HOW TO CHOOSE VALUABLE STOCK OF A COMPANY“
Hello readers thanks you once again to visit here , Today we are going to discuss about “HOW TO CHOOSE VALUABLE STOCK OF A COMPANY” In the journey of choosing and researching valuable stock it is the first stairs who helps to elevate valuable skills and knowledge.
When ever has to invest in stock market it is required to deep analysis regarding such stock and shares . If talk about USA, UK, INDIA 50 to 60 percent of overall trader or investor had lost their entire capital because of lack of knowledge of investing strategy.
Now Step by step i would have to discuss about strategies in terms of choosing shares of company.
- First of all choose those category of shares whose demand is high in market in present scenario like FMCG, CHEMICAL, INFRASTRUCTURE , POWER, BANKING SECTOR AND PHARMACEUTICAL SECTOR. for example due to covid-19 pandemic shares of pharma sector got hike because of high demand of Mask, Sanitizer, Pills of vitamin C , or various medicine or medical equipment . So this sector of companies may be Multibagger for all shareholder . So try to be a watchdog and invest according to present Scenario.
- Avoid always to add penny Stock in your portfolio because it may be cause of negative or red sign in your portfolio . As we know that how much your risk bearing capacity will be high there will be high chance to your selected stocks or shares may be Multibagger or negative your whole portfolio. So to choose Penny stock may be high risky . So i would like to recommend you Please do not Mistack to invest your whole capital in penny stock or Company having small Capitalization
- Make list of 5 to 8 shares including fews Penny Stock and begin deep analysis , track their chart or momentum on daily basic and write dawn all records and track their past performance last 1 to 5 years also . Analysis prior choosing shares of companies is a symbol of healthy investing so it required to understand the financial report , Board of director report of your interested company .
- Now start to understand the Balance sheet of the those companies which you listed out earlier look whether company earning profit consistently or not , How much loan borrowed by company from market , whether they paying loan amount or not , How much outstanding dues or liabilities of company are pending , whether company found default in paying loan amount ever , How much secure or Unsecured loans are outstanding on company . it is main parameter which one should identify before choosing shares of a company .
- To understand the shareholding pattern before choosing shares of a company may be good decision . doing this you can analysis how much stake is taken by promoter of the company or how much stake taken by other financial institution like Mutual fund houses, Qualified institutional buyers , or other corporate houses . it is noted that in which company’s promoters stake is high can be determine for a long run .
- After observing Shareholding pattern now matter comes of financial report of such company….. if you are really passionate about investing would have to do this , Why i am telling you to read financial report of the company , because financial report of any companies may show their reality how much growth may be expected from such company in near future , after thoroughly study you may be capable yourself which shares of the company is be to buy .
- After fundamental analysis now is the turn to technical analysis , technical analysis play more vital role than fundamental analysis in terms of investing. chart of share may be easily identify their uptrend or downtrend movement. due to Technical analysis one can predict future momentum of shares of any company. liken RSI , ATR , PMO these are common technical chart tools.