Finance and Trading Made Easy - FATME

How To Get Live Streaming Quotes From The Market Watchlist In NOW Or NEST Trading Platform To Microsoft Excel

noreply@blogger.com (A J) — Mon, 6 Jun 2016 16:49:00 +0530

In this post we will discuss the simple procedure to export live streaming quotes from market watchlist in NOW or NEST to Microsoft Excel. Once the data is exported, we can easily set alerts, sort data and get precise price information to perform a quick data analysis. Follow the steps mentioned below.

1) Open Microsoft Excel with administrator rights.
Follow the steps below to start Excel with administrator rights.

Go to Start Menu > All Programs > Microsoft Office > Right click on Microsoft Office Excel > Properties > Select Compatibility > In the Privilege Level, tick mark the “Run this program as an administrator” box.

2) Add the NEST folder in trusted location in Excel.

Open Excel with administrator rights.

Click on Office button at the top left corner of Excel.

Click on Excel options > Select Trust center > Trust center settings > Trusted locations option in the left side > Add new location > C:\Program Files (x86)\Omnesys\NEST3\

3) Restart Excel

4) Open NOW/NEST with administrator rights.

Right click on the NOW/NEST desktop icon > Run as administrator > follow normal login procedure.

5) Use "Link to Excel" option in NEST or NOW
Right click on the market watchlist and click on "link to excel". Then go to Excel and paste it on the excel sheet.

You will be able to see realtime streaming quotes on Excel now.

DJIA Today [FREE DOW FUTURES LIVE CHART] Price Rate

noreply@blogger.com (A J) — Mon, 9 Nov 2015 19:03:00 +0530

5 Minutes Live Futures Chart - Stock Index DJIA Now

1 Hour Live Futures Graph - Dow Jones Industrial Average Today

Daily Time Frame Live Futures Candlesticks Chart - Dow 30 Today

Charts courtesy Finviz

Top 10 Interesting Facts About Dow Jones Industrial Average

1) The Dow Jones Industrial Average often referred as DJIA, the Industrial Average, the Dow Jones, the Dow Jones Industrial, DJI, the Dow 30, or simply the Dow.

2) It was created by Wall Street Journal editor Charles Dow. It is named after Dow and one of his business associates, statistician Edward Jones.

3) The industrial average was first calculated on May 26, 1896 (based date) with 40.94 as base value.

4) It is the second oldest U.S. market index after the Dow Jones Transportation Average, which was also created by Dow.

5) The Dow Jones Industrial Average (DJIA) is a price-weighted index that is calculated by dividing the sum of the prices of the 30 component stocks (Dow Jones Industrial Average components) by a number called the DJIA Divisor or Dow Divisor.

6) Its objective is to represent large and well-known U.S. companies. It covers all industries with the exception of transportation and utilities.

7) The components of the DJIA have changed 53 times in its history. General Electric has had the longest continuous presence on the index, it was added in the index in 1907.

8) Of the original 12 industrials, only General Electric currently remains part of that index. In 1928, the components of the Dow were increased to 30 stocks.

9) The largest one-day percentage drop occurred on Black Monday; October 19, 1987, when the average fell 22.61% from about the 2,500 level to around 1,750. Two days later, it rose 10.15% above the 2,000 level for a mild recovery attempt.

10) The calculation frequency of the index is every 2 seconds during U.S. stock exchange trading hours

Dow Jones Historical Graph since inception

DJIA has a 5.24% compounded annual growth rate since inception!

Dow 30 Components - Top 30 Companies, exchange traded symbols, along with the industries and the date they were included in DJIA.

Analysis of Dow Jones Industrial Average components

Only 5 companies out of 30 are part of index for more than 40 years.

15 new companies i.e half of index has been added in last 18 years.
Apple has been included in the year 2015 while General Electric has been part of Dow 30 for about 108 years!
Businesses need to continuously evolve and innovate to cater to the needs of economy. Very few businesses are able to sustain and survive with ever increasing competition over the period of time.

