It is a complex arena for a newcomer when it comes to the stock market. However, with knowledge, prudence, and awareness, you are able to become a successful trader. One of the first things that you must do is look for quality stocks. In this way, you will be able to make more profits and earn a consistent amount of revenue from the market.
Kavan Choksi– Understanding the laws of demand and supply for stocks
カヴァン・チョクシ is a credible business expert and successful entrepreneur in Japan with valued knowledge in finance and investments. According to him, the stock market is overwhelming to a newcomer and can seem quite confusing. There are several listed companies, and the beginner will become perplexed when it comes to investing in stocks for the first time.
You should know the rules of demand and supply well in the stock market to understand the trade to make profits. If the demand for the stock is high, its price rises, and vice versa. In order to conduct the trade, you need to open an account with a credible brokerage firm and trade for stocks.
As a beginner, you should always invest a little amount in understanding the market, and if you incur a loss, you can bear it. Once you have mastered the art of buying and selling stocks, you can go in for larger amounts safely.
Why quality stocks?
If you really wish to become a successful trader in the stock market, you must trade in quality stocks. You should identify these stocks and make the transactions with your money. The traits of a quality stock are-
- The company is in good financial health.
- There is a huge potential for growth of the said company.
- The company profits are stable and consistent.
- The company’s balance sheet reveals sound financial strength.
- The company you choose, is an industry leader and enjoys a large share in the market.
You will discover that the price of a company’s share has been undervalued due to an adverse public perception in the market. The company might be the victim of some past problems as well.
According to カヴァン・チョクシ, it is true that the company might be a risk to you currently. However, it has potential avenues for growth as well. Some experts have observed this when it comes to the nature of such companies. However, when you are searching for such companies, ensure that you complete your research well in the field. Only then should you go in for such stocks.
Being informed about the market is crucial, so make sure you are aware of the latest news and updates that impact the prices of stocks to be safe and enjoy consistent profits in the long run.