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Friday, March 31, 2017

Stock Market Long term investment tips

Long term Investment in Share Market:-
For getting success in share market, you should always go for long term investment plan. Always invest in share market for holding the shares from 3-5 years and even long. More the patience more return you will get. People generally shy away from stock market as there is risk associated with stocks movements. People generally enter into market when market is at peak and so as the stocks and sell them when they were at all times low.
There are following tips for long term investment is share market. I have personally 12 years of experience of investment in share market. Where I had seen share market both bull and bear phase. But always patience pays.
1.    Invest in good stocks:-
Always invest in good quality stocks. Always check balance sheet of stocks before investment, check past performance of stocks before investment. Check investors in stock market, if there are large investment of foreign investors then stock perform very will and also if promoters of company had good chunk of shareholding then investor confidence get increased.
Always try to find out good profit making companies. It is hard to find these stocks but through research will get you these stocks.
2.    Diversify your portfolio:-
While doing investment in share market, always diversify your portfolio means you can’t put all your money on one stock or one sector. Select 4-5 stocks from different segments such as FMCG, Pharma, Banking, Cement, Capital goods etc. Diversified portfolio provides a good hedging in bad environment.
3.    Don’t add too many shares:-
Always add few but quality stocks into your portfolio don’t just add multiple stocks, as tracking of so many stocks may be become difficult , also you may garner true profit from a particular segment.
4.    Find stocks with rich cash flow and Low debt:-
Check for stocks which had very low or zero debt. Check for cash flow of company and profit margin. Also check for inventory levels of company. If a company is having very high debt then all profit earned get eaten away by interest against debt. In current scenario there are so many companies which very high debt which leads to bad health of financial statements. Cash rich companies always yield healthy return to investors.
5.    Check for dividend yield of companies:-
While checking balance sheets one most important aspect which must be taken care is dividend yield of the company. A consistent dividend yield will always help to garner more profit from share. A good dividend yield reflects profit making of the company. But sometimes high dividend yield may not reflect stock actual performance e.g. in PSU stocks there are always high dividend yield but stock performance largely subdued due to various subsidies and policies. So do through research will be required to select these stocks.
Also divided yield earned from stocks is tax free. So that will add you to your income.
6.    Set Realistic Goal:-
Always set a goal at which you may exit the company. Although it is always recommended to hold the stocks for longer period but exiting the stock at set goal. But setting a realistic goal is always recommended. Always set a realistic goal such as 20-50% return but unrealistic goals leads to test your patience.
7.    Track your stocks:-
Buying stocks and keeping them at side will not serve your purpose. Keep a track on invested stocks as fortune of the company may get changed at any moment. Always set alerts for your stocks. There are so many apps which will keep an eye on your stocks. There are moments when there are bad or good news for the company but keeping patience and eye on stock development will help to get more out of stock.
If there were  moments when stock fundamentals get changed and bad news company then don’t hesitate to book losses also as otherwise whole investment may get eaten away.
8.    Keep Patience:-
Investing required lot of patience. More patience you have more you get. There is phase in market when stocks doesn’t perform at all and remains in a range. So at that time people general have tendency to sell the stocks but people which have gone that phase will get a very handful return.



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Stock Market Long term investment tips

Long term Investment in Share Market:-
For getting success in share market, you should always go for long term investment plan. Always invest in share market for holding the shares from 3-5 years and even long. More the patience more return you will get. People generally shy away from stock market as there is risk associated with stocks movements. People generally enter into market when market is at peak and so as the stocks and sell them when they were at all times low.
There are following tips for long term investment is share market. I have personally 12 years of experience of investment in share market. Where I had seen share market both bull and bear phase. But always patience pays.
1.    Invest in good stocks:-
Always invest in good quality stocks. Always check balance sheet of stocks before investment, check past performance of stocks before investment. Check investors in stock market, if there are large investment of foreign investors then stock perform very will and also if promoters of company had good chunk of shareholding then investor confidence get increased.
Always try to find out good profit making companies. It is hard to find these stocks but through research will get you these stocks.
2.    Diversify your portfolio:-
While doing investment in share market, always diversify your portfolio means you can’t put all your money on one stock or one sector. Select 4-5 stocks from different segments such as FMCG, Pharma, Banking, Cement, Capital goods etc. Diversified portfolio provides a good hedging in bad environment.
3.    Don’t add too many shares:-
Always add few but quality stocks into your portfolio don’t just add multiple stocks, as tracking of so many stocks may be become difficult , also you may garner true profit from a particular segment.
4.    Find stocks with rich cash flow and Low debt:-
Check for stocks which had very low or zero debt. Check for cash flow of company and profit margin. Also check for inventory levels of company. If a company is having very high debt then all profit earned get eaten away by interest against debt. In current scenario there are so many companies which very high debt which leads to bad health of financial statements. Cash rich companies always yield healthy return to investors.
5.    Check for dividend yield of companies:-
While checking balance sheets one most important aspect which must be taken care is dividend yield of the company. A consistent dividend yield will always help to garner more profit from share. A good dividend yield reflects profit making of the company. But sometimes high dividend yield may not reflect stock actual performance e.g. in PSU stocks there are always high dividend yield but stock performance largely subdued due to various subsidies and policies. So do through research will be required to select these stocks.
Also divided yield earned from stocks is tax free. So that will add you to your income.
6.    Set Realistic Goal:-
Always set a goal at which you may exit the company. Although it is always recommended to hold the stocks for longer period but exiting the stock at set goal. But setting a realistic goal is always recommended. Always set a realistic goal such as 20-50% return but unrealistic goals leads to test your patience.
7.    Track your stocks:-
Buying stocks and keeping them at side will not serve your purpose. Keep a track on invested stocks as fortune of the company may get changed at any moment. Always set alerts for your stocks. There are so many apps which will keep an eye on your stocks. There are moments when there are bad or good news for the company but keeping patience and eye on stock development will help to get more out of stock.
If there were  moments when stock fundamentals get changed and bad news company then don’t hesitate to book losses also as otherwise whole investment may get eaten away.
8.    Keep Patience:-
Investing required lot of patience. More patience you have more you get. There is phase in market when stocks doesn’t perform at all and remains in a range. So at that time people general have tendency to sell the stocks but people which have gone that phase will get a very handful return.