Iron Condor

THE NATIONAL STOCK EXCHANGE OF INDIA (NSE) Located in India’s financial capital Mumbai, the National Stock Exchange (NSE) is the third largest stock exchange in the world. During 31 December 2005, NSE VSAT terminals, 2799 in total, were spanning across 320 cities of India. The NSE has been a podium for securities exchange for 14 years now! Thousand member strong, NSE provides dealing of different securities, some of them being equity, corporate debt, certificate of deposit, commercial paper, and central and state government securities. National Securities Clearing Corporation, India Index Services and Products, National Securities Depository, and NSE-IT (trading technology) are the associates of NSE. Owner of diverse financial and insurance establishments, NSE can be broadly divided into three segments:

 

GENESIS OF NSEIt all began 16 years back, in November 1992, when the NSE was integrated as a tax-paying company. In April 1993, NSE was given the status of a stock exchange under the Securities Contract (Regulations) Act of 1956. A year later, in June 1994, NSE began operations in the Wholesale Debt Market (WDM), and in November that year, the Capital Market (Equities) Segment of the NSE began operations. Two years hence, in 1996, NSE became the first exchange in India to trade derivatives specifically on an equity index. In the new millennium, NSE began Indian Internet Online trading system. Today the NSE deals in online examinations and award certification. Comprising branches all over India, NSE introduced India’s first clearing corporation (National Securities Clearing Corporation Ltd.) and India’s first depository (National Securities Depository Ltd.). NSE is India’s earliest national, anonymous, electronic limit order book (LOB) exchange that deals with securities.

MARKET INDICESNSE established an index services firm called IISL – India Index Services and products Ltd. – and opened numerous stock indices, including:

 

The other NSE Indices are:

 

MARKET CAPITALISATIONCurrently, NSE has four important capital market segments:

 

MAJOR COMPANIES OF NSEThe major companies listed with the NSE are:

 

The top investors of NSE are:

 

LOCATION OF NSENational Stock Exchange of India Ltd.Exchange PlazaPlot No. C/1, G BlockBandra-Kurla ComplexBandra (E)Mumbai 400051

BOMBAY STOCK EXCHANGE (BSE)

Having its headquarters in Mumbai, the BSE SENSEX is the stock index or SENSitive indEX of the BSE. The oldest stock exchange of Asia, the BSE SENSEX, also known as BSE 30, is the focal stock index of India. There are 4800 companies listed with the BSE. As of July 2007, the total equity market capitalization of the Bombay Stock Exchange was US$ 1.005 trillion. The Singapore Exchange has become an alliance of BSE by acquiring a strategic investment in the BSE.

GENESIS OF BSE

Way back in 1986, the BSE introduced the stock index that eventually became the most important stock index of the country. The SENSEX was based on market-capitalisation-weighted method and included stocks of some of the top financial houses. Noted financial analyst and columnist, Mr. Deepak Mohoni in the year 1990, introduced the term “BSE SENSEX” which is an acronym for Bombay Stock Exchange SENSitive indEX. Since September 2003, the SENSEX is measured on the method of free-float capitalisation.

MARKET INDICES

Apart from maintaining the BSE SENSEX, the Bombay Stock Exchange also maintains stock indices like:

 

The BSE gives information on the price, charting, announcements, company contact, shareholding pattern and results of the companies that are enlisted in the exchange. The Board of Directors, encompassing eminent financial professionals, Managing Director of the exchange, and the representatives of the Trading Members, maintain the overall functionality of the exchange.

BSE also gives the Beta value of the SENSEX Scrips, Beta being calculated by the formula: Beta = Co-Variance (SENSEX, Stock)/Variance (SENSEX).

While listing securities that may be from public limited companies, central government, state governments or other financial institutions, there are certain objectives followed by the BSE:

 

BSE SENSEX OVERVIEW

The BSE SENSEX comprises thirty stocks and is a value-weighted index. The stocks listed here are the most active stocks on the BSE. The BSE SENSEX has a base value of 100. The relevant authorities update BSE SENSEX and in the process inspect and change the SENSEX, the underlying idea being that the SENSEX represents the prevailing market condition.

BSE PERFORMANCE

Since June 1990, the BSE Index has been increasing ten-fold. As per the data available, since April 1979, the long run rate of return on the BSE SENSEX has been at almost 0.52% every week, with the rate of standard deviation being almost 3.67%. The returns thus have been 27% per year. However after inflation, the figure has come down to 18% per year.

BSE COMPANIES

Given below is a catalogue of stocks listed in the BSE:

 

Humans are hard wired in life to succeed and by definition we measure success by successful achievements. When people try their hand at stock market trading they try use the same measurement and inevitably become stuck in a loop of jumping from system to system tweaking this and that and eventually giving up.

