An Investor
who thinks beyond the market fluctuations and among all the investors, and he looks
over all the parameters with the fundamental analysis and technical analysis. An
Investor should know about the possibilities of results and should be prepared
for them both financially and psychologically. He want to benefit from changes
in market levels—certainly through an advance in the value of his stock
holdings as time goes on, and perhaps also by making purchases and sales at
advantageous prices. It is easy for us to tell you not to speculate; the hard
thing will be for you to follow this advice.
Thought Process of an Intelligent Investor:
- Intelligent investor will not invest in high price shares. He will trade in high value shares but never invests in shares with all time high prices.
- Intelligent investor will not buy the shares those in Speculation.
- Intelligent investor will not invest when the market is in Bull Rush. i.e. don’t buy the shares when all are in a rush of price hikes.
- When the market is in bearish side and when no one are interested in buying the shares find out the stocks with best fundamentals and invest in that company.
- An Intelligent investor will not invest in the shares or stocks based on rumors and fake news. He will investigate in to the matters to find the fact.
- The companies, which are showing profits even in crisis, are the best companies to invest. The intelligent investor will find this type of stocks.
- The intelligent investor will find out the stocks with a low Price Earnings Ratio. And invest in the same company.
- Price earnings Ratio is arrived by dividing the Market Price of the Share by Earnings per Share.
- When the Market is in Crisis find the company which gives the lowest Price Earnings Ratio and the Debt to Equity Ratio Does not exceeds 1:10.
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