Any tips for noobs planning to profit from stocks?
I am planning to make few quick bucks out of this. I have limited buget and can't afford much risk.
So, advise me as to how should I proceed about buying or selling and what all things should I be aware of?
Blu chips are better if you
Blu chips are better if you are looking into long term gains. Consider top 3 players in each sector for planning your investment.
Look at the financials and pick out top 10 companies in terms of earnings per share. If you look at the stock market, you will see that every company's price fluctuates between the 52 week high & 52 week low.
Once you have your short list of 10 companies, buy when the stock is in the bottom half (preferably bottom quarter) of the price range.
You will require a lot of patience and you should wait till the entry price is at the right level of the price range.
Sell when the price goes into the upper quarter of the price range. Do monitor news about your stocks.
Buy only when u r comfortable with value and when Market stabilizes (i.e shows uptrend and holds)for at least 3 days after a decline.
These days market volatality is more. The upward trend remains for 3 days only. Then the market falls drastically & the prices of the stocks come to its old level. So, in every 30 days the stocks come to their lowest level.
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