3 Steps to Profitable Stock Picking

Stock picking is a complex subject in itself, Because we like a lot of stocks in the beginning,we don't know which stock to choose. Different investors suggest different things. But today we will tell you 3 steps such that you can become a millionaire by following.

 

Step 1. Company's track record.

 You must have often seen that it is written in the newspaper this xyz bank of reprimand by the Reserve bank of India. You must have heard a lot of news in which the RBI,stock exchange or some regulators keep levying fines or sending notices to some selected companies or some selected banks in case of fraud. So if there is such a company to which the government body is filing the file again and again, it is sending this notice and If you start reading about banks . If you will read about banks then there are some banks with which there is always something wrong with them. If you are selecting a company as your first stock, then it must be seen that no notice has been sent or any fine has been imposed on that company by any government office.

If you want to see which company notice has been sent or alleged by the government then search 🔍.

XyzcompanyFraud

 

Step 2. Low debt Companies.

Let's take an example. You have a chance to become a partner in two businesses, one business which is earning very good profit and there is no debt on it, the other is also earning very good profit and there is a lot of debt on it, If you become a partner of that company, then tomorrow trouble may also come on you that you may also have to repay the debt .

So in such a situation, which business would you like to use, most people would like to use a business with less debt.

The more debt-free the company, the less the chances of bankruptcy, then the lesser the company with less lift, the more your investment is safe.

 

There are top 10 debt free companies.

 

Step 3. After seeing Company's track record and discussing debt free companies. The last thing that is important to understand is whether you are coming to the market for long term investment or for short term investment

 

If you are coming for the short term investment.

Here the best short term investments are.

. Malibu boats

. Aarons

. Alibaba

. Salesforce. com

. Array technologies

 

If you are coming for the long term investment.

You need to invest in Blue chip stocks.

What are blue chip stocks?

Blue chip companies are highly reported in the market. These companies are very big, they have been operated for years. If we talk about their income, then they are very old and they divide most of their income among their investors.

 

There are top 10 blue chip stocks.

1.TATA

2.HDFC bank

3.Infosys

4.Coal India

5.ITC

6.johnson & Johnson

7.3M(MMM)

8.The Walt Disney co.

9.protector & gamble

10.Maruti Suzuki

 

Now I am  going to tell you how you start your investment from 5000.

The best thing about the market is that if you want to invest in a property company, then you need lakhs of rupees but you do not have any such restriction in the stock market, you can start with 5000 .

 Do you know one thing?

 

If you want to win any race, first of all you have to take part in that race, if we do not participate in that race, then we will win, how is the stock market? Everyone wants to invest in it and everyone wants to earn crores. But a lot of peopleWe stop thinking that somewhere we may lose, if we go back thinking this, then we will never be able to invest again, either we will have to face that fear firmly or we will have to sit back and just keep watching.

If you are young, you do not have a lot of money and you are away from the market thinking that then there is nothing to be disappointed in this too

In fact, you should start with less money because believe it or not, in the beginning when we are new, whatever stock you will choose may not be the best stock, maybe you will not be able to earn more money than that, after a few years you will laugh that before you Which stocks did you choose If this happens to everyone, then it is good that those who choose the wrong stock in the beginning, in this we earn  less money. The first thing you have to remember is that everyone makes mistakes in the stock market.

Sometimes in fear, sometimes in nervousness, sometimes in overexcitement .

The very first thing you have to do in the stock market is to open a demat account and open a trading account

Demat account  means the account where your stocks will be kept, the stocks you have bought .

And when you buy the shares, it will be stored  in your demat account .

Trading Account

Trading account which opens with your broker because you cannot buy or sell the stock of any company directly because there are some rules and regulations of that company by which you cannot buy or sell any stock directly.

Now there can be many brokers like some banks SBI HDFC sub bank also works as broker

If you live in big cities then as you must have seen there are many brokers like Motilal Oswal Angel BrokingBroking. But they provide a high facility which is not necessary for beginners.

Some new investors need to have some cheap solution, so discount broking is available nowadays.

Now you can start your journey.

So These three steps which you should follow before entering the stock market and if you follow these three steps you will definitely achieve success in the stock market.

Hitarth

Author & Editor

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