Life is unpredictable. So, you can experience a temporary money crunch once in a while for various reasons. For instance, it could be due to a home renovation, a wedding in the family, or a medical emergency.
In such cash-strapped situations, the first idea that occurs is to use your savings and liquidate your investments even at a loss. And if that is still not enough, you look for a loan.
• Dow Theory is a trading approach developed by Charles Dow who is also known as the father of Technical Analysis. It is still the basis of technical analysis of financial markets.
• The basic idea of Dow Theory is that market price action reflects all available information and the market price movement is comprised of three main trends.
• Most of technical analysis theory today has an origin from ideas proposed by Dow & Edward Jones back in 19th century
This #strategy involves two options of same strikes price & same expiry, A long straddle is created by buying a call and a put of same strike & same expiry whereas a short straddle is created by shorting a call & put option of same strike & same expiry
Let us say a #stock is trading at Rs 6,000 and premiums for ATM call and put options are 257 and 136 respectively.
If you buys both a call & a put at these prices, then his maximum loss will be equal to the sum of these two premiums paid, which is equal to 393
Most of the people are market-averse when it comes to investing their hard-earned money in it. The primary and most significant reason for this is the fear of loss of money.
More often than not, this fear stems from the lack of knowledge surrounding #Markets. In this thread, we try to overcome this fear of investing in #StockMarket by following some easy steps
Here are some of the things you can do to get rid of your fear of investing in stocks