Top 8 effective stock investing tips for long term Investor

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(StockInvestingTips learning series) - As frequently emphasized in my numerous posts that there is no short cut route for making money from stock markets. Every investment you make in a listed company should be carefully analyzed before putting your money

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Stock Tips for beginners

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With major world stock markets reeling under various uncertainities like Us Economy downgrade, Euro debt crises and riots. It becomes very difficult to decide the stock in which one wants to invests money, currently gold is favourite for investments but we know nothing can replace stocks as best investment option.

Indian stock indices like Bombay Stock Exchange's SENSEX and National Stock Exchange's NIFTY are very volatile currently hence for a investor(whether he is beginner or experienced in stock trading) the basic principal is to stick to the basics of stock market investing. Here I have compiled together my very best posts which guides the potential investor while investing in Indian markets. Just understand these basic principlesof stock market investing and I am sure that you would minimise the probability of makiing a loss in your investment.

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Investing in volatile stock markets

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Indian stock markets are most volatile currently and volatile stock markets are known for pushing away investors from investing. So does that mean that there cant be any profits made when stock markets are most volatile and fluctuates for 2-3 percent daily. Well, a person can invest in volatile stock markets also but his approach should be different from the method which he uses when the stock markets are more stable and promising.

There are certain points which one should keep in mind while investing in stock markets when they are most volatile. The golden rule to minimise any loss and increasing probability of making profits in volatile market conditions is to diversify your investment. One should never invest whole money into similar type of stocks but should diversify to minimise the losses and may be to make profits. Diversifying your investment is a must for making profits during volatile stock market conditions.

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Global sentiments boost BSE | NSE - closes in green

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Positive global investor sentiment boosted major indian stock indices like Bombay Stock Exchange's SENSEX and National Stock Exchange's broader index NIFTY today, both the indices closed up by over 1 percent.

National Stock Exchange's Nifty closed at 5600.45, up 55.15 points. The broader index touched a high of 5608.65 in intraday trade today.

Whereas Bombay Stock Exchange's large-cap Sensex closed at 18693.86, up 201.41 points. The 30-component index hit a low of 18552.19 during intraday trading.

BSE Midcap Index also closed up by 0.78 percent and BSE Smallcap Index moved 0.95 percent higher. All of the sectoral indices also moved higher today BSE FMCG Index was up 2.58 percent, BSE Metal Index gained 1.52 percent and BSE Bankex moved 0.96 percent higher.

Majority of the global stock markets are also trading in greeen today.

10 Stock Investing tips in Warren Buffett way

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From the time when my interests in Stock markets everincreased, I always wanted to know how the legendary investor Warren Buffett invested in stock markets. There are so many people who invest their money in stock markets but still none of them has come even closer to the future which Warren Buffett has made out of investing in Share markets in USA, There are few things which are different between today's normal investor's(In which all TV channels analysts and modern day investors come), and the other is Warren Buffett.

I have read the Book "The Warren Buffett Way" and recommend reading this book for all the fellow investors and followers. You can also gain some insight from best books for stock markets available today and my take from "The Warren Buffett way" book can be read here.

This post is dedicated to legendary stock investor Warren Buffett, and describes 10 stock investing tips which are non-failing and are followed by Warren Buffett or are derived from his life style and analysis of the stock markets, Do remember that his worth of >50 billion has come from investing in stock markets for long term.

So here are the 10 stock market investing tips or the Warren Buffett way of investing:

1. Be Self-Dependent : Stock investment is one field where a person should not depend on any body else for some sort of advice as there is no gurranteed advise in stock market investing, One should invest by following his/her own intellect/analysis and should remain away from stock market advisors as according to me they are sheer fools who dont know anything and put our hard earned money into risk.

2. Be Simple-live Simple - Extravagant lifestyles make a person a money guzzler, and chances of having such lifestyle are too high if in past you have made some fast bucks from stock markets thinking that you will always make profit out of it.
Warren Buffett is following a simpler lifestyle and focuses on investing in correct stock by sheer analysis and forgetting about all the worldly pleasures which are simply nothing but insane. Living a simple life would help in having more money for more investing.

3. Invest in stocks you know - Like the legendary investor Warren Buffett one should always invest in companies whose working is familiar to him/her, this reduces the risk of failure/loss while making the investment decision.

4. Make your own path - For making huge profits from the stock markets one should not go with the crowd, most of analyst out there are strictly short term once and nonreliable, dont simply do what all are doing and remember due to such shortsightness in stock markets the SENSEX come down to 14k levels couple of years back, just follow what your brain says without any concern about anybody.

5. Believe in Indian Economy - Anybody who wants to invest in Indian stock markets should not consider change of govt or any emergency as time to sell the stocks, always have faith in economy as the fundamentals of indian economy are very strong as grey economy runs alongwith legal economic data, this was the reason why indian Companies hardly went into any type of recession.

6. Buy when stock is undervalued - The best time to buy a stock for long term is when all others are selling it, this is time when the stock would be undervalued and you can make huge returns on your investment. Buffett doesn't pay much attention to earnings per share, a common measure of value. Instead, he likes to see companies with good return on equity, solid operating margins and reasonable or no debt.

