Stock Picking – Which stocks to buy?

Having understood all the basics of the stock market and the risk involved, now we will go into stock picking and how to pick the right stock. Before picking the right stock you need to do some analysis.

There are two major types of analysis:
1.    Fundamental Analysis
2.    Technical Analysis

Fundamental analysis is the analysis of  a stock on the basis of core financial and economic analysis to predict the movement of stocks price.

On the other hand, technical analysis is the study of prices and volume, for forecasting of future stock price or financial price movements.

Simply put, fundamental analysis looks at the actual company and tries to figure out what the company price is going to be like in the future. On the other hand technical analysis look at the stocks chart, peoples buying behavior etc. to try and figure out what the stock price is going to be like in the future.

In this article we will go into the basics of “fundamental analysis”. Technical analysis is a little more complicated. It is much more of an “art” than a science. It depends more on experience and involves some statistics and mathematics, so explaining technical analysis is out of the scope of this article.

3 important things you must know and follow as an new investor!

You need to KNOW some “unforgettable basics” before you enter the world of investing in stocks. The stock market is a field dominated by savvy investors who know the ins-and-outs of the market. For people who are not “on the inside”, the stock market can be a VERY dangerous place. :

Don’t even consider “tips” that tell you about “hot stocks”. Consider the source: There are many people in the market who put in all their time and effort in promoting certain stocks. They do this because they have their money invested in those stocks. If they can get enough people to buy the stock and they can get the stock price to rise, they will sell the stock for a huge price, the stock price will crash and they will walk off to promote another stock.

Always use your own brain: It’s extremely important. You must always use your own brain. Relying on the advice of others, no matter how well intentioned it may be, is almost always a complete disaster. Make sure you dig in and really examine the “facts about the companies” before you invest. Ignore press releases which have very little substance, and rely on “hype” to tell the company’s story.

And finally the most important tip!!!
Only invest money you can afford to lose!! Sure this is a basic point, but many many people miss it. You should only invest money that you can honestly afford to lose!! Everyone enters into investments with the idea of earning big profits, but in many cases, this never works. (Especially if you are new to investing in the stock market!)

Please understand that the above tips are tips for beginners. Once you really get into the stock market you do not need to follow these rules anymore. But if you are a new investor, you MUST follow these rules. They are for your own safety.

But then again, nothing comes free. Everything has a price. You will have to loose some money, make some bad decisions and then only will you really understand the market. You cannot understand the market by just looking at it from far. By following these rules, you will basically not loose too much!

Stock Market Trading Secrets Tips Tricks Advice Trends Stock Market of India

Online Stock Market Trading tips tricks and techniques Secrets Advice Trends stock market of India for beginners. How to get success in stock market trading.

While making an investment in Indian stock market there are lots of thing you should consider before it. I will guide you most important thing and tips that you can implement while making any investment in stock market of India. These stock market tips and tricks are based on many years of expertise experience and as a professional expert in Indian stock market. These are the Stock market secrets ……..

Buy at low and sell at high: – This is way to make money in stock market that you should buy at lower prices and should sell at higher prices. It determines the success and failure of an investor in stock market of India. Stock Market Trend: – If you want to be a successful investor in stock market of India you should have perfect idea of stock market and what is going on in the stock market. For this you should have up to date with Indian stock market news.

If stock market is going up try to search out reason behind it. If market is going down then also try the same. Make your mind calculation with these points and than come to a final decision whether you should keep sell or buy. Down and up it is the duty of stock market of India. Stay longer with stock market may result in profit or may be results in loss, it’s totally depends upon the reason why these major up downs have been taking place in stock market. In case you have got the right point than you will get other wise loss.

Current Trend of Stock Market: – As per current trend of stock market it has been seen that once stock market rise at higher speed it down also with same speed and if stock market have gone down there is more possibilities of getting up. This is the current market trends but it can be change in future.

Keep patience: – Patience is also plays a vital role in your winning and losing. In stock market many peoples take immediate decisions which can result in big losses later on. This is the nature of stock market every step should be take after a deep thinking and consideration.

Find more stock market tips and money making tips and tricks. You will find stock trading as well as other money making ideas tips and tricks.

Online Stock Market Trading Investment Stock Market Of India Tips Tricks Advices

Want to jump in stock market, there are some factors which should be consider first before jumping in stock market. First you should know the basics of stock trading. What are stock trading and how much minimum investment it requires for stock trading? Proper research is needed while making any investment in stock market. You should learn about the company in which you are going to invest. Search about companies business in which it is involved and what types of business carried out by that company.