This brings us to what in my opinion is one of the principle causes for the 90%ers of Net-Losers-United which Holy Grailism. The average loser comes up with a good system, however irrespective of win rate all systems can and will go through strings of losses. What will the average spread better do when faced with the inevitable, a succession of trades going against them? They lose faith, dump their system, and go looking for a new one. Not everybody will agree with me on this, but I am firmly convinced that a good, robust system, a system that is aligned with how markets work, would have worked in the day and age of Jesse Livermore just as well as today. Reminiscences of a stock operator is what taught me trading, and that book is a hundred years old. I do not think that markets change, simply because humans don’t change, and humans are the ones that drive markets, be it discretionally or through computer models that humans wrote, it’s always a human at the end of the day that influences what happens. Markets just simply are not predictable… Why are markets not predictable? Because Markets are nothing else than the collective result of all their participants actions… Actions driven by hope, fear and greed, on what will happen next. There is no inner logic to markets, there is no system to markets, and there is no secret explanation to price development… Anything can happen at absolutely any time if somebody influential gets a brain fart and shares that with the media, or if a large enough order pushes a market in a direction opposed to what your clever analysis would have you believe should happen next… Markets are simply constantly being pushed to and fro by the diverging interests of all their participants, all following their own agenda. A market is nothing else than a conglomeration of huge numbers of participants all following totally different objectives… You have hedgers, you have speculators. You have fundamental traders, you have technical traders. You have scalpers, day traders, swing traders, position traders. You have participants that see the same price levels, yet for some the price is too high, for others it’s too low…etc Every participant in the markets has a different perceptive, different objectives, and different risk parameters. That is why the notion of predictable markets which follows some inner system is nonsense, and that’s why the search for the Holy Grail to unlock the hidden market secrets is a quest best left to the 90% of net losers. The market is composed not of an inner logic or system that is separate from its constituting participants, no, a market is nothing but the sum of its constituting participants, each of whom has his own agenda, doing his own thing. Anybody who honestly believes that markets do what technical analysis says they should do next should just watch Mr Soros buy 10 Billion Euros and see what happens to all their clever analysis.In fact you can generate a random chart of anything, and that chart will look exactly like a real chart of a real instrument! Anybody who honestly believes that a chart of a real instrument will look different than its random counterpart has just never looked at a random chart. BUT, where academia gets it wrong, is that randomness of markets absolutely does not mean you cannot profitably trade them. Random charts have tradeable trends just like all charts do. The real problem is that people like to believe that they are clever, and that they can, through their cleverness, analyse situations, come up with the correct answer, and solve problems. Ego dictates that people have a real need to believe that success is their very own achievement, while lack of success is usually attributed to circumstances beyond their control. Look, we know that trading has nothing to do with being right… Brett Steenbarger says ‘…As a rule, maximizing batting average/minimizing drawdown comes at the cost of lowering overall system profitability….’ Why do people still insist on wasting time, money and effort on solving problems that do not exist, on trying to outwit what cannot be outwitted, markets that are nothing else than the sum of all our actions ? There is no pattern that tells you what will happen next, BUT you do not need that to make more money than you can ever spend. Stop chasing the holy grail, stop believing that if you just keep on studying markets you will one day be able to predict what happens next, you do not need to feel that you understand price to get rich. Markets can go up, down or sideways, that is all they do. All you need to make a fortune is to do what any kid in kindergarten could do, grab a chart, eyeball where the path of least resistance is, jump on board, cut your losses when and as they occur, and otherwise ride that trend all the way until it bends. Trading is nothing than a probability game. You create your positive expectancy not through predicting markets. You create your net profitability through your preferred combination of risk / reward ratios and win rate, through either on average letting your winners run longer than your losers with a lower win rate, or by cashing in smaller winners than losers albeit with a higher win rate. That is all trading is, it’s not about being right, it’s about making money by understanding that it’s just a numbers game. Next time someone tells you they have a great new system that’s going to beat the markets just give Mr Soros a call and tell him to buy ten billion worth of EUR/USD while watching your friends pipe dream go up in smoke. Like Exile says, trading is simple, maybe not easy, but simple.KISS!

if you want to invest money on the stock market but don’t know how, there are different options open to you. You can hire a company (or broker) to trade for you or you can use stock trading software to help you make investment decisions.
Investing money in the stock market can be very profitable if you know what you’re doing.
But what if you don’t know what you’re doing? What if you don’t know how to trade on the stock market or where to begin?
If you want to invest money in the stock market, but you don’t know how to go about it you do have options.
Many people think that to make money on the stock market you have to have intricate knowledge of how the system works and how to make wise investment decisions.
But you don’t have to do it all yourself.
You can employ companies, both online and off line to do your trading for you. You just allow them to invest the money for you and set them limits of how much you want to buy stock for and when to sell it.
But a more popular way of trading on the stock market these days, is by using stock trading software.
Stock trading software helps investors to make smarter investment decisions without having to do all the heavy and time consuming analysis of the stock market.
It provides all the data for you so that you can make fast, and easier, decisions and the software is good for short and long term investors as it allows you to make all the decisions on investments yourself.
But there are so many different types of stock trading software and robots available, that it can be hard to choose which one will be right for you. So you need to decide which is the most suitable for you by how comfortable you are using it, because if you feel comfortable with it, you feel more confident.
Some software let you trial them for a month or two first while others contain really good in-depth tutorials to make sure you have a complete understanding of how it works.
Software that has been established longer will have a better understanding of market trends, and if it’s been around for a while then it must be good.
Multifunctional software gives you more options such as real-time stock market quotes whereas more one-dimentional software gives you less options. But there is no get-rich-quick software, so don’t believe any hype you may read.
If you try a piece of stock trading software or robot and find that you don’t like it, then don’t stay with it. Find something that suits you and your needs.
Stock trading software is a really good tool and can be very useful, but ultimately, remember that you are the one responsible for the stock trading choices you make. Using software won’t make the decisions for you, but it will provide you with all the tools you need so that you can make the right decisions.