The stock market can be a complex and intimidating place, especially for beginners. There are many terms and concepts that can be confusing, making it difficult to understand how things work. This blog post aims to demystify some of the most basic stock market terms, so you can feel more confident navigating the investment world. 1. P/E Ratio (Price-to-Earnings Ratio) The P/E ratio is a metric used to compare a company's stock price to its earnings per share (EPS). It essentially tells you how much you are paying for each rupee of a company's earnings. A higher P/E ratio can indicate that a stock is more expensive relative to its earnings, while a lower P/E ratio can indicate that a stock is cheaper. However, it is important to remember that the P/E ratio is just one factor to consider when evaluating a stock, and it should be compared to similar companies within the same industry. 2. Dividends Dividends are a portion of a company's profits that are paid out to its sharehol
Moving Average Indicator: An Overview The moving average indicator is one of the most popular technical analysis tools used by traders to identify trends and potential buy/sell signals. It is a simple yet powerful tool that smooths out the price data of an asset over a specific time period and helps traders identify the direction of the trend. Moving averages are calculated by averaging the prices of an asset over a specific number of periods, and plotting the resulting line on a price chart. The most commonly used moving averages are the Simple Moving Average (SMA) and the Exponential Moving Average (EMA). Simple Moving Average (SMA) The Simple Moving Average is the simplest form of moving average and is calculated by adding up the closing prices of an asset over a specific number of periods, and then dividing the sum by the number of periods. For example, a 20-period SMA would add up the closing prices of an asset over the past 20 periods, and divide the sum by 20. This would result