The Relative Strength Index (RSI) is a technical indicator that measures the strength and speed of a stock’s price movements. It helps traders identify overbought and oversold conditions, making it useful for predicting potential price reversals. RSI values range from 0 to 100, with levels abo...
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Support and resistance levels are key concepts in technical analysis that help traders identify potential price reversal or breakout points. Support is a price level where a stock tends to stop falling and bounce back up, while resistance is a level where a stock tends to stop rising and fall ...
The Stochastic Oscillator is a technical indicator used in stock trading to determine whether a stock is overbought or oversold. It measures the stock's price relative to its price range over a set period. If the value is above 80, the stock is considered overbought (a potential sell signal), ...
Moving Average Convergence Divergence (MACD) is a technical indicator used in stock trading to identify trends and momentum. It helps traders understand when to buy or sell a stock by analyzing the relationship between two moving averages of a stock’s price. When the MACD line crosses above th...
Candlestick patterns are visual representations of stock price movements that help traders predict market trends. Each candlestick shows the opening, closing, high, and low prices within a given period. These patterns help traders identify potential buy or sell signals, making them an essenti...
A technical analysis chart is a visual representation of a stock's price movement over time. It helps traders predict future prices by analyzing past trends, patterns, and indicators. Common types include candlestick charts, line charts, and bar charts. Learning to read these charts can impr...
Intrinsic value of a stock is its real worth based on financial analysis, not market price. It helps investors decide if a stock is undervalued or overvalued. You can calculate intrinsic value using methods like Discounted Cash Flow (DCF), Price-to-Earnings Ratio (P/E), and Book Value. Knowi...
Intrinsic value is the true worth of a stock based on its financial health, future growth, and business fundamentals. Market value is the current price at which a stock is traded in the stock market. The intrinsic value helps investors determine whether a stock is overvalued or undervalued, wh...
Fundamental analysis is a method of evaluating a stock by analyzing a company's financial health, industry position, and economic conditions. It helps investors decide whether a stock is worth buying, holding, or selling. By looking at key financial statements, ratios, and company performance,...
Free Cash Flow (FCF) is the money a company has left after paying for its expenses and investments. It shows how much cash a business can use for growth, paying dividends, or reducing debt. A company with high FCF is financially strong, while low or negative FCF can be a warning sign for invest...
When analyzing stocks, the three most important financial statements to review are the Income Statement, Balance Sheet, and Cash Flow Statement. These statements help investors understand a company’s profitability, financial health, and cash position. Reviewing them carefully can help in makin...
The Price-to-Book (P/B) ratio helps investors compare a stock’s market price with the company’s actual book value (net worth). A P/B ratio below 1 means the stock is undervalued, while a P/B ratio above 1 shows investors are willing to pay more than the company’s actual worth. This ratio is use...
The debt-to-equity (D/E) ratio shows how much a company depends on borrowed money compared to its own money. A high D/E ratio means the company has more debt, which can be risky. A low D/E ratio means the company relies more on its own funds, making it financially stable. Investors check this r...
The Price-to-Earnings (P/E) ratio is a simple way to check if a stock is expensive or cheap compared to its earnings. It shows how much investors are willing to pay for ₹1 of a company's profit. A high P/E ratio means the stock is expensive, while a low P/E ratio means it is cheap. Understandi...
Financial ratios help you understand if a stock is a good investment or not. These ratios show how strong a company is, how much debt it has, and if it is making a profit. By using financial ratios, you can compare different stocks and make smart investment decisions.
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A reverse stock split is when a company reduces the number of its shares but increases the price of each share. The total value of your investment remains the same. Companies do this to make their stock look stronger, especially if the price has dropped too low.
1. Wh...
An earnings surprise happens when a company's actual earnings (profit) are higher or lower than what analysts expected. A positive earnings surprise (higher earnings than expected) usually makes the stock price go up, while a negative earnings surprise (lower earnings than expected) can cause ...
The ex-dividend date is the cut-off date for receiving a company’s dividend. If you buy a stock on or after this date, you will not receive the upcoming dividend. Investors who own the stock before this date are eligible to get the dividend payout.
1. What is the ex-d...
The cost basis of your stock investments is the total amount you paid to buy the stocks, including the purchase price, brokerage fees, and any other transaction costs. It is essential for calculating capital gains or losses when selling stocks and helps in determining tax liabilities.
Different types of stock orders include market orders, limit orders, stop-loss orders, and stop-limit orders. Each order type serves a specific purpose, helping investors buy or sell stocks based on their price and timing preferences. Understanding these stock orders allows traders to make smar...
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