If you are satisfy with your research and found profit in investing in that company. It is safe to invest otherwise not. In business there is always a risk factor, so be careful about companies and market trends to maintain your profit.

One always purchases stock to earn profit. One gains when he purchase stock at low cost and sales when the market is up and the stock prices grows. Make stock market research and decide which share is profitable one, which company can grow in future and which can down. Accordingly plan your stock market investment.

If you have lots of share of a company and the company is growing consistently at a normal rate then there is no need of concern. On the other hand if a company growing fast at abnormal rate then search out the factors and investigate the reasons of its success. If you find positive results then further investment in that company will be profitable otherwise it may be loss. Stock market of India is consistently growing up and investors are earning with both hands. Make investment in stock market of India.

Let’s take another example where you make huge investment in a company and the company suddenly goes down. In this case most of the investors take quick decisions that may put them in trouble. So don’t make any big decision without proper awareness and investigation about the problem. First find out the correct reason behind it.

Undoubtedly stock trading is a good way to earn money, where you need not to devote much time or you need not to work. It is side business and also involves risk factor. It requires initial investment to get success. Stock trading is one of the best ways to make money but require some precautions. Find more about stock market of India or Indian stock market. Other ways to make money online without any investment check it out and make online money.

Indian Stock Exchange & Online Trading : Bombay Stock Exchange and National Stock Exchange

Bombay Stock Exchange and National Stock Exchange are major Stock Exchange is India. Like India there is uncountable investor’s puts their money to grow. Stock market is also one of those places which provide growth to investor’s money. Some of investors who want make money fast as they want they comes to stock market. Some times it is not shows growth due to some reason or factors otherwise it best way to give a chance to your money. Any stock market is also decides its countries growth u saw also in this world those country who have good stock market record they are leading.

Stock market always stay ahead from other resources if investments. It gives better return and as well as surety of your money but not all time because there are some factors are present at that place who really don’t want that stock market do well.

Some times this market become tumble down and investors get fear by it but if they keep patience they can make good money because according to market rule u should go for buying in crush time because when the market go up you can get good profit form those buying which u done at tumble time.

Now our stock exchange provides other facilities like online buying or selling. It really helps to investor who is stay from stock market just because of time. In these days Stock Exchange Board Of India also keep watching on Stock Exchange because in our past we saw some most powerful cases of cheating that why Stock Exchange Board Of India working for those investors who puts their blooded money in the market. Every one want earn maximum in minimum time but they have no maximum time to keep watch on stock market so we are providing online stock trading & this facility helps to their clients to focus on their work. If you run behind any broker or any other related person they always waste your time as well money as.

Many times people just want buy their stocks & shares on which price but they can’t do because of some communication gap but online stock trading facility enables that very one can buy or sales share’s or bond on that time when they want. Online stock trading is a way by which you can do safe buying or selling in sense of security no body can trust able. In crash time of stock markets it becomes more important to keep watch on market but through online stock trading you can do every things just on one click. It saves your brokerage money as well as. This is the easiest thing do to save your valuable time and money comes on the track of online stock trading.

The stability of stock market is not fixed so it many times its tumble down and sometime it raises high .It doesn’t affect the investment of individual only but also the economy at large scale. To come out from this situation many researches have been made in this direction to adopt several strategies such as “stop loss limit”&”value at risk limit” The crash is that in which the sharp declining in the prices of equities. The most popular crash is black Thursday which was started on 24 October, 1929.

Ask a doctor for your medical problems free

Lessons from the nature and life for Stock market investing: 17 stock market lessons

We can learn many things from the nature and life for stock market investing. If we take a note of these points, then stock market investing becomes very simple.

1. Just like nature gives us different kind of fruits and vegetables in different seasons, different kind of stocks should be chosen in different economic environment.

2. Just like day comes after night, bull market comes after bear market and vice versa. Day or night cannot last forever. One has to take proper rest and rejuvenate during the night to prepare best for the next day. Similarly, an investor should prepare himself during the bear period in order to become successful during the bull period.

3. When a farmer grows a crop, all of the plants cannot become big. Some of the plants will die and some of them will not give as much fruits or vegetables as farmer has expected. The overall crop should give a decent yield and profit to farmer. Similarly, when you buy a stock, all of the stocks might not give a heavy profit. Some of them will show losses and some of them will not show decent profits. The overall goal should be to have profit on complete portfolio.

4. Just like a plant cannot survive without a good quality soil, a business cannot survive without a good quality management.

5. Just like a plant cannot survive without air and light, a company cannot survive without proper funding and cash.

6. Just like a plant cannot survive without water, a business cannot survive without liquidity in the system and a good overall economic scenario. Just like a rain is a boost to a crop but too much rain can destroy the crop, government stimulus packages are good for the companies but too much liquidity in the system will be detrimental for them.

