DISCLAIMER: I am not responsible for any actions done by you. None of my posts should be considered financial advice or any other advice. Always consult with a professional before taking any action AT YOUR OWN RISK.

To make the most of your stock investments, keep in mind of the following.

Firstly, figure out if it is a good stock or a bad stock. There are many ways to find out. Let me tell you a few ways.

  1. Look at stocks of companies from which you buy products from. Example: We get flour from ITC, so I could look at ITC.

2. Check the dividend history of the stock and check the amount of money it gives to its shareholders each year. If its gives dividend every year (like 2.5 – 15 rupees per share or above), then it is good as it earn money to give to its shareholders.

3. Watch the stock history for the last 5 to 10 years. I use screener.in for looking at stock history. If it has gone up then its good. otherwise it’s bad.

Buy the good stocks and hold it for many years. The longer you hold it the better. 9 years or above is the best you should hold a stock for. After researching I found out in 2011, HDFC Bank’s price was 200 rupees. Now it is 1400 rupees. If I bought a high quantity in 2011, then i would have made a good profit.

After doing all of this, every 4-6 months, calculate how much profit you made. After 2-3 years, if it does not make profit, then sell it. Otherwise keep holding it.

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