Stock market is the riskier market you cannot reduce the risk at zero level when you enter for high returns there is chance of big loss but if we focus on few tips we can reduce the risk .
1. Blue chip Invest in blueship companies whose chances of going down is low than others blueship companies who are famous and best one in stock market.
2. News As we know there is great impact of news and economic condition on stock market or specific company so keep knowledge of what is happening related to economic or in the world if you thing some good news attached with company so there is chances of price to go up and if bad news is coming than chances of price go down increases.
3. Intrinsic Value There is always a real value behind the price of stock in the market it should be check before purchasing if the intrinsic value is low than prices falling chances are there but if the intrincic value is high than actual value then there is chance that price will go up .
4. Financial Statement we can check companies health by looking at their statements which are enclosed for public yearly quarterly and 6 month period that information can give us best idea the most important part is their profit ratio the dividend paying ratio and also how much company is depending on loan these ratio should be good .
No comments:
Post a Comment