If you are not buying the wrong stock somewhere, know what you have to pay attention to

If you are not buying the wrong stock somewhere, know what you have to pay attention to


Choosing the right shares is not an easy task. Actually, if you do not pay any special attention while choosing shares, then you may have to bear the loss. Today we will tell you about some such things, keeping in mind that you can choose the right share.

connect with strong stocks 
It is profitable to be associated with strong stocks (which have high trading volume). Fake trades can be accelerated in short-traded stocks. It does not have much scope in large stocks.

Make a very careful decision & nbsp;
When choosing a share, one should never pay any attention to hot tips like phone and SMS. Similarly, do not decide to invest money after watching a good discussion on TV. Before buying shares, attention should be paid to the company’s earnings growth, management quality and balance sheet. The chances of loss in a strong company on these three points will be less.

See the reason behind the stock’s not speeding up
Just seeing that the shares are going up should not lead to indiscriminate money. Rather, one should try to understand the reason behind the boom. If this pace is not matching the fundamentals of the company, then it is better to stay away from it.

Do not trust the advice of brokers. Trust & nbsp;
Do not blindly accept the advice of brokers. His personal interest may be connected in this. Do not cross-check with all the available resources. You may have to suffer loss.

If the value of the stock falls, do it & nbsp;
Be sure to keep a stop loss as soon as a share crosses it, then decide immediately. For example, if a stock goes below 20 percent of its purchase price, then it is prudent to sell it. It is a wrong strategy to keep a loss-making stock for a long time and to wait that it will grow one day.

Try to know the truth of the claims of the company
Do the research yourself to find out the reality of the claims of the company. Find out if the company has actually made a profit. Or how accurate is the claim he has made of getting new orders.

Also Read:

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