SHARETIPSINFO >> Articles Home > > How to time entery in STOCK MARKET

You can time your entry into stocks by the following steps.

 

1. Track PE ratio of the index which will identify the expensiveness of the stock market as a whole. One needs to wait for correction if PE ratio is beyond the average , else invest in stocks listed in stock market at that time only.

2. Performance is what pays, Shortlist sectors which are performing well and are expected to perform well in future too in all scenarios of
economy.

3. Identify trends like sustained profits and other factors like inflation, currency depreciation and even political stability. these will impact
respective industries.

For eg, Movement of Information technology stocks depends vastly on dollar price as contracts are signed in terms of dollars. So if dollar is up then IT companies can make handsome profit and vice versa.

Similarly oil firms profitability depend on oil prices in market.

4. Once u have identified the industry use the same PE ratio to find cheaper firms and check for consistent profitability
and increasing sales. this will ensure that the investment u make in this firm will grow in value.

 

 

 

In the end Read SHARETIPSINFO for regular updates.

 

 

To Know About our Packages Click here

 

 

Click here for Indian stock market tips