How is the Dow Jones Industrial Average (DJIA) Calculated?

The Dow Jones Industrial Average (DJIA) is a price-weighted index that is calculated by dividing the sum of the prices of the 30 component stocks (Dow Jones Industrial Average components) by a number called the DJIA Divisor or Dow Divisor.

What is a price weighted index and how it is different from free-float market capitalization based index? - As explained by Investopedia

Price weighted index is a stock index in which each stock influences the index in proportion to its price per share. The value of the index is generated by adding the prices of each of the stocks in the index and dividing them by the total number of stocks. Stocks with a higher price will be given more weight and, therefore, will have a greater influence over the performance of the index.

For example, assume that an index contains only two stocks, one priced at $1 and one priced at $10. The $10 stock is weighted nine times higher than the $1 stock. Overall, this means that this index is composed of 90% of the $10 stocks and 10% of $1 stock.

In this case, a change in the value of the $1 stock will not affect the index's value by a large amount, because it makes up such a small percentage of the index.

Free-float market capitalization based index is a stock index based on free-float market capitalization methodology.

Free-float methodology market capitalization is calculated by taking the equity's price and multiplying it by the number of shares readily available in the market. Instead of using all of the shares outstanding like the full-market capitalization method, the free-float method excludes locked-in shares such as those held by promoters and governments.

Formula to calculate free-float market capitalization

Free-float market capitalization = Share price x (Number of shares outstanding - Number of lockedin shares)

The free-float method is seen as a better way of calculating market capitalization because it provides a more accurate reflection of market movements. When using a free-float methodology, the resulting market capitalization is smaller than what would result from a full-market capitalization method.

Free-float methodology has been adopted by most of the world's major indexes, like the S&P 500 index.

Dow Jones Stocks arranged in descending order of weightage in index

Dow Jones stock list above clearly shows how a high priced stock like Goldman Sachs gets more weight while Cisco Systems gets least weightage because it has the lowest price.

Trading and Investing in The Dow Jones Industrial Average

As DJIA is one of the most popular indices, over the years various financial products have been designed for different kinds of traders and investors. The index is tracked by an exchange-traded fund, the SPDR Dow Jones Industrial Average.

Another asset management firm, ProFunds, issue other related DJIA ETFs such as the Inverse Performance Fund for a bearish strategy on the average. That is, when the Dow trades in negative territory, the ETF trades higher, therefore it is not required to sell short, if one has a bearish goal in mind.

ProFunds also issues the 2x and 3x funds which attempt to match the daily performance of the DJIA by 200% and 300% respectively. The Inverse 2x and Inverse 3x which attempts to match the inverse daily performance by 200% and 300% respectively. In the case of 2x performance, the ETF increases the buying power by leveraging money without using margin.

In the derivatives market, futures contracts include the E-mini Dow Futures (YM), the DJIA Futures (DJ) and the Big Dow DJIA Futures (DD) . Options contracts with long-term expiration options called DJX LEAPS are quite popular. There are also options on the various ETFs.

Conclusion

The above post will help in tracking the movement of Dow Jones Industrial Average in real time. Tracking the index will help to get a bird's eye view of the market sentiment, leading to better planning of trades and management of overnight open position. Questions like how DJIA is calculated and how Dow Jones stock weightage is assigned has been discussed.

If you find the above post helpful do share it with your friends on Facebook and Twitter.

Country wise interest rate arranged in ascending order

noreply@blogger.com (A J) — Wed, 30 Sep 2015 23:50:00 +0530

As the prices of commodities are at multi year low, I see low inflation in coming quarters. So rates are expected to head down as growth concerns remain. Global interest rates scenario after 50 bps rate cut by RBI below.

