Stock Investment Learning

The Average Directional Index (ADX) is a technical analysis indicator used to quantify the strength of a trend in a stock or other financial market. Developed by J. Welles Wilder Jr., the ADX is part of a system that also includes the Plus Directional Indicator (+DI) and the Minus Directional Indicator (−DI).   Key Points about ADX : 1. Trend Strength : ADX values range from 0 to 100. Typically:    - 0-25 indicates a weak trend.    - 25-50 indicates a strong trend.    - 50-75 indicates a very strong trend.    - 75-100 indicates an extremely strong trend. 2. Non-Directional : ADX does not indicate the direction of the trend (upward or downward); it only measures the strength of the trend. 3. Components :    - +DI: Indicates the strength of upward movement.    - -DI: Indicates the strength of downward movement.    - The ADX itself is typically plotted as a line, derived from the smoothed average of the difference b...

 RSI, or Relative Strength Index, is a momentum oscillator used in technical analysis to measure the speed and change of price movements. It ranges from 0 to 100 and is typically used to identify overbought or oversold conditions in a stock or other asset. Key Points : 1. Calculation : RSI is calculated using the average gains and average losses over a specified period, commonly 14 days. The formula is:    \[RSI = 100 - \left( \frac{100}{1 + RS} \right) \]    where \( RS \) (Relative Strength) is the average gain of up periods divided by the average loss of down periods. 2. Interpretation :    - Overbought : An RSI above 60 may indicate that an asset is overbought and could be due for a price correction.    - Oversold : An RSI below 40 suggests that an asset might be oversold and could be due for a price increase. 3. Divergence : Traders also look for divergence between RSI and price movements. For example, if prices reach new highs but RSI d...

  There are various ways through which One can invest in stock market and these are  IPO  Direct Investment in Stocks Bonds Derivatives Mutual Funds ETF Any company's stock gets listed in Stock Exchange through Initial Public Offer (IPO) . So this is the first point when company ready to sell its equity in the form of stocks to public or other institutions. Primarily, one can invest in stocks through IPO. We need to apply for the same. Apply for IPO is not a guarantee to get the stock. It is based on Bid price and allocation of the stocks by company. If you are not getting stocks through IPO then no need to worry. We can by the same stock from secondary market directly through registered stock broker at available price.  Bonds are issued with assurance of certain rate of interest by certain date. It is comparatively less volatile and safer. Bonds are also traded in stock  market.  Derivatives are future contract of fixed number of stocks called LOT to be ...

In this blog post we will try to understand why stock market exist and how it function. Any company needs capital to start with. This capital can come from initial investors or banks. When company starts functioning, at some point of time company may have expansion plan and addition fund is required for the same. In some of the cases initial investors want to sell their stake in the company and want to make some profit. In both the cases, company may decide to list in the stock exchange and sell some part of stake of the company as equity to other investors to raise some funds. Stock exchange gives an opportunity to companies to list them in exchange through IPO (Initial Public Offering) and raise funds from other investors who are interested to invest in the company. IPO of the company is issued through primary market to its first time investors publicly. Once, IPO of the company gets listed in stock exchange, it can be traded between buyer and seller in secondary market through stock...

  Investment is an opportunities for everyone for creating wealth in longer time. Various tools and ways are available for investments and getting benefit out of it. Investment in equity stocks is one of the good idea to create wealth. Learn about stock investments is a need of hour and it is trending now. Stock investment is a way to put your money work for you. Various examples are available as proof of getting multiplied of money many folds. Mr Jhunjhun Wala, Vijay Kedia from India are best example who made their wealth through equity market only. Mr Warren Buffet has set an example worldwide who has created his wealth by investing in stock investment only.  Stock investment can be done through broker who are registered in stock exchange. Stock exchange is a marketplace where stockbrokers and traders can buy and sell financial tradable instrument like stocks, bonds etc. Stock exchange provide centralised platform to buy and sell stocks or securities or financial instrument ...