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How to choose a stock for investment?

Posted By On 10/04/2008 05:19:00 PM Under

1.  One has to see that a stock fits on following parametres to be able to make neat profit from stock market by virtue of these invetsments. The points to be considered are given below:

(a) One must know the personal  risk profile and thus accordingly can plan the investments.

(b)  Consider valuation stored in stock prior to making any stock purchase.

(c) Analyse the balance sheet and see cash flow of the company.

(d) Do not consider past performance of stock as a key indicator but consider its future growth potential.

(e) Undertake the investment in tranches.

(f) Do not over diversify else tracking becomes diffcult.

(g) Invest for a long time frame.

(h) Always invest in those companies which are people friendly and are responsible in payinyg their taxes.

2. If one can make this much research than one is bound to have 100% sure shot profit in the stock market.


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