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How Does Inflation Impact the Stock Market?

The financial landscape of the modern world is highly complex. With more information available to investors due to the penetration of the internet in most rural areas, investor sentiment is now driven by analysis and data as opposed to an emotion-driven response. A classic example of this is inflation. Traditionally, most people regarded inflation as a sign of an unhealthy economy. However, today, investors are better-informed and understand economic cycles making prudent investing decisions at every stage of the economy of the country. Today, we are going to talk about inflation in general and assess its impact on stock markets in India. Understanding Inflation:- In the simplest terms, Inflation is the gradual rise in the prices of goods and services. When the inflation rate increases, the cost of living increases too, which leads to lower purchasing power.  For example, If Apples sold at Rs.100 per kilo in 2010, then in an inflating economy, they would cost more in 2020. Let’s say th

What Are The Pros And Cons Of Day Trading:-

  Day trading is widespread and many are dreaming of striking it rich. The chances of hitting it rich should be better than ever before, right? Free commissions, crypto trading, plenty of news, bells, and whistles make sure of that? You can even put up much less money than if you do swing trading or long-term investing. Is there any reality in this? Let’s look at some of the  pros and cons of day trading . The pros of day trading are high turnover of capital, potentially fewer and smaller drawdowns than investing, you can utilize leverage, and you can exploit the law of large numbers to your advantage. Sadly, there are cons of day trading too: you can’t participate in the long-term upward drift in most assets, commissions and slippage can be ruinous, and you need to devote a lot of time (opportunity cost).  The chances of striking it rich as a day trader are very slim. Most likely, you’ll end up poorer than you started unless you have a clear plan for going about it. You need a define

5 Proven Methods for Selling Stocks:-

  Choosing when to sell a stock can be a difficult task. For most traders, it is hard to separate their emotions from their trades, and the two human emotions that influence traders when they are considering selling a stock are greed and fear. Traders are afraid of losing or not maximizing profit potential. However, the ability to manage these emotions is the key to becoming a successful trader. For example, many investors don't sell when a stock has risen 10% to 20% because they don't want to miss out on more returns if it shoots to the moon. This results from greed and a desire that the stock they picked will become an even bigger winner. On the flip side, if the stock price falls by 10% to 20%, a good majority of investors still won't sell because of their reluctance to realize a loss in the event that the stock rebounds significantly. There is the additional fear that they might regret their actions if the stock rebounds. So, when should you sell your stock? This is a f

How to Analyze Share Market Performance:-

Investing in stocks can be rewarding when you research the issuing companies thoroughly. Gone are the days when information was inaccessible. With the advent of the internet, you have all the information you need about a company, like its revenue stream, products, financials, and other data, at your fingertips. Using this, you can analyse the desired stock in detail to assess whether it is a viable investment or not. In this article, we will read about the types of stock analysis and understand how to analyse stocks using crucial pointers. Types of stock analysis:- 1. Fundamental analysis:- This type of stock analysis evaluates the underlying company’s fundamentals – business segments, financials, management, past performance, peers, and so on. The fundamental analysis places importance on the stock’s intrinsic value and sectoral and broader economic conditions. Under the financials, a fundamental analyst looks at financial ratios and financial statements such as the profit and loss st