Types of companies in Stock Market

If you want to invest in any company first you should know about company. So for understanding the company we will start with types of company and how many sectors are in stock market.

Basically there are three types of companies in stock market

1. Large cap

2. Mid cap

3. Small cap

Stock market has distributed companies on the basis of their market capital.

Large cap companies has huge market capital and mostly are fully developed companies. Nifty 50 and Sensex are indicator of market which include large cap companies to show the trend of market.

Similarly like Nifty 50 and Sensex there are more indicator like Nifty midcap, Nifty smallcap, Nifty Bank etc.

Nifty Midcap has midcap companies as its name shows and Nifty Smallcap shows small cap companies.

Investors prefer to invest in small cap and midcap who are risk taker because small and midcap are in developing stage so their value of share is lower than the large cap companies. small and midcap companies provide more returns than large cap companies.

INVESTMENT VS SPECULATION

Giving money for expected return on future after considering all factor which will effect your future expect return is called Investment. Whereas speculation means giving money for expected return but not considering anything for example when you buy lottery tickets your future return is dependent on uncertainity there may be posible return or not.

In investment you try remove your risk about uncertain future. I already specify some investment which you can do with little amount and huge amount.

link http://learnbasictrading.blogspot.com/2018/03/5-best-investments-in-india.html

Stock market is place where some person do investment but some do speculation for example when you bought share in market without considering what is company's future return just buy on basis of some tips or price.

Investor do investment in stock market on the basis company's future return or stability of future

Warren buffett famous investor in the world has said that he never do investment in anything until he understand the source of investment so try to understand every minor thing about source in which you are investing your fund.

Pivot Points for Support and Resistance of Share Price

What is Pivot Points ?

Pivot chart is technical indicator which shows support or resistance of shares. Here support means point of level from where share price could stable for a while and resistance also same meaning but difference between them is that support occurs after decline and resistance occurs after rise in the share price.

Basically Pivot points automatically calculated on the basis of last day movement. It is dependent on Last day High, Law, Open and Close. For inserting Pivot Point go to studies of your menu bar 
than search and insert. 

In this picture you can see there is Black line that is pivot points and there are six lines also. Three lines above the pivot points and three lines down the pivot points. The lines which are above the pivot points are called Resistance. Resistance lines named as R1, R2, and R3 on the basis of there nearness to pivot points R1 is first dark red line.

Three lines which are down the pivot points are called Support lines named as S1, S2, and S3.

Dark green is S1 line.

Never take Position when share price is moving around  Support and resistance always take position when share price cross the support and resistance.

Thank you for reading Learn trading blog.

Top 4 Indicators which helps in a trading

There are so many indicators available in technical analysis so now the question arise that which indicators should use for trading. There are some i am suggesting you can choose as per your preference. Indicators are basically classified as there use some are for trend analysis, some are for support and resistance and some are volume.

Candle chart

This indicator mostly used for technical analysis. It shows about trend, volume, open price, close price, high price, low price and it shows the pattern for analysing stocks you need to focused for recognising pattern of Candle sticks.

For more details click on this link http://learnbasictrading.blogspot.in/2018/03/candlesticks-chart.html

 MACD

One of the best indicator for trend analysis olf stocks. Macd is easy to understand. MACD stands for Moving Average Convergence Divergence. 

For more detail click on this link http://learnbasictrading.blogspot.in/2018/04/macd-for-shares-buying-and-trend.html

RSI

RSI is stands for Relative Strength Index. It is one of the best indicator in technical analysis it helps in where to buy and where to sell of Shares.

For more detail click on this link http://learnbasictrading.blogspot.in/2018/04/

Pivot chart

Pivot chart is technical indicator which shows support or resistance of shares. Here support means point of level from where share price could stable for a while and resistance also same meaning but difference between them is that support occurs after decline and resistance occurs after rise in the share price.

how to analyse pivot chart i will upload early.

Thank you for reading this blog.

RSI for finding overbought and oversold situation in shares

RSI is stands for Relative Strength Index. It is one of the best indicator in technical analysis it helps in where to buy and where to sell of Shares.

Basically RSI oscillates between 0 to 100. When it cross above 70 that means share is overbought it can go down and if RSI cross below 30 that means oversold it can go up.





















Here in this picture i select by rectangle the overbought and oversold situation which are above 70 are overbought and which are below 30 are oversold.

MACD for Shares buying and trend analysis

What is MACD ? 

MACD is indicator for technical analysis it helps in identifying trend of market. MACD stands for Moving Average Convergence Divergence. 

How to use MACD ?

Basically Macd use two Moving average line and one centre line. Let's look in picture here one is black line one is red line whenever black line cross red line toward downward the share price goes down that means down trand. Whenever black line cross red line toward upward shares price goes up that means upward. 

If black line cross red line and also cross center line it more confirmed the trand.

Is portfolio helps in a risk reduction?

Don't put all your eggs in one basket

Everyone said that don't invest in one investment vehicle or in one type shares there should be a well distribution of money in investment. Now question arise is how risk reduce in portfolio.

Let's Say Mr. A and Mr. B two best friends when teacher get out one friend another one also goes out with him now both missed the class lecture. In this example both have positive relation.

Just like in share if you invested  in one type of share or one investment vehicle than your portfolio will more risky because you invested all money in two shares but with positive relation.

Now let's say Mr. A and Mr. B are not a good friends but they know each other if teacher get out one another will take class and he will teach him after class. Just like in share and gold if we  invested in both than, if shares price  are down than gold will be up which will reduce your  risk.