• How to select the shares in the National Stock Exchange (NSE) of India? - Jigyasa | YSM Ranchi




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    • How to select the shares in the National Stock Exchange (NSE) of India?


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  • Mr. Hemant Kaushik   Answered

    • Stock market investing carries dangers, so it's critical to do your research and exercise caution while making judgements.

    Here are a few actions you can take to choose shares:

    1. Determine your investment goals- Determine your investment objectives, such as capital preservation, income or growth, in order to choose shares that support those objectives.
    2. Conduct market research- Conduct thorough market research on the stocks you are interested in, including the financial performance and stability of the company, industry trends, and analyst recommendations.
    3. Do fundamental analysis- Study the financial statements of the companies you are interested in, such as the balance sheet, income statement, and cash flow statement, to understand their financial health and growth potential. Look at key ratios, assess the quality and stability of the management team of the company and their ability to make strategic decisions.
    4. Consider technical analysis- Use technical analysis tools and charts to understand the historical price of the stock and volume data to help identify patterns and make informed investment decisions.
    5. Do valuation from different methods- There are many methods to do valuations to check whether the stock is overvalued or undervalued.
    6. Diversify your portfolio- Diversifying your portfolio by investing in a variety of stocks from different industries and sectors can help reduce the risk of your portfolio.
    7. Seek professional advice- Consult with a financial advisor or professional before making any investment decisions.
    8. Avoid emotions while buying stocks- Don't allow emotions such as fear or greed to drive investment decisions. Do not buy stock because there is a hype around it. Try to avoid behavioral biases like overconfidence, herd mentality etc. 
    9. Rebalance your portfolio regularly- Keep track of your portfolio's performance and make changes as necessary to ensure it aligns with your investment objectives.

    By following these steps, you can make informed investment decisions and increase your chances of success in the stock market.

     

     

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