Investing is generally considered an art where no single formula works for everyone. There are too many parameters to consider for an investment to become successful in the long term. However, there are some types of stocks which a skilled investor can completely avoid to increase the chances of the […]
This is a question in every investor’s mind. Some companies always seem to be trading at a very low P/E ratio compared to other sectors/stocks. In an efficient stock market, there should not be a very high variation of P/E ratio amongst different companies but for some reason some companies […]
Most investors do not make any money in the stock market because they buy stocks at the wrong time. But how is it possible that most people end up buying stocks at exactly the wrong time? Let’s understand how the stock market is designed to trick most investors into forcing […]
Every investor dreams of having multibaggers in their portfolio! The idea that a stock provides massive returns is often seen as a result of the patience shown by the investor. However, most investors miss out on multibagger returns & end up selling stocks at the wrong time. Let’s understand what […]
Diversification is considered to be a complex topic amongst stock market beginners. However, after removing all the jargon of the financial world, it becomes a very simple concept which should be applied by all investors for building their portfolio. Before going into the steps which stock market beginners can apply […]
Profit booking is a common strategy amongst retail investors which involves booking profits to avoid washing out your gains in case of a market reversal. But is this strategy better for investors? Or is the relatively less known loss cutting strategy better for investors? Let’s first understand both of these […]
Many new traders want to learn from the experiences of professional traders to start their trading journey. However, they get confused by basic terms which professional traders use frequently, making it difficult to start learning about trading. Here are 11 basic trading terms which every trader should know. 1. […]
Retracements are an essential part of the ebb and flow of the stock market. Regardless of the asset type, the price movements always seem to happen in an up & down (zig-zag) manner. The retracements after a move are often used by stock investors & traders alike to create trading […]
Psychology plays a major role in the success of a retail investor/trader. Many retailers have great knowledge about the stock market, know technical or fundamental analysis well and have adequate capital to invest/trade in the market. But one big psychological mistake which many retailers make forces them to lose money […]
“Retail investors like penny stocks”. This has to be the understatement of the century because retail investors not only like penny stocks, they really LOVE penny stocks! Penny stocks seem like the opportunity for many small investors and traders to improve their financial condition overnight (similar to gambling :D). It […]
“Penny stocks give better returns than normal stocks”! “Just buy this stock and forget about it”! “This sector will never perform well”! Have you heard these myths from your friends, news channels or investment gurus? Yes, these are all actually myths! These myths can cause an investor to underperform in […]
Long wick candlesticks are one of the most interesting types of candlesticks which can appear in the stock market. Such candles are given different names such as hammer, inverted hammer, shooting star, doji, etc. Regardless of their names, these candles provide us great insight into the behaviour of the market […]
What separates an okay trade from an amazing trade? These are the boosters which when added on top of your trading strategy, can skyrocket your win rate in trading. A professional trader knows methods which can separate a good trade from an okay trade. Even if a stock is in […]
Losses in stock trading are an unfortunate, though an essential part of the game. Nobody likes to lose money in life! But it is impossible to become a good trader without incurring any losses. In fact, managing losses are an essential part of a trader’s journey which can propel him/her […]
Stop-loss orders are a part of the daily routine of a stock trader. But many traders struggle with the different types of orders which they can use to place their stop-loss. The two most common types of stop-loss orders used by stock traders are either market orders or limit orders. […]
Every year, new traders get inspired by heartfelt stories of stock traders who became crorepati! Stories of people turning their thousands into crores are common in news channels inspiring everyone to try their hand in the world of trading. However, very few people succeed in this business. Unlike popular opinion, […]
Retail investors always end up buying at the wrong time! Or another way to put it is, retailers end up buying stocks at a much higher price taking up a much bigger risk. But why does that happen? Why do retail investors end up buying at the wrong time? First, […]
Everyone wants to buy stocks at the support level. Everyone, including FIIs, DIIs, mutual funds, banks, retailers, HNIs, etc. are focused on the stock as it approaches the support level. However, not everyone can buy at the support level for obvious reasons. Simply put, for somebody to buy at the […]
Trend is your friend! As cliche as it sounds, it is completely true. It is much more likely for a trader to make money in the stock trading if he/she focuses on riding the trend. But how can a trader make use of the trend? Before learning how a trader […]
Different traders use different time frames for analyzing stocks and making their trading decisions. Trading can span from swing trading (holding stocks for 2-4 weeks) to intraday trading (holding stocks for 30-90 mins). This requires a trader to analyze stock charts in different time frames e.g. a swing trader might […]
