Oct 2, 2014

Investing in Stock Market and Stocks Selection: Few Points

Here are few points which you may face when selecting stocks and stay as investor in stock market.

  • Clear your mind about the time frame you decided for the stock selection. Stock selected for long term may not be that good for short term and vice versa. In short term, you select stocks based on news or any prediction about possible policy announcement from the government etc. It can be quarterly result as well. 
  • See how much risk you want to take. Filling most of the portfolio with high risk stocks wont make you earn more as some time or other you may select bad stocks. So, fill half of your portfolio with stable companies. Stable companies does not mean companies like Reliance etc. Its growth is not that good now. It became mature possibly. TCS is still growing. You can chose young companies who started delivering quarter after quarter. It means the company is young but now learned about how to do business. Check sector also in which company falls. If growth projection is good in that sector when growth companies can do wonder.
  • Divide time frame like 3 months, 6 months, and 1 year. After 1 year in any stock, come back and check your investment. Also, keep tab of any news if comes about the company. 
  • More ... ?