Stock Market Lessons

From the stockpile of Orange Financials For Retail Investors

How To Go About Choosing A Stock

Invest In a Business You Understand

Invest for the long-term

Which company’s Biscuits sells the most in your local super market?

Not sure??? Observe what’s happening around you

Collect Regular Information on Companies that Interest You

Do Fundamental Analysis Share price depends on EPS* Avoid high P/E stocks P/E ratio should equal EPS growth rate * EPS = Earning per share (Profits per share)

Share price depends on EPS*

Avoid high P/E stocks

P/E ratio should equal EPS growth rate

Stock Price goes up ONLY when Earnings go up. It has got nothing to do with where the ‘Index’ is.

Don’t panic due to short term Your scrip will grow if the fundamentals are fine. dips.

Final Words of Advice

Don’t go by ‘hot tips’ Don’t rush into buying a stock Don’t buy on gut feel You can’t predict the market. No one can

Believe in your analysis & Do not follow the herd.

Happy Investing! Compiled by www.orangerich.in