What are some of the best investment hacks while purchasing stocks?
Answer: Are you buying a stock and looking for a target and stoploss? It should be the other way round.
- Check for a cheap and performing stock Fundamentally.
- Check technicals for better risk reward ratio.
- Invest blindly and wait for 3 to 6 months.
You should not invest in a stock just because you know the stock or just because its a largr cap and keep doing risk management on it.
Fundamentally check for its PE ratio, PB, Profitability ratio, valuations and understand how it is placed among peers. If it is cheaper by 30-40% to its peers and has good profitability ratio, it will soon attract investors.
Example:
Step 1: Balaji Amines looks cheap near 330. Target 380. SL 300. 3 months. | Gale.in, Stock Blog
Step 2: Balaji Amines hits target of 380. Continue holding. Revised target 420. | Gale.in, Stock Blog
Step 3: Balaji Amines hits target of 420. Hold & add on dips. Target 560. 3 months. | Gale.in, Stock Blog
Step 4: Strong numbers: Balaji Amines. Price 515. Revised Target 720. SL 430. | Gale.in, Stock Blog
Current Price of Balaji Amine: 620. Returns 87%.
Example 2:
Step 1: Enter Srikalahasthi Pipes at 300-315. Target 430. SL 285. 3 months. | Gale.in, Stock Blog
Step 2: Target hit. Hold Srikalahasti Pipes at 420. Target 485. SL 380. Add on dips | Gale.in, Stock Blog
Returns: 35%. Upside potential 20%.
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source http://gale.in/what-are-some-of-the-best-investment-hacks-while-purchasing-stocks/
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