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.