Key Points to Remember While Investing In Stock Market
March 23, 2018
List of things that you must keep in mind while buying or selling the stock are mentioned below. By simply following these rules, you can accomplish good returns.
- Make use of chart service as it will help you in determining whether or not the timing is right to buy a stock.
- Keep in mind that investors are broadly categorized into two basic types of group. One is of growth stock investors and other is of value investors. Here the group of growth investors usually seeks companies with strong earnings and sales growth. They make sure that the company is having superior profit margins as well as a return on equity of over 17%. While the other group of investors are those who search for stocks that are undervalued and have low P/E ratios.
- If you are novice trader then do not make things complex for you. Keep it simple. You must always invest in domestic stocks or mutual funds. Here the chances of risk are low and you get what you pay for in the market. Buy low-priced stocks as they are usually cheap for a good reason.
- Do not go for options as they are risky. Option segment is said to be risky because here you need not only have to be right about the direction of the stock but you also need to keep track of the time frame in which it is believed that the price will fluctuate.
- Novice traders must also not go for futures. This is due to their highly speculative nature. Only those traders, who have several years of successful investment experience, must invest in future.