Many people invest in stocks and finance markets. People analyze stocks and then at the end of the day make their best investments with an aim to generate profits. If you are a small investor, then it is important for you to discover the trend of investing. Here are a few important tips that can be followed by most small investors.
Try and select stocks that pay consistent dividends
This is an important factor for small time investors. Your money in the bank fixed deposit, may not be offering you with very high returns as interest rates are going down. It is the right time for you turn towards stocks that will offer you with higher dividends. More important part is to try and make the selection of stocks that can actually offer you with higher dividend.
Companies may offer fixed dividend for over a period of few years. The rates may not vary for another few years from the date of purchase. You can also make your profits if the stock offers you with consistent dividend every year. Small investors should often look around for stocks that can offer them with high yield on dividend. There may be chances that few may also offer you with a dividend yield of 6 to 10 percent on the purchase value.
Being an investor, you should try and make a saving n your invested capital. This is also termed as your initial investment. To make your best profit you can try and seek advice from stock brokers of India who are exposed to the changing market trends. They may suggest you few names of companies that offer with better returns on your purchase. Stocks can be your best investments as compared to bank fixed deposit.
This is the value that determines the company’s stock. It depends on a number of factors including earnings, assets and market value. Most investors try and invest money in purchasing stocks that belong to the branded companies. Investors also look into the fact if the stock is not under or over valued at the time of purchase. When purchasing the stocks it is best to look into the value factor.
Cross check with price regularly
It is not advisable to simply pay attention at increasing or decreasing value. You have to study the market trend on regular basis. This will reflect the overall performance of a particular stock. You have to try and identify the potential rise in value before investing. If the company is performing well then its value may rise consistently.
This is the total number of stakes that are held by the promoter of the company. This also reflects the total stocks a company is holding in the market. In most cases, promoters may throw around 50 percent of the shake if they are confident about their business. In case you notice company is holding 50 percent or above stake, then you can invest.
Get familiar with your promoter
Many companies may not be reflecting high profits in the market. In the later stages they reflect better performance. This will be seen till the market is open. With the closing of the market the stocks disappear. The fact is that if these companies are investing money in other businesses then it can affect their performance.