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Showing posts from June, 2021

Market dynamics

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Before an aspiring trader can learn to earn money in the game of trading, He or she must first obtain a proper understanding of the  participants,  market structure,  risk of the instruments he is dealing in. The ability to understand why the market is behaving the way it is allows one to accurately anticipate market behavior . Participants Role of market is to facilitate the trade between buyers and sellers. However, Buyers and sellers are not the same. The ability to distinguish between these categories will allow you to anticipate upcoming price movement and behavior. Responsive buyer - He enters the market when price is below value. In essence when one waits for the price of the iPhone to drop before the release of its new version he or she is a responsive buyer. Responsive seller-   He waits until price is above value before entering the market. Responsive buying and selling typically drive the price back toward the mean. Initiative buyer- An initiative buyer enters the marke

Nifty Primer

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Readers, At the outset I would like to extend a warm welcome on my blog.    What is Nifty and why it appears on newspaper ? Why it is associated with economic condition? What are Financial markets? How do we price something which we cannot taste, smell or see and still its value is derived and changes. What and who moves its value? These are some questions which are still an Enigma to me, Nevertheless, I would like to take up this challenge of answering these questions  on myself. Financial markets just like any other market place is an organized platform where Financial instruments  are traded. Sellers and buyers reach at a price where trade is facilitated. Yes! It is simple as this. Buyer and seller meet, Seller offer its price and if he gets a buyer who agrees to pay the price then hurrah! The trade is executed only it is done virtually at mostly NSE or BSE which are India’s biggest stock exchanges. Nifty in itself is not an instrument but an Index whose value is derived from 50 sto