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| Few basic tips to pick a stock for investment |
Here we try to explain some basic methods to pick a stock to invest your valuable money.
We try to make few points instead of writing an article or a story.
- Pick an economy(Country) which is showing growth.
- After finalizing on the country where you want to invest, slect an industry which has performed well in last 3 years
- Make sure that the industry still has potential to perform well in coming years
- Pick few stocks from this industry that may outbeat the others in the industry
- Make a chart of PE Ratio of these stocks
- Short list few stocks which are available at low PE multiples
- Low PE stocks have more scope for appriciation in long run
- Check out for dividend yields and dividend history
- Good dividend pay outs reflect good cash flow in the company
- Never have sentiments towards and stock, keep selling when the PE rises above normal
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