Indian stock market is expected to perform well in long term. There is no denying to this but in short term where Indian stock markets will go it is not clear. Even fund managers cannot pick a few stocks and sit carelessly with those stocks. In short run stock movement is going to remain unknown. Stock investment in such is always like an uncharted journey.
Stock investment was always tricky. But in current scenario making from stocks is quite heady. There is a need to be cautious about stock selection. Whenever one is choosing stocks for a portfolio, nature and future of stock to be taken care of. And one stock is different to another stock. There can be no exact comparison between two or more stocks.
So which stock to choose and which stock to avoid?
Yeah, quite difficult but not impossible to choose some good stocks. Then question how?
This depends on you guys. Confusing?
What you want from your stock investment is very much important. Because there are various kinds of stocks. And which stock will fit to your bill depend on your investment purpose.
If you are intra day trader you can go with any stock, which is capable to give some returns within hour. But if you are inter day trader, you need to be careful when choosing stocks. Here comes your purpose of stock investment.
For what period you want to invest in stocks? And when you a particular return from your stock investment? This when is very important? If you look for six months or less it is short term. And you look for more than six months it is mid term. And you look for more than a year it is long term. According to your investment horizon stock selection varies.
You can go value stock as well as blue chip stocks. Value stocks are those which will good return in future and blue chip stocks are big company’s stocks.
If you want higher return than stock market, then go for value stocks and if want same return as of stock markets you choose broadly blue chip stocks. But none of these two ways are safe way of stock selection. You need to have some value stock and some blue chip stocks. This is the best way to decrease risk.
Stock investment is risky but right stock selection makes stock investment enjoying.
Disclosure: No Positions