How To Find Good Stocks For Stock Market Trading And Investment
Find Good Stocks/ share For Trading And Investments : Guide and Steps
There has been many companies listed in stock market. Now important thing is that in which company we invest and how to choose that ones. Finding right companies is not as easy.so but with basic things and some study and practice you can find good multibaggar stocks, verify them and invest in them for earning good returns in future.
Fond Good Stocks: According To Sectors
- Banking
- Automobile
- Pharmaceutical
- Food Sector
- Oil and Gas
- Technology
- Engineering
- Cloth Sector
- Power Sector
- Finanace
- Misleneous
You can invest money according to sectors. Just keep in mind that don't be dependant on companies from one sector only. always invest in different sectors as you will have loss in one then another can balance your loss or reduce your loss. So You can find many good companies from other sectors definitely.
Find Good Stocks : According To Scale
• Small scale companies
• Medium scale companies
• Large scale companies
Large scale companies are good most of time for trading also for investment but you need to buy at proper price. there is risk but not like small and medium scale companies. The risk is every where and we all know that or shouod be known it.
You can find many good and better companies
in small and medium scale that are performing
very good and most of people unknown for
that and they are running back to big
companies because of good price and position
instead small and medium scale can also makes your
investment portfolio strong and
gives you good returns, so study carefully.
Companies from small and medium scale
like
• Small engineering. works
• Small tools
• Body and body parts for large comapnies
• Wrapper or cover
making (aluminium foile)
• Packaging and material
Fond Good Stocks : According To Product And Service
• Food product
• Daily essential
• liquid food
• Cleaning product
• Electronics items
The company which you are going to chose more depends on their product and service. So look for the companies that its products which are very essential to each and everybody and must need at least once in day because there are more and more chances of business to grow and stabilize itself and give you good return.
According To Capitalization
The Nifty-50 companies are based on market capitalization. there capital is more because of their product and business growth. So its better to take a look of nifty-50 and sensex companies also, because directly and indirectly they are presenting indexes (like sensex and nifty, midcap-100 )
According to Fundamental And Technical Things
There are two main things :
• Fundamental Things
• Technical things
Fundamental things include like company
condition, their product, performance ,
market capitalization, profit/loss, customers ,
investors.
So study this things and verify again and
again and then take decision.
Technical things include like technical
parameter which shows how share is performed
in day , in week , in month as well in year
and for many periods for many other things.
Candle stick graph gives more and detailed
information with same time easily.
you can see this at any time after market
has been closed in graphs and analysis.
There are types of graphs:
• Candle stick
• Solid graph
• Line graph
Candle stick is very useful for
intraday
and other types of trading also because it
shows every minute movement and with price
ups/downs, volume , buyers and sellers with
in green and red color candle. you can
see that in any company graph.
According To Momentum
Momentum refers to how share was performed during the last day, week and month like that this is analysis of share price based on days (5 day,15 day, 30day, 100 day ) so you can look the movement in price.can judge reasons behind that and decide where and when to enter. This gives you an overview About price and position.
According to Comparison
You know that comparison here is also same but over the same sector and same type of company that will give more and clear information about company, their share price. So you can decided when you can enter and for what time as your a trader or investor.
According To Position
This is very very important part of
investment because in investment your buying
position must be approximately proper and
right otherwise you will get less or limited
profit or sometime satisfy in less
as compare to others.
If your position is wrong then you will
lock yourself in that company share for
unknown time or you
need to exit In loss. So don't do hurry ,
study, wait and then buy share at good position
because this have another benefit that
is you can get more profit than others.
For example :
Person A buy 10 shares at current market price which is 100 rs and person B also want same to buy But he is just studying and observing.there is always some fluctuation in price so now price has down to 88 - 90 rs and then if person B buy the shares at 90 - 92 rs here person B is already in profit than person A and also brokerage and tax of both A and B the same but profit is different.
So now you can understand the real difference and also positions can affects your investment.
So be carefully and be smart by deciding what type person who you want to like become A or B because A is trader and B is an investor.
Comments