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Saturday, 29 August 2015

Tips to choose the stocks to invest in stock markets

Here are some of the tips for choosing the stocks to trade in stock markets. These tips are generic and can be used across all markets like India, China, UK, Australia, USA, Canada or Germany or any other stock market in the world.
  1. Look at the company's growth rate for past few quarters.
  2. Check if there is a debt on the company.
  3. Take a look at balance sheet which will give details about the profit, loss, assets and liabilities. Invest in the stock of the company having better balance sheet.
  4. Take a look at credit rating (by standards and poor's or Dun and Bradstreet) of the company.
  5. Take a look at dividend history and bonus issue history. This is important if you are planning to invest for very long time.
  6. Compare with sector performance
  7. Compare with Market performance
  8. Check the volume of the stock
  9. Compounded annual growth rate?
  10. Earnings and cashflows
If you are not able to decide which stocks you should bet on then look at above parameters and compare them with other stocks. Companies with low debt and high growth rate are worth investing money for long term. Mere profit is not enough for the stock price to soar but the growth in profit is what matters!

What do you think on this topic? Please express your opinion or ask any question through comment below. You can write to me at reply2sagar@gmail.com

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