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Stock Market Tips

The stock market has become an explosive way to earn money in India. But care needs to be taken before investing money in stock markets. One needs to be careful regarding the performance of the share, its profile, future prospects and return values. A detailed market research is required for the same. Here are some do’s and dont’s to be followed while trading in share market.

Avoid investing huge amounts of money

Avoid investing huge amount of money in share market at one go. Rather, invest in stages. Be careful in money management during investments in shares. Invest only after a proper watch on top losers and top gainers at stock market. When the market falls, buy some shares. When it dips again, go for the second leg and buy the shares. This will reduce the risk o big loses in case the price of you share falls.

Stock trading – Buy & Sale

Be very careful during stock trading. Buying or selling o stocks at right time and at right price defines the success at share market. Only buy fundamentally strong stocks, which are undervalued and companies with strong management. Also ensure a multi sectored investment. Don’t just buy stocks in one sector. Make sure you are invested in stocks of various sectors so that loss of one sector (if any) can be balanced. Sell the shares when the market peaks. However, the peak can’t be predetermined. One needs to analyze the share for a long time and then decide for its peak value.

Sell Out Useless Shares

If the prices of one of your shares fall below a bearable value and remains stagnant for a long time, sell it out. Even if they are not going to give you a substantial profit, it is time to dump them and utilize the money elsewhere if you no longer believe in them. Stay invested if nothing fundamental about your company has changed.

Invest After A Performance Track

Track the performance of the share of your choice before investing for it. Invest in companies with proven management and avoid loss making companies. A comprehensive market watch can help your cause. Any decision taken without performance track can effect your prospects in the share market. So it’s very important to keep a track on the performance of the share over a period of time.

Research Analysis

Research analysis form the core of share market investments. Take help from market experts, backed by years of market experience because they provide high accuracy rate and increased efficiency in the investments. Don’t follow the experts straight away. Be a little self assertive as self knowledge and judgment is equally important before investing for your money. Successful stock trading is a result of your efforts of research and analysis in choosing potential stocks related to short term and long term investment products.

Here is a Stock Market Tip Everyone Should Know About

Are you looking for a stock market tip? In this article I am going to give you a tip that everyone should know about.

This stock market tip is to – perform due diligence. What is due diligence? Basically it means researching a stock to see if it is worth buying. Here a ten steps to follow when performing due diligence.

1.) Market capitalization – find out the company’s market capitalization, doing this will help you figure out how volatile the stock will be, how broad the company’s ownership is and the potential size of the companies markets. Also find out what exchanges the stock trades on.

2.) Look over revenue, profit and margin trades - look up the revenue and income figures for the past three years. Look for trends in these figures such as whether growth is choppy or inconsistent or if there are any major swings. Also review the margins to see if they are rising, falling or remaining steady.

3.) Competition - what industry does the company operate in and how much competition is there. Compare your company to its closest three competitors.

4.) Company management - who is running the company? Look at the bios of company management, who are they and what kind of experience do they have. Also see if the company managers hold a large amount of company shares, high share ownership by managers is a good sign

5.) Check the balance sheet - look up the company balance sheet, what is the overall level of assets and liabilities? Check to see how much cash the company has as well as how many outstanding debts are held

6.) Stock price history - how long have all classes of shares been trading? What is the long and short term price movement? Is the stock price smooth and steady or choppy and volatile? Answering these questions will give you a good idea of what the stock will do in the future.

7.) Level of risk - it is important to understand the levels of risk involved in the stock. Ask yourself if there are any future risks involved in owning this stock.

By following the above steps you will be able to get a good idea if your stock is worth investing in. If you enjoyed this stock market tip, if you

Stock Market Wisdom – Learning to Trade Like the Legends, Part 10

I thought I would conclude this learning series with wisdom from the greatest stock market operator of all-time, Jesse Livermore. I have read, “Reminiscences of a Stock Operator”, many times. Much of the superb trading knowledge I am about to share with you, is from that classic book.

