Things to remind in mind while picking a stock in a falling market !

Stock Market is a number game, it is generally volatile with severe ups and downs within the share prices. Many successful investors proved that picking a right stock in a right time(bear market)generates wealth, but not at all times it works in favour of the investors.

Picking a Right Stock at an attractive valuations is an art, but it would be not possible to all investors. It may be due to-

  • Lack of proper research on the company
  • Not estimating the company’s future prospects
  • Over-expectation on the stock fundamentals

Besides this, to be a successful investor in the stock market, one should keep these 4 determinants in mind. They are-

  • Estimating Promoters integrity as well as company’s fair policies
  • Whether that stock has potential to out-perform in future?
  • Is the stock really worth to buy in the current valuations?
  • Doing Proper Research on the company’s balance sheet(Assets vs Liabilities)

If you do proper research and realised that the company has-

  • Less Liabilities
  • Has Future Growth
  • Promoters of the company are practising fair policies and practises
  • That stock has the ability to generate good returns in the future

Then you can buy that stock even in a bear market. Even though some investors frightened on the volatility in bear market and redeem their investors in a hurry, stock market history has proved that picking the right stock at right valuations would generate huge wealth to the investors.

So keep these 4 determinants in mind and generate wealth to you and your family in the long-run. Do remember picking a right stock at cheap valuations is critical in generating wealth, so do your own research and be a successful investor.

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