Leverage - Margin Debt
What is leverage?
Here is a definition of leverage from an online dictionary "leverage - The use of credit or borrowed funds to improve one's speculative capacity and increase the rate of return from an investment, as in buying securities on margin."
Essentially, the core idea of leverage is...
Not Using Stops while Trading
For those of you who follow our trading on our blog at www.livingonlargecaps,blogspot.com, you will have noticed we do not enter a stop, when we enter our positions. It is actually the #1 question we get in our email as well. And in this article we try to explain our rationale for this.
First...
Indian stock market
The working of stock exchanges in India started in 1875. BSE is
the oldest stock market in India. The history of Indian stock
trading starts with 318 persons taking membership in Native
Share and Stock Brokers Association, which we now know by the
name Bombay Stock Exchange or BSE in short. In...
Chasing The High Flyer Of The Day - Don't Do It!!
I am not a big fan of chasing the "hottest" play of the day. Too
many traders feel they have to be in the "big one", the one that
went to the moon, etc., etc. I never felt that way when I was
trading and still don't. If you look at recent history, we have
seen some, if not all, of the biggest...