Four Basic Rules (Tips) for Beginners
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.
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.