Must know Investing Essentials

1. Is it a Dividend/Value/Growth Stock, and when do you plan to sell it?

2. P/E ratio, Calculate by dividing companies market value per share by its earnings per share. Why high P/E can be justified? Why Low P/E could be a great investment or undervalued.

3. Volatility (BETA) it tells you about price risk, if its over 1 then its a high risk stock, less than 1 is safer.

4. CHARTS: Use them for both technical and fundamental analysis. Add stocks to your watchlist and track them. Use chart and research to determine a good buy in price and set alert for that price.

5. Invest 80% of your money into 15 stocks minimum and make sure you have no more than 5% in any stock, max 10%. Always leave 15-20% of your money in your portfolio as cash so you can buy stocks when they crash or to offset any market corrections.

6. Set a stop-loss at 5% below purchase price so you never take a big loss.