Questions and answers with "Shriram"

noreply@blogger.com (A J) — Sat, 17 May 2014 17:33:00 +0530

"shriram" has some questions. He has asked these questions in Ilango's blog

1. how do u evaluate / review & push the accuracy of trade entry up ?
2. Do u follow a SAR trade strat or pattern trade style ?
3. Are u a Futurz player , or Option buyer / or Option writer / or Delivery player... which works in which MARKET MODE per ur exp. ?
4. What are the PITFALLS of Full time trading ?
5. What has been ur best / worst monthly return (Nifty pts or % ROI)
6. Do u have a check-list / Ritual / Routine every morn. to get into GROOVE
7. How many scrips / Indices do u track ?
8. How many days does a typical trade last (entry-exit time diff.) ?
9. Do u have a monthly tgt of Nifty pt ?
10. What do u do once Monthly tgt is done ? Do u gun for more, or shut shop ?

Anything else, pl feel free to elucidate !

My answers below :

1. how do u evaluate / review & push the accuracy of trade entry up ?
Answer: I don't do this much as of now as I am trading Options these days. Earlier I tried it after learning "trade grading" from Alexander Elder book - Come into my trading room. Just to give a brief idea, he says you can grade your entry based on intraday range of the day. Your long entry should be made close to day's low and short entry should be made close to day's high. He asked to document this in your trading journal and find ways to better your entries and exits. This surely helps to curb impulse trading and over the period of time increase your profitability. You can read it in detail in his book. I found it was very tedious and gave up the idea. I need to admit that I am not that disciplined in keeping records.

2. Do u follow a SAR trade strat or pattern trade style ?
Answer: I follow SAR strategy when I trade futures. I have been a trend follower always. Never did trend fading in my trading career although most newbies generally start trading with trend fading.

3. Are u a Futurz player , or Option buyer / or Option writer / or Delivery player... which works in which MARKET MODE per ur exp. ?
Answer: I keep changing my strategy. I think this has become my biggest mistake over the period of time. May be it was because I never got any formal training for trading in the market and learnt everything by hit and trial. I trade in all segments. Trading options mostly followed by futures followed by delivery. Delivery is negligible.

4. What are the PITFALLS of Full time trading ?
Answer: One needs to have an alternative source of income apart from trading. Old saying "don't keep your eggs in one basket" applies to full time trading perfectly. Having different income sources keeps you confident and stress-free at your full time trading job.
Short term traders tend to become internet junkies over time. You don't socialize much. Health problems like backache slowly emerge. Trading is just like any other business same risks.

5. What has been ur best / worst monthly return (Nifty pts or % ROI)
Answer: I have had very volatile returns as I traded in futures mostly. I lost almost entire account in January 2008 and also made a lot when RCOM went up 15 % in 3 hours intraday last year and I was long in options! Both these trades were outliers. I have tempered down my expectations from markets, to reduce the volatility of my account so anything in access of 50 points in Nifty per month is fine for me as long as I don't lose my sleep.

6. Do u have a check-list / Ritual / Routine every morn. to get into GROOVE
Answer: No I don't have a checklist earlier I did try to make one. I feel you need a checklist when you are new at something. Over the period of time you internalize the checklist. But like in aviation industry, no matter how skillful the pilot is, he carries a checklist. It can definitely help a trader who is not disciplined or who tends to lose focus when trading intraday.

7. How many scrips / Indices do u track ?
Answer: I track only Nifty. I do track all the markets and certain stocks if I sense opportunity or just out of interest in trading. But I track Nifty only when I trading Nifty. For example I don't let a movement in USD-INR or Dow to influence my Nifty trade.

8. How many days does a typical trade last (entry-exit time diff.) ?
Answer: This is not fixed it can last intraday or to the end of expiry. Depends on target and stoploss. I don't part book. I hold for long periods just like day JNSAR.

9. Do u have a monthly tgt of Nifty pt ?
Answer: Earlier I never had a target as I believed in trend following. Now I have a minimum target of 50 points in Nifty in a month. Maximum no limit.

