Are you a new investor in the stock market? and thinking about which stocks to invest in and worried about stock evaluation.

Are you a new investor in the stock market? and thinking about which stocks to invest in and worried about stock evaluation. So, stock selection depends on many factors such as how much capital you have to invest, what is your level of experience in trading, are you a short term or a long-term investor and so on. Stock selection also depends upon your trading plan, whether it is dynamic or not but most importantly you should keep learning about this field to improve your trading strategies.
In this video we will give the best stock advice and some important steps for selecting the best stocks for trading in the stock market. Understand your risk appetite, one of the biggest mistakes that novice traders make is jumping to trade in the stock market without doing much homework. Before you start trading in the stock market it is important to understand how much risk-taking capacity you have as you are new to this field it is advisable to choose those kinds of stocks which are less volatile. As your skills and experience will develop you can increase the risk associate with the stock and trade more volatile shares.

Start reading newspapers when trading in the stock market it is extremely important that you stay informed about all the news about the best stocks which you have picked to trade in. You should also be knowing about the company in which you are planning to invest such as in which sector it lies, what are the product it produces, is there any scope of expansion, it is peer companies and so on. The current news about that stock plays a huge role in the price movement of that stock. For example, if there is news about the company launching a new product or product line, then the prices of the stock will shoot up as the company is planning to expand its business therefore develops a habit of reading financial newspapers daily to get proper stock advice along with detailed stock evaluation. Also start analyzing companies and management before picking up stocks to trade. Analyze it on your own, you can analyze the stocks based on certain fundamental parameters which will allow you to understand whether the company will perform well or not in the coming few years.

Some of the fundamental parameters are p/e ratio, this fundamental parameter determines whether the stock is expensive or cheap. Dividend yields the company in which you are investing must give consistent dividends for the last few years revenue. When looking at the financial statements you must analyze whether the revenue from the business is growing every year. If it is growing, then it is safe to invest in that company profit. The company should have steady and rising profit that the debt level of the company should be low. Return on equity, the return on equity of the company should be high.

The above are the basic and important fundamental parameters that you must analyze before investing in the company. Evaluate the management of the company before investing in the stock. Remember that if the business is doing well then, the stock of that company will also do well. Thank you for watching the video.

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