Fundamental and Technical Analysis

What are the risks associated with investing?

Investing carries various risks, including market fluctuations, economic downturns, and company-specific issues.

How can I start investing with limited funds?

You can start investing with limited funds by opening a brokerage account with low minimum deposit requirements or opting for fractional shares.

What is the difference between stocks and bonds?

Stocks represent ownership in a company and offer potential for capital appreciation and dividends, while bonds are debt securities issued by governments or corporations, providing fixed interest payments and return of principal at maturity.

How can I assess my risk tolerance?

Determine how much loss you can tolerate emotionally and financially, and align your investment strategy accordingly. It’s essential to strike a balance between risk and potential returns based on your individual circumstances.

What is the importance of diversification in investing?

Diversification involves spreading your investments across various asset classes, industries, and geographical regions to reduce the impact of any single investment’s performance on your overall portfolio. It helps mitigate risk and volatility, potentially enhancing long-term returns.

Difference between Fundamental and Technical Analysis

Fundamental and Technical Analysis are methods used in financial markets to evaluate securities and make investment decisions. Fundamental analysis involves looking at a company’s core financials and economic factors to determine its value over the long term. On the other hand, technical analysis focuses on studying past price and volume patterns of security to predict future movements.