10. What do u do once Monthly tgt is done ? Do u gun for more, or shut shop ?
Answer: I keep on trading. When you have the right setup you need to trade. You get variable returns in the market. You can't sit out just because you have met you monthly target. But you need to sit out when you don't have a setup. Minimum target level is just to keep your drawdown in check and to get a feeling of satisfaction. It is more to do with trading psychology than trading system's efficiency.

Shiram, I hope you find the answers helpful. Please share your thoughts and ideas as well. Thank you.

Declared a winner of Zerodha 60 day challenge!

noreply@blogger.com (A J) — Sun, 8 Sep 2013 00:54:00 +0530

Black Scholes Formula Option Pricing Model - Free Online Calculator

noreply@blogger.com (A J) — Sun, 10 Feb 2013 19:30:00 +0530

How to use the option pricing model calculator, based on Black Scholes formula?
Input data for all variables available under "grey cells". Refresh the page to load default values. Below is a short description of how these variables will impact option premium value.

Price of the underlying (stock price) - The higher the stock price, the more a call is worth. (The less a put is worth.)

Strike price - The higher the strike price, the less a call (the more a put) is worth.

Time to expiration (days left) - The more time left before the option expires, the more any option is worth.

Dividend yield (%) - An option holder is not entitled to cash dividends, and dividends reduce the price of the stock (when the stock goes ex-dividend, the stock price is decreased by the amount of the dividend). The higher the dividend, the less a call is worth, and the more a put is worth.

Risk-free rate of interest(%) - The higher the interest rate, the more the call (less the put) is worth. This is because a call buyer uses less cash to buy the call than he would use to buy stock, and the difference can be invested to earn interest. The more interest earned, the more a call buyer is willing to pay for the option.

Annual volatility (%) - The is the only one of the factors that is not known. (Of course dividends, interest rates, stock prices and time to expiration are constantly changing, but they are known at the time the option transaction is made.) The volatility used in the model is an estimate of the potential price movement that will occur during the life of the option. The higher the volatility, the more any option is worth because a high volatility increases the probability that the option will make a large favorable move for the holder of the option. Since a change in the volatility estimate changes the value of an option by a large amount, and since this volatility a difficult factor to estimate, there is often a significant disagreement as to the fair value of an option.

Option Greeks - Along with the option premium calculation, you will be able to see the values of various option greeks. Below is a short description of popular option greeks and what their importance is with respect to option premium valuation.

Delta - Delta measures the expected change in option premium for one unit change in the underlying price. The delta for call option is always positive as the value of call option increases as the underlying goes up. The delta for put option is always negative as the value of put option decreases as the underlying goes up.

Theta - Theta measures the expected change in premium for one unit change in time to expiry of the options. Theta is always negative for both call and put, as the value of both call and put goes down as the time to expiry decreases. In other words, it gives the buyer of the option the value he would lose every day if his view is not correct.

Gamma - Gamma measures the expected change in delta of an option for one unit change in the price of underlying. This means that as the underlying price changes, delta of the option changes. Now changed delta is the expected change in value of option for unit change of the underlying price. Gamma is significantly higher when an option is near its expiry. So writers of an option must closely watch their position when the option is very near its expiry. For buyers these are golden days to maximize their returns.

Vega - Vega measures the expected change in value of option for 1 unit change in volatility of the underlying. Vega is always positive for both call and put, as the value of both calls and puts increases as the volatility increases and vice-versa

Rho - Rho measures the expected change in value of an option for 1 unit change in interest rate. Generally this is considered insignificant for option valuation because interest rate does not change in wide range in short term.

Comparison of recent global central bank interest rates along with current rate trend

noreply@blogger.com (A J) — Fri, 1 Feb 2013 17:39:00 +0530

Here is how global central bank interest rates currently stand after 0.25 rate cute by Reserve Bank of India (RBI) on 29 January 2013. With most of the countries cutting rate this bull market is far from over!

