scholarly journals Moving Average Indicator and Trade Set-up as Correlates to Investment Trading in Stock Market: Basis for e Predictability Primer

2021 ◽  
Vol 3 (2) ◽  
pp. 140-151
Author(s):  
Elizabeth B. Alvior
Keyword(s):  
Stock Market ◽  
Financial Market ◽  
Moving Average ◽  
Proper Understanding ◽  
Retail Investors ◽  
Retail Investor ◽  
Convergence And Divergence ◽  
Set Up ◽  
The Many ◽  
Time Frames

Moving average (MA) is one of the many indicators that retail investors can be used when trading their investment in the stock market or any financial market. The inclusion of moving average to trade set-up serves as the guidelines of the retail investors to properly execute the trades. The trade set-up with moving average includes different time frames, numbers of MA and MA with combination to other indicators. The 21 Day MA, 3 different timeframes of MA, 21 MA, and 50 MA for the crossover, and indicators like MACD are the most preferred by the retail investors to add in the trade set-up. The retail investor agrees that the moving average indicator is useful when entering and exiting the trades, when finding the Support and Resistance (SAR) area, predicting new trends, a combination of moving average crossover, MA in combination with other technical indicators. The quantitative method is used to emphasize how MA indicators help the investment trading of retail investors and the statistical result shows the significant relationship between the number of time periods or frames like 9, 21, 50, 100, and 200 Moving Average in entering and exiting the trades. Part of the results shows how Moving Average Convergence and Divergence (MACD) in combining to MA results in an insignificant relationship when exiting and entering the trades. Another result about MACD or Volume Analysis in combining to MA when predicting new trends shows an insignificant relationship. This means that moving average indicators and the trade setup with a proper understanding of each can combine and deliver a better investment result to retail investors.

scholarly journals Awareness Level of Retail Investors on Stock Market in Chennai City

2020 ◽  
Vol 8 (4S5) ◽  
pp. 14-16
Keyword(s):  
Stock Market ◽  
Investment Decisions ◽  
Mean Value ◽  
The Past ◽  
Retail Investors ◽  
Retail Investor ◽  
Stock Market Investors ◽  
Chennai City ◽  
Investment Patterns ◽  
Structured Questionnaire

The globalization of monetary markets has been increasing the dimensions of retail investor community over the past three decades by providing a good sort of market and investment options. Hence, it makes their investment decisions process more complex. The present study aims to study the awareness of investors on stock market. The data were collected from 100 retail stock market investors of Chennai using structured questionnaire. The analysis is made using percentage and mean value. The study proves that post graduate, professional, high income level investors are aware of investment patterns through friends, neighbors and they yield a good income. The study also reveals that the retail investors are even aware of the fundamental and technical analysis of investment, which helps them for a better and wise investment.

scholarly journals Retail Investors’ Responsibilities in Stock Market Imperfection in Bangladesh: An Empirical Study

2015 ◽  
Vol 7 (2) ◽  
pp. 78
Author(s):  
Protap Kumar Ghosh ◽  
Sutap Kumar Ghosh
Keyword(s):  
Stock Market ◽  
Price Volatility ◽  
Relevant Information ◽  
Stock Trading ◽  
Market Imperfection ◽  
Market Index ◽  
Retail Investors ◽  
Retail Investor ◽  
Regulatory Bodies ◽  
Price Instability

<p>Because of frequent price instability, stock market in Bangladesh represents itself an imperfect one over times. The retail investors claim that these frequent price fluctuation in the market is due to price manipulation, presence of syndicate and improper control by regulatory bodies and so on. But this study has found that a great portion of retail investors are very micro investors and reluctant in using relevant information in stock trading and furthermore ridiculously influenced by others investors and brokerage house personnel. Most of them consider only trend of past prices and market index. Majority of our respondents never considered net asset per share although it might give an idea about market value per share. So, the whole responsibilities of this price volatility and market imperfection can’t be shifted to third parties solely; retail investor themselves are responsible to some extent due to their irrational behavior and high expectation from stock trading. Stock market perfection in Bangladesh is quite impossible without enhancing awareness among retail investors and ensuring their rational behavior in stock trading.</p>

scholarly journals The impact of transaction costs in portfolio optimization

2019 ◽  
Vol 24 (48) ◽  
pp. 288-311
Author(s):  
Luc Chavalle ◽  
Luis Chavez-Bedoya
Keyword(s):  
Stock Market ◽  
Transaction Costs ◽  
Portfolio Optimization ◽  
Content Type ◽  
Holding Period ◽  
Retail Investors ◽  
Retail Investor ◽  
The Usa ◽  
The Cost ◽  
The Impact

