If you want to be successful in the stock market, keep these things in mind while choosing the stock

Share Market Tips: The biggest question before the investors in the stock market is to choose the right stock. Although many stocks have given multibagger returns in the last one year, it does not mean that choosing a multibagger stock is an easy task. If you do not pay attention to certain things while choosing the stock, then you may have to suffer a loss. Today we will tell you about some such things, keeping in mind that you can choose the right stock.

See the reason behind the stock’s not booming
Money should not be spent indiscriminately just seeing that the shares are going up. Rather, one should try to understand the reason behind the boom. If this momentum is not matching with the fundamentals of the company, then it is better to stay away from it.

Check out these three things of the company
While choosing a stock, one should never pay attention to the advice received here and there like hot tips on phone and SMS. Similarly, don’t decide to invest money after seeing a good discussion on TV. The earnings growth, management quality and balance sheet of the company should be looked at before buying shares. On these three points, the chances of loss in a strong company will be less.

Join Strong Shares
It is a profitable deal to stick with strong stocks (which have high trading volume). Fake bullishness can be triggered in under-traded stocks. The scope for this is not much in large stocks.

Crosscheck the claims of the brokers
Do not blindly follow the advice of brokers. His personal interest may be involved in this. Make sure to cross check with all the available resources, otherwise you may have to suffer loss.

If the share price starts falling
Keep a stop loss as soon as a stock crosses it, take a decision immediately. For example, if a stock falls 20 percent below its purchase price, then it is wise to sell it. Holding a losing stock for a long time thinking that it will rise one day is a wrong strategy.

Try to know the truth of the company’s claims
Do your own research to know the veracity of the company’s claims. Find out whether the company has actually made profit or not. Or how true is the claim that he has received new orders.

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