I am new to share market…Hwo to invest in stocks without fundamental/technical anlysis?
I can see that you are planning to invest in stocks and you are willing to know how to do it as you are new to share market. So basically stock is bunch of shares that you buy and it can be of one or more companies. To learn more about the share market you can go through the blog sections of share trading companies which function online. At my initial stage of learning I used to read and learn from blogs and now I am managing to invest in a better way. You also get advisory services from the company with which you are planning to deal with to help them raise their share capital. I hope this helps.
Thanks and Regards,
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Hey hi, I can understand your problem totally. Being a newbie in this stock world is hell confusing. I am sure you must be very confused between so many good options. I will suggest you get a trustworthy broker who will help you with your every investment. Even I was a newbie once & my friend suggested me about this best Online stock trading company from then I am investing it’s been 4 years now and I have reached at a good point from where I started. They also have this mobile application which helps to invest & to know what’s happening in the market. I would recommend you Ajmera x-change the best stock trading company
In 1944, Mr. Prabhudas Lilladher Sheth registered a stock broking company In India with a vision of rising up to become India’s leading financial services provider. It has been a long journey since. A journey of success, based on strong adherence to ethics, uncompromising dedication to quality and an attitude of excellence. Imbibed in our corporate culture, these founding principles have guided us to reach the pinnacle that we are at today. Over the years, PL has evolved from a standalone brokerage firm to a one-stop shop to companies for all financial services. With a team of dedicated experts and a nationwide distribution network of branches, franchisees, and associates, PL provides a comprehensive gamut of financial advisory services in the Institutional and Retail domain. Our range of services includes Equity & Derivative Broking, Investment Banking, Corporate Advisory, PMS, Online Trading, Loan against Shares, Mutual Funds, IPO’s, Real Estate, Home Loan & Loan Against property.
Fundamental and technical analysis are two popular approaches of investing. Both require specific skills and mindset. Fundamental analysis aims to create consistent worth over long term by looking studying companies fundamentals, whereas technical analysis focuses more on short-term profits by reading charts, momentum etc.
If you are not planning to choose any of the above analysis approach, better invest in stocks through equity mutual funds. Here, a fund manager will perform all the analysis to pick best stocks which can give highest possible returns depending on the goal of the fund.
Here are a few useful tips to help you make winning long-term stock market trading decisions.
Focus On Sales Growth: One of the primary and easiest ways to assess the financial conditions of a company is to focus on the sales growth. Fundamental analysis, which entails researching financial statements of companies,is a deeply engrossing process. Simplifying the complexities of the investing jargon into actionable bits and pieces helps in clearing the big picture for lay investors. A consistent track record in terms of strong sales growth compared to the rest of the industry makes a company stand out.
Pay Attention To Dividends:A company’s ability to pay dividend on a consistent basis shows that it has predictability in its earningsand is likely to reward investors well. It also shows that the company is financially strong enough to pay that dividend (from current or retained earnings). It is therefore recommended to check the track record of a company on the front of dividends for last 5-10 years. If the companyis financially strong, then such astudy would reveal to the investor about its profit sharing potential.
Check the P/E Ratio:The price/earnings ratio (P/E) is a highly popular ratio used to determine whether a company is over or undervalued. The ratio is calculated by dividing the current price of the stock by the company’s earnings per share. The higher the P/E ratio, the more willing investors are to pay for those earnings. However, a higher P/E ratio is also seen as a sign that the stock could be overpriced. A lower P/E ratio indicates that the stock is an attractive value and that the markets have pushed shares below their actual value. However, it is important to look at this figure in relative term rather than in isolation. A practical way to determine whether a company is cheap relative to its industry or the markets is to compare its P/E ratio with the overall industry or market.
Focus On fluctuation in earnings:Sometimes the economic conditions are strong and corporate earnings rise. When the economy is slowing down, earnings tend to fall. If the company has a consistent history of rising earnings over a period of many years, it could be a good long-term buy.Also, look at what the company’s earnings projections are going forward. If they’re projected to remain strong and if the history suggests that the company has managed to deliver on its projects, this could be a sign that the stockis a good long-term buy from fundamental researchperspective.
Examine Debt Levels: During times of economic uncertainty or rising interest rates, companies with high levels of debt can experience financial problems.In good economic times, debt can increase a company’s profitability by financing growth at a lower cost.The debt to equity ratio measures the amount of assets that have been financed with debt. It’s calculated by dividing the company’s total liabilities by its total assets.
Monitor Economic Trends: Stock markets tend to be heavily influenced by underlying trends in economic picture. Successful online market trading participants have to keep a close track of major announcements like inflation, gross domestic product, industrial production, currency movement, credit growth, interest rates etc to get an idea about the near term sentiments affecting the stock markets. Policy decisions affecting a particular sector also need to be considered. For example, the Interim Budget announced earlier this year focussed on consumption and agriculture and hence major stocks belonging to these areas saw a considerable upside and should benefit even more in long term.
Fundamental analysis is about analyzing the business and financial performance of the company in order to understand its current valuation and future growth potential and make an investment decision. So it is not advisable to buy stocks without proper analysis.