Now I can tell you the best way to earn in stock market. As I said before it’s not intelligence that’s needed to earn in Stock market (of course it will give you an edge) but the real winners are the ones who are knowledgeable and have guts to test their knowledge. I am not saying that you have guts when you can take a huge risk. That is quantified as foolishness. By guts mean that you can take normal risks and maximize returns, which is tough when it comes to ordinary people like us. The winners know the Stock market in and out and thus they have a strategy for every kind of market. You can earn in any kind of market, stagnant market , rising or even falling market. First gain knowledge about the stock market and then gain experience by investing in the stock , then only you will be able to earn consistently.
Once you gain knowledge you will start to have confidence in your decisions. Most of the people lose because of little knowledge or blindly following other people's advice. This never cultivates into confidence when the market suddenly moves against them. As you have heard patience is the best friend you have and patience comes when you are confident. Just keep learning and you will never lose.
Once you gain knowledge you will start to have confidence in your decisions. Most of the people lose because of little knowledge or blindly following other people's advice. This never cultivates into confidence when the market suddenly moves against them. As you have heard patience is the best friend you have and patience comes when you are confident. Just keep learning and you will never lose.
Advices on sites like Moneycontrol.com and other trading sites can save you a lot of time if you don't blindly follow them. All you have to do is to listen/read various advices and without taking them on their own face value, do your own homework and keep those which you think is good enough.
So we will start with one of the most time tested and successful strategies to pick stocks. And that is fundamental analysis. If you have heard of Warren Buffett then you must have heard about this also.
Fundamental Analysis is about valuing a company according to its future growth prospects and by deeply studying the balance sheet, cash flow etc.
It lies more on the concept that when you buy a share, you buy it because of the company that share represent and not because you think it will rise in the next 6 days or so or your broker told you to buy.
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