FAQS
Technical Analysis and Market Tools
What is technical analysis in the stock market?
Technical analysis involves using historical price data, charts, and indicators to predict future stock price movements.
What are the most common stock market indicators?
Popular indicators include Moving Averages, Relative Strength Index (RSI), Bollinger Bands, and MACD.
Can beginners use technical analysis?
Yes, beginners can start with basic chart patterns and indicators. Over time, you can deepen your understanding to make informed decisions.
Market Dynamics and Risks
What factors affect stock prices?
Stock prices are influenced by company performance, economic conditions, market sentiment, global events, and news.
What are the risks of stock market investing?
Risks include market volatility, company-specific risks, economic downturns, and global events that may impact stock performance.
How can I manage risk in stock market investing?
Diversify your portfolio, set stop-loss orders, and invest only what you can afford to lose.
Accounts and Trading
What is a Demat account, and why do I need one?
A Demat account stores your shares in digital form, making it easier to manage and trade them.
What is the difference between a Demat account and a trading account?
A Demat account holds your shares, while a trading account facilitates buying and selling them.
Can I open a joint Demat account?
Yes, most brokers allow joint Demat accounts with up to three holders.
Stock Market Timing and Strategies
What are the market hours in India?
The stock market in India is open from 9:15 AM to 3:30 PM (IST), Monday to Friday.
What is intraday trading?
Intraday trading involves buying and selling stocks on the same day to profit from short-term price movements.
What is a long-term investment strategy?
A long-term investment strategy involves holding stocks for several years to benefit from growth, dividends, and capital appreciation.
Miscellaneous
What are FIIs and DIIs?
FIIs (Foreign Institutional Investors) are international investors in Indian markets, while DIIs (Domestic Institutional Investors) are Indian mutual funds, insurance companies, and banks.
What are ADRs and GDRs?
ADRs (American Depository Receipts) and GDRs (Global Depository Receipts) are ways for companies to raise capital in foreign markets.
How do corporate actions like dividends or stock splits impact my holdings?
Dividends provide regular income, while stock splits increase the number of shares you hold without changing the total investment value.
Is investing in the stock market suitable for everyone?
Investing is suitable for anyone willing to understand the market, manage risks, and commit to their financial goals.
