Which Stocks to Buy - How to Find Out?
Many people are involved in Stock Trading now a days.
For some people its a hobby, for some its like business and some people are totally involved in Stock Market Trading.
They think and dream only about the Stock Market and are always curious and hopeful for the results which the stock market brings to them.
These results are sometimes sweet and sometimes bitter.
But then it is said that "Life is bitter sweet" and every coin have two sides.
So they accept the sweet or bitter result whatever it may be, as a part of their fate and prepare themselves for the next trade.
They never lose hope and always hope that someday they will make good profit in the markets.
The positive attitude to always hope for the best is good but they shouldn't be extra optimistic but with optimism they should also use a bit of their minds to work out on each and every trade they do.
A trader can make a good profit in the stock market but the choice of the stock which he is going to trade has to be appropriate.
I know I am not speaking something which traders already don't know but how to find that stock which will click for the trader is a tough task.
It involves a sheer bit of efforts to find out Which Stock to Buy" which will bring him sure shot profit.
I will suggest here some crucial things which should be considered and given a thought before a person decides to buy a stock.
In this world there is a simple funda - "More Money More Value".
And the same is true with the Value or reputation of a company.
If a company has more Cash in Hand then its value is more and they have a good repo in the Stock market.
Therefore there Shares are always profitable to buy.
But what importance does the cash in hand have for deciding the Share Value of a company.
The simplest explanation is that more money a company has in hand the more freely they can pay for their raw materials, technologies used, electricity bills, salaries of the employees etc.
which are crucial factors for running a company and making it grow.
Such company in the eye of the government and investor is a good company and its Shares are counted as Positive Shares.
There for this company can be considered as a Company with Good Stocks to buy and will surely bring profit to the investors.
The next thing which the traders should keep an eye on is the P/E ratio.
P/E Ratio is Price per Share/Earning per Share.
The more earnings shares of a company give to an investor the better it is to purchase it.
Also the PEG ratio of the company should be seen.
The PEG ratio is PE/Growth of Company Ratio.
The best level of PEG ratio for buying the stock of a company is 1.
Simply buying the Stock of a company by seeing the name of the company or the name of the person who owns it is not a wise thing to do.
An investor should do a research on the company and find out what product or services that company sells.
What and how is the demand of that particular service or product in the market.
If the demand is more than in that case that company in the future is going to make a lot of money and hence the money of the person investing in the Shares will also increase.
If the product of the services provided by that company is not in demand and old fashioned then there are less chances of the services of the product to be sold so the returns on Stock also will be very less and sometimes even less than what was invested.
One more thing to study about a company before buying its share is its QoQ growth i.
e.
Quarter on Quarter growth.
The QoQ growth of a company gives an indication of whether the growth of the company is constant and what is the magnitude of that growth.
More the QoQ the better for an investor to invest in such a Stock.
All these factor when studied as a combination for a company is called financial analysis of a company.
If the analysis is done for day to day or intraday performance of Stock then its called Technical Analysis and when the analysis is done for a long term basis then its called fundamental Analysis.
The persons who do this analysis are known as analysts.
If a trader cannot do the analysis himself or don't have the time to do it then he should take the help of the Research and Analysis Houses (Such as CapitalVia Global Research Limited) who have a lot of analysts working for them and they provides recommendations to the investors and the traders to buy or sell a particular stock in order to earn the maximum profit.
I am sure if you seek the Assistance of CapitalVia Global Research Limited for your investment and Trading then you will make lots of profit from the Stock which CapitalVia recommend and you will not have to ask anybody that "Which Stocks to Buy?"
For some people its a hobby, for some its like business and some people are totally involved in Stock Market Trading.
They think and dream only about the Stock Market and are always curious and hopeful for the results which the stock market brings to them.
These results are sometimes sweet and sometimes bitter.
But then it is said that "Life is bitter sweet" and every coin have two sides.
So they accept the sweet or bitter result whatever it may be, as a part of their fate and prepare themselves for the next trade.
They never lose hope and always hope that someday they will make good profit in the markets.
The positive attitude to always hope for the best is good but they shouldn't be extra optimistic but with optimism they should also use a bit of their minds to work out on each and every trade they do.
A trader can make a good profit in the stock market but the choice of the stock which he is going to trade has to be appropriate.
I know I am not speaking something which traders already don't know but how to find that stock which will click for the trader is a tough task.
It involves a sheer bit of efforts to find out Which Stock to Buy" which will bring him sure shot profit.
I will suggest here some crucial things which should be considered and given a thought before a person decides to buy a stock.
In this world there is a simple funda - "More Money More Value".
And the same is true with the Value or reputation of a company.
If a company has more Cash in Hand then its value is more and they have a good repo in the Stock market.
Therefore there Shares are always profitable to buy.
But what importance does the cash in hand have for deciding the Share Value of a company.
The simplest explanation is that more money a company has in hand the more freely they can pay for their raw materials, technologies used, electricity bills, salaries of the employees etc.
which are crucial factors for running a company and making it grow.
Such company in the eye of the government and investor is a good company and its Shares are counted as Positive Shares.
There for this company can be considered as a Company with Good Stocks to buy and will surely bring profit to the investors.
The next thing which the traders should keep an eye on is the P/E ratio.
P/E Ratio is Price per Share/Earning per Share.
The more earnings shares of a company give to an investor the better it is to purchase it.
Also the PEG ratio of the company should be seen.
The PEG ratio is PE/Growth of Company Ratio.
The best level of PEG ratio for buying the stock of a company is 1.
Simply buying the Stock of a company by seeing the name of the company or the name of the person who owns it is not a wise thing to do.
An investor should do a research on the company and find out what product or services that company sells.
What and how is the demand of that particular service or product in the market.
If the demand is more than in that case that company in the future is going to make a lot of money and hence the money of the person investing in the Shares will also increase.
If the product of the services provided by that company is not in demand and old fashioned then there are less chances of the services of the product to be sold so the returns on Stock also will be very less and sometimes even less than what was invested.
One more thing to study about a company before buying its share is its QoQ growth i.
e.
Quarter on Quarter growth.
The QoQ growth of a company gives an indication of whether the growth of the company is constant and what is the magnitude of that growth.
More the QoQ the better for an investor to invest in such a Stock.
All these factor when studied as a combination for a company is called financial analysis of a company.
If the analysis is done for day to day or intraday performance of Stock then its called Technical Analysis and when the analysis is done for a long term basis then its called fundamental Analysis.
The persons who do this analysis are known as analysts.
If a trader cannot do the analysis himself or don't have the time to do it then he should take the help of the Research and Analysis Houses (Such as CapitalVia Global Research Limited) who have a lot of analysts working for them and they provides recommendations to the investors and the traders to buy or sell a particular stock in order to earn the maximum profit.
I am sure if you seek the Assistance of CapitalVia Global Research Limited for your investment and Trading then you will make lots of profit from the Stock which CapitalVia recommend and you will not have to ask anybody that "Which Stocks to Buy?"