In India the volume of investments has
somehow depleted in the past 3 years. This market situation leaves extremely
fragile scope for any bloopers as far as the common private investor is
concerned. The intermittent slowdowns have brought the stock market to a
situation where there is always a danger of a double dip; something which small
traders and investors can hardly afford at this juncture. Hence, it is
absolutely necessary for them to strategies and plan their tactics before
making any investment decisions. And this is possible only when they know how
to pick good stocks, based on serious and factual knowledge of the market, its
history and its current trends.
How to
Pick Good Stocks: Strategies and Contours
- The most important thing to remember before making any kind of investment is the current financial scenario of the investment destination- whether it is bank accounts, fixed deposits or in our case; the stock market. These do not operate in a financial vacuum and are notorious for their illusive speculativeness and other malpractices. Reading, understanding, observing and internalizing market trends is an art- an art which can be perfected only after years of practice, patience and fortitude. It is no child’s play and small investors with no experience of stock trading can be easy target for frauds. Hence, it is extremely necessary that the investor keeps an eye on the share market, learns its operational norms, peculiar institutional behavior and uninsured risks. Only after the investor, with or without the help of professional advisors, executes this plan of action can he/she hope to make any headway in terms of profits.
