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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...

Fundamental Analysis - Most Important For Long Term Investment.

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   Fundamental Analysis - Most Important For Long Term Investment.                     Fundamental analysis is a method used to evaluate the intrinsic value of a financial asset, such as stocks, bonds, or commodities. It involves analyzing various factors that can affect the value of the asset, including economic, financial, and industry-specific variables. The goal of fundamental analysis is to determine whether an asset is overvalued or undervalued in the market. Here are some key aspects of fundamental analysis: 1. Financial Statements: Fundamental analysis often starts with examining the financial statements of a company, including the income statement, balance sheet, and cash flow statement. These statements provide insights into a company's revenues, expenses, assets, liabilities, and cash flow. 2. Company Performance: Evaluating a company's financial performance is crucial in fundamental analysis. This includes ana...

Earn Money When Market Fall Down - SHORT SELLING

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Earn Money When Market Fall Down - SHORT SELLING              Short selling is a trading strategy used by investors to profit from the decline in the price of a particular asset, such as stocks, bonds, or commodities. In a short sale, the investor borrows the asset from a broker and sells it on the market, with the expectation that the price will decrease in the future. Here's a step-by-step breakdown of how short selling works: Borrowing: The investor borrows the asset, typically from a broker or another investor, with the agreement to return the same number of shares at a later time. Selling: The borrowed asset is immediately sold in the open market, generating cash for the investor. Waiting for the price to decline: The investor hopes that the price of the asset will decrease in the future. Buying back the asset: If the price falls as expected, the investor buys back the same number of shares they borrowed at a lower price. Return and profit: The...

Option Trading V/s Investment , What is Better Way To Create A Wealth

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Option Trading V/s Investment , What is Better Way To Create A Wealth.   Option trading and investment are two distinct approaches to financial markets. Here's a breakdown of the key differences between them: Time Horizon: Option Trading: Option trading typically involves short-term trading strategies, aiming to profit from short-term price movements. Traders may hold options for a few hours, days, or weeks. Investment: Investment generally takes a long-term perspective, with investors aiming to hold assets for an extended period, often years or decades, to benefit from long-term growth and compounding returns. Risk and Return: Option Trading: Option trading can be highly risky due to the leverage involved and the potential for substantial losses. Traders may experience rapid gains or losses depending on the price movements of the underlying asset. Investment: Investment is generally considered less risky over the long term. While investments can still involve market volatility, ...

What is Dmat Account and Type Of Dmat Account

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            A Demat (or Dematerialized) account is an electronic account used to hold and trade securities in an electronic format. It eliminates the need for physical share certificates and allows investors to hold their securities in a digital format. There are different types of Demat accounts available based on the type of investor and their requirements. Here are some common types: 1. Regular Demat Account: This is a standard Demat account suitable for individual investors. It allows you to hold a wide range of securities such as stocks, bonds, mutual funds, and exchange-traded funds (ETFs). 2. Repatriable Demat Account: This type of Demat account is designed for non-residential Indians (NRIs) who want to invest in the Indian stock market. It allows NRIs to repatriate the funds back to their foreign accounts. 3. Non-Repatriable Demat Account: Similar to the repatriable account, this type of Demat account is also meant for NRIs. Howeve...

History of Indian Share Market / Stock Exchange

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History of Indian Share Market / Stock Exchange.            The history of the Indian share market can be traced back to the 19th century during the British colonial period. Here is a more detailed overview of the key milestones and developments in the Indian share market history: Early Beginnings: The roots of the Indian share market can be traced back to the 1850s when trading in shares and securities began in Mumbai. The trading activities primarily took place in open spaces such as under the banyan tree opposite the Town Hall, where stockbrokers would gather to conduct transactions. Formation of Stock Exchanges: The first formal stock exchange in India, the Bombay Stock Exchange (BSE), was established in 1875 as "The Native Share and Stock Brokers' Association." It provided a regulated platform for trading stocks and shares. The BSE is the oldest stock exchange in Asia. Stock Market Regulation: In 1956, the Government of India passed the Securities...

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