Trading a Chess Board

If you are an investor – novice or professional, a few important things need to be picked up from the game of Chess. A trader is an argumentative subset of an investor and it becomes all the more important for him or her to follow a few rules – Rules of the Road.

Chess play is an art and not a science although it requires calculation and avid sense of logic. One, who is a trader doesn’t go by the rules and often pay the price for misjudgment of their own investment. Learning how to play Chess can help them overcome the same.

The different categories of pieces have their own significance based on how they move on the board. Let’s put a price tag on each of the categories based on their supply and demand and not to forget the type of their individual move.

Chess and Trading

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Overbought Stocks: How to Identify and Take Advantage

The term “overbought” is used to describe a stock or market that has advanced or reached a point, from where it historically retreated or moved lower. To identify overbought conditions in markets, traders and investors use technical indicators known as oscillators.

Also, we can say that overbought is a situation, where investors have bought the stock abundantly, and now the stock is seeking to take a reverse and move to a lower price.

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Carry Trade: What is the return on your Investment?

A carry is generally classified as the difference between the cost of funding an asset and the return different derived from it. Needless to say, it may not always be positive. For there could be situations where the profits generated by a company may not be more or equal to the cost of funds, thereby generating a loss and incurring a negative carry.

Carry trades, though same in principle, are however not viewed in terms of business generating profits. They are looked at more globally in terms of various currencies and the borrowing / lending interest rates that these currencies offer. It is a termed a currency Carry Trade. Carry trades are available in commodities as well, copper carry trade being most popular, but the underlying theme of carry trades in the financial world arises from the interest rate differential between several countries.

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Is Ganpati a Market-Mover?

Ganpati Trade Smart Online

As an investor the question often comes in mind whether festivals have an impact on the Indian Stock Market. As the second half of the Indian calendar year arrives, the list of festivals keep growing and one tend to think if more money should be invested to reap more profits. Let’s pick the S&P CNX NIFTY as a test criterion, as it has the most number of liquid scrip in the portfolio.

With Ganesh Chaturthi arriving, it’s important to do some measured analysis based on historical to evaluate the impact of this auspicious day. A series of daily returns from the historical closing prices have been generated. Continue reading

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