Young Traders

Options As  A Trading Tool Options are financial instruments used for hedging against adverse price movements in the underlying asset class like index, stock or forex. However they're widely used as instruments for speculation by traders all over the world. The total turnover of options is far higher than the actual turnover of the underlying which reinstates the importance and popularity of the options . Options trading can be very rewarding if done properly and with right risk management . You will find hundreds of articles on the technicalities and terminologies of options on the internet. In this article I will try to focus on the positive sides of options rather than providing definitions of terms like calls, puts, strike price, moneyness etc. If you want to learn them simply google or you can check out my YouTube channel https://tinyurl.com/tradetogether for video on option basics. Why will I trade options: 1. Options can be bought with almost one tenth of margin req...

After knowing what stock market is and reading about successful investers and there journey, you also finally decided to enter the stock market. You open your demat and trading account with broker and ready to make your first investment, you look for the company to invest in. There are around 5000 companies listed on National Stock exchange (NSE) and around 3000 companies on Bombay Stock exchange (BSE) Now the main question arises, which company should you invest your money into? Which company will give you good returns? How to select a good company which can give you good returns? Remember buying a stock of company make you part owner of that company, it means that you are buying a company. So before selecting the stock to invest, first understand about the company you want to invest in , know about its business model and it's history. To analyse about the company you want to invest your money into , one has to look at few parameters before coming to conclusion. T...

Everyone in the market has the same question that what is happening, why is share market going down and how much more will it go down ? Nifty in last two weeks has fallen 1000 points after making high of 12000 to 11000, Why this happened? Well I will tell you here why it happened and what should you do in this situation. It all started after the SEBI announcement of tighthens the regulation of mutual funds. Earlier mutual funds such as large cap mutual funds use to invest in mid and small caps to get high gains, people who where the invester in such mutual funds use to think there money is safe in large cap but mutual fund manager to get good profit use to take risk and invest in mid and small cap companies. Due to this valuation of mid cap and small cap stock was high , and after the announcement of SEBI, mutual fund manager where forced to sell the mid cap and small cap stocks, and invest there money in large cap stock which leads to increase in price of large cap companies. ...