3 KLSE Stock Picking Techniques To Apply

When it comes to trading in KLSE stock market, picking up the right stock at correct price is major aspect to follow. Therefore, here are some key techniques mentioned that involves some profitable ways to pick good stocks in bursa Malaysia stock market.

1. Macroeconomic Analysis:

The analysis through macro economics consists of observing the trends & price movements in the economy as a whole. The analysis will help you to understand the reasons behind country’s economy when buying the stock(s). Understanding economical performance will give profitable direction for investors to buy & sell the stock(s), which will overall work as a beneficial KLSE Stock picks to trade.

  • For Whom the Technique is Beneficial?

The technique is beneficial for the investors who trade for Long-term investors & must have basic understanding of macro-economics for analyzation.

  • What stocks To Pick?

As the analysis is based on economical factors, picking stocks will depend on country’s economic situation.

2. Fundamental Analyzation:

Fundamental analysis comprised of finding the true value of the stocks not the share price. If analysis shows that the value of stock is more than live share price, then it tends that stock is really valuable than its price and it will be profitable to buy the stock.

  • For Whom the Technique is Beneficial?

The active & long term traders who can deeply analyze the market condition, this is an effective Bursa Malaysia stock picks to analyze.

  • What stocks to pick?

While applying the fundamental analysis, it’s recommended to buy stock only if the company represents its good value.

3. Qualitative Analysis:

When it comes to apply qualitative analysis method, it’s recommended to evaluate a company on the basis of judgments like as the management team. Avoid observing the charts, spreadsheets and numbers.

  • For Whom the Technique is Beneficial?

The technique is profitable for long-term & short term investors who are well experienced.

  • What stocks to pick?

Stocks of the company having strong base & management team that has less chances of failing.

The Final Word:

The above shared key points are the most usual techniques followed by the traders & investor to pick the best stocks as per their portfolio. In addition, to make better investment decision; it’s important to implement research based analysis with the help of effective recommendations.

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