Friday, November 06, 2009

Questions you should ask before buying/selling in a market...

- Is the stock amongst the high beta stocks (check volatility)
- Is the stock sensitive to change in interest rates and which way are the interest rates headed?
- How well is the sector (to which the stock belongs) performing?
- Has the stock shown some resistance in the face of a sharp rally or a sharp fall?
- How good is the management of the company? Does it instill confidence?
- How has been the performance of the company in the last 3 - 5 year period?
- Are MFs buying or selling the stock? Whether the better performing MFs holding this stock in their portfolio?
- Is the P/E ratio in a reasonable range?
- How good is the growth prospect of the sector to which the company belongs?
- What is the profit/loss % in the stock from which you want to exit? If profit is significant or loss is minimal, then you can think about exiting from the stock.

"....The greatest discovery of my generation is that a human being can alter his life by altering his attitudes of mind...."

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