7. When a storm comes, the trees or plants which are strongest survive. Similarly, when an economic downturn comes, companies which are fundamentally strong survive.

8. Just like a tree or plant cannot yield fruits in one day, profits should not be expected immediately as soon as you buy the stock. Plant a seed and wait for the fruits to come. A plant should be given enough time for it to become a good tree. It requires constant monitoring to check that it is not falling sick.

9. The growth of the tree is very high during the initial phases. But once it becomes big, its growth becomes slow but it continues to give fruits year over year. Similarly, growth of a stock is very high during initial phases but once it becomes big, it shows a relatively smaller growth but continues to give profits year over year.

10. Just like weeds need to remove from the crop, bad stocks need to be removed from portfolio as they will ruin the overall return.

11. Just like a crop needs constant monitoring by the farmer, a stock needs a constant monitoring by a stock holder. Any plant or tree which has become sick should be removed.

12. Once the tree becomes very old and stops giving fruits, it should be cut down by the farmer to make profits and different tree need to be planted in its place. Similarly, once the business becomes very huge and stops showing further growth, it should be removed from portfolio and different stock need to be picked.

13. Just like crop rotation is useful for better output, stock rotation is also useful for better returns.

14. Just like a human needs to eat different kind of fruits, vegetables and whole grains for proper body nutrition, a person should have different kind of stocks in the portfolio. Grains are like large caps, vegetables are like mid-caps and fruits are like small caps. A person can survive only on grains but in order to have a good health, he/she needs to eat fruits and vegetables too. Similarly, in stock markets, large caps are must for every portfolio, mid-caps are good and small caps are should (and are needed in small quantities only but they should not be ignored).

15. Consider growth investing like men and value investing like women. Just like their relationship is most successful when they are in love, the stock market investing is most successful when growth is in harmony with value i.e growth stocks brought at reasonable valuations. Ups and downs come in every relationship. Similarly, stock price fluctuates many times but these should be ignored if value is always there to support the growth i.e business is consistently expanding. These ups and downs are short term in nature. Small fights actually make the relationship strong.

16. Just like when a person fall sick, a doctor conduct various tests to find out the root cause of problem. Similarly, when a stock starts declining, proper evaluation should be done for its fundamentals. If a person takes care of himself and takes proper medicines, he/she will survive. Similarly, if a company is taking proper corrective actions and measures, it will survive and there is no need to worry. If it is ignoring the problems, it will not survive and it’s better to exit the position.

17. Just like life throws different opportunities and people who recognize them and use them, becomes successful in life. Similarly, stock market throws lots of opportunities. You should be able to spot them and use them.

Please share your comments on article.

Baby Steps for a newbie Stocks Investor

Trent Hamm, in TheSimple Dollar says that once a person has their debt under control, the next thing that they should want to do with their money is figure out ways to maximize it, and most of the time the potential gains of the stock market look like a great place to put money.

But how? For the average person, the diversity of options for investing in stocks are overwhelming. Should I buy a mutual fund? Should I buy individual stocks? How do I even get started when I’ve figured out what I want to do? What are my investing goals? How do I even describe those goals? I used to feel overwhelmed by such questions until I sat down and did the research, but I discovered that for the beginning investor, there’s really only a handful of simple steps that you need to follow to make smart investment choices. If you’re at the point where your debt is under control, your savings account is getting quite fat, and you’re looking for better options, here’s how you get started.

1. Figure out your goals.

When you first start thinking about this, it seems nebulous. It’s often hard to tangibly state what your goals are, especially if you’re young and single. However, you often find that they day you get married, it feels like a flood of goals hit you at once – buying a house, having a child, and so on.

Here’s what to do to get started. Take out a sheet of paper and list every financial goal you have in your life right now. What are you saving for? What would you like to be saving for? Things that might wind up on this list are retirement, your children’s education, a house down payment, complete debt freedom, a car, “walk away from your job” money, money to start a business, and so on. Some of those will be important to you, some won’t, and you may have some that aren’t even listed there.

Then, take that list and rank them by importance to you (or to you and your spouse). Don’t worry about what society says, but I will say that younger people tend to undervalue the importance of retirement. Other than that, it’s really about what’s important in your own life – not in what society thinks or what someone else sees as being important in life.

I tend to argue in favor of focusing on the top two to four goals. This way, an average person can actually reasonably accomplish those top goals in a reasonable timeframe. Figure out that time frame for those top goals. How much time is it before you reach that goal?

