Get Success in Share Trading : Become a Successful Investor
Look for company financial data
Before investing in company shares on the stock market, you should be aware that all publicly traded companies must provide access to investors with company financial data. The data is generally available from the company so if you are considering buying shares from a company, then get access to this financial information and make happy yourself that the company is in a good financial state before owning the shares of the company with your money.
Key aspects to Look in a Company’s Financial information
While researching the details of a company, then take a look at its financial position of atleast two to three years into the past. There is no need to go back further than this but if you go back less, there may be significant trends in the finances that you will fail to spot. Take exceptional note of the quarterly statements and the revenue and earnings per share of the company.
Figures tell the Story of a Company
Try to identify trends in the figures. While there is no guarantee of what might happen In the future of the figures, it is unquestionable that an upward trend in revenue and profits will be a positive sign to look out for. In simple words, a company having steady growth for past 2 to 3 years should have a positive growth in the future, until or unless some major changes occur.
After you are satisfied with the financials of the company and that the projection of making good profits into the future are favourable you will be in a situation to consider putting money into the share.
What Kind of Shares will give more returns? (Growth or Dividend)
It is an continuing debate over whether it’s preferable to buy shares that will grow in value, or shares that pay good dividends. The answer to this question should always lie with the individual investor. It is always suggested to avoid chasing dividends. We refer to the practice of certain investors of buying a share just before a dividend is expected to be announced. Please note that the price of the share will already have taken the dividend into account so you will be paying for it in any case.
Recommended Read :
- A Simple Way to Learn Investment Basic Concepts
- How to Become a Successful Investor?
- How to Grow Your Money?
- What is Investment Portfolio?
- Why should We Invest?
- Risk Management in Investments
- Top 5 Investment Options in India
- What is Portfolio Diversification?
- What is Diversification of Investment?
- What is Financial Planning?
- What is Wealth Management?
- Ranking types of Investments – Based on Risk
- Basics of Financial Planning
- Gold Investment is it a Stupid Idea
- Types of Gold Investment
- What is The Tax Impact On Gold Investments?
- How to Become a Successful Real Estate Investor?
- How to Find Hotspots in Real Estate Investment?
- Things to Know Before Starting Real Estate Investment
- Why Should We Invest in Real Estate?
- How to Invest in Bond?
- How to Invest in Debenture?
- Secrets of Making Money From Bond Market
- How to Select The Best Bonds for Investing?
- How to Make Money By Trading Bonds?
- Is Life Insurance a Part of Investment
- What Does Guaranteed Return Mean?
- What are Fixed Income Investments?
- What is a Debt Instrument?
- What is Buy and Hold Investment Strategy?
- Investment Strategies
- What is a Financial Savings Scheme?
- Short Term Investments Types of Short Term Investments
- Online Banking Online Investments in India