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STOCK ANALYSIS

What are the Things to know before investing in Stocks?

What are the Things to know before investing in stocks?

 

know before investing in stocks

Benjamin Graham who is known as “the father of value investing” and also the mentor of Warren Buffett recommended several things that a defensive investor must know before investing in any stock, they are discussed below:

  1. Adequate Size of the Company

According to the market capitalization of the companies, stocks are categorized as – the mega cap, large caps, mid caps, small caps, micro caps and the nano caps. Micro cap companies have greater market capitalization than nano caps but less than small, mid, large and mega cap companies. Here what Graham says is that the stocks of the very small size companies should be avoided as they are affected very badly in adverse situations. Continue reading

What is Technical Analysis of Stocks?

What is Technical Analysis of Stocks?

 

Technical Analysis of Stocks

The study of stock market action mainly through use of charts and other tools to forecast future trends is called Technical Analysis. In technical analysis, mainly the Price, Time, Volume and the Breadth of the stocks are considered. In other words we can say that technical analysis is the science of recording the actual history of trading in a geographical form to identify the stock market pattern. Continue reading

What is Fundamental Analysis of Stocks?

What is Fundamental Analysis of Stocks?

 

Fundamental Analysis of Stocks

The Fundamental Analysis is a technique through which the real value of the company’s stocks (whether overvalued, undervalued, or correctly valued) is determined by assessing the factors that affects the company’s business model and its future prospects. The fundamental analyst uses several valuation models such as dividend models (focus on expected dividends), earnings models (focus on expected earnings) and assets models (focus on the company’s assets) to forecast the future value of the company’s stocks. Continue reading