Stock Investing Strategies


Investment in stocks is always a hot topic.

When i invested first time in stocks, it was a wrong decision because i have never done any research and those stocks are still in negative.

But then i started learning about stocks, I have written a post on How Do I Start Investing In The Stock Market As A Beginner ? This will help you understand about stocks market in depth.

Stock market is very much complex sometimes. You know 90% of people lose money in stock market.

Most of them lose because they do not invest their time in research like i had done in picking my stocks for investment.

Sometimes they loose because depend very much on Brokers to select a stock to invest from them and i think you should never do this.

I recommend you should always take decisions by doing research and this post will help you in taking that decision.

Stock Investing Strategies


1. Company should be Strong


When you pick a company to invest, check it that company is strong. 

Confirm companies past performances. Check companies worth. 

If company is worth investing then you should dig with next step, if not then stop there no need to check their products, services, etc.


2. Do you understand the products or services offered by company ?


After knowing company is strong, now you need to dig deep about company. Learn about its products and services. You should be able to understand companies business model and should be easily understood by you.

So, you must be thinking why you need to know about companies business model. This will help you better understanding of company to buy, sell or hold the stocks. 


3. Will people still using their products or services for 15-20 years from now ?


Always invest in stocks by keeping in mind for long term. Companies which are having huge growth potential will survive. These companies also have a great compounding power. So, Avoid those companies which are having life of few years.

Example, What do you think about soap ? Do you think people will be using soap after 20 years? Yes absolutely.! But what about pen drives? This product is loosing its value at present time. I don't think it will survive. 

So, it is clear that you should ask before picking stocks will this product survive after 15-20 years.


4. Choosing stocks based on personalities


Personality based companies are great way of choosing stocks. This is simple and clear way to pick stocks. 

Like You like domino's pizzas or KFC chicken very much. Then you should find companies behind these food items. Or If you like cars or bikes then find companies behind your favorite brand. 

Then study these companies. You should be sure before investing. This is the way which i prefer for picking stocks.


5. Do not buy in Emotions


Don't invest with emotions. Keep this in mind. 

Your emotions are the one which make your decisions wrong most of the time. I have counted myself many times, emotions create more problem then your mind. 

While investing in stocks don't pick stocks because someone said you to do. Learn from your decisions and research, then invest.


6. Do not believe in Tips 


People find easy solutions while investing in stocks because they wanted to be involved in quick-rich schemes. They hardly study about stocks and what the companies do ? and what's there business model.

People sit in front of TV channel like CNBC and  they believe in stocks they are telling you to invest.

Never do this, it will hurt your money. They are promoters of stocks, they want you to invest in those stocks which you should never.
Believe in your knowledge, it may take to find best stock for investment.


7. Avoid tradings


This is very problematic for most of the people. This is hard to keep constant eye on charts. This can lead to frustration and then sometimes you start focusing on share price than companies value. This lead to an event which make you brain to take action when share price is low which ends up in loosing money.

Once someone told me never invest in trading because it hurt your investment and money more than your long term investment.

Day trading is not for beginners and you should not try this. I know you have seen ads of saying invest in trading and you will earn 10K per day and etc. 

It is also true people earn from trading but i have seen people loose more in trading than long term.

"Always learn from others failures "

8. Don't Panic sell


 People sometime panic after seeing their stocks are not performing well. Panic selling in stocks always a lose of money. 

 Market crash can happen due to many reasons. So, you should wait for market to recover if you believe in company whose stocks you own.


9. Websites to check for Stocks Market


 Whenever I do research, I look for website which give me all the information about company. 

 I check only two websites more while picking stocks. You can also prefer these. 

 Money Control

 The Economic Times

I want to recommend book for investors and this will help you more in investment The Intelligent Investor.