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How to read a stock chart?
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How to read stock charts? When you first open a stock chart, it can look confusing with all the line, numbers and movements. At its core, a stock chart is simply a picture of a company’s share price over time. The horizontal axis shows the timeline, and the vertical axis shows the share price.…
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What is day trading?
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What is day trading? Day trading is a short-term strategy where people buy and sell shares within the same day to try and profit from small price movements. Instead of holding shares for months or years, day traded may only hold them for hours or even minutes. Day trading requires constant attention to the…
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What is dollar cost averaging?
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What is dolalr cost averaging? Dollar cost averaging is an investment strategy where you put in the same amount of money at regular intervals, regardless of whether the market is going up or down. For example, you might invest $500 into an ETF or company shares every month. The benefit of this approach is…
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Is investing in stocks risky?
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Is investing in stocks risky? Every investment carries some level of risk, and stocks are no different. The value of a share can go up or down depending on how the company performs, what investors expect, and what is happening in the economy. This means there is always the chance of losing money if…
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What is a stock broker and do i need one?
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What is a stock broker and do i need one? A stock broker is a service or platform that allows you to buy and sell shares on the stock exchange. In Australia, you cannot buy shares directly on the ASX yourself. You need a broker to place the orders on your behalf. Brokers can…
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Can I lose all my money in stocks?
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Can i lose all my money in stocks? Many beginners worry about whether investing in stocks could wipe out all their savings. The short answer is yes, it is technically possible, but it is very rare if you spread your money across several companies. Stocks can go to zero and they can be delisted…
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What is volatility?
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What is volatility? Volatility refers to how much and how quickly share prices move up and down. A highly volatile stock may rise or fall by large amounts in a single day. A low-volatility stock tends to move more steadily, changing only a little each day. Volatility is driven by many factors. Company announcements,…
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What is Liquidity?
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What is Liquidity? Liquidity describes how easily and quickly you can buy or sell a share without changing its price too much. A highly liquid stock has lots of buyers and sellers, so trades happen smoothly at or close to the current price. A less liquid stock might only have a few people trading,…
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What is an IPO?
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What is an IPO? An Initial Public Offering, or IPO, is the first time a private company sells its shares to the piblic and lists on the stock exchange. Companies often launch IPOs to raise money to expand, pay off debt, or allow early investors to cash out some of their holdings. After the…
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Understanding P/e ratios?
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Understanding P/E Rations. The price-to-earnings ratio, or P/E ration, is one of the most common ways investors compare companies. It measures how much the market is willing to pay today for each dollar of profit a company makes. To calculate it, divide the share price by the company’s earnings per share. If a company…