Kamana Mishra

  Lots of people are trading in stock market but all do not make profits. People make losses and believe the myth Investing in stocks is like gambling. Why do investors or traders face losses, whether they are new or expert? These following mistakes should be avoided while trading. Stock analysis is tool where investors or traders make decision by studying and evaluating the past and current data about the stock market. Stock analysis is crucial part of investment decision. If any mistake made in stock analysis it would lead to huge loss may be long term or short term and remember you can never recover the losses in stock market, once lost is lost forever. You just earn from what you are left with now. To save yourself from losses these mistakes be avoided while doing stock analysis: Mistake 1) A Little Knowledge Is Dangerous Thing. Before making any investment in stock market, invest in knowledge first. The only investment where you don’t make losses but only make profits.  W...

  No matter you are trading or investing. The ultimate objective is to make money. What does differ trading and investing? The main difference is timing. The period of holding differs it from each other.  We will start with what is investing; investing is holding on an asset for long period of time, it can be 3 years or 5 years or more than that. Once you invest in you forget it for 5 years and do not look at its prices daily. Big companies that are going to stay for years like reliance, Infosys, Wipro, Bajaj, etc. all these company are going to be for long haul. Investing is holding for time and you “don’t care”; it means you will not check its price every day, you are going to hold it for multiple years. Trading is something that lasts less than 5 years. Some people would say that it is a day or a week, but trading has its own type. The first is swing trading, which means that you are in the action due to the event, you are sure. An event that increases th...

  Debt is an important factor to consider before investing in any company. Zero debt indicates good financial health. On the other hand, heavy debt shows that the company might be having some big trouble in the future and it is not advisable to invest in such a company. Additionally, a low debt company has the advantage of earning a higher profit margin and has higher solvency. But high debt companies have to pay off high interest so they have decreasing profits.  What are some types of debt? There are two main types of debt that companies can have on their balance sheet. Those are: Short-term debt – It contains current liability. Long-term debt – It contains non-current liability Why do companies avail debt? Companies usually resort to short-term debt to manage the immediate cash flow needs. This type of debt makes the company more liquid and working capital is enhanced. On the other hand, long-term debt is availed for the purpose of Capital Expenditure.  Is debt good or...