Intrinsic value refers to the perceived or calculated true value of an asset, investment, or company, based on fundamental analysis without reference to its market value. It is a critical concept for investors aiming to determine whether an asset is undervalued or overvalued by the market.
Random Walk Theory suggests that stock market prices evolve according to a random walk and thus cannot be predicted based on past movements. This implies that the market is efficient, and any attempt to outperform it through analysis or timing is futile, as all known information is already reflected in stock prices.
Trading signals are indicators or triggers that suggest potential trading opportunities, derived from technical analysis, quantitative models, or fundamental analysis. They help traders make informed decisions by providing insights into market trends, price movements, and potential entry or exit points.
Price movements refer to the fluctuations in the market value of an asset, driven by supply and demand dynamics, investor sentiment, economic indicators, and external events. Understanding these movements is crucial for investors and traders to make informed decisions and manage risk effectively.
Stock market performance is a measure of how well stocks are doing in terms of price changes and returns, reflecting the economic health and investor sentiment in the market. It is influenced by various factors such as economic indicators, interest rates, corporate earnings, and geopolitical events.
A long-term investment strategy involves committing to investments for an extended period, typically years or decades, to capitalize on the potential for higher returns through compound growth and market appreciation. This approach requires patience, discipline, and a focus on fundamental analysis to weather market volatility and capitalize on economic cycles.