Investing in mid-cap stocks, which typically range between $2 billion and $10 billion in market capitalization, presents a unique set of risks that investors must carefully consider. One of the primary concerns is higher volatility, as these stocks...
Exchange-traded funds, or ETFs, offer a distinct approach compared to selecting individual shares. The biggest advantage of ETFs is diversification. A single ETF can hold dozens or even hundreds of companies, which helps mitigate the impact of a...
Earnings reports are one of the most important sources of information for investors and traders because they show how a company is actually performing, not how it is expected to perform. These reports provide detailed data on revenue, profits,...
Stock exchanges play a central role in sustaining market confidence by creating a trading environment that is fair, transparent, and reliable. Confidence grows when investors believe prices reflect real supply and demand, not manipulation or hidden...
Capital preservation is the foundation of long-term success in trading and investing. No strategy, indicator, or market insight can compensate for losing too much capital early. The primary goal is not to maximise profits, but to protect the trading...
Stock promoters play a powerful and often controversial role in financial markets, especially in small-cap and penny stocks. Their primary function is to create awareness and interest around a particular stock. This is usually done through...
A discretionary methodology relies on human judgment. The trader analyses price action, news, fundamentals, market sentiment, and experience to decide when to enter or exit trades. Rules may exist, but they are flexible. This approach allows...
Demand-pull inflation occurs when overall demand in an economy grows faster than its ability to produce goods and services. In simple terms, too much money chases too few goods. When consumers, businesses, and governments all increase spending at the...
The core components of stock trading form a structured framework that helps traders operate consistently and manage risk over time.
The discount rate has two definitions and uses, depending on the context. To begin, the discount rate is the interest rate offered by the Federal Reserve to commercial banks and other financial institutions. Second, the discount rate is the interest...