Having investment in the stock market? (You can know more about the stock market here Epic Research ) Want to know how to earn more? Obviously, you want and not only you everyone want it, perhaps no one feels it bad to have a huge amount of money. But it is the question mark for the all (for those who have no experience in the stock market) that how to earn more? Firstly I want to ask a question to all of the readers who read this article at this time that you already have an investment in the stock market or you want to invest but share market scares you? Don’t worry you are not the one there are more people like you. If you have an investment then it is good but if you wish to invest but don’t do it yet because of some misconception then keep in mind one thing that To win a race it is necessary to take part in it if you don’t take part in the competition then definitely you can’t win. Hey wait I am not saying you to invest money by borrowing it from your friends or family members but if you have extra to invest in then go for it. Okay so let’s begin with the topic.

If you ask it to your friends or family members that how they gain more from the stock market? They will suggest you picking up right stock, trading the stocks rapidly, invest most of your time on watching DowJones and glue up with the computer screen whole of the day. These factors are probably important to gain more but are not sufficient for it. Then how one can earn more from the stock market? I will suggest you some points on it but the thing is that there is no short-cut formula to succeed neither one size fits all concept applied to it. The most important concept you have to work on is that the stock market requires learning to get success in it, so start your learning on the stock market. There are two kinds of the investors in the stock market the one for whom stock market is the world of alien and the other who earn more and more in the stock market but secret their knowledge of earning from others. So What you have to do is to focus on these three words “ Do It Yourself ”.



The stock market is simple but not easy to invest in. If you want to succeed in it Think as an investor not as a speculator (If you know the term “speculator” then it is good but if you don’t then I provide you a short description on it “Speculator is just like an investor who invest their money in the stock market” But there is some difference between them Investors do fundamental analysis before doing any investments whereas Speculator perform technical analysis. Investors have the concept that if the company grow then definitely the price of stock increases and they get profit whereas Speculators don’t care about the company growth till the stock price increases they hold the stocks to earn the profit.) It is because speculators are the buyer when as an investor you sell your stocks.



Think as an investor means that focusing on the following points-

* Selection of the right socks.

* Purchase stocks at the right price.

* And last but not least hold it for the long term.

Here are some tips that may help you to gain more profit on your investments. Such are:



# Check out the Simple Moving Averages -



On the basis of the short term trend, you can check out the Simple Moving Averages of the particular company. But what Simple Moving Averages in simple SMA figure out? It actually gives you an idea about the Stocks of that company undervalued or overvalued at the price level. So for a short period like 2 months, 4 months, 6 months check out the SMA of the company.



By this analysis, you can get that -

If the trend of the SMA is rising then at price level stocks are overvalued but If the trend of the SMA is falling then at price level stocks are undervalued.



# Analyse how strong the fundamentals the company have?







Since you are an investor then it matters for you that how strong fundamentals the company have. It

is because the growth of the company depends on the fundamentals. But the question is how you analyze it? Its simple just focus on the Fundamental factors of the company such are :

How much profit does a company gain in previous years?



The debt level of the company

History of the dividend

The pattern a company use for the growth

# Check out the right price to buy the stocks -



To earn more profit on the stocks you have to buy it at the right price. Worry about how you find out the right price of the stocks? To find out it first you have to find out the estimated intrinsic value of the stocks.



If the estimated intrinsic value of stocks more than the market price of stocks then it is the right price to purchase the stocks.



It is sound easy, right? But it is actually not. There are so many methods of estimating the intrinsic value of stocks. And every method provides you a quite different value. Hence it looks simple but it is so complicated.



# Valued stocks by making the use of financial ratio -



As I said before its complicated to find out the intrinsic value of stocks and a small mistake in the calculations bring up you with a loss. Hence there is one more technique to value the stocks i.e.by using financial ratio. Here are examples -



Compare the market price of the stock with the book value – this ratio is known as the P/B ratio. If the P/B ratio is more than 1.5 then the stocks are overvalued.

Compare the market price of the stock with the Earning Per share ( EPS ) – this ratio is known as the P/E ratio. If the P/E ratio is more than 15 then the stocks are overvalued.

After you get the P/E ratio it is just to compare that P/E ratio with the EPS growth rate. Because sometimes when the P/E ratio is above 15 but still due to the EPS growth rate the stocks are undervalued. This ratio is known as the PEG ratio. And if PEG ration is greater than 1.2 then only the stocks are overvalued.



This is it…………



Author’s Bio:



I am a financial analyst in Epic Research. I like to learn and write about the stock market. Hope you find this article well and helpful. I will post furthermore article on the important topics of the stock market.

