how to pick stocks for long term investment?
you can get good premium on your investments if you do research about the company your investing.
investing will make your money work for you. so pick the stocks which will make money, it could be for short time or long term.
Points to remember?
- Selecting stocks is very easy but selecting good stocks is tricky.
- sometimes growing graphs make your greedy and in the flow of greed you invest.
- before investing do proper research of companies like study their chart patters (technical analysis) study the company growth, balance sheet do a proper fundamental analysis.
- pick the stocks for which you are sure about.
Signs of a good company?
- Good companies always have a growing graph, this shows their progress.
2. ROCE is greater than 20% and profit is increasing YOY.
3. company is active in market (company in news).
4. Check out the companies vision, management, etc.
5. checkout their business model which is the most important factor for long term.
Tips for beginners?
- Don’t invest huge amount in the start.
- gain more and more experience by watching market daily.
- be connected to social media, stay in touch with company social handles your interested to invest in.
- buy stocks on dip, this will help you getting more premium.
- don’t trade on tips.
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