7 SURE SHOT TIPS TO SUCCEED IN STOCK MARKET

Lot of people are making big money from the share market. But making money from the share market is not easy. Lot of hard work and research is required if you want to make money from the Share Market. There are no “Short Cuts” to success. This is true for achieving success in share markets also. Those who are not making enough home work & research before investing in stock markets are likely to end up in losses. In this article we will tell you we will tell you 7 sure shot tips to succeed in stock market. We will also tell you as to what type of minimum home work, due diligence and research should be made before venturing into the share market.

For sure shot success in share market, following basic principles must always be followed:

1. The Companies in which, you want to invest,should be researched by picking up their latest financial results. These results are available on the website of the every company.
2. From the financial results you should try to analyse the nature of business of the company, the product demand in terms of sales revenue of the company for latest quarter, latest financial year and these sales trends should be compared with the results of last few periods to know whether the sale/revenue of the company is increasing or decreasing.
3. Same analysis should be made for the net profit of the company exactly in the similar manner as was done for sales/revenue.
4. It should be analysed if the products in which company is dealing falls in monopoly segment or in high demand segment. One Example of the high demand and monopoly business segment Company is Gail India Ltd. Another such example is IRCTC Ltd. There are many such companies. These examples have been given only for the better understanding of the readers.
5. Apart from the above analysis, you should also look at the shareholding pattern of the company, which is also available at the website of the company itself. If the majority shareholding is with Promoters and Institutional Investors then it is a healthy sign for the company. Companies where shareholding of Promoters/Institutional Investors is very less, should be avoided.

6. By following all the above 5 steps,you will be able to identify the good companies. However, even the shares of these “Good Companies” should not be purchased when there is bull phase. Shares of these ‘Good Companies’ should be purchased when market makes a downward correction or there is a crash in the market. When market crashes, then even the shares of ‘Good Companies’ are available at throw away prices. You should take maximum advantage of your research and timing of purchase of shares.

7. If you follow all these steps listed here in this article, note down that you will never make a loss in the share market.

With the help of “7 SURE SHOT TIPS TO SUCCEED IN STOCK MARKET” given above, we hope that everyone can make huge money in the stock market.

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