Trading Fundamentals

Algorithmic (Algo) Trading

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Algo trading uses automated systems to execute trades based on pre-defined conditions, reducing human emotions in decision-making. Key Points: Uses high-speed computing and mathematical models to trade. Includes High-Frequency Trading (HFT), where trades are executed in milliseconds. Common in institutional trading and hedge funds. Time Frames Used: Milliseconds to minutes for HFT 5-minute (M5) to … Read more

Bottom-Up Approach

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The Bottom-Up Approach focuses on analyzing individual companies first, rather than starting with macroeconomic or industry-wide trends. This method is based on the belief that a well-performing company can outperform its sector or even the broader market, regardless of economic conditions.  Steps in the Bottom-Up Approach Company Analysis: Analyze financial statements, revenue growth, profitability, debt ... Read more

Top-Down Approach

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The Top-Down Approach begins with a broad analysis of macroeconomic factors before narrowing down to specific sectors and finally selecting individual assets (stocks, commodities, or currencies). It is based on the idea that overall economic conditions significantly impact the performance of industries and companies. Steps in the Top-Down Approach Macro-Economic Analysis: Analyze global and national ... Read more

Swing Trading

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Scalping is an ultra-short-term trading strategy that focuses on capturing small price movements within a very short time frame, often lasting seconds to minutes. Scalpers aim to make dozens or even hundreds of trades per day, accumulating small profits that add up over time. Since scalping relies on quick execution and low spreads, it is ... Read more

Position Trading

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Position trading is a long-term strategy where traders hold positions for months to years, focusing on major market trends. It is similar to investing but involves active monitoring of economic conditions, sector performance, and macroeconomic indicators. This approach is less concerned with short-term volatility and more focused on capturing significant price movements over time. Nifty ... Read more

Intraday (Day Trading)

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Intraday trading, also known as day trading, involves buying and selling financial instruments within the same trading day to take advantage of short-term price movements. Unlike scalping, which involves very quick trades, intraday traders hold positions for minutes to a few hours but always exit before the market closes. Instruments like Nifty and Bank Nifty ... Read more

Swing Trading

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Position trading is a long-term strategy where traders hold positions for months to years, focusing on major market trends. It is similar to investing but involves active monitoring of economic conditions, sector performance, and macroeconomic indicators. This approach is less concerned with short-term volatility and more focused on capturing significant price movements over time. Nifty ... Read more

Position Trading

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Position trading focuses on long-term market trends, with trades lasting several months to years. The goal is to capture major price movements rather than short-term fluctuations. Key Points: Similar to long-term investing but involves active monitoring and adjustments. Relies on fundamental analysis, economic indicators, and macro trends. Best suited for stocks, ETFs, commodities, and long-term ... Read more

Dow Theory

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Dow Theory, developed by Charles H. Dow in the late 19th century, serves as the foundation of modern technical analysis. It provides traders with a structured approach to understanding market trends, price movements, and investor behaviour. Though Dow never formally documented the theory, his editorials in The Wall Street Journal laid its groundwork. Over time, ... Read more

Scalping

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Scalping is an ultra-short-term trading strategy that focuses on capturing small price movements within a very short time frame, often lasting seconds to minutes. Scalpers aim to make dozens or even hundreds of trades per day, accumulating small profits that add up over time. Since scalping relies on quick execution and low spreads, it is ... Read more