Stock Market Investment Analysis

Basic’s Behind Stock Market Investment Analysis

Stock Market Investment AnalysisAfter you make your diversification strategy most of investor fall in to trap and make wrong guesses on at what time to buy a share on which price level. If the investor unable to make a right decision on to buy share at correct price level at correct time, he or she will get loses on their investment. So buying share in correct time on correct price level and sell those on correct time in correct price level by not attracted to feelings and emotions are the key success formula for any success investor.

If you are trying to buy shares or investment try to find out companies which got good future potential on growth and Stock Market Investment Analysis there fundamental performances ( We are discussed more on Fundamental Analysis on our previous articles) . Some traders in market try to follow illegal market practice and to find some quick money, but in here we are trying to discuss on legal Long term investment practices.

Beginners must remember to not put your hard owned money on share market to have short-term return.  The most suitable and wisest investment method is to buy share at their bottom price level .but to predict the bottom price level of a share is not an easy task. You can use technical Stock Market Investment Analysis and your experience to find and predict the bottom of the share price. Remember no one able to 100% accurately predict the market or share price bottom , If some person or company say that they can do such tasks be aware of it because if they know that, they don’t want to reveal such thing and they can earn  billion out of it.

From Colombo stock exchange daily charts you can find out the shares which got the lowest and the highest price levels, from that your can focused share which got low price level. But always remember there might be some hidden thing behind the low price level, so carefully analysis whether there are any reason for downfall of the share price of the company. If there is no other special reason and the price is fundamentally reasonable buy these types of shares will generate lots of profit in long-term.

Sometimes share price may get suddenly drop due to the share splits , You need to ignore the price down due to share splits when consider to buy share at low price levels.

There is an intrinsic value for any share and you need to buy share which lower than those intrinsic value of share always in long-term Stock Market Investment Analysis. There are more things to analysis on intrinsic value which we are going to discuss on our future articles.