Knowledge Centre

Don't follow the herd, invest in the right shares

Updated on 24 February 2017

Most of the time we tend to follow ‘what others are doing’ and almost always think that is the right thing to do since a whole lot of people are doing the same thing. This does not hold true in most of the cases. Following the herd mentality gets you nowhere. It is always advisable you use your own discretion and invest in the shares which you feel will reap better results. Given the unpredictable nature of the bull-market, you must think for yourself which helps you to enjoy the fruits of your investment.

When you buy a share, you are not only buying it but also becoming a part of the company for however amount that you invest in. Hence, being a share market advisory company we can assure you to bear all the profit that company makes (or loss sometimes) over the period of time. You are able to see a visible change in the growth chart only when you invest in for a long-term in a company. Let go of the short-term benefits and think of the long-term profits that you can make with a company to reap better results.

As a stock trading advisor, we suggest to analyse the risk factors before you make an investment. The stock bearing a greater return in a shorter time generally involve greater risks than the stocks bearing a comparatively lower returns in the long run or when you compare it with any fixed deposit rates of a bank.

Stock market trading tools helps you to determine the exact revenue of the company, the amount of debt a company has and helps to take an informed decisions based on the facts. The stock market trading tools helps you to determine health of the business along with the buy and the sell ratings. But one must never be carried away by these ratings and take any haste decision based on it. A point to keep in mind is that is ratings cannot help you to exactly determine the inclination towards buying a share.

The prices of the shares may fluctuate in the intra-day trading but a company that generates more revenue usually has the high value of its shares in the long run. Always check for the revenue growth of the company before taking an investment plunge.

While it is important to have discretional knowledge of buying the share, is of just as much importance to have a well-informed knowledge of selling the shares as well. Chart your own rules and determine best time to sell them, either when the dividends are cut or prices rise or fall. A well-chartered plan will help you to prevent selling stocks in a haste.