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Showing posts from December, 2022

Type of Financial Ratio

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  𝗧𝘆𝗽𝗲 𝗼𝗳 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗥𝗮𝘁𝗶𝗼 It is a simplest way to understand Ratios 📊 Financial Ratio are generally used to measure the health of a company or to compare peer companies 📊 Financial Ratio can help you to find better companies among peers. 𝗟𝗶𝗾𝘂𝗶𝗱𝗶𝘁𝘆 𝗥𝗮𝘁𝗶𝗼 📚 These ratio tell a company's ability to convert assets into cash quickly and cheaply to pay off their short term debt. 𝗧𝘂𝗿𝗻𝗼𝘃𝗲𝗿 𝗥𝗮𝘁𝗶𝗼 Measure the speed at which balance sheet accounts are converted into sales or cash 𝗦𝗼𝗹𝘃𝗲𝗻𝗰𝘆 𝗥𝗮𝘁𝗶𝗼 The Ratio measure the ability of a company to repay its's long term debt . 𝗣𝗼𝗿𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗥𝗮𝘁𝗶𝗼 This ratio measure the ability of a company to generate profits . 𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 𝗥𝗮𝘁𝗶𝗼 The ratio measure the valuation of company weather it is good or bad for investment .

Importance Of Risk Management In Trading

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  Importance Of Risk Management In Trading Risk Management is one of the most important pillars of successful trading. Key Points regarding Risk Management: Without risk management in trading, no trader can make consistent profits for a long period of time. Without risk management, there is a strong possibility that a trader may end up blowing all their trading capital even if they have the best trading strategy. Every trader needs to learn everything about risk management and then start trading. Through this article, we have explained to you the most important concepts of risk management that every trader should know about . The Concept of Risk Management in Trading:- Every trader takes some amount of Risk for every rupee reward  that trader earns. Risk management is how a trader manages that Risk and comes out profitable over a series of trades. Risk-to-Reward Ratio :- For example, let’s say a trade aims for 100 rupees profit and takes the Risk of Rs.50, then...

How do Elections Affect Stock Markets?

  How do Elections Affect Stock Markets?   Stock markets are volatile and are largely affected by local and global happenings. The same holds for elections. An election is a major event in any country that decides the future direction of its economic, social, and political growth. Indian stock markets are susceptible to election fever and experience greater volatility during that period. We already know that stock markets are affected by elections, but the question ‘How does it happen’ remains. Before diving deep into the elections and stock markets, let us first understand what are stock markets and how do they work. How are the stock prices determined? The prices of various stocks in the stock market are determined by the forces of supply and demand. If the demand for a particular stock, i.e., the number of buyers outnumber the supply of the stock, i.e., the number of sellers, the stock price rises. Similarly, if the number of suppliers, i.e., the sellers is more than the bu...