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understanding options trading

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  • Basics of options trading
    • Financial market | Definition, functions and types
    • Derivatives | Definition & types of contracts
    • Options trading – Definition with examples
    • What is the difference between an investor and a trader?
    • A brief history of options trading
    • How to select the underlying asset?
    • Trading Psychology
  • Basic economics
    • What is economic analysis?
    • Economic system | Definition and types
    • Market failures and government intervention
    • Government receipts | Revenue and capital receipts
    • What is the difference between assets and liabilities?
    • Why making a budget is important?
    • What is GDP?
    • What is inflation?
    • Fiscal policy and Monetary policy
    • What is the measure of standard of living?
  • Technical analysis
    • Dow theory
    • Market Cycle
    • Market Trends
    • Price Channels and Rectangle Formations
    • Support and Resistance
    • Chart Patterns
      • Chart Patterns (Part 1) – Head and Shoulders Pattern
      • Chart patterns (Part 2) – Triple top and Bottom Pattern & Double Top and Bottom pattern
      • Chart Patterns (Part 3) – Triangle Patterns
      • Chart Patterns (Part 4) – Broadening Formation, Flag and Pennant Patterns
      • Chart Pattern (Part 5) – Wedge and Rectangle Patterns
      • Chart Pattern (Part 6) – Cup with Handle and Inverted Cup with Handle Patterns
    • volume analysis
      • Role of Volume in Trading
      • Important points to remember during volume analysis
  • Book recommendations with reviews
    • Personal Finance books
    • Books on Options Trading
      • Books on Technical Analysis
        • A book review on Encyclopedia of Chart Patterns by Thomas Bulkowski
      • Books on Economics
        • A book review on IIM – Day to Day Economics by Satish Y. Deodhar
  • Home
  • Basics of options trading
    • Financial market | Definition, functions and types
    • Derivatives | Definition & types of contracts
    • Options trading – Definition with examples
    • What is the difference between an investor and a trader?
    • A brief history of options trading
    • How to select the underlying asset?
    • Trading Psychology
  • Basic economics
    • What is economic analysis?
    • Economic system | Definition and types
    • Market failures and government intervention
    • Government receipts | Revenue and capital receipts
    • What is the difference between assets and liabilities?
    • Why making a budget is important?
    • What is GDP?
    • What is inflation?
    • Fiscal policy and Monetary policy
    • What is the measure of standard of living?
  • Technical analysis
    • Dow theory
    • Market Cycle
    • Market Trends
    • Price Channels and Rectangle Formations
    • Support and Resistance
    • Chart Patterns
      • Chart Patterns (Part 1) – Head and Shoulders Pattern
      • Chart patterns (Part 2) – Triple top and Bottom Pattern & Double Top and Bottom pattern
      • Chart Patterns (Part 3) – Triangle Patterns
      • Chart Patterns (Part 4) – Broadening Formation, Flag and Pennant Patterns
      • Chart Pattern (Part 5) – Wedge and Rectangle Patterns
      • Chart Pattern (Part 6) – Cup with Handle and Inverted Cup with Handle Patterns
    • volume analysis
      • Role of Volume in Trading
      • Important points to remember during volume analysis
  • Book recommendations with reviews
    • Personal Finance books
    • Books on Options Trading
      • Books on Technical Analysis
        • A book review on Encyclopedia of Chart Patterns by Thomas Bulkowski
      • Books on Economics
        • A book review on IIM – Day to Day Economics by Satish Y. Deodhar
  • Technical analysis

    Support and Resistance

    / October 30, 2020 / 0 Comments

    Before discussing Support and Resistance, let us first understand the concept of supply and demand.   What are Supply and Demand?   Supply and Demand depict the relationship between sellers and buyers. Supply…

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  • price channels and rectangle formations
    Technical analysis

    Price Channels and Rectangle Formations

    / October 23, 2020 / 0 Comments

    In Price Channels and Rectangle Formations, price moves in between two parallel lines. Breakout from these decides the further trend.   Price Channels are made up of two diagonal but parallel lines, so…

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  • Market Trends
    Technical analysis

    Market Trends

    / October 18, 2020 / 0 Comments

    The market moves in a trend and “trend is your friend until its bend”, a saying which every trader or investor should follow. It is one of the most important principles of Dow…

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  • market cycle
    Technical analysis

    Market Cycle

    / October 9, 2020 / 0 Comments

    What is the Market Cycle?   Markets do not move straight in one direction, they go up, reaches a peak, comes down and at last hit the bottom. This process repeats again and…

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  • Dow Theory
    Technical analysis

    Dow theory

    / October 2, 2020 / 0 Comments

    A brief history of Dow Theory   In 1882, Charles Henry Dow co-founded Dow Jones Company (a publishing company of financial news) with his partners Edward Jones and Charles Bergstresser. Charles Dow was also the…

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  • Important points to remember during volume analysis
    Technical analysis,  volume analysis

    Important points to remember during volume analysis

    / August 21, 2020 / 0 Comments

      There are certain points which we need to remember while analysing volume, some of them are discussed here:-   1. Volume analysis is a self-reliant analysis; no special automated software is needed…

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  • Role of Volume in Trading
    Technical analysis

    Role of Volume in Trading

    / July 21, 2020 / 0 Comments

      Volume is the validity of price movement. It is an extremely important parameter which one should not ignore, as it shows the strength of price movement.  Volume is the total quantity of…

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  • Chart Pattern (Part 6) - Cup with Handle and Inverted Cup with Handle Patterns
    Technical analysis

    Chart Pattern (Part 6) – Cup with Handle and Inverted Cup with Handle Patterns

    / July 16, 2020 / 0 Comments

    These patterns are continuation patterns and were developed by William J. O’Neil which he had mentioned in his book “How to make money in stocks”. (Buy this book on Amazon) They are basically…

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  • Chart Pattern (Part 5) - Wedge and Rectangle Patterns
    Technical analysis

    Chart Pattern (Part 5) – Wedge and Rectangle Patterns

    / July 15, 2020 / 0 Comments

    Wedge Patterns   Wedges are the most unpredictable patterns, as their prior trend and trend after the breakout is uncertain. They are short term patterns and are of two types; 1. Rising wedge pattern…

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  • Chart Patterns (Part 4) - Broadening Formation, Flags and Pennants Patterns
    Technical analysis

    Chart Patterns (Part 4) – Broadening Formation, Flag and Pennant Patterns

    / July 13, 2020 / 0 Comments

    There are certain chart patterns which are very much similar to the other ones. Some of them are discussed here. 1. Broadening formation – It is a different type of triangle pattern. It…

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