How to pick the right stock?

[karthikmarar]

Wow..Never knew that


CV

LOL, CV... Looks like we have wasted our time on TA....

 

[outlawx]

Wow..Never knew that


CV

lol..

then.. y are all those books on TA written?

 

[sujittalukder]

TA are not a bad technique of analysis if done correctly. Dont think TA is a science, its an art. Long experience is needed to draw conclusions based on TA. FA gives you an idea of what stock to buy TA gives you an idea when to buy. TA can be for short term/Medium term and for long term investment. One has to punch both technique before investment. Also note that FA is also an art. Predicting future is not an easy task, it also requires experience, research & time involvement. But still note that combination of these two are also not perfect, if not done perfectly. TA is very useful for intra day trading / Future trading. FA is more useful for newly listed share where huge data are not available for TA. I do follow the twin combinations. I would like to cite an eg., Reliance Industries touched 250 in 1992. It passed this level again in 2003/04. Bharti Airtel issued the shares at 45/- now it is 800+. At the time of issue, the fundamantals the company was very poor. Now you can guess combination of twins are very powerful if used wisely.

 

[yoogi]

There are quite a few ways to play stock market, just like how one can write an exam.

A) copy mutual fund portfolios.

Its like copying a potential good student(s)'s answer.

B) Just see what others are writing and come to a overall perception of an answer and write that.

(Buy stocks based on Technical analysis)

C) Just write the extract from the book. The answers are definitely within that.
(buy index stocks)

Let me tell you one thing. People who ask these questions usually dont do a better technical or fundamental analysis. So they will be better off with index stocks and copying mutual fund portfolios. To avoid (bad) timing the market use SIP method after you have picked your stocks. To better follow stocks avoid investing in more than 12 stocks.