Free Stockscreener

Wow. The web is a goldmine for motivated and interested market participants. Lot of tools and Information is available free!

1. Excellent Stockscreener here
2. Any Intraday stockscreener available ?
3. Nice fundamental data here
4. Free downloadable books on stockmarket here
5. Another good screener here
6. Even horly intraday screener here
   

Long Volatility Trade in October

I have tried to look at monthly volatility of NIFTY Index.

1. The inspiration for this post here.
2. Average Monthly range is taken as proxy for volatility ( Ln(H/L))
3. Data from 2003 to Apr 2009 is available - 76 data points
4. Most Volatile month is October at 18.94%.
5. Least Volatile month Feb at 8.83 %
6. October has highest correlation of volatility with previous month at 0.98. Even though volatility clusters this is pretty high

What are the Implications ?

1. Given that Volatility is low till now can we expect increase in volatility or this time it is different?
2. India VIX low
3. Will the low IV s signalling a blowout run in Indian markets ?
4. If the hypothesis of October expected to be volatile can we set up a options strategy being Long straddles

Trading Education Framework

I am taking up a project to launch real time training for short term traders in Hyderabad.

1. The motivation for this program came after seeing lot of trainers selling tips, Blackbox system sellers.
2. My aim is to provide a framework for understanding market activity.
3. Taking market microstructure as a base ( Trading & Exchanges by Larry Harris ).
4. Topics I am going to discuss and share include Charting basics, Trading Psychology ( drawing inspiration from Dr Brett ) , Qualities needed for a Speculator ( EdSpec by Victor Niederhoffer)
5. How to Understand Intraday Action ( SMB Capital is my Inspiration )
6. Basics of Derivatives ( Understanding Volatility and Options )
7. Combining all the elements into a framework ( Concepts of Auction theory and Market Profile)
8. Utilizing Fundamentals and Macroeconomics as a handle for Trading decisions

I am going to release ads offering this service as fully refundable if not satisfied after one week of training and mentoring the traders. This is my way to share what I have learnt . I dont claim to be perfect though. I feel this knowledge is necessary for any trader.

Trade Tiger of Sharekhan

My friend opened a franchisee of Sharekhan. I got to see their TradeTiger Platform.

1. It has good charting facilities. Chart updation and clean screen impressed me more than ODIN Diet 9.1.0.5.
2. Tick, 1,3,5,10,15,30,60, upto monthly charts available and fast updation on the platform.
3. I am unable to keep ATP on the Market watch ?
4. ATP is coming as a fixed line on the chart. Can I see the building up of ATP in real time. I am not sure. One popular indicator with American markets is VWAP and its MA.
5. I felt brokerage charges are bit high ( default of 0.05% intraday) for my style of trading.

TA & Price action

My idea of understanding Technical analysis found resonance in an excellent post by Newton Linchen in his characteristic clarity.

1. Earlier I struggled with Charts having huge number of Indicators , Filled with lines. But now I feel simplicity is the best and understanding of price action is more important than indicators.
2. Basics of candlesticks and how they are forming is intutively appealing.
3. I find Maoxian's illustration of charts worth studying.
4. Illustrating how the process of arriving at a trading decision and the details of building evidence before the trade is the hallmark of good trading educator.
5. After the fact the patterns appear to be very easy and to see the Seminar gurus keeping on explaining the left hand side of the chart is irritating. The trader has the challenge of deciphering the the hard righthand side of the chart.
6. In many cases market moves by surprise and with violence. What you see on the charts might have happened in one bar or spike. The trader studying static charts with indicators does not realize this.
   

Trader Education

I have noticed increased interest in Trading Education. Yesterday I attended a 1-Day Course on Trading by Mr Vivek Khemka, CA and CFP by Qualification. Some of my observations

1. Youth are increasingly participating in the Trading of stocks. Business Line also reported on a Google survey .
2. Online trading increasingly democratised access to financial markets.
3. IT & Software employees are increasingly being attracted to Trading the markets. This is anecdotal evidence of my observations.
4. Youth is adapting currency trading diversifying away from stocks.
5. I have observations of Women Traders also actively trading in Hyderabad and even special branches of Brokerages for women in Hyderabad.
6. Some of the trading educators in Hyderabad whom I have come across are Mr Ajay Kumar, Mr Vivek Khemka, Mr Damodar Sai. Their focus is on TA and Chart patterns with a bit of Trading psychology and money management thrown in.
7. Some times I wonder what is the prerequisite for a trading educator. Because there is no curriculum or Common body of Knowledge as in other fields. Lot of opacity and non verifiable track records in this field.