On-Balance Volume (OBV)

 

On-Balance Volume (OBV) is indeed a useful tool for stock analysis, providing insights into buying and selling pressure based on trading volume. Here's a summary of its key points:

1. Accumulation vs. Distribution: OBV is a cumulative indicator that tracks volume flow based on price movements. It adds volume on days when the closing price is higher than the previous day's close and subtracts volume on days when the closing price is lower.

2. Uptrend Move: A rising OBV alongside a rising stock price suggests strong buying pressure, indicating a potential uptrend and a buying opportunity.

3. Downtrend Warning: A falling OBV alongside a declining stock price indicates strong selling pressure, signaling a potential downtrend and prompting caution or selling decisions.

4. Divergence Between Price and OBV: Divergence between the price and OBV, such as a rising price with a flat or declining OBV, can indicate potential weakness in the current trend, suggesting that the price increase may not be sustainable.

5. Limitations: While OBV is a valuable tool, it's not a crystal ball for predicting future price movements. It's best used in conjunction with other technical indicators and fundamental analysis to gain a more comprehensive understanding of a stock's health.

6. Using OBV Effectively: OBV is most effective when used for confirmation in conjunction with other indicators. A rising OBV can add confidence to signals from other analysis tools. It's important to consider the broader market context when interpreting OBV readings.

By understanding and effectively utilizing OBV in your stock analysis, you can enhance your decision-making process and gain valuable insights into market trends and potential trading opportunities.

Dividend yield

Whats a good dividend yield in stock market?

The dividend yield or dividend-price ratio of a stock is the dividend per stock, divided by the price per stock. It is also a company's total annual dividend payments divided by its market capitalization, assuming the number of shares is constant. It is often expressed as a percentage.

Whats a good dividend yield?

On average, companies that are in this sector have a dividend yield of 3.2%, while technology companies in the S&P 500 have an average dividend yield of just 1.5%.

How do you calculate dividend yield?

Dividend yield equals the annual dividend per share divided by the stock's price per share. For example, if a company's annual dividend is Rs. 15 and the stock trades at Rs. 1000, the dividend yield is 1.5% (15 ÷ 1000).

A Simple Technique, for Share profit:

I would like to suggest a simple method for share profit. I have practiced this technique and earned some profit during 2012. I have done this to NIFTY shares so that the share price will not fall beyond a certain value. Also I have a suggestion that you buy as many shares as possible, and more shares make the holdings stable and profitable. I will explain my method in step by step.

1. 1.       Buy shares worth Rs. 10, 000.00 for a particular company.
3. 2.       Wait for three days and let the shares be delivered.
5. 3.       Watch the price deviations.
7. 4.       Add more shares if the price drops below 5%.
9. 5.       Sell the holdings if the price jump above 5%.

The Advantage of Online Stock Trading

• When stock trading online you can have easy access to your account and get up to date stock information at any time. Instead of having to wait until the following day's office hours to begin you can just log online at any time and find the information you are looking for.
• When stock trading online you can trade stock how you want and when you want. You don't have to fit into a stockbroker's busy schedule you can work around your own schedule. Online investing gives you complete freedom with your investments.
• When stock trading online youwill save a lot of money and time by trading online and at home.
• When stock trading online you can help online if and when you need it. There are many trained stock brokers online that are there to help you out and work for you in your best interest.

Essentials for Online Stock Trading

Trading stocks online can be a profitable business. One may make some quick bucks by trading shares online. But this is equally risky business also. Most of the online traders have to undergo their trading sections of their own. So an online trader must know the essential details of share trading before jump start into online trading.
Choose proven Trading Style That Works For You
There are different type of online trading like day trading, short-term trading, weekly trading or even monthly trading, consider the nature of these styles and how you can fit them into your way of working. The investors can invest in shares and review the profits and loss after a longer duration also.
Register with a Legitimate Broker
There are scandals and confusions going on everywhere. So make sure that you trade with somebody who is reputable and dependable. All the more the trading broker should be legitimate.
Choose a wise Strategy
Make sure that you choose a trading method that will take advantage of both up and down markets. A strategy that will work in all types of markets will surely be beneficial because you never know when demands for stocks may increase or go down, and surely, you wouldn't want to end up losing money because you failed to foresee the different trends of the market.
Learn all the details About Stocks you trade
It is important to learn every detail about the stocks you deal. Learn everything as far as possible about the company. Take time to know which stocks would be wise to place your investments on through extensive research or even through seeking the help of a professional.
Wish you all success in your stock trading!

Online Stock Trading Advantages and Disadvantages

Online stock trading has opened a new horizon for small scale investors. They can now trade with small amounts from the comfort of their homes. So more and more people are now trying this new investment mode. There are many risks and advantage for this technological development. Let us try to understand what they are.

The advantages are many and the major advantages are in Online Stock Trading Transaction costs are lower and the online stock trader is in complete control. The online stock trader can choose the exact time of a stock trade, rather than place an order with a large broker and wait his turn. This can cost money during a rapid fall in the market. Any trader who traded in earlier days must have faced this. Another advantage is that the online stock trader can change his mind easily to cancel the order or amend it if seems advisable to do so. This is not so easy where a traditional broker is concerned. Yes the trader is in full command of the shares he holds. This can be disadvantageous also.

When it comes to disadvantages the emotions and in experience of the trader will affect and cause loss for the trader.To sum up, online share trading can allow a common investor to participate in the stock market in small amounts. Being in complete control can add tremendous interest in share trading. If not properly guided the investor or share trader may make huge loss also.