminals for NSE shares, BSE shares, etc! Once you see the red light, you become aware that shares trading at that point of time can be dangerous; so, you wait till the green signal is displayed. You may still take risks by moving along when the orange signal is exhibited. And the traffic personnel are the stock brokers, steering your activities on road, especially at the terminals. Well, the stock market is a totally different field and such signals will never work. It is up to you how you move along. You can create an analogous situation in your mind. But to give yourself the red signal or green signal or orange signal, you will have to be fully equipped with the knowledge about the field. Otherwise you will end up moving forward every time the signal is red!


The changing economy does affect the market; it depends on how you interpret the same immediately and act on it. As you know what you are looking for, you will accordingly find out which NSE shares or which BSE shares will prove lucrative for you.

Portfolio Diversification and Its Risks

You may have heard a thousand times that diversification is the key to create a balanced portfolio and to make successful investments in the long-term. No doubt this works in practice as well but the reasons for diversifying your investments do matter. If you understand your investments well enough, but choose to diversify simply to achieve more balanced returns, it could work well enough. However, if you think diversifying is a good idea simply because you do not understand your investments properly and are afraid of losing money by betting on some single stock, probably you will still lose.

Another risk in developing a diversified portfolio is that you may lose sight of the fact that you do not need to diversify beyond a certain limit. Over-diversification of an investment portfolio can make any meaningful returns too negligible, thus working to neutralize the very reason for making any investment in the first place. Most of the time, diversification is simply meant to cover against the high-risk investments by making equal or higher investments in low-risk options to minimize the losses. However, if you plan to gradually increase your returns then you need to revisit your investment choices regularly and optimize your portfolio by making any necessary changes.

How to be a successful trader in stock market ?

Trading in simple language it is to buy or sell goods & services (transferring ownership) in short term duration to earn profit. In terms of stock market buying and selling of shares based on technical analysis or market trend for short term duration for making money is called trading.

Difference between investor and trader is investor invest money for longer term and wait for bull run in order to make profit while trader make profit even in bad market condition sounds interesting !  Trader has ability to make more money than investor hence many people try this funda to make more money but fails. Trading is number/mind game. This game is not for faint hearted.

In order to become successful trader /in order to trade safely, you must take care of several things. In this article we will describe how to be a successful trader in stock market.

First step for beginner those who want to start trading is to open virtual stock market trading login for practice. Many website provides facility of free virtual stock market trading login.

Lowest brokerage in india : Momentum Trading: High Risks For Higher Rewards

Lowest brokerage in india : Momentum Trading: High Risks For Higher Rewards: Momentum trading is an important strategy for online stock trading adopted by a number of investors willing to take a higher amount of ris...

Momentum Trading: High Risks For Higher Rewards

Momentum trading is an important strategy for online stock trading adopted by a number of investors willing to take a higher amount of risk for substantial gains. In this method of trading, one tries to identify stocks which are showing significant momentum and buys them to ride the momentum to make the best gains possible. It is different from value investing because in it generally one would try to buy low and sell high but momentum trader would wait long enough to make sure that the market is indicating continuity of momentum before buying. So, a momentum trader usually buys high and aims to sell higher.

It is of utmost importance for a momentum trader to exhibit high levels of discipline and not be taken in by emotional highs and lows that come along with the market movements. One of the foremost things is to be able to identify the right entry and exit points in this type of online sharetrading. A number of traders employ moving averages to identify the right entry point by trying to determine market inertia and momentum at a given point of time. With a careful use of moving averages, a trader tries to look for buy and sell signals.

It is important to understand the role played by moving averages. Essentially, they act as directional indicators showing key support and resistance levels which are important to understand the nature of price movements in stock markets within a given time frame. These concepts help deal with the volatility factor to an extent and understand price turnarounds better which is what momentum trading is all about. Basically, support level represents a price level below which the prices for a certain stock has not fallen for a time period of weeks or months represented by a trading chart.

On the other hand, resistance levels are those above which the stock prices have not gone in a certain time period. These are not hardcore concepts which pre-determine what will happen to stock prices but only represent a certain amount of probability based on past movement of prices that they may not push through these limits in near future. However, it is always better for the momentum trader to have a contingency strategy to deal with any unexpected changes in price movements. In short, momentum trading offers a lot of opportunities to make good gains but one must weigh the risks involved against the advantages before using this strategy.http://www.ashlaronline.com

 

Technical Analysis for Investing in Stocks

Where fundamental analysis is good for understanding long-term growth or decline of stock price movements, technical analysis can serve as an excellent tool to help with short-term online trading. There is an underlying difference between the two techniques which makes them so distinct and unique in their own right.

