In following Article , Sharing my personal Share-Market Trade lesson learning's of over 10+ years in short points.
You may read, think , plan, apply & trust if willing to earn stable income out of Stock market without much risk.
1. Do not play in Intraday or consume additional margins given by broker.
2. Do Buy/Sell stocks based on mobile messages or anonymous broker tips.
3. Make Stock selection based on ..
3.1 Parameter : ROE return on equity >+20%
What is ROE?
3.2 Parameter : Debt on Equity < 1.0
What is Debt on Equity?
3.3 Shareholding pattern : Increase in promotors, Foreign Institutional Investor (FII), Domestic Institutional Investor (DII)
FII DII Activity
3.4 Parameter : pledge share < 30%
What is Share pledge?
3.5 Increase in dividend over years
4. Low price stocks can be costlier for long run
5. Stock PE ratio reaches above 25% then possible crash is near
What is PE ratio?
6. PEG ratio should be less than 1 for buying ; considered as under valued. PE/growth %
What is PEG ratio?
7. Do not buy stock based on 52 week low value.. 52 week high value can be purchased if fundamentals are strong
See 52 Week high Low
8. Don’t get emotionally attached to specific stock if it is not growing
9. Exit from stock if loss exceeding 25%, reinvest in other to recover
10. Change in company's management triggers -/+ impact on stock
11. Do not do average in falling stock to reduce valuation instead exit with loss and reinvest in growing stock with good fundamental to recover loss
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