Best Stocks to Trade for Tomorrow with logic 08-Jun Episode 316

Open your Trading account in mintues with Zerodha

Before you jump into buying and selling in the stock market, you should educate yourself. Its okay to be a stock market newbie but without having some basic knowledge your experience may not be so good.

In a scary investment world it’s hard to find a good stock pick. This stock pick in my opinion is one of the safest bets.

Online investing popularity is now growing fast in the stock market. But this online investment is going to swallow your head down very fast in the unpredictable market if you are not going to know first the importance and the downside of the coin.

To start with I would like to phrase some lines which go as “see a penny, peck her up and all the day you will have good luck”. And though we see that in the times of inflation and soaring prices a penny does not mean anything, but the phrase too is not of today. It is of the time when a penny was worth something.

In the last article, we looked at the first of our criteria for successful stock selection for our high growth portfolio. In this article, we take a look at the second indicator – Revenue growth.

Building a high growth portfolio of quality stock investments can be somewhat confusing when one considers all the different measures analysts use to determine the current and more importantly, future value of a company. In this article, and others that follow, I will cover a simple set of criteria that you can use to filter through all the stocks listed in the market to find the ones that have offer value for money and have good prospects for growth in the future.

The volatility of the stock market makes it a risky investment; even more so with the uncertainties engulfing the global financial market. However, despite the investors’ aversion to risky ventures, they thread the precarious waters of the stock market by betting on a few stocks that performed consistently well.

A simple technical indicator that can be used by beginners in the stock market is the RSI oscillator. RSI (Relative Strength Index) is assumed to be first introduced by J. Welles Wilder in 1978. The RSI indicator intends to quantify the strength/weakness of a certain stock based on its average closing prices.

The rise and fall of stock value in the stock market is random. Experts may predict the right time to put in huge investments in accordance with the current marketing situation but no one can control the trading system. The stock trade is such a vast world of possibilities. There is a chance you can win big, but there is also the risk of losing it all, thus it is important for a trader to have a good trading strategy that would allow him to compete well with other investors.

This article breaks down the rigorous process of discerning whether a stock is undervalued or overvalued. The process is very nerve racking as there are a few factors and parameters that need to be considered.