This doesn’t mean that your goals are set in stone. Everyone’s life changes over time and your goals may in fact change. The point is that your investment decisions are led by your goals, so before you even start investing, you should have a good grasp on what your goals are.

In my own life, I have several goals: retirement (targeted for age 60), my children’s college education (targeted for about seventeen years down the road), a new minivan (targeted for 1-2 years from now), and a new house in the countryside (targeted for about twelve years from now). Each of these have a different investment strategy, which we’ll get to in a minute.

2. Know your risk tolerance.

One major piece of the puzzle that people don’t address before they start investing is their risk tolerance. Often, they overestimate their risk tolerance, then find themselves in an investment situation that leaves them feeling very nervous about their financial position.

Spend some time thinking about this. Would you not worry if you woke up and found out that you had lost 5% of your investment if you knew in the long run it would build up in value? How about 20%? If you had $10,000 in stocks, and then over a very bearish month, $2,000 of that vanished, how would you honestly react? Would you take your money out?

The reason this is important is that it is extremely dangerous to be invested in something that exceeds your risk tolerance. If you find yourself waking up in the middle of the night nervous about where your money is, you’re likely to make an emotional move, like taking your money out when it’s about to rebound.

As a general rule of thumb, if you feel nervous about losing money at all, you probably shouldn’t be invested in stocks. Keep it in cash, in either your bank account or in certificates of deposit. Don’t feel weird – my best friend is in this camp.

On the other hand, most people have some degree of risk tolerance, though, and if you find that losing 10% or so won’t make you scared and ready to pull out, then you should dip your toes into stock investment. We’ll get to the specifics later.

3. For short term goals (less than two years or so), keep the money in cash.

That means store it in a savings account or perhaps buy a short term certificate of deposit at a bank – whichever option gets you the best interest rate and enables you to have cash in hand on the day you need it.

Why? Keeping it in cash means that it won’t be exposed to the up and down nature of the stock market. Quite often, over short term periods like two years, it’s quite possible that not only will you not turn a profit, but you might actually lose a piece of your invested money.

4. For medium term goals (two to ten years), diversify at your comfort level.

If your investment window is more than two years, the odds that you’ll come out ahead on the stock market start to get better, but it still comes with some risk. The stock market is never a guarantee, and past performance is never a guarantee of future returns.

Another factor to consider: how much is your life relying on this money? It makes sense to be more conservative with retirement money than with, say, money you’re saving for a new car. That’s because a downturn in your retirement can force you to work for years longer, while a downturn in your car savings just means you might have to continue to drive an older car for a year longer. The more vital that money is to your life plans, the more conservative you should be with it. If you’re not sure, be more conservative than less – keep plenty in the savings account and just dabble in the stocks.

5. For long term goals (ten years or more), stocks are a pretty good place to put your money.

Over the history of the stock market, almost every period longer than ten years has seen a profitable return in a broad stock investment. Even better, during many ten year stretches, the returns are quite impressive. Because of that (even though past performance isn’t a guarantee of future returns), it generally makes sense to put long term money heavily in the stock market.

6. The best place for first-time stock investors to put their money is in a low-cost index fund.

There are several reasons for this.

First, an index fund allows you to be invested in a lot of stocks at the same time. That way, you’re not affected by the ups and downs of a single company just as you are getting your toes wet in stocks.

Second, a low cost fund means that the investing house isn’t eating much of your money. That way, the gains go into your pocket, not in the pocket of your investing house.

Third, an index fund will introduce you to the ups and downs of stock investing. While they’re nowhere near as volatile as individual stocks, they are volatile. Many index funds can go up or down 3% on a single day. In other words, it’s a great way to find out where your risk tolerance really is without a deep risk of losing a lot of your money.

Personally, I only invest in index funds, for reasons I’ve specified in the past.

How can I get started with these? The best way is to get an account with a large investment house and transfer your money in online – the interface is often like online banking. I personally use Vanguard (Benchmark, for Indians) when I invest (though I’m currently focused on eliminating debts), as Vanguard offers a wide array of low-cost index funds.

Once you’ve started, set up an automatic investment plan so that you put in a certain amount each week or each month. Not only does this make it incredibly easy to keep up with your savings, it essentially automatically follows the investment strategy known as dollar cost averaging (which reduces investment risk).

Just sit on that for a while. Watch it. See whether you’re comfortable with the ups and downs of it. Learn more over time, and then you’ll figure out on your own where to go next. Maybe you’ll find that the volatility is too much for you and you’ll move the money to savings. Maybe you’ll want to diversify and buy an international index fund. Maybe you’ll have no problem at all with the volatility and dip your toes into individual stocks. It’s up to you.

Remember, though, that today is always the best day to get started.