I don't think so if i will find anyone here who is learning or reading about stock market...but i am currently reading a book by Sir Peter Lynch and sharing some simple points i found out...
Here are some pointers from this section:
• Understand the nature of the companies you own and the specific reasons for
holding the stock. (“It is really going up!” doesn’t count.)
• By putting your stocks into categories you’ll have a better idea of what to
expect from them.
• Big companies have small moves, small companies have big moves.
• Consider the size of a company if you expect it to profit from a specific
product.
• Look for small companies that are already profitable and have proven that their
concept can be replicated.
• Be suspicious of companies with growth rates of 50 to 100 percent a year.
• Avoid hot stocks in hot industries.
• Distrust diversifications, which usually turn out to be diworseifications.
• Long shots almost never pay off.
• It’s better to miss the first move in a stock and wait to see if a company’s plans
are working out.
• People get incredibly valuable fundamental information from their jobs that
may not reach the professionals for months or even years.
• Separate all stock tips from the tipper, even if the tipper is very smart, very
rich, and his or her last tip went up.
• Some stock tips, especially from an expert in the field, may turn out to be
quite valuable. However, people in the paper industry normally give out tips on drug stocks, and people in the health care field never run out of tips on the
coming takeovers in the paper industry.
• Invest in simple companies that appear dull, mundane, out of favor, and
haven’t caught the fancy of Wall Street.
• Moderately fast growers (20 to 25 percent) in nongrowth industries are ideal
investments.
• Look for companies with niches.
• When purchasing depressed stocks in troubled companies, seek out the ones
with the superior financial positions and avoid the ones with loads of bank
debt.
• Companies that have no debt can’t go bankrupt.
• Managerial ability may be important, but it’s quite difficult to assess. Base your
purchases on the company’s prospects, not on the president’s resume or
speaking ability.
• A lot of money can be made when a troubled company turns around.
• Carefully consider the price-earnings ratio. If the stock is grossly overpriced,
even if everything else goes right, you won’t make any money.
• Find a story line to follow as a way of monitoring a company’s progress.
• Look for companies that consistently buy back their own shares.
• Study the dividend record of a company over the years and also how its
earnings have fared in past recessions.
• Look for companies with little or no institutional ownership.
• All else being equal, favor companies in which management has a significant
personal investment over companies run by people that benefit only from
their salaries.
• Insider buying is a positive sign, especially when several individuals are buying
at once.
• Devote at least an hour a week to investment research. Adding up your
dividends and figuring out your gains and losses doesn’t count.
• Be patient. Watched stock never boils.
• Buying stocks based on stated book value alone is dangerous and illusory. It’s
real value that counts.
• When in doubt, tune in later.
• Invest at least as much time and effort in choosing a new stock as you would in
choosing a new refrigerator.
#keeplearning
