Stock Market And Traders.

Few days back I posted the same story in my facebook page, But here read at end of the story for something meaningful 

Once upon a time in a village, a man announced to the villagers that he would buy monkeys for Rs 10. The villagers, seeing that there were many monkeys around, went out to the forest and started catching them..

The man bought thousands at Rs 10 and as supply started to diminish, the villagers stopped their effort. He further announced that he would now buy at Rs 20. This renewed the efforts of the villagers and they started catching monkeys again. Soon the supply diminished even further and people started going back to their farms. The offer rate increased to Rs 25 and the supply of monkeys became so little that it was an effort to even see a monkey, let alone catch it! The man now announced that he would buy monkeys at Rs 50!

However, since he had to go to the city on some business, his assistant would now buy on behalf of him. In the absence of the man, the assistant told the villagers. "Look at all these monkeys in the big cage that the man has collected. I will sell them to you at Rs 35 and when the man returns from the city, you can sell it to him for Rs 50." The villagers squeezed up with all their savings and bought all the monkeys.

Then they never saw the man nor his assistant, only monkeys everywhere!

This is the end of the story. Yes this is true, this is how the share market work now a days. If you are there in market for long time and still here then I am sure you are still recovering your losses. Why? Because so far you are one of the villagers in market. The non performing stocks (monkeys) still in your demat account and you are still waiting someone will come and will buy at higher prices.  

The man will never come again to buy your monkeys. He is fooling in other village now. He may come in your village to buy donkey but not monkey. And I am sure you will make the same mistake that you made while selling monkeys.

Can we change this system?  Unfortunately as a common trader we simply can't but we can fight with this in different way. How? Just be a friend of man and agent in story.

You don't have to become a real friend of man or agent but you have to follow them.  How can you follow them? In real market they will not make any announcement that you can listen and act. Here are the simple things you have to follow, If you follow this means you following man and agent. 

1. Without your serious involvement in market, you can't make the money. So get involve in the market, get interest in the market. Always keep positive & winning attitude.
2. Technicals. if you knows bit about technicals, you will know what man is doing right now.  If you don't know technicals, try to learn it. Believe me or not, only this tool will help you througout the market. 
3. You should not trade on news but you should not ignore it as well. Most of the news are announced by agents. 

I think thats all for this time. More about the technicals and their implementation in Youtrader are coming soon in next few blogs. 

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What Are Stocks & Technical Stock Analysis?

Plain and simple, stock is a share in the ownership of a company. Whether you say shares, equity, securities or stock, it all means the same thing.  The Holding a company's stock means that you are one of the many owners (shareholders) of a company. A stock is represented by a stock certificate. In today's computer age, you won't actually get to see this document because your brokerage keeps these records electronically in your demat account. This is done to make the shares easier to trade. The importance of stock ownership is your claim on assets and earnings. Without this, the stock wouldn't be worth the paper it's printed on. But almost the traders today buy it for appreciation of values in market.

How would you know the value will be appreciated or depreciated?  There are two things you can predict, Fundamental Analysis and Technical Analysis.

I don’t talk much about fundamental analysis here. As a common trader and poor knowledge about fundamentals, we can’t predict price movement based on published financials. But we can quickly learn the Technical Analysis and can apply that in our day to day trading.

Technical analysis is a method of evaluating securities by analyzing the statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity. So technical analysis looks at the price movement of a security and uses this data to predict its future price movements. Using technical analysis you can predict small, medium and large price movement.

Every technical analyst has its own methods to analysis. There are thousands of indicators to analyze but practically it’s impossible to apply all one together. We should stick with specific indicators in day to day trading.

YouTrader provides following technical indicators

Pivot, MACD, Moving Averages, Exponential Moving Averages, RSI, Slow Stochastic Oscillator

These are all available in interval of 2MIN, 5MIN, 30MIN, Daily and Weekly.

I will post all the details about these indicators and how those are applied in YouTrader in coming blogs.

Happy Reading….

What is YouTrader?

Usually peoples download YouTrader and ask me first question, what is YouTrader? Many times it’s hard for me to explain about YouTrader. Four and half years ago I developed small tool in Microsoft Office Excel for my trading and never thought this would take this shape in future. What I just wanted initially to have live prices in Excel so I can put my formulas in other cells to do some kind of analysis. And that’s all, this started with Excel and latter shifted the whole things in Windows application for faster execution. So my first answer to the question is that YouTrader is windows application that run on Windows XP and latter. It should work on earlier windows versions as well but never tried.

OK you have the first answer and second answer is already hidden above. It is Stocks Analysis tool where you can analyze the stocks to find the current trend of the stock using different technical available in YouTrader. I am sure I will describe all those technical details in coming blogs. But before discussing technical, I would like to blog about the stock market, trader and their relationship with real life that I experienced in Stock Market. Without understanding this there is no meaning how you use technical and trading stocks. So let’s start from the base and wait for my next blog “Stock Market and Trader”

Happy Reading…