Tips for Buying/Selling a share..
June 28, 2008 3:37am CST
Hi.... Now a days, looking at the kind of returns that the capital markets gave till the end of 2007, many of us are looking at investing their hard earned money in shares and mutual funds. Picking the stocks randomly or just from a friend's sugession won't pay always... so let us discuss what are the precautions that we need to consider before buy/sell a share.... Here are few in my personal opinion... 1. "Earnings growth from past 4 to 6 Quarters"... Share of Any company whose earnings are growing well in the past four quarters will surly rise... 2. "Financial Back Up and Management".... Considering an Example... Reliance.. The financial back of the group companies and investor friendly management made these stocks as best pics for the managenemt 3. "Financial Ratios".. There are few values which gives us how expensive is the stock.. Stocks with low Price to Earnign (PE) and high Earning per Share (EPS) are good to bet on... 4. "Sector Performance"... In share market, always there lies one star performing sector... like infrastructure in 2007, IT sector in 2006... investing in the stocks of booming sectors at that particular time, will definitly gives good returns.... 5. "Global and Local Market Scenario".. Even if the fundamentals of the stock, Financials of the stock, management of the company are very good, the share price might go low if the global and local economic scenorio is bad... this is what making the markets to go low at current time. 6. "Keep Updating for Good Returns"... In whatever the company, you have shares...keep your self updated for all the things happening around it... make sure to exit at the correct time.......... Any suggessions or queries are welcome.... let share and learn....