How to do stock market research ?

Posted by epicresearchindore on October 25th, 2017

Stock market is a well diversified market.Performing quality research work is very much important to earn well from market.A number of stocks are listed over the exchange and it is really difficult to decide which stock should be selected among them for trading purpose. At the end performance of stock decides what returns you earn therefore it is important to make a wise choice. Financial advisory services providers can be consulted to get experts recommendations.

Now a days all information is available over the Internet but how to study that huge information is quite difficult. Following are some guidelines which you can use to study and research market:

1) Industry analysis

Every stock belongs to a particular industry. Studying different industries helps to identify which industry is performing well in current economic condition and is also likely to perform well in future. After finalizing industry you can look for company which is performing good belonging to that industry.

2) Financial information

Different useful financial information of a company like balance sheet, income statement, fund flow statement, ratios are available in annual and quarterly reports which are available for free. You can use all these information to learn how company performed in past and how it is likely to perform in future.It is not required to go through the entire report, you can study important ratios and relevant sections to decide whether you should trade in its stocks or not.

3) Company's news

To be on the safer side and make a wise choice you should pay attention to real time news. Learn what is been said about company in news. Making decisions on the basis of facts is helpful in sustaining in market on long term basis by earning good returns.

4) Customers views

One thing you can do is ask someone who is working in that company to get better insights of the company. However if you do not have any contact over there then you can read customers reviews as well. This will help in understanding what its customers thinks about it.

5) Experts recommendations

Market experts have very good knowledge about market and they are more capable in studying market in the right direction. Such experts gives useful suggestions in the form of stock market trading tips, mcx tips and other trading tips. Study in detail about such tips related to stock or commodity in which you trading and also you can consider them while trading. As they are professionals with good knowledge chances of their being correct is high.

Once you are done with research work you will be in position to decide to trade in which stock, commodity and using which trading strategy. Never blindly trade in market before studying important facts related to it as it will not help you to perform well and may bring you negative returns.