Procedure to Analyze the Stocks
Buying a stock depends on different views, either the investment in respective to long term or either in speculation mode or short term Decide the Investment part from your end.
Generally speculative mode of stocks will not have much analysis To analyze a particular stock there are two factors a)Fundamental analysis b)Technical analysis In which there are other two more factors called a)Stock specific b)Market specific The following steps makes you to understand the analysis of a stock Step 1: choose a particular stock ,for example : "Stock abc ABC" Step 2: Check for the Fundamental analysis a)Market Capitalization b)Book Value c)Price/earning per share d)Earning per share e)Balance Sheet of the company f)Quarterly results of the company g)Sales h)Operating Profit Margin i)Gross profit margin j)Net Profit margin k)Profit before tax l)Profit after tax m)Equity Capital n)Reserves and surplus of the company ..
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Etc Step 3: Check for technical analysis a)Charting b)Graph c)Check for price history d)Open,low,high,Close,volume e)Historical Data f)Moving or bussing stocks with percentage variation g)52 weeks high /low Step 4: Check for analyst Recommendations a)Check for brokers or analyst recommendation b)Check for the market trend towards the stock Step 5 : Check for stock specific a)Check for news / Information related to the stock b)Check for the market trend to the particular stock c)Volume traders d)Share Holding pattern e)Promoters stakes Step 6: Check for market Specific a)Check for market trends of the day towards the stock b)Check for news / Information related to the stock c)Check for the environmental factors d)Check for the industry trend for the particular market e)Check for the Market Gossips and speculators news Step 7: Comparative study a)Check for the industry trends b)Check for the comparative study with respective to the stock For example: Take "abc stock" and another "bcd stock" of same sector/industry Compare the fundamentals and technical of the company Check for the people reputation towards the company Step 8: Decided the targets and stop loss / resistance level for the particular stock Step 9: Make the investments with confidence
Generally speculative mode of stocks will not have much analysis To analyze a particular stock there are two factors a)Fundamental analysis b)Technical analysis In which there are other two more factors called a)Stock specific b)Market specific The following steps makes you to understand the analysis of a stock Step 1: choose a particular stock ,for example : "Stock abc ABC" Step 2: Check for the Fundamental analysis a)Market Capitalization b)Book Value c)Price/earning per share d)Earning per share e)Balance Sheet of the company f)Quarterly results of the company g)Sales h)Operating Profit Margin i)Gross profit margin j)Net Profit margin k)Profit before tax l)Profit after tax m)Equity Capital n)Reserves and surplus of the company ..
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Etc Step 3: Check for technical analysis a)Charting b)Graph c)Check for price history d)Open,low,high,Close,volume e)Historical Data f)Moving or bussing stocks with percentage variation g)52 weeks high /low Step 4: Check for analyst Recommendations a)Check for brokers or analyst recommendation b)Check for the market trend towards the stock Step 5 : Check for stock specific a)Check for news / Information related to the stock b)Check for the market trend to the particular stock c)Volume traders d)Share Holding pattern e)Promoters stakes Step 6: Check for market Specific a)Check for market trends of the day towards the stock b)Check for news / Information related to the stock c)Check for the environmental factors d)Check for the industry trend for the particular market e)Check for the Market Gossips and speculators news Step 7: Comparative study a)Check for the industry trends b)Check for the comparative study with respective to the stock For example: Take "abc stock" and another "bcd stock" of same sector/industry Compare the fundamentals and technical of the company Check for the people reputation towards the company Step 8: Decided the targets and stop loss / resistance level for the particular stock Step 9: Make the investments with confidence
