Diversification is a basic concept of rational investment where investment risks are spread across various classes, industries, and geographical locations. This way the good performance of the other assets can counterbalance the poor performance of one of the assets. Thus, it enables relatively more stable returns. It is difficult to avoid losses, but diversification…
Stock markets are volatile. As a trader or investor, the aim is to make the most of the uncertain movement of prices. This applies especially when the forecasts are adjusted in the direction of the prices. However, a usual complaint that many traders face is that whenever they sell their shares, the prices rise…
The stock market is sensitive to changes in the global as well as the national level occasions. Any news regarding economic growth may lift the stock prices. Whereas, any development that is negative for the economy can reduce the capital flow. When it comes to market fluctuations, it is not only because of a…
Investing has one simple goal: to maximize returns. The problem with investing is choosing the right approach as the outcomes are far from expected. There are two main strategies that investors commonly use: growth investing and value investing. Both growth and value investing methods target different types of companies with unique business philosophies. Let’s…
There has been a lot of activity in Cryptocurrency markets recently, such as the SEC's approval of the Bitcoin spot ETF and the Bitcoin halving. Among the various possibilities of trading these movements, day trading is perhaps one of the most popular. Day trading implies the buying and selling of cryptocurrencies on the same…
The US central bank known as the Federal Reserve, or the Fed, is precisely responsible for setting the short-term interest rates. Such decisions are made at its bi-weekly meetings. These meetings are under a lot of scrutiny, not just in the United States of America but all across the world. This is because the…
Small-cap stocks are business shares with market value ranging from $250 million to $2 billion. But why and how is it crucial for investors? Most of the small-cap companies are new-generation companies with good growth prospects. For those interested in discovering the large-cap stocks of the future, investing in small-cap stocks may be the…
The Fundamental Stock Market Analysis involves using quantitative and qualitative analysis to determine the fair value of an investment thereby allowing the investor to infer a company’s worth by analyzing its financial statistics, position within the market, and overall potential for growth. Stock trading can be a very profitable business but is a very complex…
During a market decline, any investor, whose portfolio has been affected will be worried and start thinking of leaving the market altogether. However, one of the key aspects to avoid is making hasty decisions, such as panic selling. It is still more advisable to focus on the strategic moves in response to market changes…
While entering the world of trading, some important principles dictate financial markets. Three of the most important concepts are Risk, return, and market liquidity. Stock Market Liquidity is an aspect that can influence all types of assets; however large-cap stocks often represent the most liquid type of assets. It affects all sides of your…
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