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How can i invest my money in shares?


How can i invest my money in shares?

Watch for stocks that are selling at a low price, ones that are from stable companies. There are instances when they sell common stocks at a very low price. Invest your money and wait for the prices to go up. Then if you want to get your money back, you can sell your shares of stocks at a profit.

Pick good stock.

To pick one with stellar performance is not as difficult as you might think. Earnings per share growth rate (EPSGR) and return on equity (ROE) are two important key financial ratios that you can't afford to miss. Both used to determine how much it had grown and how effective it uses shareholders money.

Moreover, try to compare its profit margin and debt to equity ratio (D/E) with other stocks within the same industry. this can give us some picture of how it performs with respect to its peers.

Calculate intrinsic value.

There are so many ways to calculate intrinsic value available in the market, but try to use the most practical method. I myself comfortable with net present value (NPV) method which is not so complicated, practical and easy to use. Try this:http://www.stock-investment-made-easy.co...

Margin of safety.

Before you buy the stock, try to reduce your investment risk by investing in the margin of safety. This can be done by discounting your future value to current value with certain 'expected return', or you invest with respect to 52-weeks historical data. If you are serious enough, you might be interested to apply 'sensibility study' in your analysis by varying certain value with the others remain constant (e.g. if EPSGR reduce from 15% to 10%, if ROE is 5% than 15% etc)

Lastly, for long-term investment, try to avoid cyclical stock.

There are plenty of stock brokers out there and thats your first step.You have to join one.There is a load of good websites that offer great services for making stock picks a little easier and they have great succes.
Try http://goldenbullpicks.com

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