Effects of Black Swan Theory on Stock Market

The Black Swan Theory was developed by former Wall Street trader turned financial writer, Nassim Nicholas Taleb, post the 2008 period of financial crunch. This theory basically illustrates the occurrence of events that deviates from what is usually expected out of a situation. In other words, it is about a situation that is extremely hard to predict. It is elucidated that the Black Swan events are almost impossible to predict but that does not imply that they don’t have any dreadful consequences. And thus, it is always advisable to have a plan for a particular situation keeping the possibility of a Black Swan event in mind.

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As of 2012, there were 1 million daily active traders in India. We believe that lost in that number (which has since exponentially increased), are a huge number of fascinating stories that would make for very interesting reading. The Trader’s Diary is our attempt to capture the ups and downs, hopes and fears, and the goals and risks of these individual traders through informal conversations. Today, we talk to Amit.

Read more: Amit’s Trading Diary

What are the Benefits of Commodity Trading in India?

While most of the investors feel satisfied with just online stock trading in India, many try to balance their portfolio by investing in different fields like mutual funds, gold, real estate, bonds etc. There is one more option – commodity trading, which only a few investors opt for. Either people don’t have a proper understanding of commodity trading in India or they consider it risky, which stops them from investing in this field..

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Common Mistakes While Trading in Options

A lot of our customers trade in Options and Derivatives. We have thus become familiar with some common mistakes that traders tend to make while investing in Options.

Here is a list of some of the most common:

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Types of Trading Systems: Counter-Trend Following

This article is a part five of a series in which we answer a set of questions about Trading Systems, namely

  1. What is a trading strategy and why you need one.
  2. How to lay the groundwork for a trading strategy.
  3. Finalizing your Trading Strategy.
  4. Types of Trading Systems- Trend Following<./li>
  5. Types of Trading Systems- Counter-trend
  6. Let us now get into Counter-Trend Systems
Read more: Types of Trading Systems: Counter-Trend Following