RISK MANAGEMENT - Learn Before Enter in Stock Market

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 RISK MANAGEMENT - Learn Before Enter in Stock Market              Risk management is a crucial aspect of investing in the share market. It involves strategies and techniques to minimize potential losses and protect your capital. Here are some key principles of risk management in the share market: Diversification: Diversify your portfolio by investing in a variety of stocks or other securities across different sectors, industries, and regions. This helps to reduce the impact of any individual stock or sector's performance on your overall portfolio. Asset Allocation: Allocate your investment capital across different asset classes, such as stocks, bonds, cash, and other instruments, based on your risk tolerance and investment goals. This can help balance risk and potential returns. Stop-Loss Orders: Implement stop-loss orders to automatically sell a stock if it reaches a predetermined price level. This helps limit potential losses by exiting a po...
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Share Market Study - Chart Pattern ( Episode 04 )

Share Market Study - Chart Pattern ( Episode 04 )

        Chart patterns are visual patterns that appear on price charts of financial instruments, such as stocks, currencies, or commodities. These patterns are formed by the price movements of the instrument over a certain period of time and are used by technical analysts to make predictions about future price movements.

Here are some common chart patterns:

Head and Shoulders: This pattern consists of


three peaks, with the middle peak being the highest (the head) and the other two peaks (the shoulders) being lower. It is considered a bearish reversal pattern, indicating that the price may reverse its upward trend.


Double Top/Double Bottom: A double top pattern occurs when the price reaches a high level, pulls back, rallies again to a similar high, and then declines. Conversely, a double bottom pattern occurs when the price reaches a low level, bounces back, declines again to a similar low, and then rises. These patterns can indicate a trend reversal.


Ascending Triangle/Descending Triangle: An ascending triangle pattern is formed by a horizontal resistance line and an upward sloping trendline. It indicates that the price is consolidating and could potentially break out to the upside. Conversely, a descending triangle pattern is formed by a horizontal support line and a downward sloping trendline, indicating consolidation and a potential breakdown to the downside.


Symmetrical Triangle: This pattern occurs when the price consolidates between a downward sloping trendline and an upward sloping trendline. It suggests indecision in the market and can lead to either a bullish or bearish breakout.


Rectangle: A rectangle pattern is formed when the price consolidates between two horizontal lines. It indicates a period of consolidation and suggests that the price is likely to continue in the same direction once it breaks out of the pattern.

These are just a few examples of chart patterns, and there are many more variations and combinations. Traders and analysts use these patterns along with other technical analysis tools to help make informed decisions about buying, selling, or holding financial instruments. It's important to note that chart patterns are not foolproof and should be used in conjunction with other forms of analysis and risk management strategies.



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