The Perfect Guide on Buying Stocks 0 4920

Many investors, especially those who are new, do not know how to go about investing or where they can find ideas for investing.

Is there really any secret way to choose good stocks? You don’t have to rush up to buy the stock today or by this week. It remains there, so you can take time to investigate before you invest.

The smartest way to win the market is to invest for both growth and value. It doesn’t depend on your ability to predict the direction of the economy or even the direction of the stock market.

It’s all depending on your willingness to apply the following measures before you place your order. The winning techniques are tried and true. Here, RollnReel explains you how to assemble and apply them and make the difference.

Earnings Per Share:

Earnings are the company’s main resource for paying dividends to shareholders and for reinvesting in the business growth. So, we need to look for the companies with a pattern of earnings growth and a habit of reinvesting a significant portion of earnings in the growth of the business. EPS (Earnings per share) is the amount of money each share of stock would receive if all of the profits were distributed to the outstanding shares at the end of the year. Highest earning per share is always better it means the company has more profits to distribute to its share holders.

Price-Earnings Ratio:

It’s most important to know the P/E ratios of the stock. Once an investor knows, a company’s EPS, he can work out the price/earnings ratio. It is equal to stock market price divided by the EPS. A low p/e ratio indicates the company is more mature while with high p/e ratio, it indicates the company is fast growing and also it’s a more risky investment. Compare the p/e ratios with the peer companies, with the low p/e can be considered as a good bargain, where as with high, warns of an overpriced stock. Before investing, it’s important to do a thorough research into the background of the company.

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Dividend Yield:

Companies distribute a portion of their profits as dividends, while retaining the remaining to reinvest in the business. It is calculated by dividing the dividend per share by the market price per share and multiplying the result by 100. It is usually expressed as a percentage. The investors need to the check valuation as well as the dividend-paying track record of the company.

Book Value:

The price of a company’s stock is higher than its book value, and it’s recommended as cheap because they are selling below book value. Book value per share indicates the book value (or accounting value) of each share of stock. Book value is a company’s net asset value, which is calculated by total assets minus intangible assets and liabilities.

Return on Equity:

The return on equity number is the company’s net profit after taxes, divided by its book value, and it can usually be found in the annual report. If return on equity is growing year after year, the stock’s price will tend to show long-term strength, compare it with the return for other companies in the same industry. A steady return on equity shows its managing well on the other hand even though profits are steady, if it declines, it may have some uncovered problems with debt and it’s probably better to stay away.

Debt-Equity Ratio:

The debt-equity ratio shows how much leverage, or debt, a company is carrying, compared with shareholders’ equity. A high debt-equity ratio means the company has been aggressive in financing its growth with debt; it’s associated with high levels of risk.

Price Volatility:

It is a rate at which the price of a security increases or decreases for a given set of returns. Volatility is measured by calculating the standard deviation of the annualized returns over a given period of time. It shows the range to which the price of a security may increase or decrease.

So by checking all the above points, we can make a conclusion. Have a great time ahead, do your own research and make good profit.

Stay tuned to our next post “The Perfect Guide on Selling Stocks”

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Good Night 0 1586

I haven't slept alone in five years. I haven't woken up to sunshine and alarms.

Today when I have no choice but to get in bed all by myself, it feels like I have taken birth out of romanticism and forced to cuddle nightmares. Is this what loneliness feels like? I have no answers but I think this is what it is, I feel so small and lost. What if the stories about bloody Mary and the three thieves are true? Nobody will find me tomorrow and I will turn into mystery. What about the secrets and stories I haven't told anyone, will they disappear with me? My best friend will never know the truth about her boyfriend, that is sad.

Now I do not have to choose any side of the bed, it is all mine but incomplete. I will have to force myself to sleep and dream deep about togetherness and love, something I just lost. Will I wake up tomorrow with a hangover? I might gulp down a few glasses of beer and sing sad songs, a new happy place. I will be tagged as a melancholic mess. Ugh! its so quiet! Is this what poets keep reciting? This is not beautiful, it's chaotic. I do not see the moon, where did she go?

Were the stars hung up there to make way for rockets and spaceships? Will one crash over tonight? I’ll be gone then, So I will have to start all over among aliens and dodge UFOs? Okay… I need to get some sleep before the moonlight man knocks my bedroom door. Is he already watching me? Does he know I am all by myself? I can’t do this! I can’t! Wait am I too loud? Did he hear me? let’s sing a song! Yes! Uhmm “I got a ticket for the long way round, two bottles whiskey for the way…” Haha I remember how I played the cup song in school and screwed up,he was watching me from the backstage. I walked out half way the performance and he ran after me to calm me down, I had butterflies in my stomach. We were highschool sweethearts. Wait why am I blushing over this? No, it’s over and I don’t want to remember these moments. I should burn down these memories soon. Fire! I think I need to check the iron box, I smell something. It smells weird, I don’t know. Okay let’s breathe, easy peasy.

I will keep the fairy lights turned on and light music playing, uhm Ed Sheeran? Adele? let Coldplay play. Did I just say “play” twice? Wow play, say, hey, may… May? So he’s not going to be there for my birthday this time, I think I will feel hollow. I already do. Shut up! I talk too much. I am on my bed, let me close my eyes, I see colors. No just black actually.

Has it been an hour already? Wait why is it dark? Where am I? Am I trapped in a dream?

Okay now it’s 3 AM, almost there. I want hot chocolate and cookies, my stomach’s growling. Midnight craving after all. So this is what sleeping alone feels like? I hate it. Guess I will never sleep at this rate. Let’s try the old way that my aunt taught me, I will count sheep. One sheep, two sheep, three sheep..

I stretch and rub my eyes, I finally saw the sunshine.

Written By
Manasvi Bendigeri

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