Blog by PriyaSahu

       Stop-hunting is important in risk management because it helps traders understand how the market moves to trigger stop-loss orders. Knowing about stop-hunting can protect your trades from sudden price drops caused by big players targeting stop levels. ...

       Storage costs are important in commodity futures because they directly affect the price difference between the current spot price and the futures price. These costs include expenses like warehousing, insurance, and the cost of money tied up in holding the c...

       Storage costs are very important in commodity trading because they affect the total cost of holding commodities before selling them. These costs include rent, insurance, spoilage, and interest on the money invested in the commodity. High storage costs...

       Studying a stock’s price history helps investors understand how the stock has performed over time. It shows past trends, volatility, and key price levels, helping to predict future movements. This information reduces risks by making investment decisio...

       Support and resistance levels are key price points where stocks tend to stop and reverse direction. Support is the price level where buying interest is strong enough to prevent the price from falling further. Resistance is where selling pressure stops...

       Swap rates in forex trading are the interest fees earned or paid for holding a currency position overnight. They are important because they affect the cost or profit of keeping trades open beyond one day. Understanding swap rates helps traders manage ...

       The settlement cycle is the time taken to complete a mutual fund transaction after the trade date. T+1 means settlement happens one day after the transaction, while T+3 means it takes three days. A shorter cycle like T+1 gives faster access to funds a...

       Taking breaks in trading is important because it helps traders avoid stress and emotional mistakes. Trading can be intense, and long hours without rest can cause fatigue, leading to poor decisions. Breaks refresh the mind, improve focus, and help main...

       Technical chart patterns are important because they help traders predict future price movements by analyzing past price data. These patterns show the psychology of buyers and sellers, helping identify trends, reversals, or continuations in the market. ...

       The Accumulation/Distribution Line (ADL) is important because it shows whether a stock is being accumulated (bought) or distributed (sold). It uses both price and volume to help traders understand the strength behind price moves. This helps identify i...

       The Aroon Indicator is important in trading because it helps identify the strength and direction of a trend. It shows when a new trend is starting or ending by measuring the time since recent highs and lows. This helps traders decide whether to buy, s...

       The candlestick chart is important in stock trading because it shows price movements clearly with visual patterns. It helps traders understand market sentiment by displaying opening, closing, high, and low prices in an easy-to-read format. These chart...

       The cut-off time in mutual fund transactions is important because it determines the day’s NAV (Net Asset Value) at which your transaction will be processed. Transactions done before the cut-off time get the same day’s NAV, while those done after are process...

       The fund manager plays a crucial role in mutual fund performance because they decide where and when to invest the money. A skilled fund manager researches companies, markets, and economic trends to pick the best investments. Their decisions directly i...

       The information ratio is important in evaluating mutual funds because it measures how well a fund performs compared to a benchmark, considering the risk taken. It shows if a fund manager is delivering consistent returns above the benchmark without taking ex...

       The Keltner Channel is important in trading because it helps identify trends, potential reversals, and overbought or oversold conditions using price and volatility. It shows a channel around the price, based on average price and volatility, helping traders ...

       The Key Information Memorandum (KIM) is important in mutual funds because it provides clear and essential details about the fund to help investors make informed decisions. It explains the fund’s objectives, risks, costs, and how it works in simple language....

       The Money Flow Index (MFI) is important in volume analysis because it shows the strength of money moving in and out of a stock using both price and volume data. It helps traders understand if buying or selling pressure is strong and if a price trend might c...

       The MACD indicator is important because it helps traders identify the strength, direction, and changes in a stock’s price trend. It shows when to buy or sell by comparing two moving averages and highlighting momentum shifts. This helps traders catch g...

       The Parabolic SAR indicator is important because it helps traders identify the direction of a stock’s price trend and possible reversal points. It shows whether to buy or sell by placing dots above or below the price. This makes it easier to decide en...