Four Basic Rules (Tips) for Beginners

Four Basic Rules (Tips) for Beginners

stocksI like to keep things simple and focus on fundamentals There are four Basic rules to invest in stocks for Beginners , the first rule is

1)The stock has to be stable and understandable : There are lots of people tries to track the stock which might be fallen because it might have huge difference even though risk is associated with it , the reason with it is i don’t get attracted to like that of sock because it is not stable and understandable stock to calculate , when the company is producing same earnings year after year and consistently growing their equity 10% a year what ever the things might be, I can predict what the company can  produce next year so i never invested in a company which is not stable and something which is not understandable.

2)A stock must have a long term prospects : I am not going to invest in a company which done not have long term prospects based on this i can analyze the growth of the company for past few years , really the long term prospects will help in analyzing the stock of the company.

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3) A stock must be managed by vigilant leaders : one of the things i would like to suggest is that the company must be managed by the individuals that manage debt well so one of the things which i really stay away from is, if a company has lot of debt just stay away.

4)A stock must be undervalued : I never buy a stock which is over valued , we must buy a stock which is undervalued,
suppose if i determine a stock is 150$ i always try to buy the stock for 100$ or 120$ . I never going to over pay for that.

Lets have closer look at the rule 4 where the stock must be undervalued.

Refer the Books on stock market trading tips.

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