Whatever is happening in the stock market now, has happened in the past, and will happen in the future.

Always look for repetitions, and similar types of behavior in the market. History always repeats itself in the stock market.

The desire for constant action, even in bad market conditions, is responsible for many losses.

The biggest battle to win in the stock market, is fighting the enemies inside us. That is human nature.

Never argue with the market. The market is much bigger than any of us. Always stay in sync with the market flow.

You must believe in yourself, and your own judgement. Tips and opinions from others are dangerous, financially.

Implement a system, based on study and experience. Do not gamble.

If a stock does not act right, don’t buy it.

The way to make money is to properly appraise conditions. Plan accordingly, and then act.

Do not sell a stock that is acting right because you are anticipating a reaction.. The reaction may not happen.

The big money is not made in the individual fluctuations. It is made in major movements, which take time. Be right and sit tight.

Buy the best stocks during a bull market. Get out off all your stocks when the general market conditions start to reverse to a possible bear market.

Never buy cheap stocks. They are cheap for a good reason. A lot of money is lost this way.

Stocks are never too high to buy, or too low to sell.

Much depends on your timing. Always buy at exactly the right time.

Study your mistakes, and learn from them.

Look ahead and follow a clear trading plan.

A small loss should not bother you.

Watch the market. Determine the direction or trend. Go with the trend.

When prices are in a narrow range, wait until the price breaks through this range in either direction. Then go with the flow.

When you buy stocks, it is better to pay top prices.

Always accumulate your shares of a stock on the way up in price, never on the way down in price.

“Hope” will cause you to lose a lot of money, and “fear” will keep you from making a lot of money.

Sell what shows you a loss, and keep what shows you a profit.

When stock market leaders go down several points from their top, and do not come back, this is a clue of a possible general market reversal.

Do not try to sell at the top, or buy at the bottom.

You will be paid well for both patience, and being right.

Greed will cause people to take tips.

It is a fallacy that a stock once selling at 100 is now a good deal at 50, and a great deal at 20.

You should never buy at the bottom, and should always sell too soon.

A proper stock market education is like a medical education. It will take many years of learning.

Observation, experience, memory, and mathematics. A successful trader must depend on these.

Only trade when the odds or probabilities are in your favor.

If your business is to trade, you must study.

Do not go against the movement of industry groups in the stock market.

Do not buy a stock that does not follow the group leader.

The chart will warn you when something is wrong in the stock market.

Only go long on an advancing market, and only go short on a declining market.

In the stock market, your strongest ally are the conditions.

Knowledge is power, and power need not fear lies.

Stick to the facts, and do not worry about what other people think.

Learn from the experience of others.

Study proper trading psychology. It is very valuable.

People will continue to make the same mistakes in the future as they have in the past.

The sucker will always try to get something for nothing.

You must adapt yourself to changing conditions.

Be fearless, but not reckless.

Do not blame others for your own failures.

Stocks are manipulated to the highest prices possible, by the powers to be, and then sold to a gullible public on the way down.

Stay with the teachings of experience and common sense.

General wisdom is less valuable than specific savvy.

If you lose your temper, you are finished as a trader in the markets.

The trader or speculator’s most dangerous enemies are ignorance, fear, greed, and hope.

It is as important to know what not to do, as to know what should be done.

In a major bull market, the public at first makes money, which later is lost, by over-staying the bull market.

The public likes to be told. This is what makes tip giving a common occurrence.

The market usually looks ahead from 6 to 9 months, ahead of current conditions.

There is no need to know the reason why a stock advances in price. As long as it keeps moving up, with only small and natural reactions, it is a safe bet to stay with it.

If after a long, steady up-trend in price, a stock turns and slowly starts to go down, with only occasional small rallies, the trend is reversing, and it is time to sell your stock.

You have just read many of the true stock market secrets from Jesse Livermore. Learn and implement them into your own trading. You could make a fortune using this stock market wisdom.