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Learn how to grow your money via disciplined investment techniques
Learn how to grow your money via disciplined investment techniques
The stock market is a vital financial marketplace where shares of publicly traded companies are bought and sold. It enables companies to raise capital and offers investors the chance to earn returns through capital gains and dividends. Driven by supply and demand, stock prices fluctuate based on factors like company performance, economic indicators, and market sentiment. While investing in the stock market can lead to significant returns, it also carries risks due to its volatility. Investors often diversify their portfolios with mutual funds, ETFs, or index funds to mitigate risk and maximize potential gains.
Technical analysis is a method used to evaluate and predict stock market movements by analyzing historical price charts and trading volumes. Instead of focusing on a company's fundamentals, technical analysts study patterns, trends, and indicators like moving averages, relative strength index (RSI), and candlestick formations. The goal is to identify potential buy or sell signals based on past market behavior. Technical analysis assumes that all relevant information is already reflected in stock prices and that market trends tend to repeat over time, making it a valuable tool for short-term traders seeking to capitalize on price movements.