|
It is a generally accepted myth among the people who are looking for investment that they may become rich overnight via investing in the stock market. This view of people is just a myth nothing else. As a stock market smart investor you must always realize that there are a lot of factors which decides the stock market as well as the movement of your purchased stock. It is a generally accepted myth among the people who are looking for investment that they may become rich overnight via investing in the stock market. This view of people is just a myth nothing else. As a stock market smart investor you must always realize that there are a lot of factors which decides the stock market as well as the movement of your purchased stock. Select the Right Company:- Always choose the company which has earned a net profit of 20% on it's share holders deposits. While choosing the right company for share investment 2 more things are there to be considered. Company who is consistently increasing it's profits and company capital will be perfect choice. Ideally a long-term investment (more than 5 years) allows you to participate in the development of the company. In short-term (3 to 6 months), the performance of the stock is driven more by the marker than the core principles of the company while on other hand in the long term relevance of the price decreases. Be disciplined:- stock investing is a long learning process, which is normally learned by the mistakes. Here are some facts that can simplify your learning process. 1.Diversification of investment- Always try to diversify your investment. Do not invest more than 10% in a single stock and also do not invest in too much stocks because the tracking of investment will be difficult. Ideal number will be 15-20 stocks for investment. 2.Use the asset allocation tools available in the market to measure the asset allocation. 3.Analyze the performance of your company, its quarterly results, annual reports and news articles. 4.Find a good broker and understand the disposal system. 5.Do not believe in the hot stocks tips of the market. 6.Avoid the temptation to buy more because each purchase will lead you to a new investment decision. Determine the right time for buying and selling stocks – After the above 2 steps it becomes to important to analyze whether tis is the right time for you or not. Even if the stock is looking good and seems to have a good potential, it might incur you losses if you do not determine the optimum price level for investing in the stock. For this you have to technically analyze the price movement of the stock and determine the right price level when you should buy and sell the stock. Monitoring and Review:- Regularly monitor and review of your investments. It is one of the most essential part of right investment. Review the quarterly performance of the company, it's results and company's net profit. Make a portfolio sheet and enter the price increment in the shares. It becomes very essential in the case when the market becomes volatile in nature. Also check that the reasons are valid or not due to which the stocks were purchased. Monitor if the stock purchased is performing ex per your expectations or not. Learn from mistakes:- Identify the mistakes made in the past while reviewing performance of the stock. Learn from the mistakes because nobody can beat your own experience. www.nifty-intraday-tips.com is a Indian stock market financial advisory firm and Nifty tips provider of India. nifty-intraday-tips.com provides free nifty tips , nifty future tips, nifty option tips, equity tips, stock tips, equity tips, F&O tips for today & tomorrow to stock market traders and investors. Visit us today for more information.
Related Articles -
nifty option tips, equity tips, stock tips, nifty tips,
| 
