| Advice to help you | | | | and observe the market trends. Keep |
| If you are a new entrant; professional | | | | track of your earnings and factors that |
| help can provide you the least risk and | | | | may affect your investment. |
| good reward stocks. Their analysis | | | | · If your reasons to buy a stock are |
| depends on a number of factors. A few | | | | still valid you need not sell the stock. |
| factors that you could use are | | | | · Beware of media or media quoted |
| · Understand one stock completely. To | | | | rates. It is not necessary that you buy |
| which industry the company belongs? What | | | | or sell at the rates in the financial |
| is the company's investment? How it | | | | press. |
| makes its money? Read its press | | | | Major signs of a good company |
| releases, news and result broadcasts. | | | | · Sales and earnings grow |
| Know the competitors of the company and | | | | · Company debt remains stable or |
| the trends in the particular industry. | | | | declines |
| · Spend time on research and focus on | | | | Tools that can help you in stock |
| what is important. Whenever you make | | | | investment |
| decisions on buying, selling or holding | | | | There are a number of tools for an |
| write it down as to why you are making | | | | investor to make an informed and |
| such a decision. A review of successful | | | | calculated decision on investment in the |
| decisions and not so successful | | | | stock market. |
| decisions can help you in future | | | | · Internet research tools give you the |
| stratagem | | | | latest data on company stocks and |
| · Evaluate and re-evaluate every stock | | | | trends. |
| on the market or the stock you have | | | | · Websites offer the same data given by |
| chosen the same way. Comparing and | | | | internet research tools and also give |
| contrasting can give you some valuable | | | | stock trading tips by experts. |
| insights into the stock market. | | | | · Softwares that do the internet |
| · Discuss with friends and explain the | | | | research and provide a detailed |
| rationale of why you bought your stock | | | | analysis. These softwares manage the |
| and how you expect to perform. They may | | | | stock quote file with 18,000 ticker |
| be rational when you are not. | | | | symbols and more. Graphical display and |
| · High valuations entail high risk | | | | export or import of data into other |
| (future performance determines the value | | | | financial or editing softwares is an |
| of stocks and in case these predictions | | | | addition. |
| do not materialize prices will decline). | | | | · Java Applets that perform a real time |
| Penny stocks too are the high risk | | | | stock ticker updates that can be |
| category. | | | | integrated with the financial software |
| · Rise above emotions and loyalty. | | | | that you possess. |
| There will be many volatile swings in | | | | Many stock trading softwares use advance |
| the market. Your stock may rise or even | | | | mathematical analysis on the stock |
| fall. You need to review decisions on | | | | market to make predictions about the |
| any new data and change reasons for | | | | future of a particular stock. These |
| holding the stock. | | | | softwares are accurate in many |
| · Reevaluating your existing stock is | | | | instances. Yet real life can churn up |
| also essential. Review the reasons why | | | | possibilities that can never be |
| you chose a particular stock. If those | | | | accounted into software. Political and |
| reasons are still valid then stick with | | | | other situations affect stock and hence |
| it. | | | | mathematics can be futile at times. |
| · Spend time on your investment weekly | | | | |