10 thing you should consider when investment in share market

                                  how to invest in stock market, investment tips in stock market, investment idea in stock market

5 stock market investment idea

Timing is everything when investing in stock. The right investment decision at the right time makes a profit. Taking a very late timing decision make us expensive – when you plan to buy or sell shares. Also taking a short time for buying and selling of stock, it means that you do not get the best value from your investment. Many people are investing their hard money in stocks, hoping to reap dividends and more value of the stock. However, not all of them generate stock value as they wish. This is happening because when investment in share market they have not a proper guideline and also secret of investment.

what is the point should you consider when buying stock?

This will help you, what strategy should you use when buying a stock. Because it will help your attention on specific stock and also proper invest related idea.

  1. To check sector of the company, which sector will be a boost in the coming year you first identified that sector like auto sector, bank sector, FMCG sector, Finance sector
  2.  Find out the profitability of any company by examining its annual and half-yearly report( this report you can find money control, NSE, BSE). It the most important things to do when examining the report. 1. Net income of the company 2. EPS- Earning per share of the company.
  3. To examine the previous earning history of the company
    1. Check whether the company has steady growth
  4. Scrutiny the companies balance sheet                                                                                     Following parameters are considered
    1. debt of the company
    2. liquidity level of the company
    3. the inventory level of the company
    4. yearly earning of the company (year to year)
    5. Return on Assets (ROA) 
    6. Return on Equity (ROE)
    7. Research and development of any company
    8. Net margin of the company
  5. Scrutiny of competition
    1. compare which company with its rival in the same industry 
    2. Identify which company has the biggest market share
    3. Identify which company will dominate the high market in future
  6. Scrutiny leader and management system of the company
    1. Research about the company’s lead, management team, background data of the leader like in which company he worked for, find out the current position of the leader and management.
  7. Find out the characteristics that point out a stable and well-reputed leadership
  8. Recommended reading of the company’s 10-K and 10-Q Annual Reports
    1. In this report carry information that is more detailed and convenient than the information found in the company’s annual reports
  9. To identify which are risk factors associated with the company
  10. To check out whether the company’s position, is it sustainable for the market or not?

Investment in stock markets is more famous because it delivers a high return than other investment plans. However, If you are want to invest in the stock market so you require attention for every stock which is on the basket.

2 Responses

  1. March 27, 2019

    […] can get more information. Know more about these topics:1.    Investing books for New investors2.10 important tips when Investing in the stock market3.How many Mutual funds types and their […]

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