What are the most important factors to look for when buying stock?
Answers: It depends.
Are you looking at the company's fundamentals? (e.g., its balance sheet, cash flow statement, income statement) Are you looking to see if the company is well-run, and in a good position in it's industry or sector, without too much debt? Can it make money steadily and pay dividends to shareholders or reinvest it back in the company on a regular basis?
Or are you looking at the company's technicals, charting its price history and looking at the patterns of the movements of its price over time? An example is watching a stock to see if its just steadily up, up, up, then splitting. Up, up, up some more, then splitting again, and lather, rinse, rinse, repeat.
Somewhere during that period, you find an entry point and buy some. An oversimplification, but an example of technical analysis nonetheless, as the number of price patterns and trends are almost endless.
Another thing to consider is your time frame. Are you a trader, or an investor? Traders buy or sell stocks, hold the positions for a few hours, days, or weeks, and then dump them (or cover short positions). Investors buy companies, and hold them much, much longer - often many, many years.
And how much risk are you willing to expose yourself to? Higher risk yields larger returns, generally, but at the cost of greater losses. And there will be those losses. Whether you can withstand the psychological impact of those losses will determine if you're a trader or an investor, and if you can be successful at being either.
1) Does this investment met my financial goals & needs?
2) Does this investment diversify my overall portfolio?
3) What are the risks involved with this investment?
4) What is its Return on Equity? Is its return of equity expending or contracting?
5) What are its Gross Margins? Is its Gross Margins expanding or contracting?
6) What are the Sales Trends? Is its current growth rate sustainable for the long term?
7) What is the company's competative advantages?
8) What is the current macro-economic environment? Historically at what stages in the business cycle do company's in the stock's industries perform well?
9) What is the current price in comparsion of the future prospects of the company over the long term?
10) Is there a competator that is better than this company? Can this company take the lead?
That only the start...but just off the top of my head these are things I consider.
The transation volumn and the share price variation.
How futures and option are traded contained by BSE and NSE?With a simple example?
Hi,How the futures and options are traded at BSE and NSE? How it's affecting BSE and NSE indexes? How it affects INR appreciation?
Answers: One take the lot of share with amazingly little margin.If the Price go upo then you craft profits But otherwise you are doomed. In this fall close friends of mine own lost 1 Crore each , so my insist on is Do not even think nearly this
Your question is road too big and probably requires a book to cover it all. First entry first, do you know what is future and way out? Other things such as cover calls, cover puts, short call and short puts are even more complicated to explain.
Let me be very brief, as an example.
Let's voice you have a cup, I in a minute give you $1 to gain control of your cup for 2 weeks. This $1 is for you to hold on to, you never have to return it. Within this 2 weeks, I can do doesn`t matter what I want with your cup, including selling it. On the expiry year, I would have the OPTION to distribute you back the cup, or $10, this is what we be agreed upon. Within this 2 weeks, if I have sold the cup for $12, on the expiry daytime, I'd have to grant you $10, I'd keep $2, subtracting that $1 I've given to you in advance, I've made 100% in 2 weeks.
When someone is inclined to buy the cup for $11, is called 'within the money'; that means I'd construct an even.
Selling the cup for $10 and give it to you on the expiry daylight is meaningless. I won't do it.
If I am unable to put up for sale you cup within this 2 week, the cup would hold to be returned to you. You keep that $1.
Option deal with stocks. Future deal with commodities, grease, lumber, cotton, pork belly and whatever.
Call vehicle the price is going up.
Put means the price is going down.
Cover channel something that you possess.
Short means something that you don't own, you'd have to borrow it from someone.
I hope this brief information help.
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What be the closing share price of Avaya (AV) on 4/20/2001?
Now that they've gone private, I'm having a hellish time answering what should hold been a drastically simple question.Help?
Answers: $11.55
1,005,500 shares traded.