Nifty & Bank Nifty, Technical Levels For Swing Trading, Update - 22 November 2012

noreply@blogger.com (A J) — Wed, 21 Nov 2012 20:43:00 +0530

No changes

Nifty Spot Rates, Technical Trading Levels
Swing : Down
SAR : 5650
Low risk entry : 5590
Target : 5520

Bank Nifty Spot Rates, Technical Trading Levels
Swing : Down
SAR : 11500
Low risk entry : 11350
Target : 11130

Nifty & Bank Nifty, Technical Levels For Swing Trading, Update - 21 November 2012

noreply@blogger.com (A J) — Tue, 20 Nov 2012 23:15:00 +0530

Nifty Spot Rates, Technical Trading Levels
Swing : Down
SAR : 5650
Low risk entry : 5590
Target : 5520

Bank Nifty Spot Rates, Technical Trading Levels
Swing : Down
SAR : 11500
Low risk entry : 11350
Target : 11130

Nifty & Bank Nifty, Technical Levels For Swing Trading, Update - 20 November 2012

noreply@blogger.com (A J) — Tue, 20 Nov 2012 00:19:00 +0530

Nifty Spot Rates, Technical Trading Levels
Swing : Down
SAR : 5650
Low risk entry : 5600
Target : 5520

Bank Nifty Spot Rates, Technical Trading Levels
Swing : Down
SAR : 11540
Low risk entry : 11380
Target : 11150

Nifty & Bank Nifty, Technical Levels For Swing Trading, Update - 19 November 2012

noreply@blogger.com (A J) — Mon, 19 Nov 2012 00:33:00 +0530

Nifty Spot Rates, Technical Trading Levels
Swing : Down
SAR : 5690
Low risk entry : 5620
Target : 5530

Bank Nifty Spot Rates, Technical Trading Levels
Swing : Down
SAR : 11640
Low risk entry : 11480
Target : 11250

Nifty & Bank Nifty, Technical Levels For Swing Trading, Update - 16 November 2012

noreply@blogger.com (A J) — Thu, 15 Nov 2012 23:59:00 +0530

Nifty Spot Rates, Technical Trading Levels
Swing : Down
SAR : 5710
Low risk entry : 5650
Target : 5570

Bank Nifty Spot Rates, Technical Trading Levels
Swing : Down
SAR : 11670
Low risk entry : 11550
Target : 11330

Nifty & Bank Nifty, Technical Levels For Swing Trading, Update - 15 November 2012

noreply@blogger.com (A J) — Wed, 14 Nov 2012 14:38:00 +0530

Nifty Spot Rates, Technical Trading Levels
Swing : Down
SAR : 5750
Low risk entry : 5700
Target : 5630

Bank Nifty Spot Rates, Technical Trading Levels
Swing : Down
SAR : 11720
Low risk entry : 11570
Target : 11330

Nifty & Bank Nifty, Technical Levels For Swing Trading, Update - 12 November 2012

noreply@blogger.com (A J) — Sun, 11 Nov 2012 18:30:00 +0530

Nifty Spot Rates, Technical Trading Levels
Swing : Down
SAR : 5775
Low risk entry : 5730
Target : 5630

Bank Nifty Spot Rates, Technical Trading Levels
Swing : Down
SAR : 11720
Low risk entry : 11570
Target : 11330

Post just for trade record purpose

noreply@blogger.com (A J) — Sun, 11 Nov 2012 18:23:00 +0530

Nifty Spot Rates, Technical Trading Levels
Swing : Up
SAR : 5680

Bank Nifty Spot Rates, Technical Trading Levels
Swing : Up
SAR : 11450

Nifty & Bank Nifty, Technical Levels For Swing Trading, Update - 6 November 2012

noreply@blogger.com (A J) — Mon, 5 Nov 2012 21:39:00 +0530

Nifty Spot Rates, Technical Trading Levels
Swing : Up
SAR : 5630
Low risk entry : 5670
Target : 5750

Bank Nifty Spot Rates, Technical Trading Levels
Swing : Up
SAR : 11270
Low risk entry : 11380
Target : 11600

