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What is Free Cash Flow, How to anylaze free Cash Flow of a company ?

F ree cash flow is one of the most important topics to evaluate a company, many of you are involved in the fundamental analysis of a company, then you must have heard of this word. However, those people who are unfamiliar with the term free cash flow, this is a mystery for them. In this post, we will discuss a wide range of free cash flows and will try to know why it is important to evaluate when researching the company. Let's try to understand this with the help of the following point. This post of mine is also important for those who want to learn to evaluate the stock. 1. What is Free Cash Flow (FCF) ? Free cash flow is cash which is available to all the investors of the company. It represents the additional cash that a company is capable of generating the necessary funds for its operation or after expanding its asset base. Here you need to understand that not all income is equal to cash. If a company is earning, it does not mean that it can spend all the incom...

How to do direct Equity investment in Indian stock market.

I n the Indian stock market, a person can make direct equity investment which can be a rewarding investment for him, as well as the risk of loss in direct equity investment is very high. People who maintain a balance in risk and return dealing with in direct equity investment, they are the winners. But how risk and reward can be balanced, the risk associated with direct equity investment comes with the complexity of information. When buying a stock, the most important criteria for evaluating a company is Return On equity. How important is this parameter, a good investor does not invest without its help, millions of people in India invest in stocks, but only a few people know how to read the balance sheet. Apart from direct investment, mutual funds are such products that have been created for the common man. In direct equity, timing the market is very important, but timing market is not easy. The correct time of market is an essential trait that should be done while dealing with...

How to invest in volatile market.

S elling stock due to fear is one of the most harmful investment decisions we make. Apart from this, there are some investment restructuring strategies that you can use in the market volatility. It’s important to know what investments you own, Especially if you are managing some or all of your investments without professional assistance, then this  is particularly important during the market volatility. It has been a decade since the decline in the last major market, from which you can make 10 years old and about 10 years of retirement. Do you know whether your investments are still aligned with your future income needs and investment objectives? If your answer is no, then you should see your statement again. Re-evaluate your stock holdings or contact your financial advisor. Bonds are usually bought to generate income or to give stability to their portfolio. However, not all bonds are alike. If market volatility increases, then corporate and high yield bonds may be the m...

How to Monitor Stock Portfolio.

H ello investors, in today's post, we will discuss how we can track our stock portfolio in a simple and effective manner. Here, We are not going to discuss how we track our profits or how much money we made from the market. There are many such websites and apps that can help you track profit and loss. Here, We are going to discuss how to monitor the performance of the holding stock. How is the company doing it, is the company's performance improving or decreasing? My main objective of this post is to explain you monitoring the company’s performance and growth. It is important to make a good stock portfolio, likewise, monitoring the performance of holding stock in stock portfolio is equally important. So let's study how we monitor our stock portfolio. 1. Keep an eye on important news about the company. Keep update yourself by the important news related to the company and the industry. There are many factors like domestic factors (government news, pol...

How to start investing at the age of 20.

S uch youngsters who is at his twenty years of age can start investing in the stock market soon. But many youngsters think that why so soon join the intricate world of the stock market. Most youngsters believe that either it will be too quick or they do not have much money to invest in the age of 20. However, both of these beliefs are wrong. When you are at the age of 20, this is the best time to invest in the stock market. Why? Let's find out. 1. Stock Markets gives best return. Do you know about this interesting fact, if your parents had invested Rs 10,000 in a company like Wipro or Infosys in 1990s, then in today's situation, that investment would be worth millions. Apart from these, other common stocks like Eicher Motor, Symphony, Page Industries, has given even better returns than Wipro and Infosys. Historically, the stock market has given better returns than other investment options over the long term. If you also keep the amazing Shears with patience for a lon...

How to Avoid bad decision mistakes in Investment.

H ere are some silly investment rules, even fools can follow them without making mistakes. These investment rules will be silly rules in the real sense. How many people will agree with the fact that investment can be done in a stupid manner. I think only some small minorities will accept this fact. The investment has been tagged in something that is complicated. But this trend is not right. Even  foolish people like me can invest money without any mistake, yes it is possible. Even the owner of the investment says that the rules of investment are simple. Knowing just a few tricks, someone can practice them efficiently. The advantage of knowing these rules is that they help in avoiding investing mistakes. Due to bad decisions, there are major losses happen in investment. These bad decisions are taken because there is a lack of knowledge. The objective of this article is not to give you an investment strategy, but give to develop the ability to make investment decisions wisely...

How I Use Screener.in website like a Pro.

T  he screener.in is a very awesome website, to conduct a fundamental analysis of a company. Using  screener.in to conduct a fundamental analysis of the company is very useful for investors like me. In fact, the financial reports presented by the Screener website are easy to adapt and easy to use. The screener is a wonderful website to do fundamental analysis of the company. I use the Screener.in website to read and understand the financial figures of a company. When you search for a stock in the stock search area, you will find very important information related to that company stock in the search results like company overview, chart analysis, peer comparison, quarterly result, profit and loss , balance sheet etc. The most important part about the Screener website is that you can read a company's financial statement for the last 10 years in one place. The picture below presents important information about Ashok Leyland Company.           ...

How Important Stillness in an investment

T his assertion is famous investor Charlie Munger . ”You don’t make money when you buy and you don’t make money when you sell.  You make money when you wait.”   Understanding the importance of how powerful it is, how important it is to a common investor. Usually, buying a stock at a lower price and selling at a higher price is generally popular in the stock market, but the key here is that you are doing nothing much time at all. People call it investment, whereas there is a misconception. How much time is worth investing in it, I am trying to explain this by using this example. I am a farmer by profession, and cultivating like it is in my blood. Farming has taught me so much, that the benefits of which I get in normal life also. How? I explain. The purpose of every farmer is to take more production, for which proper seed selection, balanced fertilization is included. The more advanced and disease-free seed will be selected, the better production a farmer can get...

Common Reason Why People Loose Their Money in Stock Market

T oday, I am going to discuss with you about some of the common investment incidents that have not only happened to me, but they are happening with every common investor. Market presents the scenario of immense possibilities of investment in front of us. I have heard from the mouth of the people, saying that today the Sensex has jumped 300 points. When I hear people say so, I feel that their portfolio is performing very well. But does that really happen? No, it does not happen. Each investor's portfolio does not perform according to the market. Then what is the reason that even after having such a good environment, the investors' portfolio does not benefit according to their expectations. We will try to know these common reasons. Investments based on tips trading calls. This is the biggest and major mistake that is made by the investors in the market, in which the opinion given by the broker, listening to their colleagues, valuing friends and start investing in t...