Purpose This paper aims to analyze the impact of transaction costs in portfolio optimization in Peru. The study aims to compare the transaction costs structure applied in Peru with respect to the ones applied in the USA, and over a few dimensions. Design/methodology/approach The paper opted for an empirical study analyzing the cost of rebalancing portfolios over a set period and dimensions. Stocks have been carefully selected using Bloomberg terminals, and portfolio designed then rebalanced using VBA programming. Over a few dimensions as type and number of stocks, holding period and trading strategy, the behavior of these different transaction costs has been compared. The analysis has been done for four different portfolios. Findings The paper provides empirical insights about how a retail investor actively trading in Peru can pay up to 14 times more in transaction costs than trading the same portfolio in the USA. These comparatively high transaction costs prevent retail investors to trade in the Peruvian stock market while fueling illiquidity to this market. Research limitations/implications The paper deals with a limited amount of Peruvian stocks. Researchers are encouraged to test the proposition further, including other dimensions. Practical implications The paper includes implications for any retail investor that wants to invest in Peruvian stocks, giving an insight about how expensive it is to actively rebalance a portfolio in Peru. Originality/value This paper fulfils an identified need to study how much it costs to actively invest on the stock market in Peru.

Retail Investor Behavior, Cryptocurrencies, and Financial Market Innovation – Insights from the 5th European Retail Investment Conference (ERIC)

2020 ◽  
Vol 53 (2) ◽  
pp. 273-283
Author(s):  
Hans-Peter Burghof ◽  
Achim Fecker ◽  
Patrick Jaquart ◽  
Benedikt Notheisen
Keyword(s):  
Decision Making ◽  
Financial Market ◽  
Market Microstructure ◽  
Investor Behavior ◽  
Theoretical Research ◽  
Retail Investors ◽  
Retail Investor ◽  
Fundamental Value ◽  
Impact Of Technology ◽  
The Impact

Abstract The 5th European Retail Investment Conference was hosted at Börse Stuttgart, Germany, from April 10th to 12th 2019. The conference chairs invited academics and practitioners to participate and discuss empirical and theoretical research focusing on retail investor products and services, the impact of technology on retail investors, investors’ decision-making, investor protection schemes, and market microstructure. Albert Menkveld, Professor of Finance at Vrije Universiteit Amsterdam and Fellow at the Tinbergen Institute, held the keynote about the fundamental value of bitcoin.

scholarly journals DO INVESTORS REALLY REGRET?

2019 ◽  
pp. 1-3
Author(s):  
Mrs. A. Sumera ◽  
M. Srinivasa Reddy
Keyword(s):  
Stock Market ◽  
Behavioral Finance ◽  
Portfolio Management ◽  
Natural Process ◽  
Investor Behavior ◽  
Wide Scope ◽  
Adequate Knowledge ◽  
Retail Investors ◽  
Retail Investor ◽  
Portfolio Investments

“There are only a few people who claim to have no regrets in life and finances”. Retail investors are no exception. Investment is a natural process wherein,an individual wants every rupee to earn even more rupees.Eventually,investors get too excited at times about returns and certainly land up in regret zone.Though,behavioral finance has emerged as interdisciplinary, complimentary science to explain stock market phenomenon and regret analysis is one thrust area where much research is sporadic,especially in India.To explore the likelihood of regret and its impact on retail investor behavior in portfolio investments,the present study is conducted.Unfolding the regrets of retail investors while lack of adequate knowledge about portfolio management and peer effect as major reasons for such regrets.However,investors did exhibit regrets in big way as they perceive the stock market to be volatile and risky.Further,there are is wide scope for more studies viz., analysis of variance in regrets among different groups of investors and studies against different demographic factors etc.,

Maximal Overlap Discrete Wavelet Transform, Graph Theory And Backpropagation Neural Network In Stock Market Forecasting

