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Wednesday, November 4, 2009

Do you use fundamental analysis before buying or selling a stock

Many of us don't do it.Yes many of us don't even look at the websites such as bseindia,nseindia and moneycontrol.com and also many also don't even see the tv channels about the latest ongoing which can really affect your investment.

You only rely on your mind saying it will rise and this will go down,etc etc but how many times you get shocked when market opposes it.I must say that even though you cannot give much time for doing all kind of research work but i would suggest you to do some of the following things

1 )Get the latest news for the company from whatever means you can,specially its upcoming changes etc.

2)Go for looking at P&l account and also balance sheet compare them within the industry and also within the last ones.I mean quarterly ones.Choose bloombergutv.com
for it i think it can help more in comparing fast.

3)See the trend through charts -

4) Diversify - I know i also don't like it as more risk more gain can help some times but not always so divide your investment in better stocks.And have a liquidity of about 35% in your portfolio everytime so that you can purchase when market plunges.

5)Don't go for buying at early morning and late in trading sessions.

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