What Is The Difference Between Common Stock And Preferred Stock? Besides common stock, there is another type of shares that is called preferred stock. The difference between common and preferred stock is that preferred stock has additional benefits. Maybe the most important one is that the dividends obtained by a company are distributed, first, among owners of preferred … [Read more...]
How Important are your timely Exits when Trading?
As we all know , the outcome of every trade is dependent on the exit. If you enter in a timely manner and then exit poorly, the trade could very easily be a loss. If your entry happens to be poor but your exit is good, you might actually still salvage a profit, or at the worst, minimise a loss. The exits, and not the entries, determine the outcome of your trades. One of the … [Read more...]
What are the main Asset classes in India?
What are the main Asset classes in India? What is meant by Asset Allocation? Asset allocation is about diversifying your investments across different asset classes so that you can optimise the risk return balance of your portfolio. It ensures that the poor performance of any one asset will not collapse your entire investment plan. What are the main Asset classes in … [Read more...]
What are Market Corrections and Volatilty ?
Understanding Market Corrections and Volatilty What is correction? A stock market correction is a relatively short lived (a few weeks to a few months) and dramatic price decline that interrupts an upward trend in the stock market. A correction is often defined as a drop of between ten and twenty percent from a market high. A drop in excess of twenty percent is typically … [Read more...]
What Makes a Potential Investment Good?
What Makes a Potential Investment Good? What makes a potential investment good is a question that doesn’t get asked enough by most investors. If you asked your average investor that question you would get one of two answers 1-One that goes up and 2-One with good management and blah, blah, blah. If you ask an excellent trader what makes an investment a good one they would say … [Read more...]