Answers To Questions For SIP Final Evaluation

Answers to questions for SIP Final Evaluation
• Swing Trading/Intra-day trading
 swing trading is when we make positions for a week or more than a week. intraday is when
we make positions for the same day and squared off before market closes
• Resistance and Support patterns
 Resistance is the price range at which price touches it but not crosses it.it is on higher side.
support is the price on the lower side at which price holds and rebound from there. there is
a chance that resistance could become support and support could become resistance due to
huge volatility in the price
 when price touches several times resistance but not crosses it on closing basis we sell the
stock when crosses on closing basis we go long
 when price reaches the support level but don’t cross on closing basis we buy when closes
below we sell
• Margin Exposure
 margin exposure is the leverage provided by the broker to make positions.

 Big n big trade + : 6.66x Nd big trade f&o is 1.33x
• Averaging the price to trade
 averaging is the process to add positions when price falls to expected range and bring the
cost down to earn more returns
• Position Sizing
 position sizing is the qty which one are comfortable to trade with without any tension
 Cross selling:-
If I sell burger to a customer and along with that sell fries too, as a combo; it is called cross selling.
From SIP pt. of view, I opened my demat account n later I opened other people’s accounts as well.
 Upselling:-
If someone already has a product, n I later sold him a related yet superior and expensive product to
him; it is called upselling.
From SIP point of view, I sold Demat account to other people, but if anyone of the customers had
agreed to open PMS i.e., invest huge capital for long term investment objective, it is called upselling.
 Descriptive Analysis:-
Statistical tool which is used to carry out a summary statistic that quantitatively describes or
summarizes features from a collection of information.
-Standard Deviation is based on the distance from the mean.
-that Capital Appreciation and Stable Dividend has the lowest standard deviation 0.696 and 0.703
resp., on the other hand Level of risk have a standard deviation of .949, which suggests that it is the
least important factor for an investor while investing into an investment avenue.
 Predictive Analysis:-
Analytical tool which uses many techniques from data mining, modelling, machine learning, etc.
to analyse current data to make predictions about future.
Other Notes:-
Unsystematic Risk
Specific risk or unsystematic risk is the component of price risk that is unique to particular events of
the company and/or industry. This risk is inseparable from investing in the securities. This risk could
be reduced to a certain extent by diversifying the portfolio.
Systematic Risk
An investor can diversify his portfolio and eliminate major part of price risk i.e., the
diversifiable/unsystematic risk but what is left is the non-diversifiable portion or the market risk-
called systematic risk. Thus, every portfolio is exposed to market risk. This risk is separable from
investment and tradable in the market with the help of index-based derivatives.
When this particular risk is hedged perfectly with the help of index-based derivatives, only specific
risk of the portfolio remains. Therefore, we may say that total price risk in investment in securities is
the sum of systematic risk or market risk and unsystematic risk or specific risk.
Risk perception involves peoples' beliefs, attitudes, judgments, and feelings as well as their
values—both social and cultural—and dispositions. It plays a prominent role in peoples's
decision-making process and thus in the case with the decision to invest in equity shares.
There are several different kinds or risk, including investment risk, market risk,
inflation risk, business risk, liquidity risk etc.
You can reduce your investment risk by weeding out stocks with high P/E ratios, unstable
management and inconsistent earnings and sales growth. Diversify your
investment portfolio across investment product types and economic sectors.
Diversification reduces your overall risk by spreading it over a variety of products.
The appropriate measure of risk for a diversified portfolio is beta.
Important trade hour timings:
a) Equity and derivatives: 9.00am preopen market; 9.15am-3.30pm
b) mcx: 9.00am-11.30pm
c) currency: 9.00am -5.00pm USA- Nasdaq, Dow Jones, S&P 500
d) USA 7pm to 1:30am in the morning Singapore- SGX Nifty
e) Singapore 6:30 am to 11pm

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Answers to questions for SIP Final Evaluation

• Swing Trading/Intra-day trading

• Resistance and Support patterns

 margin exposure is the leverage provided by the broker to make positions.

• Averaging the price to trade

-Standard Deviation is based on the distance from the mean.

d) USA 7pm to 1:30am in the morning Singapore- SGX Nifty

e) Singapore 6:30 am to 11pm

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