PriyaSahu

Blog by PriyaSahu

What is the role of order book imbalance in algorithmic trading?

By PriyaSahu - Comment(s)

Order book imbalance plays a key role in algorithmic trading by helping traders identify the pressure between buy and sell orders. It shows whether more people are trying to buy or sell a stock at a given moment. Algorithms use this data to predict short-term price movements and make fast,...

What is the role of passive investing in the growth of mutual funds?

By PriyaSahu - Comment(s)

Passive investing plays a big role in the growth of mutual funds. It allows investors to invest in index-based funds that track the performance of a market index like Nifty or Sensex. These funds have low costs, simple strategies, and stable returns over time. As more investors choose low-...

What is the role of patience in long-term stock investing?

By PriyaSahu - Comment(s)

Patience plays a very important role in long-term stock investing. It helps investors stay calm during market ups and downs and hold on to quality stocks. Long-term investors who stay patient often enjoy better returns because they allow time for their investments to grow and benefit from ...

What is the role of patience in long-term trading success?

By PriyaSahu - Comment(s)

Patience is a key factor in long-term trading success. It helps traders stay invested, avoid panic decisions, and stick to their strategies even during market ups and downs. With patience, traders allow their investments to grow over time, instead of looking for quick profits. Long-term su...

What is the role of patience in successful trading?

By PriyaSahu - Comment(s)

Patience plays a big role in successful trading. It helps traders wait for the right opportunity, follow their trading plan, and avoid emotional decisions. When you stay patient, you avoid overtrading and reduce losses. Patience gives you the discipline to stick to good strategies and help...

What is the role of patience in trading success?

By PriyaSahu - Comment(s)

Patience plays a very important role in trading success. It helps traders wait for the right opportunities instead of rushing into trades. Patience allows you to stick to your trading plan, avoid emotional decisions, and stay calm during market ups and downs. Without patience, even the bes...

What is the role of peer comparison in mutual fund selection?

By PriyaSahu - Comment(s)

Peer comparison in mutual fund selection helps you compare one fund with similar funds in the same category. It shows how well the fund is performing in relation to its peers. This helps you choose better-performing funds, understand fees, risks, and consistency, and avoid funds that are u...

What is the role of PEG ratio in stock valuation?

By PriyaSahu - Comment(s)

The PEG ratio helps in stock valuation by comparing a company's price-to-earnings (P/E) ratio with its earnings growth rate. It gives a clearer picture of whether a stock is overvalued or undervalued. A PEG ratio below 1 usually means the stock is undervalued considering its growth, while ...

What is the role of pension funds in capital markets?

By PriyaSahu - Comment(s)

Pension funds play a major role in capital markets by investing large amounts of money into various financial assets like stocks, bonds, and government securities. These funds help support the growth of businesses, provide liquidity, and promote long-term stability in the financial system....

What is the role of performance journaling in improving trading strategies?

By PriyaSahu - Comment(s)

Performance journaling helps traders keep a detailed record of their trades, including what worked and what didn’t. This process improves trading strategies by allowing traders to analyze their past decisions, identify mistakes, and refine their approach for better results. Journ...

What is the role of performance-based fees in mutual funds?

By PriyaSahu - Comment(s)

Performance-based fees in mutual funds are charges that fund managers earn only if the fund performs well, usually beating a specific benchmark or achieving set returns. These fees motivate managers to work harder to grow investors' money because their pay depends on the fund's success.

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What is the role of physical delivery in futures contracts?

By PriyaSahu - Comment(s)

Physical delivery in futures contracts means the actual transfer of the underlying asset from the seller to the buyer when the contract expires. This ensures that the buyer receives the real commodity or asset agreed upon, not just cash. Physical delivery is important for those who want th...

What is the role of pivot points in day trading?

By PriyaSahu - Comment(s)

Pivot points help day traders identify important price levels that act as support and resistance during the trading day. These levels guide traders on when to enter or exit trades, helping them make quick decisions and improve their chances of profit. Using pivot points in day trading simp...

What is the role of pivot points in intraday trading?

By PriyaSahu - Comment(s)

Pivot points help intraday traders identify key price levels where the market may reverse or continue its trend within the same trading day. These levels act as support and resistance, guiding traders on when to enter or exit trades quickly. Using pivot points in intraday trading helps man...

What is the role of pivot points in trading?

By PriyaSahu - Comment(s)

Pivot points help traders identify important price levels where the market might change direction. They act as support and resistance levels, which means prices may stop falling or rising at these points. Traders use pivot points to decide when to buy or sell, helping them make better deci...

What is the role of portfolio overlap analysis in mutual fund investing?

By PriyaSahu - Comment(s)

Portfolio overlap analysis helps investors understand how much the stocks in one mutual fund are similar to those in another. It shows the percentage of common stocks between funds, which helps you avoid putting all your money in similar investments. This is i...

What is the role of portfolio rebalancing in trading?

By PriyaSahu - Comment(s)

Portfolio rebalancing means adjusting the mix of assets in your portfolio to keep your investment goals on track. It helps maintain the right balance between risk and reward by buying or selling assets when their proportions change due to market movements. This keeps your portfolio aligned...

What is the role of position sizing in risk management?

By PriyaSahu - Comment(s)

Position sizing helps manage risk by controlling how much money you put into each trade. It limits potential losses and protects your investment capital. Using the right position size makes sure that even if a trade goes wrong, you don’t lose too much, which is essential for long...

What is the role of position sizing in trading success?

By PriyaSahu - Comment(s)

Position sizing is the process of deciding how much money to invest in a particular trade. It plays a key role in trading success by helping traders manage risk and protect their capital. Proper position sizing ensures you don’t lose too much on any single trade, which helps you stay in th...

What is the role of pre-market and after-hours trading in price movement?

By PriyaSahu - Comment(s)

Pre-market and after-hours trading are sessions that happen outside the normal stock market hours. They allow investors to buy and sell stocks before the market opens and after it closes. These sessions affect stock price movements because traders react to news or events that hap...

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