Dematerialization: Benefits, Process and Demat Account

Dematerialization is the substitution of paper-form securities with book-entry securities.

It offers flexibility apart from security and convenience. Holding share certificates in physical format carried risks like certificate forgeries, loss of important share certificates, and consequent delays in certificate transfers. Dematerialization will remove these problems and allow customers for making their physical certificates to their electronic format. And thus a Demat account will hold the electronic format of the shares.

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Position Trading: Basics and Its Benefits

Position Trading

Position trading uses the benefits of being in between long term investment and swing trading. It  is a strategy where investors and traders and investors aspire to capitalize on strong pricing trends through entering and remaining present in a market for an extensive term. A position trade is a commitment of both money and time, with the intention of a better gain from the sustained growth of an open position’s value.

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Trading Tools That You Must Consider For A Successful Day Trading

A day trader must possess proper tools in order to operate as efficiently as possible. Trading without the right tools can cost day traders a lot of time and money.

Day trading tools are capable of providing traders with access to more data, better market visibility, and the power to execute their trading strategies with ease. There are plenty of trading tools out there. Trading tools should be chosen strategically. You shouldn’t use them just for the sake of using them. They should fulfill a need of yours. Following are some important tools for day traders.

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Technical Analysis And Fundamental Analysis

Technical Analysis & Fundamental Analysis

Technical analysis focuses mainly on the price action of a stock.

It provides a visual trajectory of the stock’s price movement by utilizing charts and indicators. Technical analysis utilizes chart-based tools to identify historical price patterns to help forecast the direction of the stock, while identifying areas of price support and resistance.

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Everything About Hot Keys In Trading

Hot Keys

Hot keys are shortcuts that execute a pre-selected task or  a series of tasks at the press of a single or  a combination keystroke. While it may take a few mouse clicks or additional inputs to perform the task, a hot key can be easily configured to complete the task with a single keystroke or a combination keystroke. On a trading platform, the main benefit is speed, that leads to efficiency. The extra seconds that are shed can result in better exit or entry prices, faster trade executions with less distraction.

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Here Is Why Moving Averages Are Important Technical Indicators

Moving averages are one of the most popular technical indicators useful in both investing and trading.

These indicators are also simple which is also useful for smoothing price action. This allows traders for getting a clearer view of a stock’s trend for a given timeframe. Using these averages can help eliminate some of the noise created by insignificant fluctuations in a stock. These indicators can also bring light on a stock’s trading patterns.

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Everything About Candlestick Patterns In Trading

Candlestick Charting

In day trading, stock charts are the most informative tools that can summarize the data. And every single day trader uses some form of charts to help in his decision making process. And the candlestick charts are therefore one of the most popular among day traders. The candlestick charts provide extra data that can be valuable to day traders. Continue Reading

Swing Trading: Everything About Swing Trading

Swing trading is a way of trading that holds an open position at least overnight and up to several days or even several weeks. It will include both the fundamental research aspect of investing and technical analysis aspect of day trading. Swing trading still involves active position management but also utilizes longer time intervals for determining stop loss levels and price targets. Continue Reading

Trading Psychology Tips You Can Use

Trading Psychology

In order to become a successful day trader, you must not only need to learn about trading or focus on textbook knowledge, but you also have to focus on yourself. As a day trader, you are the driver of your own success. Often times, traders tend to focus only on the market and forget that their own behaviors may be holding them back. This is why it is so important to put some focus on trading psychology. Continue Reading

Trends: Trend Analysis, Types of Trends, Time Frame

Importance of Trend Analysis

It is a pre requisite to understand trends for several reasons.

But most importantly it is to help understand why one trade is more likely to profit than another. If the market is trending lower in the primary trend then it is less likely for a bullish play on the secondary trend to work than a bearish one. Similarly, if a signal in the secondary trend confirms the primary trend then it has a higher chance of profiting than a secondary signal that is counter to the primary trend. One way to line up a great trade is to have maximum number of time frames in confirmation possible. The secular trend is really too long for binary traders but you can start with the primary trend which move down to the secondary trend or then the near term trend. A signal taken with all three trends in alignment has the most chance of success.

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