The timing and selection of stock are the basis for good stock investments. We concentrate on that in this article, although it is important to note that on average long-term investment is more profitable than short investment. Investors from experts like Warren Buffet advise you to keep stocks for at least five years and may never sell them if you don’t need cash immediately. Never let your emotions choose your trading movements to be affected by what the market is offering.
1. Stability and Growth
Investigate thoroughly the company you consider. That means examining how the company has achieved growth, what growth it has achieved in the last few years, and whether the company is growing stably.
You should always be on top of your list with a competitive advantage. It may be because of its unique product line or brand loyalty, its name, or pricing strategies. Check the company’s income for at least the last 10 years. If it did not have stable growth or if it is new to the market, consider buying its stocks for a second time.