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When to buy a stock ?


how and when to buy a stock ...things you should check before buying a stock. Stock market tips ,

There are so many factors you should consider before buying a stock... In this article I will be telling you 7 Most important factors you should check before buying any stock. 

 This 7 things will help you for selecting a stock for long term! So let's begin... 

1.Business Model 

   This is a most common thing you should know before investing in a company. You should understand the business model,  what the company do and how it makes profits and will this company survive in recession and if yes then why or how? 

   Ask yourself this kind of questions and if got the right answer's then good to go on second point. 

2.Revenue 

Revenue of the company must be increasing year after year... You can check this by visiting any Financial website, one which I use is screener.in 

See human population is increasing year after year right? And it will of course continue increasing in future so the customers of the company also should increase and if the revenue is not increasing then it is not a good company to invest in ! 

3.Debt

Debt of the company should be less except banks.  

Because if the company has a lot of debt then it will not survive the recession. Debt to equity ratio will help you in here... A low debt to equity ratio is good for you, Ideal debt to equity ratio is 1:1 or lower. 

4.P/E Ratio 

A price to earning ratio is the most popular ratio in the world.... A low P/E ratio is good!  Now you should compare P/E of  company which you are about to invest in with the peer's. 

5. Management

Company's management plays an vital role in its prosper and its failure . If company's management is corrupted then company will not last in future. So always look for a good management.... 

6.Court case's 

Check for any Court cases on the company, if company has any court cases then it will affect a company a lot. 

7.Intrinsic value 

Always try buy a stock below it's intrinsic value... See if you buy a Blue chick stock when it's price are inflated then you will not get profit right? So remember this... Always try to buy stock at discounted rate!

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