2018 ◽  
Vol 5 (1) ◽  
pp. 41-46
Author(s):  
Rosalina Rosalina ◽  
Hendra Jayanto
Keyword(s):  
Neural Network ◽  
Graph Theory ◽  
Wavelet Transform ◽  
Stock Market ◽  
Discrete Wavelet Transform ◽  
Stock Price ◽  
Moving Average ◽  
Discrete Wavelet ◽  
Stock Market Forecasting ◽  
Artificial Neural

The aim of this paper is to get high accuracy of stock market forecasting in order to produce signals that will affect the decision making in the trading itself. Several experiments by using different methodologies have been performed to answer the stock market forecasting issues. A traditional linear model, like autoregressive integrated moving average (ARIMA) has been used, but the result is not satisfactory because it is not suitable for model financial series. Yet experts are likely observed another approach by using artificial neural networks. Artificial neural network (ANN) are found to be more effective in realizing the input-output mapping and could estimate any continuous function which given an arbitrarily desired accuracy. In details, in this paper will use maximal overlap discrete wavelet transform (MODWT) and graph theory to distinguish and determine between low and high frequencies, which in this case acted as fundamental and technical prediction of stock market trading. After processed dataset is formed, then we will advance to the next level of the training process to generate the final result that is the buy or sell signals given from information whether the stock price will go up or down.

The financial stability of corporations: theoretical aspect

2018 ◽  
Vol 34 (1) ◽  
pp. 161-165 ◽  
Author(s):  
M. V. Zhukova
Keyword(s):  
Financial Market ◽  
Financial Stability ◽  
Theoretical Aspect ◽  
Financial Sustainability ◽  
Effective Demand ◽  
Internal Factors ◽  
The Many

Financial sustainability of corporations is an important multifactorial phenomenon that determines the competitiveness, solvency and capacity of the corporation to innovation and expanded reproduction. In connection with the complex and multipartite financial stability of corporations, the many writers who studied in this field, have different conceptual approaches to the interpretation of this financial category. The financial stability of corporations depends on external and internal factors, priority of which are: competition in the corporate segment, as effective demand for the products, factors and tendencies of development of the financial market.

Magical banking capital: Neo-endogenous money (NEM)

2020 ◽  
Vol 1 (1) ◽  
pp. 27-35
Author(s):  
Sovanbrata Talukdar
Keyword(s):  
Stock Market ◽  
Central Bank ◽  
Financial Market ◽  
Positive Relationship ◽  
Excess Return ◽  
Control Individual ◽  
Financial Constraint ◽  
Imperfect Market ◽  
External Finance ◽  
Endogenous Money

This research emerges with internal financial constraint. How financial constraint may lead to economic recess or back. This financial constraint is different than external finance constraint, and is not due to lack of gold, etc. It explains the positive relationship between excess return in stock market (ERSM) and non-real funding or riskier credit. The matter comes under imperfect market banking. It includes subsequently banking behavior and failure of central bank policy to control individual banks under these circumstances. In addition, it presents measures to get awareness before default comes, as financial default rare and crisis in financial market comes much before that.

Risk-Managed Momentum: An Evidence from Indian Stock Market

2021 ◽  
pp. 231971452110230
Author(s):  
Simarjeet Singh ◽  
Nidhi Walia ◽  
Pradiptarathi Panda ◽  
Sanjay Gupta
Keyword(s):  
Stock Market ◽  
Asset Management ◽  
Stock Exchange ◽  
Sharpe Ratio ◽  
Relative Momentum ◽  
Extended Time ◽  
Momentum Strategies ◽  
Momentum Profits ◽  
Indian Stock Market ◽  
Time Frames

Relative momentum strategies yield large and substantial profits in the Indian Stock Market. Nevertheless, relative momentum profits are negatively skewed and prone to occasional severe losses. By taking into consideration 450 stocks listed on the Bombay Stock Exchange, the present study predicts the timing of these huge momentum losses and proposes a simple risk-managed momentum approach to avoid these losses. The proposed risk-managed momentum approach not only doubles the adjusted Sharpe ratio but also results in significant improvements in downside risks. In contrast to relative momentum payoffs, risk-managed momentum payoffs remain substantial even in extended time frames. The study’s findings are particularly relevant for asset management companies, fund houses and financial academicians working in the area of asset anomalies.

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