How successful are you in stock market trading? What is your advice to the beginners?
To understand price movements in long run better and to go for Buy,Sell or Hold decisions on stock market, please do not forget to consider
*SCRIPS* of the scrip.
After years of experience I have jotted down the factors as summariesed into acronym *SCRICPS*, which is explained below:
*S* - stands for
*S* hare holding pattern,
*S* ales, *S* upply chain and
*S* tage (infant, growing, maturity, old stage of the company).
*C* - stands for
*C* apital structure (equity, debt),
*C* orporate actions (bonus, buyback, split, Merger& Acquisition) and
*C* ompetitors analysis
*R* -stands for
*R* esrves and
*R* atio analysis as a whole.
*I* - stands for
*I* ndustry analysis,
*I* mage of promoters ,
and
Concurrent
*I* nformations affecting to company.
*P* - stands for
*P* rofitability ( net, gross)
*P* olicies of company, Government
*P* roduct prospectives.
*S* - stands for
*S* tatements (balance sheet, P&L, cashflow) and
*S* tastical charts.
In my opinion, after thorough analysis of these points, one is able to understand business and prospects of the company. Which is nothing but a real driver of the stock prices.
_Friends! Stock Market is all about patience and perseverance, quick money making and greed driven decisions certainly burn hands in security markets._
From:
Dr.J.P.Jain
Economic Adviser