2007-01-13 16:05:14 · 12 answers · asked by Anonymous in Business & Finance ➔ Investing
fundamentals of the company. next liquidity .next, whether the stock is performing according to the movement of the sen sex or not. there should not be heavy fluctuations in the price of the stock. for short term gains, better invest money in index based companies when the prices are low, before buying you browse the profile of the company's and buy.follow warren buffet's principle buy when the market falls, sell when it raises.
2007-01-13 22:33:59 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Buying a stock is like marry a woman. Before you have to marry her, you have to check the inside whether is good for you rather than a pretty face outside. Get what I mean. As for stock, you have to check if the potential earning is there or not? The return of equity should be a positive, the higher the better return. And then you have to check the chart to see if it is a better time to buy low. Lastly, check financial news of its latest development. This is important because if the product of the company is obsolete and everything you have check is positive buying the stocks. What do you think of your price for the stocks? Yes fall like waterfall !
2007-01-14 00:36:33 · answer #2 · answered by Dang 3 · 0⤊ 0⤋
It rather depends on the type of stock you are looking for. I can only tell you what I look for. 1. Is it in a category that will help diversify my holdings? 2. are the fundamentals sound? ie Is it making money, is it growing? Has it a good market position? Does it have little debt? Is it paying the CEO a reasonable compensation? Is the PE ratio below 25 even better below 15? Is the PEG ratio below 1.5? 3. Is it technically a sound investment? ie Is the stock chart bullish?
2007-01-14 00:20:40 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Right about now I'd say you could use a blindfold & a dart-board if you are talking about US equities. That should change soon(I just don't know when "soon" is).
Onto buing a stock:
"Those factors" are the very factors that give you interest in the security.Is it value? growth? dividends? Capital appreciation?You buy a stock just like anything else: you go "shopping" for it.
2007-01-14 22:53:31 · answer #4 · answered by frith25 4 · 0⤊ 0⤋
See that the overall trend of the market is up and the trend of that stock is also up. How I see is that if 9 day average is above 18 day average in index as well as stock I prefer to go long. Though I see other things also, but this space is too less for that.
2007-01-14 00:11:54 · answer #5 · answered by indian 2 · 0⤊ 0⤋
You buy stocks for a variety of reasons, and therefore have different criteria or factors to look for. In general you look for a company that is, and has been, profitable...."reporting good quarters" You might be looking for a big, solid base or core for your portfolio,,,you want JNJ, PG...big companies, making staples
If you think a new product is really going to catch on, maybe even change the market..you buy AAPL.( but it is still " profitable... reporting good quarters")
If you think a sector is climbing ( or going to) you pick two or three of the best in the business LMT,GD, HAL
But you can also put your money on "losers" if you see or sense a change in the market...BBI now catching Netflix
What really works is growth... is a company opening new stores? growing profits? quarter after quarter ? RAD?
China still going to grow? who's in raw materials, oil? Or maybe just go with China in an ETF... or the innovations that are just coming to China...internet..telecom...
2007-01-14 01:43:01 · answer #6 · answered by jebediabartlett 6 · 0⤊ 0⤋
Collect 3-4 Technical Signals.
Collect 5-6 Fundamental Criteria.
Filter on both of these. Buy when you feel comfortable.
Taking my answers will NOT work for you. You have to develop your own, based on STUDY.
Investing is like learning to play Golf.
KKP
2007-01-15 19:46:24 · answer #7 · answered by KKP_Investor 3 · 0⤊ 0⤋
Industry Outlook
Management
Vision
Prior Track record for dividents / bonus / stock splits
Leadership in the Industry
2007-01-14 07:48:54 · answer #8 · answered by Raghav 4 · 0⤊ 0⤋
At first we should observe the mood and direction of the market.Secondly the sector of the stock to which it belongs,whether its a market fancy one or not,thirdly the fundamentals of the company.
2007-01-14 01:09:21 · answer #9 · answered by Nagaraja B 1 · 0⤊ 0⤋
nothing good stocks where there is good scope for further
increase in quote and with good track record that is profit
should steadily increase for the last 3 years.
this is like your luck each day is a dfferent one in stock trading
2007-01-14 00:15:13 · answer #10 · answered by kupps 1 · 0⤊ 0⤋