123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Stock-Market-Future-Market-Commodity-Market >> View Article

What Is The Safest Way To Invest In Stock Market?

Profile Picture
By Author: Marketsmith India
Total Articles: 35
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

The CANSLIM investment methodology, devised by our founder, William J. O’Neil, is one of the safest methods of investment. It factors in fundamental and technical analysis to help pick out stocks that are most likely to become growth stocks.

C – Current Quarterly Earnings

A growth of at least 25% for the past 2 quarters. Also watch for quarterly sales and profit margins that are growing.

A – Annual Earnings

A growth of at least 25% each for the past 3-5 years. Also watch for return on equity (ROE) of at least 17%

N – the New Factor

Look for companies, new services, new conditions in the industry, new management, or new price highs.

S – Supply and Demand

Look for big volume increases on days of upside trading.

L – Leader of Laggard

Look for the top stocks, both fundamentally and technically, in the very best performing sectors and industry groups.

I – Institutional sponsorships

Watch what pension funds, mutual funds, banks and other institutions are buying. The institutions research the stock market extensively before investing in ...
... any stock. Hence, these investments are pretty reliable and safe.

M – Market Direction

Three out of four stocks follow the market, therefore make sure the market is in a confirmed uptrend. Do not try to outsmart a bear market.

Along with knowing when to buy, another important factor in safe investing is knowing when to sell. You cannot become a master at growth investing without knowing when to sell. Here are some key points to be noted, while selling your stocks :

Protecting capital is very important. Hence we, at MarketSmith India recommend selling a stock, if it shows weakness after it’s breakout, specifically if it falls 8% below your purchase price.
Be wary of big price declines along with heavy trading volumes. That’s an indication that the institutions are dumping shares, most probably due to loss of confidence in the stock.
Take profits on a stock that has risen 20% - 25% since you purchased it. Our research has shown that successful stocks tend to move up 20% - 25% from a proper buy point, then decline and build new bases.
For more stock market tips and tricks, visit www.marketsmithindia.com .

More About the Author

Investment advisory product based on William O’Neil’s CAN SLIM method with model portfolio, pattern recognition, idea lists powered by institutional quality data

Total Views: 296Word Count: 352See All articles From Author

Add Comment

Stock Market/Future Market/Commodity Market Articles

1. How Do Currencies Affect The Metal Market?
Author: Meta Market

2. The Impact Of Paxful Clone Script On The Defi Ecosystem
Author: AnAinfo

3. The Most Effective Way To Reach Coinbase For Urgent Issues
Author: Mathrobin

4. Why Every Crypto User Should Save A Trusted Crypto Support Number
Author: Mathrobin

5. Waaree Energies Unlisted Share: Strategic Expansion And Upcoming Ipo
Author: Deevay Rattan

6. How To Choose The Right Broker And Open A Free Demat Account
Author: Stock Broker in India

7. Tiktok Editing Services To Help You Go Viral: What You Need To Know
Author: Trending Bizzs

8. Top 5 Tools Every Short Form Video Editor Should Use
Author: Trending Bizzs

9. Emerging Strategies For The Future Of Digital Marketing
Author: Omitechno

10. Revolutionizing Enterprise Finance With Custom Ton Wallet Solutions
Author: oliverethanrobin

11. Using Technical Analysis And Stock Charts: A Beginner's Guide
Author: Neha Jain

12. A Complete Guide To Online Cfd Trading Understanding
Author: Spectra Global

13. How To Invest In The Stock Market: A Detailed Guide
Author: Abhishekh Bhandare

14. Paper Trading App
Author: Neostox

15. Eip 4337 Based Account Abstraction: Why It May Not Work For Institutions
Author: Omkarr

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: