If you have constantly felt careful of the stock market and hesitated, regarding investing, Following are a some simple tips for you to increase your confidence and raise your earnings.
1. Look for a good brand or patent company to invest.
2. See the promoters shareholding pattern. If the promoter’s stake is greater than 60%, they believe more in their business model and can’t fool you.
3. See the Best Dividend Payout Ratio. If dividend producers are better, it’s a value stock.
4. Do not follow the word on the street. It is always an exit for experience or smart people.
5. The easiest approach to follow is to compare prices relative to before the end of year closing. If prices are higher than the end of year closing, we are in Bull market or uptrend, and if below, it is a bear market or a downtrend. December is NAV game play for all Foreign Institutional Investor (FIIS), so that’s the psychological factor.
6. When Sensex Price to Earnings Ratio falls below 10, it is an excellent time to purchase in best quality stocks for long term.
7. A huge rush of IPO and that too by the size of 10000 crores is a sign of a dangerous market top. Last was Reliance Power in 2008.