Useful resources on DERIVATIVES

Web provides top class resources on financial markets,trading and exchanges.

1. Derivatives FAQs by Ajay Shah, an original thinker in Financial Economics. Although the document is

a bit dated, his prose reminds me of the style of Larry Harris in Trading & Exchanges

2. Another original piece by Dr Ajay Shah

Interesting Readings

Stop Loss is a commonly discussed topic in Trading Rooms. Disagreement over the use of stops is common among experienced traders.

1. Scholarly opinion on Stops at DailySpec
2. Modern Classics of Trading here

World Class education on Trading - for Free

For a motivated student of markets  , Web offers a feast of trading education resources.

1. Understanding Technical Analysis to the core from  Corey Rosenbloom.
2. Concepts and techniques of Intraday Trading  by  SMB Capital
3. You have to drink and eat every post of the God of Trading Psychology.
4. Scholarly education for a speculator from the Giant in the field of Speculation.
5. Plenty of trading ideas and model templates from Stocktwits

Are you a Day Trader?

One of the common points of discussion among traders is about their timeframe. Day trading, Swing trading or position trading  or scalping ?

1. Many traders defend and elucidate the advantages of their timeframe ( for ex Intraday).
2. The point is I am a trader. Depending on the opportunity presented by the market I am flexible with the time frame.
3. Drakoln of  Speculator Academy opines on this here.
4. Tucker Report has  thoughts on Day Trading and opportunities in Very short or very long time frames.
5. Trader  Mike has an interesting take on Day Trading.
6. A scholarly day trading approach by DailySpec Lister .
7. Every trader has a niche. He has to practice and perfect it.
8. Trading intution can only be gained by years of Screen time.

Where will the market go today?

This is a common query by market participants. I have a different opinion on this.

1. As an intra-day trader I dont like to have a fixed opinion on the market direction.
2. The moment I express my directional opinion if any I am locked into this opinion and finding it difficult to trade.
3. Each instrument you trade has a different market. Many participants may not recognise this. They may not necessarily follow the broad market direction.
4. Though this may appear simple , clarity in basics will be of utmost importance.
5. The amount of information already reflected in the stock price and the trader's evaluation of this relative opinion ( ex : Crompton Greaves reaction to Avantha Power IPO, Sesagoa's inclusion in NIFTY, KVB's reaction to Rakesh Jhunjhunwala's announcements )

INTRADAY FUNDAMENTALS

Intra-Day Trading  requires lot of attention to detail and a science in itself.

1. I have been inspired by several concepts from SMB Trading Blog like Stocks in Play, Second day plays, Earnings play.
2. Combining Intraday fundamentals with technicals.
3. Traders' intution as a result of  years of screen time ( 10 yrs min according to Outliers by Malcom Gladwell),ability to process breaking news ( witnesses in TCS - Friday) will result in good trades.
4. Identification of Niche of the trader is important since it tells us where the escape routes exist.