Well sorry for being so late at writing this but here it is, first thing is to analyse a sector you want to invest in when you have some money to be invested.
Before actually selecting this, you first have to analyse what is your sentiment about the stock market, i.e. you want to make small bucks fast or big bucks slow, none of these strategies are Wrong or bad. Its just that we have our needs and desires and most of them are different from others.
After having done this, if you are of the type who want to make quick bucks, you should not worry about choosing a sector, what you should care about is the news available to you first hand.
Short term market Volatality is dependent on the news channels and the current market environment formed by these news and thus it is highly volatile.So you should know what is going to happen in which company and popular hits like AGMs or dividend dates should be focussed on. For example if you are an avid reader, you would know that the company Jaiprakash Associates is in for a deal to sell one of its factory to thus reduce its debt by over 15%. This means a company like this should be bought at low valuations now to get high returns.
This is how it is to be done to make quick bucks, you have to be quick, fast, effective and with a sound mind to reason the emphasis of each news.(you cant take the useless ones seriously)
Now we come to the Second type, The Investor, I personally suggest this is a much better strategy to investing as you rarely go wrong on things like this.
While choosing a sector here, you have to be very careful of the marcoeconomic sentiments and industry outlook both domestic and foreign. This will include the Market trends of the past and more importantly the potential of the Sector in the future.
What you have to search for is a sector with huge potential in the future, limited scope of new entrants, and huge monopolisation with an inelastic demand, i.e. people will buy it no matter what cost.
Some examples of these are: Tobacco Sector, FMCG, Alcohol, Power, Banking, IT
If you notice well, all of these sectors have one company that holds more than 30-40% of the market share. This along with the inelastic demand of these products ensures the companies to have an automatic monopoly and a product that subsists.
Sectors like this if and when focussed on and companies in them searched for will go a long way.
The main question you have to ask yourself is, "WILL THIS SECTOR BE THERE 20-30 YEARS FROM NOW?"
This is your guide to choose a sector in a stock market. Analyse well and make a different in how much you earn!!!
The way to win is by preparing, not by going into a war emptyhanded like bollywood heroes!!!
Peace.
Before actually selecting this, you first have to analyse what is your sentiment about the stock market, i.e. you want to make small bucks fast or big bucks slow, none of these strategies are Wrong or bad. Its just that we have our needs and desires and most of them are different from others.
After having done this, if you are of the type who want to make quick bucks, you should not worry about choosing a sector, what you should care about is the news available to you first hand.
Short term market Volatality is dependent on the news channels and the current market environment formed by these news and thus it is highly volatile.So you should know what is going to happen in which company and popular hits like AGMs or dividend dates should be focussed on. For example if you are an avid reader, you would know that the company Jaiprakash Associates is in for a deal to sell one of its factory to thus reduce its debt by over 15%. This means a company like this should be bought at low valuations now to get high returns.
This is how it is to be done to make quick bucks, you have to be quick, fast, effective and with a sound mind to reason the emphasis of each news.(you cant take the useless ones seriously)
Now we come to the Second type, The Investor, I personally suggest this is a much better strategy to investing as you rarely go wrong on things like this.
While choosing a sector here, you have to be very careful of the marcoeconomic sentiments and industry outlook both domestic and foreign. This will include the Market trends of the past and more importantly the potential of the Sector in the future.
What you have to search for is a sector with huge potential in the future, limited scope of new entrants, and huge monopolisation with an inelastic demand, i.e. people will buy it no matter what cost.
Some examples of these are: Tobacco Sector, FMCG, Alcohol, Power, Banking, IT
If you notice well, all of these sectors have one company that holds more than 30-40% of the market share. This along with the inelastic demand of these products ensures the companies to have an automatic monopoly and a product that subsists.
Sectors like this if and when focussed on and companies in them searched for will go a long way.
The main question you have to ask yourself is, "WILL THIS SECTOR BE THERE 20-30 YEARS FROM NOW?"
This is your guide to choose a sector in a stock market. Analyse well and make a different in how much you earn!!!
The way to win is by preparing, not by going into a war emptyhanded like bollywood heroes!!!
Peace.
