How to pick the right stock?
- Thread starter iwinux
- Start date
there are many ways to pick a right stock. some are:
1. u go for a company whose p/e ratio is less. for this, u can buy a magazine like dalal street journal, etc and take their table where all the companies are classified industrywise. this will help u to see the average indl p/e and whichever co is having a lesser p/e u can choose the same
2. a company with consistent results but whose market value is less than the book value, like canfin homes, kothari products, suraj diamonds, etc
3. u can buy shares of the companies who show a quantum jump in results
(watch out quarterly results). u can see economic times, business line, etc., particularly when the quarterly results are being declared.
1. u go for a company whose p/e ratio is less. for this, u can buy a magazine like dalal street journal, etc and take their table where all the companies are classified industrywise. this will help u to see the average indl p/e and whichever co is having a lesser p/e u can choose the same
2. a company with consistent results but whose market value is less than the book value, like canfin homes, kothari products, suraj diamonds, etc
3. u can buy shares of the companies who show a quantum jump in results
(watch out quarterly results). u can see economic times, business line, etc., particularly when the quarterly results are being declared.
yes, p/e is an indicator but it becomes meaningful only if you compare that with the benchmark p/e of the industry and its rivals .. for e.g you can compare p/e of icici bank with p/e of pvt. banking stocks and hdfc bank.
YOY incremental increase in operating profit is a critical indicator aswell.
More importantly growth in its market share , its management , its asset size ( indicator of potential future earnings) are all key factors.
Fundamental analysis tells you "what stock to buy " but technicals tell you " when to buy it " . Pls combine them in your system for maximizing profits and minimizing losses.
Never go by pure technical analysis alone because in a bull market ,the market rises despite resistance points and in a bear market it falls despite support points.
YOY incremental increase in operating profit is a critical indicator aswell.
More importantly growth in its market share , its management , its asset size ( indicator of potential future earnings) are all key factors.
Fundamental analysis tells you "what stock to buy " but technicals tell you " when to buy it " . Pls combine them in your system for maximizing profits and minimizing losses.
Never go by pure technical analysis alone because in a bull market ,the market rises despite resistance points and in a bear market it falls despite support points.
Ithink We can get the details from our broker and visit some sites like www.Moneycontrol.com
www.icicidirect.com
www.capitalmarket.com
etc.....
and come to conclusion to what to buy,
This is purely my opinion,
Regard
www.icicidirect.com
www.capitalmarket.com
etc.....
and come to conclusion to what to buy,
This is purely my opinion,
Regard
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