Stock Market: Are there any tips for stock market trading that I can use daily?

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nomi king 8 months 1 Answer 132 views

Answer ( 1 )

  1. Originally Answered: What are the steps and tips for stock market trading?
    I am assuming you are well aware of the economical situation prevailing in your country… first try to understand which are the key industries that are going to witness growth in the short / mid and long term or the sectors which will gain because of some imminent changes in the government policies. these are the broader way to look at, when you are planning to be a long term investor.

    For example, if you are in India, real estate is as sector, I personally believe, isn’t going to give you a great return in the longer run while sectors such as e-commerce, infrastructure will grow in the next 5-7 years. also, if you follow government policies closely, the impact of deregulation of fuel prices will impact the stocks of OMCs.

    So, zero in on a sector and then pick the companies which are best positioned in that particular sector.

    To go for an in-depth understanding of any particular company, you will have to understand the fundamentals, like order backlog, sales CAGR, operating cash flows etc, through the annual filings and company presentations.

    At the end of the day, I believe, it is 50% effort and 50% hunch when you decide to invest in a stock.

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