4 Types Of Stocks That You Should AVOID Investing In !

Successful stock investing requires a lot of discipline. Thousands of stocks are listed on Indian stock exchanges, and you have to find 10-15 good stocks to invest. For the remainder, you only have to say ‘no’.

Rule #1 of Stocks that you should avoid

As a primary rule, avoid investing in companies you don’t understand. If you can’t figure out how the company is making its revenue, what is the company’s business model, what are the products / services offered by the company, or what is the use of the products — avoid investing in that company.

4 Types Of Stocks That You Should AVOID Investing In !
4 Types Of Stocks That You Should AVOID Investing In !

For example, if you have zero knowledge of semiconductors or microelectronics, and do not understand the use of Zener diodes, MOSFETs, amplifiers, etc., avoid investing in semiconductor companies that manufacture these products. There is no way that you can understand market demand, product quality, future prospects, or even competitors.Instead, invest in companies you can understand. Some common industries that one can understand with very little effort are consumer goods, FMCG, automobiles, utilities etc.

4 Common Types of Stocks That You should Avoid Investing In:-

Also read :Investment Risk

Low liquid Companies

There are some stocks whose prices may fall continuously, but investors are not able to sell that stock just because there are no buyers. Getting out of a less liquid company can be quite stressful. Avoid investing in companies with low liquidity.In general, stay away from companies with a daily average trading volume of less than ten deficiencies. The higher its volume, the better. (If you are new to the concept, check out the versions of some of your favorite companies on Moneycontrol or other financial websites to get a good idea of daily trading versions.)

Also read :Trading

High debt companies

In companies, debt is like a big hole in a ship. Until and unless, these holes are filled — the ship cannot sail far. Avoid investing in companies with high debt. As a rule of thumb, stay away from investing in companies with too much debt and more than 1 debt / equity ratio in your balance sheet.

Falling knife category companies:

Do not try to catch a falling knife! Investing in companies whose share prices are constantly and substantially decreasing (eg- Gitanjali Ratna, Yes Bank, PC Jewelers, PNB, Suzlon Energy, etc.) is never a good idea. There is always a reason why the prices of these shares are continuously falling, and the market is punishing that company.Apart from this, there are thousands of listed companies in the Indian stock market that you can search. Trying to catch a falling knife usually injures your own hand if you are not trained to do so.

Low visibility companies

There are some companies in the Indian market whose information is not easily (and transparently) available on the Internet or financial websites. This is mostly the case for small and micro-cap companies.Researching such companies with low visibility can be a daunting task for investors. In addition, information manipulation is also likely if you cannot cross-reference the data or when reference sources are not reliable. Therefore, avoid less visible companies.

Also read :Investment

Stock Market for Beginners | What is ShareMarket?

Hello friends, today I will tell you about the stock market, how you can earn money in the stock market, this post is for those people who do not know about the stock market or for those who are new in the market, this post will be very helpful.

Important - The stock market is not a Casino.

I want to enter in stock market, how do I enter in stock market, What is stock market, how to invest in a good company, how to do company analysis, long term investment [Investment Management] and short term investment. All these questions hang in the mind of a beginner. And today I will tell you about stock market. I will tell you everything openly, just if you need to read the post completely.

Stock Market for Beginners

To Invest in the stock market, you have to focus only on the successful people and not on those people who have suffered losses or always maintain positivity in yourself.

Stock Market for Beginners | What is ShareMarket?
Stock Market for Beginners | What is ShareMarket?

The stock market is always in front of you reality as a business man builds a very good business on the power of his knowledge.

You do not need a commerce stream for the knowledge of stock market, no matter what field you are from, just you should have some basic knowledge about it or if you are interested in stock market then you will be called a #stockmaster.

It is very important for a beginner to get a good direction of the stock market, then they can make their own according moves. How deeply you will know the stock market depends on you.

