Stock Picking
You should remember one thing there is no mathematical formula or algorithm for success in investing. There are so many company stocks listed on the stock exchange and several investment philosophies, strategies, and mindsets that investor use to pick a stock in the market.
In this blog article, we understand what is stock picking, and what are principles always remembered as an investor. it is a dynamic exercise.
What is stock picking?
Stock picking is a combination of art and science but remembering one thing too much is either is a dangerous thing. Discover the right stock picking is one thing but waiting for the right time to buy the stock at a bargain price is the success of the investor.
Don't miss the following principles which are useful for your own stock-picking investment analysis strategies for the long-term investor:
- Don't invest in a business that you do not understand.
- Identify the Competitive advantage or moat of the company.
- Understand the Business model of the company.
- Debt position of the company
- Never forget the three words "Margin of Safety"
There are basic principles (like screening) that an individual investor can follow and develops their own strategies for further analysis or value of a company if pass then add it to your buying list.
What is the right time to buy the stock identified by you?
Discover the right stock that passes your stock picking strategies is one thing and it is not a buy signal but waiting for the right time & bargain price is very much important for investment return. In the market bargain prices are available when the market drop or crashes, or any bad news comes into the market. It is up to you to think of market crashes take as an opportunity or panic.
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Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on Investment or recommend buying and selling any stock
