CLOSE X
Algo Trading
Home

Blogs

Stock Market Blogs

What factors to consider when buying or selling stock ? August 22 2017MARKET STRATEGY

Visit Count: 24500

What factors to consider when buying or selling stock ?

Investing in stocks can be a daunting task. While building a portfolio or investing in the stock markets, selecting the right stock is very crucial. Selecting the right stock at the right time can turn out to be the most lucrative deal and one can make good profits from the wise decision. Similarly, it is very important to time the stock while selling it. Selling the stock at the appropriate time can be equally rewarding.

Investing in a wrong stock can be a painful experience. It can lead to losses or take years to break even. Stock markets are definitely not for the people who cannot cope up with ups and downs associated with it. With vast information available in the market, you can analyse a company and take a decision of buying or selling. In this article, we shall understand how to identify stocks to buy or sell.

    Here are the main factors you should consider before buying and selling any stock

    Factors to Consider When Buying  or Selling Stocks

    1- Select the Company or Industry with which you are Familiar:

    When you start investing in stock market, select the industry you like the most. This will make you more interested and you will be able to take the decision in a much-informed way. When you are aware of the industry and company, you will know what hype or information should be ignored. Thus, it is always advisable to start identifying stocks or companies you know well.2

    2- Consider Valuation and Price:

    Before purchasing or selling any stock, it is important that you consider the price and valuation of the stock. If the company is trading at PE multiples of less than 20, it is considered as undervalued and hence a good buy. On the other hand, a company trading at PE multiples of more than 20 is considered as overvalued and hence a good sell.

    3- Look at Margins:

    Companies survive by selling its products or services in the markets. If the sales or margins of the company are increasing at a good pace, then there is a good potential of a rise in the price of stock in future. Always look at the margins of the company and reasons for the increase, if any. Compare the cost of goods sold and other expenses for the increase in sales.

    4-Technical Indicators:

    In the recent times, the technical indicators have been gaining popularity. The technical indicators can be in the form of charts that predict the future moment of the stock based on the stock movement in recent times. The technical indicators take into account the volume traded, 50-day and 200-day moving averages, etc. The information provided by the technical indicators can be very valuable while considering buying or selling of any stock.

    5- Upcoming Events:

    Any upcoming event regarding a company can be a reason for buying or selling the stock. The event can lead to multiple triggers in the price moment of the stock. Knowing and analysing the event right will help in determining the trend of the stock going forward. Thus, buy and sell of the stock can be initiated based on such events.

    6- Evaluate Financial Reports:

    Understanding and going through the financial reports of the company can make buying and selling decisions easier. Study the yearly reports of the company and compare them. Evaluate the profitability of the company. Check whether the revenue and the bottom line are showing consistent growth. Also look for cash payouts to stock investors in the form of a dividend. By evaluating all the above points, you can decide on whether to buy or sell the stock.

    Conclusion

    Indira Securities is the leading financial service provider in India. We provide our clients with regular buying and selling recommendations. Our recommendations are not only based on technical analysis but also on fundamental analysis of the stock. Our services include trading in equity, commodity, currency and derivative. Our mobile application provides the user with hassle free trading opportunity. Open a demat account with us and take benefit of our services. For any service or query contact us via email or call.

     

    COMMENTS
    Form
    Categories
    Blog Enquiry

    Prevent Unauthorized Transactions in your demat and trading account --> Update your Mobile Number/Email id with your Depository Participant and Stock Broker. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat/trading account directly from CDSL and Stock Exchanges on the same day.........issued in the interest of investors...

    1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.

    2. Update your Mobile Number & Email Id with your Stock Broker/ Depository Participant and receive OTP directly from Depository on your Email Id and/ or Mobile Number to create pledge.

    3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

    4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued by NSE vide. Circular No. NSE/INSP/45191 dated: July 31, 2020 and NSE/INSP/45534 and BSE vide Notice No. 20200731-7, dated: July 31, 2020 and 20200831- 45 dated: August 31, 2020 and dated: August 31, 2020 and other guidelines issued from time to time in this regard.

    5. Check your Securities/ MF/ Bonds in the Consolidated Account Statement issued by NSDL/ CDSL every month.

    6. Risk disclosures RISK DISCLOSURES ON DERIVATIVES:

    • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
    • On an average, loss makers registered net trading loss close to ₹ 50,000.
    • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
    • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost

    Dear Investor,
    As you are aware, under the rapidly evolving dynamics of financial markets, it is crucial for investors to remain updated and well-informed about various aspects of investing in securities market. In this connection, please find a link to the BSE Investor Protection Fund website where you will find some useful educative material in the form of text and videos, so as to become an informed investor.
    https://www.bseipf.com/investors_education.html
    We believe that an educated investor is a protected investor !!!

    "As per the directives of CDSL and esteemed Exchanges, it has been made mandatory for every client to furnish their latest KYC details viz. Valid Mobile No., Email- Id & Income range on or before 31.05.2021 else your Account will be marked as Non Compliant and will be Freezed till the compliance of such requirement."
    "No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorize your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."
    "KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary."
    Dear Investor if you wish to revoke your un-executed eDis mandate, please mail us with ISIN and quantity on dp@indiratrade.com by today EOD."
    REGISTRATION NOS:

    INDIRA SECURITIES PVT.LTD. (SEBI REG.NO.):NSE TMID: 12866, BSE TMID: 663, CDSL DPID: 17000 SEBI REG. NO.: INZ000188930, MCX TM ID: 56470, NCDEX TM ID: 01277, CDSL REG. NO.: IN-DP-90-2015, CIN : U67120MH1996PTC160201

    DISCLAIMER:

    "INVESTMENT IN SECURITIES MARKET ARE SUBJECT TO MARKET RISKS, READ ALL THE RELATED DOCUMENTS CAREFULLY BEFORE INVESTING."

    INVESTORS GRIEVANCE

    Indrendu Joshi. Email: compliance@indiratrade.com. Call : 0731-4797275

    Investor grievance complaint : complaint@indiratrade.com

    INVESTOR CHARTER