The Hidden Gem: A Step-by-Step Guide to the 8th Key in Stock Picking
Introduction: Any of stock can be picked by proper analysis .There are some key points and also hidden gems to pics stocks in which allow to grow wealth as well as benefits of compounding in stock market .this point can be done for stock picking, unveiling the elusive 8th key—a hidden gem waiting to be discovered by beginners. In this step-by-step guide, we will navigate uncharted territories, providing insights that go beyond the ordinary, and empower you to make informed decisions in the dynamic world of stock market investments.
Step 1: Analysis the stock chart trend-
Before pick any type of stock this analysis will be done whether stock chart is in up trend or down trend except whole stock index crash if there is in uptrend it will be positive way to pick stock .it is primary step to be done .it is first step towards investment journey in stock market .
Step 2: Decoding the promoters holding-
Before select any stock promoters holding should be check through NSE or other website if the promoters holding is more then fifty percentage then it can be consider as a second steps to pick stock and also should be check whether promoters holding is pledge or not if more holding is pledge than stock can be left for further analysis.
Step 3: Market capitalization-
Market capitalization is one of the most step to be analysis which type of company we are selecting whether it is small cap ,mid cap or large cap .risk taking ability is different for different investors. this analysis can be done by NSE or other website .
Step 4: Debt free-
Proper balance sheet should be checked before picking any stocks if the company is fully debt free then it can be consider on top priority. if short term debt is taken as a growth for company then it can be good for future growth . debt also should be decline quarterly if company shows regular profit .
Step 5: FII/DIS/MUTUAL FUND holding-
This data should also be analysis ,above said holding increasing means company is growth oriented in near future and stock price may be up. This is also significant that if one funds holding decreasing and other is increase it means it is a good sign for stock pick.
Step 6: Company management –
Company management record should be checked from company ‘s original website or authenticate source.good management gives a company in good growth .management goal should be in future growth oriented .
Step 7: Risk Management Mastery-
Mitigate risks effectively by mastering the art of risk management. Understand how the 8th key intertwines with a comprehensive risk strategy, ensuring that your portfolio remains resilient in the face of uncertainties.
Step 8: Future oriented bushiness/circle of competence –
The final step involves recognizing the company which business is future oriented and product which are using in present also . if above said steps are giving good signal than stock can be pick in portfolio.
Author’s view and disclaimer-: This blog articles is only for study purpose .any stock can be pick by proper analysis and as per guidance of financial advisor .these steps may be use for picking stocks along with own analysis.