A stock suddenly takes off, everyone seems to be talking about it, and you start wondering if you are already too late. You feel an urge to enter before the price moves even higher, while the thought of missing out becomes harder to ignore. This is FOMO trading, and it can happen even when the […]
DCF valuation helps investors assess what a company may be worth based on the cash it is expected to generate in the future. It considers the time value of money by converting future cash flows into their value today. For stock market investors, this approach can help compare a company’s estimated intrinsic value with its […]
When talking about bonus share vs stock split, many investors think both corporate actions are the same because it increases the number of shares they own. However, they work differently and have different effects on a company's financial statements. Understanding these differences can help you interpret corporate announcements and make informed investment decisions. In this […]
Stock market order types determine how your buy or sell instructions are executed on an exchange. Choosing the right order type can influence the price you pay or receive, the speed of execution, and the level of risk you take. Whether you're a beginner investor or an active trader, understanding different order types can help […]
If you're new to stock trading, you might be wondering, what is limit order? The interesting part is that you may have already used one without knowing its technical name. For example, you decide to buy a stock only when its price comes to a certain level or sell it after it reaches your target […]
The Closing Auction Session (CAS) is the final stage of the trading day that determines the official closing price of eligible securities through an auction-based price discovery mechanism. Introduced by SEBI to replace the earlier VWAP-based methodology for eligible securities, it aims to improve the accuracy, transparency, and fairness of closing price discovery. This guide […]
Short covering is the process of buying back previously sold shares or contracts to close an existing short position. It often leads to a sharp rise in prices, which many traders mistake for fresh buying. Understanding this helps you interpret sudden price movements, analyse market sentiment, and avoid making decisions based on misleading rallies. In […]
When placing a trade in the stock market, choosing the right stock is only one part of the process. The way your order is executed can also influence the outcome of your trade. That's why trading platforms offer different order types and order validity options, each designed for a specific purpose. One such option is […]
If you ever wondered about bearish reversal candlestick patterns, Dark Cloud Cover Pattern is one of the most recognised bearish reversal candlestick patterns used in technical analysis to identify potential trend reversals after an uptrend. It reflects a shift in market sentiment where buying momentum starts weakening and sellers begin taking control. Although the pattern […]
When you look at a stock, the first thing you may notice is its price, recent movement, profit, but a good stock is not just about a famous company or a rising share price. What matters is how well the company uses its money to generate profit. A business may earn high profits, but if […]
