No matter what the market condition is, there is always one doubt in the investor’s mind – what to buy ? and at what price?
Trading Tips: There are simple fundamentals and formula and by following them, an individual can build a portfolio with minimised risk and less exposure to even falling markets.
One need to analyse what stock he/she is getting into. After getting basic information about the stock, one has to go through fundamental aspects like taking into consideration the P/E( price per equity ) and the E.P.S( earnings per share ) the higher the EPS, the better the returns. And the P/E is also a key aspect which needs to be below the ratio of 10.
The percentage of stake held by individuals, if less and the percentage of stake held by the promoter/s, if high is also a vital indication of a good stock.
There must be atleast some difference between the market indicated P/E and the industrial P/E. if the market indicated P/E is less and the industrial P/E is more, it indicates that the stock has some catching up to do which could lead to a rally.
Finally it is advised to build a portfolio which is diversified with systematic and periodic investments. Averaging at suggested resistance levels, specially when markets turn bearish, always brings ones buying price close to the market price.
One need to analyse what stock he/she is getting into. After getting basic information about the stock, one has to go through fundamental aspects like taking into consideration the P/E( price per equity ) and the E.P.S( earnings per share ) the higher the EPS, the better the returns. And the P/E is also a key aspect which needs to be below the ratio of 10.
The percentage of stake held by individuals, if less and the percentage of stake held by the promoter/s, if high is also a vital indication of a good stock.
There must be atleast some difference between the market indicated P/E and the industrial P/E. if the market indicated P/E is less and the industrial P/E is more, it indicates that the stock has some catching up to do which could lead to a rally.
Finally it is advised to build a portfolio which is diversified with systematic and periodic investments. Averaging at suggested resistance levels, specially when markets turn bearish, always brings ones buying price close to the market price.
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