1-Fundamental factors about the company is very most essential factor and stock trading signals that assist you in taking decision about picking stock from right company.
2-Fundamental insights like as revenue generation, assets, revenues, liabilities including other financial aspects of the company should be taken into consideration.
Focus Fluctuating Earnings
1- As it is a fact that economical condition is always in move, sometime in uptrend & sometime in downtrend. Therefore, to hold the stocks for long term; it needs observance of past earnings with future prediction.
2- If the company seems to have consistent history of good rise over several years, then there is a possibility to buy a stock for long term.
3- Apart from this, it’s necessary to predict the company’s earnings consistently in order to be confident in the near future while buying stocks from particular company
Ignore Value Traps:
1- Value Trap tends to the stocks that are low cost and has been trading on the basis of low multiple earnings or cash flow. And these low cost stocks usually make investors to buy stocks.
2- But, in fact if the stocks appear to be low multiple earnings or cash flow; it signifies that company is in loss.
3- So, it’s essential for investors to look out at the company’s current ratio and debt ratio which is a beneficial stock picks to avoid valuation traps.
When it comes to make investment for long term, it requires strong understanding of strategies and tools to perform well. On the basis of above fundamental tactics, it’s helpful to win the trade.