The Equity Checklist

  Finally, we are at our final checklist of our Investment Decision that is the “Buy Decision”. Foremost, you need to be convinced with all the other checklists that you have already ticked off and you are in a comfortable position to start your Investment Journey in the following stock. You need to decide at which price you would like to enter the stock. I do take help of technical analysis to help me make that decision (Techno-Funda Analysis). But it isn’t always necessary to use it. Consider these questions before making a Buy Trade: ü   Are you willing to buy more if it goes down by 10%? ü   Are you willing to buy more if it goes up by 10%? If it’s a yes in both the questions, then you are definitely ready to start investing the in the stock. (You are convinced with the stock and its ability to grow in the long term). One you are done making the Buy Trade, answer these below questions: ü   Are you willing to sell if it goes down by 10%? ü   Are you willing to sell if

  Following is the Kind of Stocks that you should Avoid: ü   Leading Stocks from a Leading Sector in a Bull Run. ü   Cheap stocks at a Later Stage of a Bull Run. ü   Small Microcaps with Untested Business Models. ü   Stock making New Lows Continuously.  ü   Market Capitalization Huge in comparison to Other Players in Industry. ü   Companies carrying out Unrelated Diversification through Acquisitions (Inorganic Growth) ü   Companies continuously increasing Debt/Equity.  ü   Companies in Cyclical Sectors.