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