Business Mantra : Faridabad
If you ask this question to 100 people, do you want to earn from stock market? I am sure, you will get 100 YES. And the next question from them would be –
- Give me a stock name?
- What will be the price of this stock after 2 months?
- How much should I invent?
- How much I can make in one year?
But if you want to earn money from stock market, you need to understand this business and how it works, why price goes up or down of any stock. Also you should set a minimum ROI (Return on Investment) and if you are not meeting your targets, you better quit this game and invest somewhere else. As per my opinion, if I won’t get at least 15% return I would prefer to put my money in Fixed Deposit and would use my time/mind to do my routine work.
There are three important things you need to know:
ü Where to invest?
ü When to invest?
ü When to exit?
Stock selection is very crucial, before investing in any company check if,
- Business is growing or not,
- Profit is going up or down on YOY basis,
- How much debt on company,
- What is P/E ratio etc.
Study at least last 4-5 quarter’s results and if you are convinced with the growth on paper then there are high chances that you will see your money growing with the stock. But never ever chase any stock, do not get attracted by any fast moving stock, just wait for the price to settle and then enter in the stock.
I won’t prefer to book profit in growing stock, I don’t believe in booking profit as long as company is performing and giving good numbers. If you think, numbers are not as per expectations then do a reanalysis and take your own decision.
Never go by the targets given by others, usually targets are for traders and not for investors. And remember, no one can predict the stock price. If anyone claims so, stay away from him. Even if any official comes and tell that price of this stock will go to xyz till that date, I won’t trust him. So always do your analysis and make your own decision.