10 Questions to ask before investing in any stock.
All you should learn and follow.


#StockMarketindia #trading #stockmarket
@sunilgurjar01 @kuttrapali26 #investing @caniravkaria
✅Is the company profitable?
Businesses with higher net profits enjoy a much better risk-reward profile and hence the the net-profit ranking suits investors the best. (2/20)
Profit is "money in the bank." It goes directly to the owners of a company or shareholders, or it is reinvested in the company. (3/20)
✅How strong is the company’s balance sheet?
Balance sheet depicts a company's financial health. It records all your business' assets and debts; therefore, it shows the 'net worth' of your business at any given time. (4/20)
Company with a strong balance sheet are more likely to survive economic downturns than a company with a poor balance sheet.(5/20)
✅What does company do?
Buying stocks of the company means one is buying proportional ownership in the company.
Hence understanding a company before buying its stocks is essential. (6/20)
Ownership in a company comes with its share of risk and reward. Hence we as an investor need to tune our expectations (from stocks) accordingly. (7/20)
✅How was the past performance of the company?
While you need to value the assets of a business, past profits are often the best indicator of the business' overall value, says Wise. (8/20)
You can use past profits to predict future earnings, by looking at the current and past financial statements.(9/20)
✅How is the stock valued?
The importance of valuing stocks evolves from the fact that the intrinsic value of a stock may be different from its current price. (10/20)
By knowing a stock's intrinsic value, an investor may determine whether the stock is over- or undervalued at its current market price.(11/20)
✅Any involvement of the management in any past fraud/scams?
Management’s responsibilities include creating an environment where fraud is not tolerated, identifying risks of fraud, & taking appropriate actions to ensure that controls are in place to prevent & detect fraud.(12)
But if management itself is involved in any kind of fraud then it will make the roots of company weak and your investment may suffer losses.(13/20)
✅Who are the key competitors?
The purpose of a competitor analysis is to understand your competitors' strengths and weaknesses in comparison to your own and to find a gap in the market. (14/20)
Knowing who your competitors are, and what they are offering, can helps company to make their products, services and marketing stand out. (15/20)
✅How much debt the company has?
A company can have more debt than its assets.
A debt attracts interest. Hence, higher debt and/or longer tenure implies more money lost towards interest payment.
This affects the profitability and growth of the company.
✅Does the company have a sustainable competitive advantage?
Sustainable competitive advantage occurs when a company consistently outperforms its competitors in the same industry or field. (17/20)
Most often, companies with this type of advantage create a value for their customers that's superior when compared to other businesses.
Sustainable competitive advantages are difficult to duplicate or replicate.(18/20)
✅Promoter check?
Always read about the people who are running the company.
Find out their background and how long they have spent with the company.
Frequent changes in the top management, inexperienced top managers may be poor indicators while picking the right stock. (19/20)
♥If you found this thread useful, please RT the first tweet & follow @itsprekshaBaid for more useful threads.🔁(20/20)
A Thread to learn : Fibonacci Retracement and how I use this tool in with Supply & Demand levels? 👇
A Thread to knowthe difference : Mutual Fund vs. ETFs👇
A Thread to: learn About a Bull Flag Pattern.👇
A Thread to learn : Simple range breakout strategy 👇
A Thread to learn : Stock Market Manipulation. 👇

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More from @itsprekshaBaid

Mar 4
Stock Market Manipulation.
All you should know about- How it works?


#StockMarketindia #trading #StockMarket
@sunilgurjar01 @kuttrapali26 #investing
Market manipulation is when someone interferes with the normal course of stock trading or pricing to further their own gain. (2/25)
The idea behind investing in the stock market is simple: you buy shares at a lower price and sell them at a higher price. However, numerous entities in the stock market are capable of manipulation in the stock market. (3/25)
Read 30 tweets
Feb 25
Mutual Fund vs. ETFs

What is the difference?
Which one to choose?


#StockMarketindia #trading #StockMarket
@sunilgurjar01 @kuttrapali26
There are various ways of investing, and two of the most popular are mutual funds and Exchange-Traded Funds (ETFs).
Both are pooled funds that allow investors to access professionally managed funds that offer diversification in a wide variety of asset classes and industries.2/20
MFs includes stocks, bonds, and money market funds that are bundled together in a single mutual fund. They offer investors a way to own a diversified portfolio of investments at a lower price which is not possible if they own each instrument separately. (3/20)
Read 24 tweets
Feb 18
All You Should Know About a Bull Flag Pattern.
Simple Way To Use.
No Indicator Used.


#StockMarketindia #trading #StockMarket
@sunilgurjar01 @kuttrapali26 @chartmojo
The bullish flag pattern gets its name because it resembles a flag on a flag pole.
A steep vertical rise in price is followed by a period when the price remains bounded between 2 fairly close, roughly horizontal lines. (2/16)
The pole represents the steep rise in price, and the flag represents the area between the 2 lines. (3/16)
Read 21 tweets
Feb 11
Fibonacci Retracement and how I use this tool in with Supply & Demand levels?


#StockMarketindia #trading #StockMarket @sunilgurjar01 @kuttrapali26
Fibonacci Retracement is an important technical analysis tool used for charting potential Support and Resistance levels on any given chart.
These Fibonacci levels are also extremely important when trying to spot potential reversals within a chart. (2/20)
These Fibonacci levels are based on a numerical sequence created by Leonardo Pisano in the 13th century.
The reason these levels hold weight or are significant, is because so many people use them. (3/20)
Read 22 tweets
Feb 5
Simple Price Action - Swing Trading Strategy. 💚
No Indicator Used.


#StockMarketindia #trading #StockMarket @sunilgurjar01 @kuttrapali26
Step 1:
Identify the stocks which are in short term downtrend phase.

Let’s understand it with the chart of Wipro.
Date: Feb 2021

Here we can see, stock is in short term Correction/ Downtrend. (2/13)
Step 2:
Draw a trendline by connecting all swing highs & wait for the price to break the trendline.

The Trend Line Breakout technique helps you time your entry in a trending market. (3/13)
Read 16 tweets
Jan 25
We traders, always make our trading so complicated & in live market that results into losses.

Simple range breakout strategy to catch Index trades.

A Thread 🧵

#StockMarket #trading @kuttrapali26
✨What is range bound market?
When the stock prices generally flow back and forth near the old highs and then fall back to the recent lows.
When we mark such highs and lows, we find a range, and when the price move between that range, it can be termed as range bound. (2/14)
✨What is Range breakout?

When the price breaks the range which we marked earlier, it means now the price is no more trading conjestion area, then it can be termed as range breakout.
After such range breakout, we can see good price movement in that particular direction. (3/14)
Read 16 tweets

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