Financial Savvy

The Relative Strength Index (RSI) is a popular technical analysis indicator used by traders to identify potential entry and exit points in the market. It was developed by J. Welles Wilder Jr. in 1978 and is widely used in financial markets worldwide. The RSI is a momentum oscillator that measures the magnitude of recent price changes to evaluate whether an asset is overbought or oversold. The RSI ranges from 0 to 100 and is calculated based on the average gain and average loss of the asset's price over a specific period. The default time period for the RSI is 14, but traders can adjust this based on their trading style and preference. The RSI is typically calculated using closing prices, but traders can also use other price data such as high and low prices. The RSI indicator is plotted as a line graph with values ranging from 0 to 100. When the RSI is above 70, it is considered overbought, indicating that the asset may be due for a price correction or reversal. Conversely, when th

Trading in the stock market can be an exciting and profitable venture, but it's important to be aware of the various charges and taxes that come with it. In India, there are several charges and taxes that investors need to be familiar with before they start trading. In this blog, we will explore these charges and taxes in detail. Brokerage Charges                                                                                                                                Brokerage charges are fees that investors pay to brokers for executing their trades. In India, brokerage charges are typically a percentage of the trade value, ranging from 0.05% to 0.5%. Some brokers also charge a fixed amount per trade. It's important to shop around and compare brokerage charges among different brokers to ensure that you are getting a fair deal. Securities Transaction Tax (STT)                                                                                                  STT is a tax that

The world of the stock market is a complex and fascinating one, with its own unique language and terminology that can be daunting for newcomers. In this blog, we will explore some of the most common words used in the share market and their meanings. Stock : A stock or a share is a unit of ownership in a company. When you buy a share of a company, you become a shareholder, which entitles you to a portion of the company's profits and the right to vote on certain company decisions.                IPO : An Initial Public Offering (IPO) is the first time a company sells its shares to the public. This is often seen as a major milestone for a company and can generate a lot of investor interest. Dividend : A dividend is a portion of a company's profits that is paid out to shareholders. Dividends are usually paid out on a regular basis, such as quarterly or annually. Bull Market : A bull market is a period of time when the stock market is generally rising. This can be caused by a varie

Short-term trading in the stock market can be a way to potentially generate quick profits, but it also comes with higher risks. In order to manage these risks effectively, it's important to have a solid plan in place and be disciplined in your approach. Here are some key strategies for managing risk in short-term trading: Set Clear Entry and Exit Points: One of the most important aspects of short-term trading is having a clear plan for when to enter and exit a trade. This means setting specific price targets for both buying and selling, based on your analysis of market trends and indicators. By having a clear plan in place, you can avoid making impulsive trades based on emotions or speculation. Use Stop-Loss Orders: Stop-loss orders are a key tool for managing risk in short-term trading. These orders automatically trigger a sale if a stock's price falls below a certain level, helping to limit your losses in the event of a sudden downturn. It's important to set stop-loss or