Online Share Trading - Share India
Open Free Demat Account
*T&C ApplyUnderstanding Operational Margin VS EBITDA
If you are someone who keeps mixing up the operating margins with the EBITDA margins, you just have to remember one thing: The EBITDA is obtained by removing the cost related to depreciation and amortisation from the operating margin.
Conversely, if you’re a beginner, a company’s operating profits and EBITDA are key financial parameters, just like the company’s revenues and profits. Even as a beginner, you understand the importance of metrics like the company’s revenue and profits. “Operating profits” and “EBITDA” may seem convoluted compared to the revenue and profit metrics, but they are equally important parameters.
If you wish to analyse a company’s financial health and profit-generating ability holistically, you must learn to look beyond its revenues and profits. So, let’s uncover these metrics, distinguish them, and understand their importance.
Ichimoku Cloud Trading Strategy : Meaning, Rules, Guide
Each trader enters the market with the intention of making money. As a trader, you must support your decisions with thorough investigation and analysis. Take a number of aspects of the scripts you are investing in into account, including the company’s success, its management, planned announcements, etc. You can also use a variety of tools, charts, patterns, and technical indicators to analyze your investments. An informative introduction to the Ichimoku cloud indicator is what you will be reading next.
Mastering Stock Trading: A Guide to Utilising Moving Averages
A moving average (MA) is a simple yet effective technical indicator that shows you the average price of a stock during a specific period. That period could be 10 days, 15 minutes or 40 weeks. On the price chart, the moving averages appear in the form of a smooth line representing the average price.
Traders refer to the moving average to gauge the stock’s trend. Furthermore, they can use that data to make informed buying and selling decisions. When it comes to buying stocks using a moving average, traders are primarily looking for crossovers. Some traders even make purchasing decisions based on moving averages that are strong supports.
Moving average strategies can be adjusted to different timeframes, making them suitable for long-term and short-term traders. Let’s expand on the key aspects you must be aware of before using the MA to buy stocks.
Head and Shoulders Stock Pattern: Trading Strategy Guide
In technical analysis, a head and shoulders pattern is highly employed. It’s a unique chart pattern that signals a change in trend from bullish to bearish. There are three parts to a head-and-shoulders pattern. After a protracted bullish trend, the price climbs high before falling to create a trough. The price increases a second time, much beyond the first high, and then declines again. The price increases again, but only to the initial peak before falling. The shoulders are formed by the first and third peaks, while the head comprises the second peak. The neckline is the line that divides the first and second troughs. In the opinion of most traders, one of the most reliable trend reversal patterns is the head and shoulders chart pattern.
It predicts when an upward trend is about to finish. Textbook head and shoulders patterns are rare, but most traders think they signal a significant trend reversal when they appear. A typical head and shoulders formation is seen as a bearish setup.
Difference Between Cyclical and Defensive Stock
A strong defense is the finest attack. Investors need a strong attack and defense plan, like in football or military warfare. In other words, investors need to employ many strategies if they want to be successful. Individuals can achieve this in various ways if they’re dedicated investors. Individuals may diversify their portfolios by buying securities from different industries and marketplaces, or they can buy companies with diverse growth and value levels. They can invest in various stocks, cash, and other assets. If investors don’t understand the global economy and how the markets operate, implementing the proper approach will be extremely difficult.
Diamond Top Pattern in Trading
Diamond top formation is a reversal pattern in technical analysis. However, before diving deep into the details of the diamond top formation, you must know what technical analysis involves.
To put it briefly, technical analysis is a method of evaluating financial securities by mainly analyzing two facets generated by market activity: price and volume. Why is technical analysis important? A trader who makes trades based on technical analysis refers to price charts and uses chart patterns and other analytical tools to predict future price movements. The diamond top pattern is part of such technical analysis for future predictions.
Now, let’s understand in detail what the diamond top pattern chart formation entails and learn how this pattern can help you as an active market participant.
Day Trading Vs Swing Trading: Which Is Better?
Trading and investing are the two ways market participants can profit from the market. Trading in the market can enable market participants to profit from short-term volatility, just as purchasing securities and holding them long-term contributes to wealth accumulation. There are many different trading techniques, such as swing, intraday, conventional, and momentum trading. This article explains the differences between day trading vs. swing trading, the amount of cash needed for each trading style, and the best trading strategy for each individual.
Bear Call Ladder: Meaning and Strategy
In options trading, you can follow different types of strategies which can benefit your trading. You know that the option contract gives the holder the right but not the compulsion to buy or to sell underlying securities on the expiration date. Options can be acquired with brokers from the broker trading platform in the section of futures and options.
Options can aid investors in hedging the risk or increasing their portfolio with the help of the leverage provided in margin trading. As a smaller investment, you can limit downside risk but limiting risk is not so easy. So let’s discuss the bear call ladder strategy explained in the following article.
50-Day Moving Average Trading Strategy Guide
You might have encountered the 50 day moving average chart on any trading platform. It is quite a popular indicator. Today, we shall learn in detail what the 50 day moving average is. The 50-day simple moving average represents the daily closing values of currency pairs. Let’s start by explaining what the 50 day moving average means. It represents the 50-day rolling average of prices. It resembles a trendline with a curve. It is known as a simple moving average since it considers the closing price of the same day. The most common moving averages traders use worldwide are the 100, 200, and 50 moving averages.
Thus, the leading average of the most popular moving average is the 50-period moving average. The initial line of support and resistance for the moving average curve is represented by the 50 MA, which is shorter than the 100 MA and 200 MA.
100-Day Moving Average Trading Strategy Guide
The 100-day moving average is a technical indicator widely used by traders. It represents the average price of a stock over a period of 100 days or medium term. Like any other moving average, the 100-day moving average also helps traders analyse price trends. It primarily tells traders whether the stock is witnessing an uptrend or a downtrend. At the same time, the 100-day moving average also gives traders buy and sell signals. So, let’s learn about the significance of the 100-day moving average and help you learn how you can use it to trade stocks.