Nifty & Bank Nifty, Technical Levels For Swing Trading, Update - 5 November 2012

noreply@blogger.com (A J) — Sun, 4 Nov 2012 18:36:00 +0530

Nifty Spot Rates, Technical Trading Levels
Swing : Up
SAR : 5600
Low risk entry : 5650
Target : 5750

Bank Nifty Spot Rates, Technical Trading Levels
Swing : Up
SAR : 11200
Low risk entry : 11350
Target : 11580

Nifty & Bank Nifty, Technical Levels For Swing Trading, Update - 2 November 2012

noreply@blogger.com (A J) — Thu, 1 Nov 2012 18:35:00 +0530

Nifty Spot Rates, Technical Trading Levels
Swing : Down
SAR : 5670
Low risk entry : 5630
Target : 5555

Bank Nifty Spot Rates, Technical Trading Levels
Swing : Down
SAR : 11450
Low risk entry : 11300
Target : 11100

Nifty & Bank Nifty, Technical Levels For Swing Trading, Update - 1 November 2012

noreply@blogger.com (A J) — Wed, 31 Oct 2012 22:31:00 +0530

Nifty Spot Rates, Technical Trading Levels
Swing : Down
SAR : 5690
Low risk entry : 5630
Target : 5555

Bank Nifty Spot Rates, Technical Trading Levels
Swing : Down
SAR : 11600
Low risk entry : 11300
Target : 11100

Nifty & Bank Nifty, Technical Levels For Swing Trading, Update - 31 October 2012

noreply@blogger.com (A J) — Tue, 30 Oct 2012 20:14:00 +0530

Nifty Spot Rates, Technical Trading Levels
Swing : Down
SAR : 5700
Low risk entry : 5640
Target : 5555

Bank Nifty Spot Rates, Technical Trading Levels
Swing : Down
SAR : 11600
Low risk entry : 11380
Target : 11100

Nifty & Bank Nifty, Technical Levels For Swing Trading, Update - 30 October 2012

noreply@blogger.com (A J) — Mon, 29 Oct 2012 15:53:00 +0530

Nifty Spot Rates, Technical Trading Levels
Swing : Down
SAR : 5720
Low risk entry : 5680
Target : 5600

Bank Nifty Spot Rates, Technical Trading Levels
Swing : Up
SAR : 11420
Low risk entry : 11550
Target : 11780

Nifty & Bank Nifty, Technical Levels For Swing Trading, Update - 29 October 2012

noreply@blogger.com (A J) — Sun, 28 Oct 2012 13:40:00 +0530

Nifty & Bank Nifty, Technical Levels For Swing Trading, Update - 26 October 2012

noreply@blogger.com (A J) — Thu, 25 Oct 2012 22:45:00 +0530

Nifty Spot Rates, Technical Trading Levels
Swing : Up
SAR : 5650
Low risk entry : 5690
Target : 5770

Bank Nifty Spot Rates, Technical Trading Levels
Swing : Up
SAR : 11420
Low risk entry : 11550
Target : 11780

Nifty & Bank Nifty, Technical Levels For Swing Trading, Update - 25 October 2012

noreply@blogger.com (A J) — Wed, 24 Oct 2012 22:48:00 +0530

Nifty Spot Rates, Technical Trading Levels
Swing : Up
SAR : 5650
Low risk entry : 5680
Target : 5770

Bank Nifty Spot Rates, Technical Trading Levels
Swing : Up
SAR : 11400
Low risk entry : 11530
Target : 11680

Nifty & Bank Nifty, Technical Levels For Swing Trading, Update - 23 October 2012

noreply@blogger.com (A J) — Mon, 22 Oct 2012 18:13:00 +0530

Nifty Spot Rates, Technical Trading Levels
Swing : Up
SAR : 5635
Low risk entry : 5680
Target : 5770

Bank Nifty Spot Rates, Technical Trading Levels
Swing : Up
SAR : 11360
Low risk entry : 11500
Target : 11680