Trusting The Stock Market

1st Step

You should have full faith in the stock market, trust is the first step in the stock market because many investors suffer losses in the stock market and then they mislead other people that do not invest money in the stock market. Often those people who have half incomplete information, those people are sure to suffer loss. Many people consider the stock market to be gambling, there is a very interesting notion behind it as to why it is gambling.

Meaning of Stock Market - Stock Market is the place where we buy the stock of a company. [Stock means taking a stake in the company. Its direct meaning is that if the company will earn profit then you will also earn profit.] Therefore it is very important to have a right believe system in you.

Important - When you invest in any companies, do complete analysis of that companies and invest for long term.

  • You start investing in the stock market regularly.
  • Invest in blue chip companies. Blue chip companies are those which are very prosperous company, the value of their shares never falls because these companies are very profitable.

What should be the first step in the stock market? If you are going ahead to invest in the stock market. In this post, I will tell you about 5 very important steps. Friends, as I will tell you 1-1 steps, you will start knowing what you should learn in the stock market and what you needed. And when you come to the 5th step, you will get to know about the stock market.

What is the flavor of the stock market, what kind of test is there, in this I will tell you about all these in details today. To know about the stock market, you have to continue this post step by step.

What Are You Hire For?

2nd Step

Friends, now after understanding the 1st step of the stock market, you need to understand why you have come to the stock market. Many people consider the stock market to be gambling (Many people buy shares in the stock market because when the share price is low, they will buy the shares and then sell them as soon as the share price rises and earn profit.) Let me tell you in depth, people try to sell a stock before buying it, that means they keep only and only profit in mind.

Friends, there is no such stock in the stock market that will make you a crorepati overnight, for this you will have to invest in good companies for long term, wait and those people earn profit. And those who think of earning profit overnight, only those who understand the stock market as gambling.

Whether you invest or trade in the stock market, you have to keep your mind power clear that whether you invest or trade in the stock market, it can be your profit as well as loss.

"You can earn a lot of money from the stock market, you just need to understand the power of the stock market, which depends on your interest, how much interest you show in this field, how soon you want to learn trading in the stock market".

Just Don't Anyone Blindly

3rd Step

You must have heard about the stock market from many people on the internet or seen it in the news. But you get tips only and only from people.

Often you get a message on the phone that buy this thing and you buy it and you do not even try to know from where this message has come, how much this item will be worth. You have invested money on a random item. If you get profit then you also tell many people about that item and if you lose then you start abusing the stock market.

Friends, whether you are investing or trading, you should not need tips, you have to improve your own mind power, knowledge so much that you do not need any tip and even if you get a tip from someone, then you You will have to analyze yourself whether this tip is right or wrong.

If you invest money in the stock market by taking a tip from someone, then you are wasting your money, it will be your big mistake.

More Profit  More Knowledge

4th step

Friends, if you are investing in the stock market, then it is very important for you to learn fundamental analysis.

If you are trading then it is very important for you to know technical analysis and if you do not know fundamental analysis & technical analysis then you should not think about investing and trading, this field is not for you. You have to learn this which will be a long process.

Friends, it is not difficult to learn Fundamental Analysis & Technical Analysis, it is a very basic thing, but after learning them, you will have to learn many other terminology of the stock market, many people do it as indicators in the stock market. What are indicators and how are they used? Learning all this is very important for an investor.

If you do not have any knowledge of the stock market at all, then the chances of earning profit are very less for you.

Taste The Stock Market

5th Step

Friends, have you ever invested in the stock market? Have you ever bought shares of any companies? Friends, if you have never invested, then I will suggest that you buy the shares of a good company which you can get at a low price.

Buy a share of Rs 100-200, this will enable you to buy. Friends, you will get experience from this, you will get to learn a lot from a small amount.

By buying 1 small share, you will know how that stock looks in your portfolio, you will realize that the money will be spent or less for that share. If you do not know how to buy or sell shares, then for this you read this post of ours, here you have been given complete information from the details.

Note:- It is very important for you to have a demat account (Open Demat Account Online) for Investing OR Trading.