Right time to buy shares – Hello friends, today we will talk about when should you buy any share so that you can see maximum profits in the long run.
Money is very limited with every investor, so before buying any stock, it is very important for every retail investor to analyze it properly as well as when it is right to buy that share.
Today we are going to tell the right time to buy 6 AC any stock in very simple language, with the help of which every investor will be able to earn a good profit in the long run by buying the stock at a very good price.
Let us know about these rules in detail-
Right time to buy shares
Buying in a big fall in the market: – The best time and biggest opportunity to buy shares is at that time whenever there is an environment of severe decline in the market due to any major reason, then there is a huge fall in the share price of all the big companies.
It is seen, then that is the right time to keep any good Fundamentally strong company in your portfolio for long term.
If you want to earn very good returns in the long run, then whenever the biggest correction is seen in the market, you should invest your investment amount in small portions in the market every fall, by doing this whenever the market Even a little improvement will be seen, quite tremendous returns are going to be seen in your portfolio.
Below the PE of the sector:- If you are thinking of buying the stock of any good company, then you must first see the PE of the company and the average PE of the sector the company is associated with. The lower the PE of the company than the PE of that sector, the more there is every hope of showing a good jump in the share price of that company in the coming days.
Whenever the PE sector of the company appears to be falling less than the PE sector, then you should start investing in small amounts in the stock of that company, due to this, this company is going to give you good returns in the long run.
Buying in the Intrinsic Value of the Company:- The right time to buy any stock for a long time is the intrinsic value of the company, never you should invest in a going up stock or overvalued stock. Most of the time, for some reason or the other, the share price of every small and big company comes in its intransic value, then it is the right time to make those shares a part of your portfolio.
The world’s biggest investor warren buffet also uses the method of value investing for its investing, with the help of which the warren buffet has managed to make a very good wealth in such a long time. If you also buy any stock at the right time at intrinsic value, then you are going to see very good returns in future.
When to buy shares
Seeing the ever increasing good results: – The easiest way to test the companies giving good returns is that if any company is seen to be showing good results continuously with good growth, there is a huge opportunity for growth in those stocks in the coming time. appear.
One should buy any stock when the financial performance of the company is showing good growth gradually, at that time there is a good opportunity to invest in any companies giving tremendous returns. If you invest in any companies at the right time by looking at the ever-increasing financials, then you are going to get very good returns in the coming time.
At the time of expansion of the company’s business: – Whenever a company invests a lot to expand its business, at that time, you will not get to see the company’s financials as much, due to which most of the investors invest in these shares. Would not like it, but at that time there is a great opportunity for investors to invest in any good growth looking companies.
As the business of the company will be seen expanding due to large investments in the company in the coming days, you are going to see a good increase in its share price as well as a great increase in revenue.
Looking at the growth of the product in the future: – If any company is seen working jointly on the development of its product keeping in mind the future, then there is a big opportunity to invest in any stock.
If any product of the company you think that its demand is going to be seen increasing very fast in the future, you should invest in the shares of those companies for a long time now.
Even though the company is not seeing that good growth in sales in those products right now, but as the demand for those products will be seen increasing in the coming days, with good growth in the business, you are going to see tremendous returns in these stocks. .
When not to buy shares
Do not buy in bullish market: – If you want to earn good returns in the market, then you should never buy in a growing market or bullish market.
Because most of the time it has been seen that after seeing a big rally in the market, there is an environment of heavy fall in the share price accordingly, due to which if investors buy retail investment in this bullish market, then the above share price. But the chances of getting stuck are very high.
Do not buy high demand stocks:- If any sector or any stock remains in the news a lot and the investors also appear very bullish, then it is better to stay away from those stocks. Because in those shares, till the news reaches the people that this company is doing a very good job, till then this stock has dried up as much as it had to run, so in those shares you will have a very good decision at that time.
It is very easy to earn money in share market but for this it is very important to have the right strategy and patience. My opinion for retail investors is that if you want to earn well in the stock market, then invest as much as possible with a long-term perspective, you should never fall in the trap of trading to earn money in a short time. The more you learn from others’ mistakes, the less likely you are to get hurt.