Whether you are buying shares through angel broking or SBI DEMAT Account. If you want to get success in Indian share market investment, you have to follow the strategy of buying Indian Company shares. These strategies will help you one side to protect from loss and second side give you profit. If you did not Steps to measure financial health of a company, read first it.
1st Strategy : Invest in Highest Loss Suffering Companies
If you have checked past performance of same company when you have invested but now, you have seen that company's shares price are falling but your loss must not more than 15%. At that time, you should buy same share. Because your overall loss from same company will decrease.
For example, you have bought HAVELLS's 2 shares @ 724.85 but live price is 645.20 and you are facing loss of 10.99% . You have invested for buying new 3 shares @ new less price of Rs. 645.20 with total investment Rs. 1935.60. Now you have to invest Rs. 1935.60 more and you got more shares at less price because price has decreased. Your loss will decrease from 10.99% to 6.4% on average. In simple shares, other people have sold the share of company because they are fearing that its price will decreasing at this time, you should have to greedy and buy more loss making companies.
Again remember, it will not apply for all companies. If company is facing crisis due to its bad management, eating share holder's money, never use this strategy.
Before using this strategy, again study the current balance sheet, evaluate the ability of its management team members and find the current performance in the business through income statement.
2nd Strategy : Invest in Highest Profit gaining company
As per this strategy, you filter the companies. Companies whose stock market perform better, you should invest more money in it and time to time, its stock price will boom and you will get big reward. This strategy is based on the focus on the plus points and forget all negative points for boosting your self confidence in Share market investment.
Focus on plus points = Focus on Good performing company
Means, you are investing from past one year in same company and its share price are increasing day by day.
Now, sell all other companies shares who is giving you loss because all are your negative points.
Remember : Good companies produces good stock. You have to focus on them.
Bad companies produces bad stock. Remove your focus from them.
Ugly companies produces ugly stocks. Remove your focus from them.
3rd Strategy : Investment in Dividend Giving Company
You have got Rs. 10 final dividend, you have bought its one share only. If you will have the its 1 Lakh shares, it means, your annual dividend income is Rs. 10 Lakh.
4th Strategy : Investment in New Company
There is big market of Indian share market. See your DEMAT Account or Google. Never think in your small portfolio. Invest in new companies. For this learn to become better investor.
5th Strategy : Value based Investing in Shares
In this strategy, you make the plan to invest only a value giving company. Without filtering such company, you will give promise yourself, you will not invest Rs. 1
Following are its simple Rules.
1. Company must be large cap not mid cap
2. It must earn profit in past 5 years
3. Annual growth in profit must be 10%
4. Profit must from business
5. ROI must be 10%
6. Debt equity ratio must be less than 1 means every dollar of company 50% equity share capital and 50% debt of people. It is better if company has own 66% and 33% debt or more own money is better.
7. Dividend yield must be minimum 1%
6th Strategy : Momentum
As per this strategy, Invest in the stock who gave highest return in past one year when you are ready to invest beginning of second year.
7th Strategy : Over Exposure Risk
In this strategy, we did not invest lump sum in same month. For example, if you want to invest Rs. 120,000 in stock market of India, try to divide it in 6 installments. Every month invest invest only Rs., 20,000. If any 3 months will bad, its loss will be affected only Rs. 60,000 money not whole Rs. 120,000
Get Be Pro- Investor of Indian Companies Shares -eBook
In this strategy, you make the plan to invest only a value giving company. Without filtering such company, you will give promise yourself, you will not invest Rs. 1
Following are its simple Rules.
1. Company must be large cap not mid cap
2. It must earn profit in past 5 years
3. Annual growth in profit must be 10%
4. Profit must from business
5. ROI must be 10%
6. Debt equity ratio must be less than 1 means every dollar of company 50% equity share capital and 50% debt of people. It is better if company has own 66% and 33% debt or more own money is better.
7. Dividend yield must be minimum 1%
6th Strategy : Momentum
As per this strategy, Invest in the stock who gave highest return in past one year when you are ready to invest beginning of second year.
7th Strategy : Over Exposure Risk
In this strategy, we did not invest lump sum in same month. For example, if you want to invest Rs. 120,000 in stock market of India, try to divide it in 6 installments. Every month invest invest only Rs., 20,000. If any 3 months will bad, its loss will be affected only Rs. 60,000 money not whole Rs. 120,000
Get Be Pro- Investor of Indian Companies Shares -eBook
Comments