| Investments |
How to Choose a Stock
By Ishita Sharma
A question which every investor has. But how to know which
stock to invest and at what price to invest. A million dollar
question, isn't it? I am not going to give you any stock target
but will provide few pointers which will help in making a
decision in buying a stock.
Business of the company
Understand the business model of the company. How the
company is earning money? What are the risk factors that will
affect the revenues of the company. The great Warren Buffet
always says"Invest in companies which business you can
understand". This is the most important criteria of choosing a
stock.
Industry of the company
Check which industry the company operates in. How the
industry is performing currently. What is the future growth
rate of the industry. Which are the factors which affects the
industry positively and negatively. Choose a stock which
industry outlook is positive.
Current state of economy
Current Outlook of the economy in which the company
operates. What is the Gross domestic product and Gross
National Product?
Sales/Revenues
Revenues/Sales figure of the company are extremely
important. Take the last 5 years sales/revenue figure from
the annual report and calculate the growth rate in
sales/revenue. Compare the growth rate with the industry
growth rate and the competitors growth rate, this will give you
an idea how the company is performing vis-a-vis its
competitors.
Net Profit of the Company
A very important criteria for measuring the performance of
the company. Check the ratio of Net profit to Sales, this will
tell you how much profit the company is making from Sales.
The higher the ratio, the better the company's performance.
EPS
Earning per share basically is the Net Profit/Total number of
shares. It shows how much money the company has earned
per share.
Trading Volume
How many shares are traded in the stock market on a regular
basis. Compare the figure with the top 10 highly traded
stocks and you will understand how liquid is the stock.
These are certain important criteria which should be
considered before buying a stock.
Article Source: http://EzineArticles.com/?expert=Ishita_Sharma
By Ishita Sharma
A question which every investor has. But how to know which
stock to invest and at what price to invest. A million dollar
question, isn't it? I am not going to give you any stock target
but will provide few pointers which will help in making a
decision in buying a stock.
Business of the company
Understand the business model of the company. How the
company is earning money? What are the risk factors that will
affect the revenues of the company. The great Warren Buffet
always says"Invest in companies which business you can
understand". This is the most important criteria of choosing a
stock.
Industry of the company
Check which industry the company operates in. How the
industry is performing currently. What is the future growth
rate of the industry. Which are the factors which affects the
industry positively and negatively. Choose a stock which
industry outlook is positive.
Current state of economy
Current Outlook of the economy in which the company
operates. What is the Gross domestic product and Gross
National Product?
Sales/Revenues
Revenues/Sales figure of the company are extremely
important. Take the last 5 years sales/revenue figure from
the annual report and calculate the growth rate in
sales/revenue. Compare the growth rate with the industry
growth rate and the competitors growth rate, this will give you
an idea how the company is performing vis-a-vis its
competitors.
Net Profit of the Company
A very important criteria for measuring the performance of
the company. Check the ratio of Net profit to Sales, this will
tell you how much profit the company is making from Sales.
The higher the ratio, the better the company's performance.
EPS
Earning per share basically is the Net Profit/Total number of
shares. It shows how much money the company has earned
per share.
Trading Volume
How many shares are traded in the stock market on a regular
basis. Compare the figure with the top 10 highly traded
stocks and you will understand how liquid is the stock.
These are certain important criteria which should be
considered before buying a stock.
Article Source: http://EzineArticles.com/?expert=Ishita_Sharma
Trading Strategies - Smart Investors
Always Have a Plan
By Aaron Livingston
After economic upheaval and catastrophe struck the credit,
housing and banking markets over the past few years, many
people are simply trying to get their finances back on track,
and find a way to recoup the losses that were suffered
because of unscrupulous lenders or stock brokers. Even
though the market is far from stable, it has recovered
somewhat, and many people are looking to make cautious
investments in an effort to start rebuilding what was lost. If
you're going to be successful in the stock market, it's
important to be willing to take control of your own portfolio
and put reliable trading strategies to work for your benefit.
The most important thing to realize while searching for
trading strategies that will help you to be smarter and more
successful in the stock market is that there are no one size
fits all investors solutions for the stock market. Even though
there are thousands of so-called market gurus on the
internet, all claiming that they've discovered the fail-proof way
for you to turn a thousand dollars into a million dollars, they
are almost always pushing a plan that is more likely to fail
than to succeed.
In today's modern market, it might surprise you to learn that
one of the soundest trading strategies was invented way
back in the early 1930's. Developed by two professors at
Columbia University, Benjamin Graham and David Dodd, this
trading strategy is very simple and easy to comprehend for
most beginner investors. Known as value investing, this
strategy says that investors should look for companies
currently trading below their actual worth and purchase their
stock. Value investing assumes that eventually, the market
will correct the low valuation, and the stock owners will be
able to earn a profit. This might take some time, however, so
this strategy is generally not used by short term or day
traders.
Those that are interested in trading strategies that will allow
them to earn money as fast as possible will be attracted to a
different concept, income investing. This strategy is also very
straight forward, but involves a bit more risk. Designed to
help you pick companies that will provide a steady stream of
income, right from the start, income investing is focused on
older, more established companies, which have reached a
certain size and ceased to grow. Because these companies
are focused on income and not expansion, they are more
likely to pay out attractive dividends to their investors.
Article Source: http://EzineArticles.com/?expert=Aaron_Livingston
Always Have a Plan
By Aaron Livingston
After economic upheaval and catastrophe struck the credit,
housing and banking markets over the past few years, many
people are simply trying to get their finances back on track,
and find a way to recoup the losses that were suffered
because of unscrupulous lenders or stock brokers. Even
though the market is far from stable, it has recovered
somewhat, and many people are looking to make cautious
investments in an effort to start rebuilding what was lost. If
you're going to be successful in the stock market, it's
important to be willing to take control of your own portfolio
and put reliable trading strategies to work for your benefit.
The most important thing to realize while searching for
trading strategies that will help you to be smarter and more
successful in the stock market is that there are no one size
fits all investors solutions for the stock market. Even though
there are thousands of so-called market gurus on the
internet, all claiming that they've discovered the fail-proof way
for you to turn a thousand dollars into a million dollars, they
are almost always pushing a plan that is more likely to fail
than to succeed.
In today's modern market, it might surprise you to learn that
one of the soundest trading strategies was invented way
back in the early 1930's. Developed by two professors at
Columbia University, Benjamin Graham and David Dodd, this
trading strategy is very simple and easy to comprehend for
most beginner investors. Known as value investing, this
strategy says that investors should look for companies
currently trading below their actual worth and purchase their
stock. Value investing assumes that eventually, the market
will correct the low valuation, and the stock owners will be
able to earn a profit. This might take some time, however, so
this strategy is generally not used by short term or day
traders.
Those that are interested in trading strategies that will allow
them to earn money as fast as possible will be attracted to a
different concept, income investing. This strategy is also very
straight forward, but involves a bit more risk. Designed to
help you pick companies that will provide a steady stream of
income, right from the start, income investing is focused on
older, more established companies, which have reached a
certain size and ceased to grow. Because these companies
are focused on income and not expansion, they are more
likely to pay out attractive dividends to their investors.
Article Source: http://EzineArticles.com/?expert=Aaron_Livingston
 |
 |
 |
 |
 |
 |
 |
 |
 |
| Do you need help to get out of debt? Looking for credit cards and loans regardless of your credit? Having problems with your mortgage? Looking to start your own business? Call Us at (202) 558-6678 We Can Help You |
Peter Morgan & Associates is a subsidiary of BigNate.org. Results may vary. Copyright © 2003-2011
