If you want to buy a share, what are the most important criteria you consider?
- Thread starter steelcat
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- buying shares criteria
pixel
DIY Trader
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we want to make money from shares.
if you want to buy a share,
what are the most important criterias you consider?
Dividends aside, the only way to make money from shares is to buy low and sell high.
(The Shorters will add that it's not necessary to do it in that order.)
Based on the above, there are really only two criteria for buying:
1. Is its price more likely to rise than to fall?
- AND -
2. Is its market liquid enough for me to sell when I want to?
And conversely, two criteria for selling:
1. Is the price threatening to turn down?
- OR -
2. Can I invest the capital in another stock that has a better profit prospect?
Pixel set it out clearly
Other things relate to timing, or volumes for more efficient returns.
Can add study the charts to learn the cycles, all market set prices rise and fall, so to reduce concerns timing entry/exit (aka buy/sell) is important.
For many a most difficult criteria to resolve is when to sell to limit their losses...
.
Other things relate to timing, or volumes for more efficient returns.
Can add study the charts to learn the cycles, all market set prices rise and fall, so to reduce concerns timing entry/exit (aka buy/sell) is important.
For many a most difficult criteria to resolve is when to sell to limit their losses...
.
- Joined
- 30 September 2012
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we want to make money from shares.
if you want to buy a share,
what are the most important criterias you consider?
Value and Momentum.
