You are ready to buy your first stock, If is not as simple as it looks, Buying stock involve money, the money you earn with the lot of hard work, you don’t want to lose your money in investing in the stock which is not worthy.
In the initial stage, you must have a brokerage account and you just do research before selecting a stock before putting your saving in it.
Need to find Shares For Beginners must remember those things –
For the Beginners it is a very confusing situation where to start, Many of the brokers take advantage of your innocent, you must aware of the basics path to follow.
Also Read: Stock Selection Strategies
Invest in reputed Business
Best stock for the beginners without thinking twice is Blue-chip stocks, In stock Market, the term “Blue Chip” referred to the stock that is strong reputation, with the Long-term market, no such negative news in the market, and also they possess the trust of the investment as well as Financial Institutes.
These Blue chip stock never drag out money from your pocket, these shares always provide money to the invested. So always invest a part of your investment into Blue Chip stocks.
Fair Value Stocks
If you are a little bit aware of the valuation of the company you must go for it and select the undervalued companies which will provide a good return in the future.
Finding undervalued stock is the real job for you before investing.
The book value of the company which shows the assets of the company to the current share price.
You also look for the company which recent stuck in the market price swing, you can find lots of company with very low valuation to invest.
There are several valuation tools available in the market, that will bring you nearer to those company which is with low valuation rest of the journey you have to complete by yourself and by your self-assistance.
Tools like Financial ration, Technical analysis, graph etc help you out to make a good amount of Money.
Also Read: Benefits of Investing in Mutual Funds
Lots of Investors and analyst recommend putting some of the stakes of their investment in those stock which provide a dividend.
Dividend Yield helps the investor to keep the cash flow rotating.
Dividend per share received also raise the percentage profit of your investment.
The companies share their profit with their shareholder in the form of Dividend.
Any stock paying more than 10 % of dividend yield looked with the healthy structure.
Benefits for selecting Blue Chip Stocks
Being a Beginners in Share Market, it is recommended to go for Blue Chip Stocks, which carries trust towards investor and will provide good returns for the long-term perspective.
What is Blue Chip Stocks?
Blue Chips Stock itself speech their story from several millionaire mouths, the stock become blue-chip due to a combination of factors like companies holding huge market shares with the trust of people.
low Debt with huge cash in hand which will compensate for financial crises.
Companies paying out dividends to their shareholder for a long time.
- The Track Record is very attractive and beyond the expectation of investor.
- Company paying out long term dividend to their investors
- Enjoying High return on Capital, Return on Equity.
- Company occupy on eof the large corporate rank among large entities in the capital with market capitalization and Enterprice Value.
Some of the Blue Chip companies (2018):
Shares For Beginners always consist of Blue Chip companies in their portfolio. Some of the examples are:
- HDFC Bank
- Tata Motors
- SBI Life Insurance Company
- Tech Mahindra
- Maruti Suzuki
You are on the platform just to earn money, there is no place for emotions, there is no such big company or small companies some of the small companies will boost their books and provide healthy returns to you, Business model, Management control, Economical conditions are some of the several factors drive the market up and down.