The fundamental approach is primarily concerned with studying any events or developments directly or indirectly impacting the movement of stocks and holding a position long enough for that event to translate into the right kind of price movements. On the other hand, technical approach is more about studying stock movements with the help of detailed charts and graphs in an attempt to identify useful patterns which can indicate when to buy or sell.

Technical traders believe that the factors considered in the fundamental approach are already accounted for in the current price of stock, so there is no reason to study fundamentals. Instead, they prefer to go by unique patterns and geometrical formations which occur in graphic representations of price movements to predict future changes in stock prices.Online traders look for the best time to trade in the short-term which could be anywhere from minutes to hours, days or even weeks, based on particular patterns forming or appearing in these charts representing historical price and volume data for any stock.

It must be remembered that technical analysis can be used for almost any form of security including equities, futures and commodities, forex or fixed-income securities. The only basic premise is that historical data for price movements and volumes traded should be available to online traders for that type of security. Technical analysis makes some important assumptions, one of which is that price movement is usually in trends and once a trend has set in, it is likely to continue in the direction established by it rather than against it.

These trends can broadly be classified into three categories, upwards, downwards and horizontal/sideways trends. A trendline is used in technical charts to point out the relevant stock trends. Channel lines are used parallel to trendlines to mark the support and resistance levels. The support level is considered to be the lower price level below which the stock has very little chance of falling and resistance is the upper price level above which the stock has very little chance of rising in the stock market. Volumes traded have also to be considered which indicate the level of activity in a particular stock.

Usually, four types of charts are employed for online trading analysis, which include line charts, bar charts, point and figure charts and candlestick charts. There can be different types of patterns which can indicate a reversal of the price trend or continuation in keeping with their individual significance. Moving averages, indicators and oscillators are used by technical traders to study different aspects of stock movements and gain a better understanding of the stock market behavior in the short-term.

It should be kept in mind that although fundamental and technical analysis represent two completely different approaches for analyzing stock movements and predicting future activity, yet it is possible to combine them in a balanced manner to manage the risks better and maximize opportunities in online trading.

Ashlar Online offers expert fundamental and technical analysis for securities of all kinds to help our clients make the most of their trading opportunities.online share trading in india Online share trading in india  

Read more about - online share trading , Zero brokerage firm in india 

Discover Your Trading Style

Online trading is an attractive proposition, no doubt, but you need to know what method or style of trading would be best suited for your needs. There are a number of trading strategies adopted by seasoned traders and investors to optimize their gains and manage risk efficiently. If you look closely, there is a wealth of informationh online share thading in indiaonline share

trading in india available about the stocks you are investing in, but it is by no means easy to figure out exactly how these numerous variables can impact a stock within a given period of time. This is why it is important to adopt a well-defined approach to systematically study a set of variables with the potential to influence price movements. It is also advisable to seek expert advice of a stock broker to help with the task and benefit from its knowledge and experience.

To help you understand better the basic methods or strategies usually employed for successful online trading, we have enumerated some of them below:

Fundamental trading:

Some online traders prefer to adopt fundamental analysis as the basis of their trading activities. This approach involves studying any developments related to the company, mergers, acquisitions or other events. This approach usually involves buying and holding for long-term gains.

Technical Trading:

This approach involves studying the past performance of a stock with the help of charts and graphs depicting changes in price movement over a period of time. Traders look for useful patterns in this methodology to gauge when to buy or sell a particular stock for reasonable gains.

Intra-Day Trading:

Online traders who buy and sell a number of times during a single trading day are known as scalpers. This is because they attempt to scalp a minimal amount of gain from many trades. However, this approach is very risky and you should only invest a small amount of funds because market behavior can be unpredictable within a single day.

 Momentum Trading:

Momentum traders are those who follow any stocks witnessing strong movement in a particular direction and prefer to do high percentage and volume trading within a specific time window to accumulate higher gains.

Swing Trading:

Swing Traders prefer to track stock prices in a short period of time but usually hold their positions for longer than a day to wait for the right time to buy or sell. In some respects, they are similar to fundamental traders who wait till corporate fundamentals manifest in a corresponding change in price of stock but differ in that they hold a position longer than a day but for a period shorter than usual buy and hold positions in fundamental trading which can go upto months or years.

Ashlar Online offers expert assistance to traders and investors at lowest brokerage to help manage the risks intelligently and maximize gains by adopting a methodical approach.

Ashlar online share Trading in India

Ashlar online is one of the leading stock brokerage firms in India. They offer a much smarter way of trading along with custom-made trading tools as well as platforms. It is a reputable name among the largest brokerage houses. They have a large pool of highly professional stock brokers in order to assist their clients all the time. They offer informative tutorials to its clients with different requirements. In short, it is the best alternate for those who want lowest brokerage plans. I highly recommend Ashlar online .