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What is Technical Analysis of Stocks?

What is Technical Analysis of Stocks?

Technical Analysis of Stocks

The study of stock market action mainly through use of charts and other tools to forecast future trends is called Technical Analysis. In technical analysis, mainly the Price, Time, Volume and the Breadth of the stocks are considered. In other words we can say that technical analysis is the science of recording the actual history of trading in a geographical form to identify the stock market pattern. Continue reading

What is Fundamental Analysis of Stocks?

What is Fundamental Analysis of Stocks?

Fundamental Analysis of Stocks

The Fundamental Analysis is a technique through which the real value of the company’s stocks (whether overvalued, undervalued, or correctly valued) is determined by assessing the factors that affects the company’s business model and its future prospects. The fundamental analyst uses several valuation models such as dividend models (focus on expected dividends), earnings models (focus on expected earnings) and assets models (focus on the company’s assets) to forecast the future value of the company’s stocks. Continue reading

What are the Things to know before investing in Stocks?

What are the Things to know before investing in stocks?

know before investing in stocks

Benjamin Graham who is known as “the father of value investing” and also the mentor of Warren Buffett recommended several things that a defensive investor must know before investing in any stock. These important things are:- Adequate Size of the Company, Strong Financial Condition, Stable Earnings, Earnings Growth, Moderate Price to Earnings Ratio, Moderate Price to asset ratio & Dividend Pay out.

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What is Deflation, Stagflation, Hyperinflation & Headline Inflation?

What is Deflation, Stagflation, Hyperinflation & Headline Inflation?

What is Deflation?

deflation

Deflation is also known as the opposite of inflation, which refers to a condition “where there is a general decline in the prices of goods and services over a time period which results in the hike of currency purchasing power.” Usually, it is observed that the deflation occurs when the general price level declines due to lower inflation rate (i.e. below 0% or less also called negative inflation rate). During deflation, we buy more goods and services with the same amount as we were buying earlier. Deflation generally occurs due to either reduction in the supply of money or credits or due to direct contractions in spending. These spending may be in the form of a reduction in government spending, personal spending or investment spending. Continue reading