Wednesday, 6 October 2010

Stock Selection for Buy

Normally the stock selection based on some source, companies performance chart
below some advice to select stock.

1- first check Stock Performance for at least 1 year, take all prices and draw a
moving average chart, there will be dip and high points in chart but dip of high
should not be more then 15 % of stock average price during month.

2-Chances of profit is more if stock is volatile, but keep in mind volatile stock
having maximum chances of loss.

3-Analyze the stock holding pattern of mutual funds, more stock holding mean more
investment option and good return.

4-Always keep some target of profit after that dont be greedy.

5- a sample calculation of stock prices ig highly beneficial.

share market concept

Puts and Call are terms used in share market for buying and selling.

Puts- it is the contract that allow the buyer to sell the stock at specified price
at any given time interval during time span specified.

Call - It is the contract that allow buyer to buy stock at specified price at given internal of time with in time span specified.