Really wonder why channels give regularly "Discount/ Premium" of Futures
over Spot.They have SOME meaning on expiry date.Instead they can give
change of Futures over last date just as they give in case of Sensex and
Nifty.
When any market moves, it generates lot of data (OHLC, volume) on different Time frames. Using mathematical and statistical tools like addition, subtraction, multiplication, correlation etc we humans give meaning to that historical data.
All technical tools do the same thing- They perform mathematical calculations on historical data. Technical tools are product of higher PC processing power after 1980s.
Put/call options is another set of lagging indicators which traders use to predict nifty. Open Interest in call and puts depend on nifty movements, not the other way around.
Coming to main point about business channels, business channels are left brain analysts. They will analyse the data, flash the breaking news, gives a viewer a logical reason why did the market rise or fall- All these processes generate TRP, attract Ad revenues, pays salaries to employees, produce net profit- The art of running a business.
Are business Channels great traders? No. They are great analyst but not great traders.
Is analysis and trading same or different- They are poles apart.
If at any point in life, you happen to meet a top millionaire trader on CME, NYSE, LSE, euronext trading floor- the mecca of global trading, ask the guy why did you took this particular short trade in morning. He will have hard time to give you logical reasons.
More or less he will say he feels that way and with 90% accuracy rate, the money will flow in his trading account effortlessly- subconscious competence.:thumb:
If trading was so easy to simply look out for discount/premium, any one would have been a millionaire. The irony is trading is not that difficult except the complications which we humans have introduced. One needs to look at the right way to correctly read the markets.