In my previous article, I have spared many words on stock market options as an optimist. Let’s find out few inve
stment tricks & techniques that can facilitate more oxygen in to our optimism.
Firstly & most importantly, self assessment of an individual investor is essential. Before stepping in to investment decisions, one need to rest assure on his or her personal projection over the market scenario for the coming months. Once an investor is ready to enter in to, need to ensure upon his/her risk taking capability & hence concerning up on such extent of risk & expected return, his/her further investment decision should be designed. Now, at present, as nothing much left to navigate the market sentiment, I would rather suggest to make a systematic investment plan(SIP) i.e., investment in small bulks at a regular interval spreading over a specific period, than opting for a one time bulk investment. Further, before applying for an equity, it is essential to evaluate properly on the prospect & potentiality in terms of time factor. Here, effective evaluation can be done in two ways, fundamental & technical analysis. Fundamental analysis includes study of financial position for the present as well as previous fiscals, ratio analysis, identification of the objective of the company through memorandums & articles, also need to ensure upon the extent of stack holdings among management, efficiency of the management, if any legal proceedings or suit pending against that company & any other ambiguity in conformation with the guiding rules & regulations etc. On the other hand, technical evaluation of past performance of a share sometimes facilitates a fair picture of the furure. In this context, few measures like moving averages varying the number of days, also formation of several types of chart pattern signifies the extent of soaring of a particular script. However, although technical analysis is a very tactical part in trading activities, most of us are not quite acquainted with these aspects. Hence, few factors can be sorted out from both the analytical aspects to justify our investment decisions like PV ratio, present status in terms of 50 days & 200 days moving averages, positive updates, return on onvestment(ROI), market capitalization & trading volume up on that particular script etc.
stment tricks & techniques that can facilitate more oxygen in to our optimism.Firstly & most importantly, self assessment of an individual investor is essential. Before stepping in to investment decisions, one need to rest assure on his or her personal projection over the market scenario for the coming months. Once an investor is ready to enter in to, need to ensure upon his/her risk taking capability & hence concerning up on such extent of risk & expected return, his/her further investment decision should be designed. Now, at present, as nothing much left to navigate the market sentiment, I would rather suggest to make a systematic investment plan(SIP) i.e., investment in small bulks at a regular interval spreading over a specific period, than opting for a one time bulk investment. Further, before applying for an equity, it is essential to evaluate properly on the prospect & potentiality in terms of time factor. Here, effective evaluation can be done in two ways, fundamental & technical analysis. Fundamental analysis includes study of financial position for the present as well as previous fiscals, ratio analysis, identification of the objective of the company through memorandums & articles, also need to ensure upon the extent of stack holdings among management, efficiency of the management, if any legal proceedings or suit pending against that company & any other ambiguity in conformation with the guiding rules & regulations etc. On the other hand, technical evaluation of past performance of a share sometimes facilitates a fair picture of the furure. In this context, few measures like moving averages varying the number of days, also formation of several types of chart pattern signifies the extent of soaring of a particular script. However, although technical analysis is a very tactical part in trading activities, most of us are not quite acquainted with these aspects. Hence, few factors can be sorted out from both the analytical aspects to justify our investment decisions like PV ratio, present status in terms of 50 days & 200 days moving averages, positive updates, return on onvestment(ROI), market capitalization & trading volume up on that particular script etc.
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