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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...

Share Market Study - Moneyness ( Episode - 06)

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Share Market Study  - Moneyness ( Episode - 06)              Moneyness is a term commonly used in finance and options trading to describe the relationship between the strike price of an option and the current price of the underlying asset. It helps determine the intrinsic value of an option and provides insights into its potential profitability. In options trading, an option gives the holder the right, but not the obligation, to buy or sell the underlying asset at a predetermined price, known as the strike price, within a specified period. Moneyness categorizes options into three main categories: 1) In-the-money (ITM): An option is considered in-the-money when the strike price is favorable for the holder. For a call option (the right to buy), it is in-the-money when the current price of the underlying asset is higher than the strike price. Conversely, for a put option (the right to sell), it is in-the-money when the current price of th...

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