Investments what a wonderful word. The word which gives you the sight of money.
The beautiful part of Investing in a company is you need not work on the spot for your earning but, someone else is working for you and you judge the working of the Management and put in your money. You can decide about the fate of the company sitting in a remote corner of the country by just having a computer. Of course to invest a lot of homework is to be done.
First the fundamentals of the company has to be studied and then the financials. We have to look into the aspect wether the product manufactured has got demand in the market and how profitable they are now? It is better to study the financials like Profit & Loss A/c and Balance Sheet. Every family depends upon the Head of the Family similarly, a Company depends on the Management. So, the quality of the management is also important.
An investor also has to look into the technical aspects of the share or in simple words graph. First, to understand technical analysis it is better to take a graph paper. Select a Company of your choice and then , let the x axis be the date and the Y axis be the price.
you can go on plotting the closing price daily on the graph, you can have an imaginary trade and also sell or Buy. So, you can learn technical analysis. Now there are lot of material on
the net. Looking forward for your comments. HAPPY INVESTING.
Friday, June 18, 2010
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