Learn Trading Under The Guidance of Vivek Bajaj + 4 Mentors - Know More

100 FAQ's on Basic Finance

Module Units

How does one decide to buy and sell any equity share?

Deciding when to buy a stock and when to sell a stock depends on fundamental and technical analysis. Let’s explore the key parameters:


  • Fundamental analysis: Evaluate the company’s financial position to determine its investment potential. Buy the stock if the company consistently shows strong financial health, indicating robust earnings reports, a strong balance sheet, positive cash flow, and favourable valuation ratios. Conversely, sell the stock if the company shows financial instability.

  • Technical analysis: Identifying optimal entry and exit points is crucial in technical analysis for effective trading decisions. When the stock shows upward trends, breaks through resistance levels, or produces bullish chart patterns, these indicate optimal entry levels and vice versa.

To check out the entry and exit levels of the stocks, you can check the Trading Strategies section at StockEdge



Did you like this unit?

Units 61/101