5 Sure things to lose your Money in the Stock Market
5 Sure things to lose your Money in the Stock Market
The occasional ridiculous moment in the Stock Market is about Booking a Profit or Loss. Someone who explores stocks and buy the stocks for Long term Wealth Creation will be concerned and said that his stock price has not risen. In a Short period, one will be happy to have made many times more profit than the investment made. All of this is ridiculous in the Stock Market World.
When we approach the Stocks like a Business and it needs attention and kindness on Finance and Governance. It is important to be patient in the long run and make profits at the Right Time.
Whether you are a Day Trader or Long term investor, your luck will sometimes go beyond the Basics. It is good to keep it at the Right Time and the Proper level. But, whether you can find that luck is a very important one.
The name of the Luck comes in the Stock Market as 'Business Fundamentals'. whether you are speculating or analyzing properly, the thing is in the business of a stock. If the Business performs well, then the stock get its right way. If the Fundamentals are strong, then it would benefit the investor in anyway.
In Short, the Day traders need a Disciplined Money Management, but the investors need only the Disciplined Management on a Company or Stock. Yes, that's why the investing is Boring.
There are Five Sure things that would hurt your investments made in the Stock Market. So, you will surely lose your money in the Stocks.
- High Debt
- Promoters Pledging (More than 10 Percent - Unusually)
- Negative Financial Trend & Unstable on Earnings
- Weak Cash Flow
- Low ROE & ROCE (Sometimes less than Risk Free Rate)
Better avoid to pick the stocks based on the above 5 Parameters. Choosing a Good Fundamental Company will provide you a Good returns in the long term.
It's not just the price will help you make money in stocks, you need a Good Rider (Business Fundamentals)
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