Skip to main content

How to invest ? Stock market pro Tips

 

For investment in stock market , real estate or any financial markets you need to have one basic thing i.e. common sense and a strategy !

 Most People think ,you need to have high IQ to invest in stock market or only high IQ people are can make money in stock market that's absolutely wrong ! To make money in STOCK MARKET you need to have more of a common sense !

SO the question arises how and when to invest ? so there is no Rule or anything written on when to invest but one should invest only if he/she is debt free and he/she has made an emergency fund to cover up 3 months of basic expenses ! Then you are ready to go ! 

Now there are two things you can do in stock market , one is value investing for long term and the second one is trading .... In trading one can do intraday trading and swing trading... Now what is intraday and swing trading , In intraday trading one buys and sell stock within a day and in swing trading one buys stock and holds for some days to some weeks and sometimes for months . I will suggest you to go with long term investing ...

  Now how to find out which company's stock to buy .? So for that you have to check companies fundamental ! What you have to see before buying a stock is as follows 

1.The company's asset is more then its liability 

2. Company is debt free or near to it ! (Exception of banks )

3. Company's earnings, Growth,sales is increasing year by year 

4.There are many ratio's to check but most important of them is P/E ratio (less is good , less then 15 and compare with peer's) As there are numerous factors to check but this 3 is basic and it will give you good view of a company ! 

So Now How to invest ? There are many brokerage firm ,full time and discounted ! You can create account with them and start buying shares of good company's ! 

Some good  brokerage firms are Zerodha, Angel broking etc . 


Labels:

Comments

Post a Comment

Popular posts from this blog

Some lessons to be learned !! by Peter Lynch

Worth to remember !! 1. Never own anything which you don't understand. 2.Logic is the subject which will help you most in picking stocks. 3.Avoid Hot stocks and Whisper stocks. 4.Once you are able to explain the story to a guy who has 0 knowledge of stocks and he understands properly then you have a real grasp of a situation! 5.Try to invest in companies who has a strong balance sheet and less debt. 6.P/E ratio plays vital role... so compare it with the peer companies, the lower the better! 7.Never listen to professionals, kindly do your own research ! 8.Buying a company with mediocre prospects just because the stock is cheap is LOSING Technique. 9.Selling an outstanding Fast grower because it's stock seems slightly overpriced is a LOSING Technique 10.Market declines /Corrections / Recession are the great opportunities to buy great companies at cheap price!
Post a Comment
Read more

Is Zomato worth to invest in?

  Zomato is a great company, it's growth is tremendous! Nowadays there is lots of hype of Zomato's IPO Now How will you know it's a good company to invest in? So for that you have to check company's fundamentals.... so lets have a look ,  In FY2018 Net profit was -106 Crores  In FY2019 Net profit was -1010 Crores In FY2020 Net profit was -2385 Crores  So the company is getting loss year after year!  The companys expanses is more then it's income!  Also the stake of the promoter in the company is very less around 6% Approximately And the good thing about Zomato is it's growth  In FY2019 YoY  growth was 185%  In Fy2020 YoY growth was 96%  Summary  At present Zomatos Fundamental is not good,  But the growth is quite good...  Due to the future plans of the company it can make profits in future but right now it's not good to invest your money in Zomato for long term ... But the hype is good and you can have a strong listing gai...
Post a Comment
Read more

Are Bonds really safe ?

A bond is an instrument of indebtedness of the bond issuer to the bond holder . The most common type of bonds include government bonds and private company bond .   Bonds are really safe investment then stocks ! Government bonds are alot safe then some companies bond , Issuer issues bond with coleteral which i s very good . Bonds are of many types Fix rate interest bond , Variable interest bond and some more ! Benjamin graham (Guru of warren buffet ) always says, that you have to put 25% of your capital in bonds and remaining 75 in stock . Its like diversifying your portfolio which is good. Spread it as you build it . See if you have 1,00,000 Rs then you should not put 100% of your capital in stocks ... You should divide your capital into some parts like 25% must be invested in bonds (unwritten rule) and 10% in gold and remaining in Stocks i.e. 65% ! There is a saying ‘‘ spread it as you build it ’’ ! So Always divide your capital into many assets !  Some say bond's and debentu...
Post a Comment
Read more