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  

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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 .