7. Invest in Innovative company - According to Warren Buffett one should always look for companies which are very active innovator and have patents in their field, the problem with indian companies is that these are more copycats and no innovators but still invest in companies which are holding patents in their fields as such patents keep competitors at bay.

8. Purchase huge stocks - Most of the investment companies in india wants to do diversified stock investment for minimising the losses, but if a person has to make big bucks then he should keep on purchasing the stock which he has well analysed and should not diversify, this is again thinking different from the crowd.

9. Be a lifetime player - Whosoever said that stocks are meant to be sold is a fool, always keep on adding the stocks without thinking about selling, if you purchase a stock by keeping selling in mind then you would probably make mistake in both the tasks.

10. Wait for Stock market crash - One should always wait for the stock market crash and should think this as oppurtunity to purchase even more stocks, Market crashes bring the stocks to minimal levels thus making all of them undervalued just because of some temporary economic fluctuation, just wait for such time and purchase.

Top 10 Stock Market Investing advice - you always looked for

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Presently if you search on google for a simple term 'stock tips' you will find more then 2 crores of website results which promises to provide you with best stock market advice, some of the big business houses which are into investment are only genuine of the lot. Many unknown links too comes on tope results of google which are more or less fraudulent and these websites promises 100 percent returns in short span of time, which can never be in reality because no body can predict the movement of stock markets with 100 percent correction, hence my advice to potential investors is not to fall into trap of such looking fraudulent websites which offer stock market tips and charge for them, If the website belongs to well known groups like Sharekhan etc, then you should definitely go for becoming member otherwise your hard earned money would be eaten by such links and you will get no profit either.

So I wanted to provide the very very basic stock market investing advice which you always wanted and that too at no charge, but again you should also use some of your brain too for understanding these investing advice clearly , it is not difficult to understand, so here are the list of stock market investing advice you always wanted to know.

1. Always buy a stock when it is not rising.
2. Buy when markets are down and always buy an undervalued stock.
3. Always follow the fundamentals the principle between stock prices is similar to demand and supply, which is infact the principle on which whole world runs.
4. Buy stocks grown in top line and bottom line over the past years.
5. Invest in companies with proven management and strong assets.
6. Avoid loss-making companies.
7. Look for the dividend paying record of the company from past couple of months.
8. Invest in stocks for sure returns.
9. Consider stocks as an asset and not a liability so think you will always make money from stocks.
11. The basic property of any asset class is to grow just wait for required time and never panic.
12. Invest a fixed amount each month and this amount should be well within your budget and always have a rigid threshold amount to invest.

My summary post which I wrote after understanding the investing style of legendary investor Warren Buffett can be read here(this will surely help you).

You should also understand complete tutorial posts on stock market investing tips by clicking here or follow the investment tips links on left side of this page.

HAPPY TRADING!!

Tips for investing in share markets

As an investor a question always arises in one's mind when to buy or sell stocks??

while purchasing or selling stocks following conditions should be clear in the mind of an investor.

One should exit a stock if following conditions are validated and should use his/her intellect and analysis ability to come to a conclusion on basis of following seven most important points for exiting or investing in stock.

also read : Open your free online share trading account NOW!!

1. Stocks underperforming consistently :If the company has reported poor results in the previous two-three quarters and the stock price has not shown any upward trend, analysts recommend you should exit a stock.

also read : : Online Share Trading Guide

2. Over Valuation :You should closely look at valuation while selling a stock. Many a time, it happens that valuation is on the higher side of the range which is not supported by visibility of earnings and ownership.

also read : Daily BSE NSE NASDAQ Closing Rates

3. Costly Acqisition : Any value destructive acquisition, according to analysts, can lead to a three-four quarter effect on the stock price of a company. Thus, you should look to exit the stock for time being.
example - Tata motors stock rates in previous quarter after acquiring jaguar/rover brands since then the stocks of tata motors are on decline

also read :How to start online share trading

4. Global Conditions of Share markets : Analysts say you should also keep a check on the global cues, especially if the company shares have a majority of the sales overseas or its performance is linked to smooth functioning of operations in a foreign country.

example IT companies are much dependent on US markets and due to recession in US market shares of IT companies are on decline.

also read :Online Share Trading Guide - for beginners

5.Passive management :Keeping a close eye on the management practices may provide you the cue for a planned exit.Analyst feel that sometimes it so happens that the management turns selfish and is involved in unfair practices such as regular insider trading and exorbitant compensation.

also read :BSE NSE NASDAQ Closing Rates

6. Financial model of the company : Analysts point out that you should evaluate the financial model of a company on a quarterly basis . It will serve not only as a guide to the current performance of the company, but also what its future goals are and how is it working towards it.

also read :How to start online share trading??

7. Rising Costs of Inputs :Analysts say you should closely monitor raw material costs of the companies in which you have shares.For instance, in case of auto and capital goods sector, the prices of major raw materials such as metals and alloys have gone up but the price of finished products can’t be increased in the same proportion because of intense competition in the sector.

also read :Get free online share trading account