If you are trying your fortune in the stock industry, then these proven strategies can guide you well. Don’t worry, it’s not that tough, these simple rules can guide you in having luck at buying your stock. A proper planning can lead you to have a successful time with the stocks. Just follow these easy five methods while you start investing.
Wait for the right Time:
It is suggested to buy stocks when people are selling them and to sell them when people are buying. That’s the way you can get the stocks when they are cheap and sell them off at huge rates. This happens with some real well to do companies and with this game plan you may even stand to be a holder of some famous brands as well.
Follow the Dividend of a Company:
To study a company for investment, first check out if it gives the dividend regularly. Check their dividend sheet for a term of five years and if its regular you can be sure of its balance sheet. Such a company has the highest chances of quick rise. Hold on to such shares.
Study the growth trends of the company:
Wait! Don’t cling on only to the past records only. Do follow the records of its growing as well. If a company has records of growth trend go for it, even if it has a bad patch for a past time being. Remember you are investing for the future, so to follow the future trend is important. Anyway, keep away from picking up a defensive stock, they move very slowly.
Buy to Sell:
Always plan your sell. Remember, neither panic to sell it off too early nor be too greedy to hold it till market crash and waste your luck. Set a price target, according to your purchase and be happy with your plan. See, industry, stocks tend to move in defining lock steps. Keeping some of these in your portfolio can always be helpful.
Margin of Safety:
Check your stock’s margin of safety. Don’t buy a stock until you have studied and known the company well. Understand the business both side and focus on companies with wide economic area and discover its source. Refer to the company’s 52 weeks highs list, that you can easily get in newspapers.