HOW DO I INVEST MONEY IN THE STOCK MARKET

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WELCOME TO DHANASHRI ACADEMY
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HOW DO I INVEST MONEY IN THE STOCK MARKET
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Best stock market investing strategies are ones
that generate great returns consistently by
giving clear answers to three important
questions. 1- What to buy? 2-When to buy? 3-When
to sell?
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What to Buy?
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• Buy only quality companies. Shortlist companies
  that have a superior earnings profile i.e.,
  companies that have delivered consistent
  double-digit growth in both sales and earnings in
  recent 2-3 quarters as well as in the last 2-3
  years.
• Sustainable growth is very important. Companies
  can boost sales (one-time contract win) and
  earnings (cutting costs) which might not be
  sustainable in the long-run. 20 growth is a good
  number to start with.

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When to Buy?
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• Once you have a prepared a watch list of top
  quality stocks, your next task is to decide when
  you would buy them.
• Stock market courses
• While fundamental analysis should dominate your
  stock selection process, a little bit of
  technical analysis will help in getting into a
  stock at the time when the probability of it
  going up is high.
• While long-term sales and earnings growth have
  been linear, fear and greed of market
  participants caused price volatility, resulting
  in periods of stock consolidation and periods of
  huge price gains.

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When to Sell?
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• When it comes to selling, one must need to have
  a stop-loss rule in place. This could depend on
  an investors risk appetite. However, if stocks
  are bought at proper buy points i.e., on
  breakouts from chart patterns, investors need to
  cut losses at 8.
• Why 8?
• Quality stocks that breakout from proper chart
  patterns rarely fall more than 8 from their
  ideal buy points. And if they fall over 8, it is
  better to come out of such stocks, because the
  stock could then go through a period of
  consolidation and it would be better to deploy
  your capital in a better opportunity.

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