Question

Do you invest in the Stock Market (either in individual stocks or mutual funds) on an individual basis or in a 401k account? How do you choose the stocks or funds you purchase? Please no personal information, just basic discussion on risk vs. reward.

Answer 1

I invest in the stock market on an individual basis with strong Reliance on personal information as well as broker tips.

I am very careful of the timing of investment and keep an eye on the stock market at all times to ensure that investment is not made at a time when there is an impending recession in the economy .Firstly I select stocks based on industry or companies which are familiar to me. For this I firstly study their prices Trends and company valuation. I do not always buy the cheaper stock and do not always reject the expensive one since I study the company growth before making the investment. Much material is available on the internet to evaluate the financial health of the company in which investment is being planned. Knowledge of ratios helps to evaluate the profitability and capital structure of the company. I stay ready to face the volatility and actively participate in stock trading without relying blindly on analyst recommendations.