The defensive investor and aggressive investor how to choose
shares
The defensive investor and aggressive investor how to choose best shares
why I choose this content because this is one of the important parts of
investing chapter so I thought to share something about this with you.
Most beginner investors making some major mistakes in stock market investing
why this is happening?
I have only one answer for this the lack of proper financial
knowledge without proper financial knowledge you can’t become a
success in investing and also trading. Before entering the stock market, you
have to prepare for that financially and psychologically. Most investors don’t
know how to choose the best share, this is the biggest drawback of most
investors if you buy the share without any proper analyzing some times that
will give you some credits but all the time that’s will not happen so you have
to more conscious at the time of buying shares. Before buying shares from the
company investors have to analyze that company especially the aggressive
investor because defensive investors will not spend more time analyzing shares
and the company compares with aggressive investors profit also depends on only
investors' performance. Aggressive investors always will analyze deeply the
shares, returns will be higher always compare with defensive investors.
Aggressive investors always take more risks in the stock market but defensive
investors always safe players they will not take the risks compare with an
aggressive investor. Before going to invest in the stock market you must decide
which kind of investor you want to be then you have to improve, you’re
financial knowledge and experiences then you can start your investments.
Defensive investor how to choose share
Most beginner defensive investors don’t have proper knowledge about how
to buy shares what are strategies have to use like that. Does the defensive
investor have to shortlist some companies for buying shares Someone has doubts
about how to choose the company to buy the share. I already posted about this
in my blog you can read that in the featured post. Here have two types for
buying shares.
1.
Buying index mutual funds method
– Here the defensive investor can choose mutual funds
for their investments, you can invest in indexed companies in the stock market.
1.
Quantitatively test portfolio
method- Here the investor has to filter the
companies then have to choose the best option from you’re filter portfolio. you
have to set some criteria like you’re shortlisted company should be an industry
and that have to make more sales, that company asset value minimum 50 million
then you have to calculate the current ratio for determining the financial position you can determine that also in the balance sheet of the company. The
company has to stable growth then you have to analyze the dividend record and
you must analyze the price to asset and price to book value.
If you are followed this criterion then you can choose which is the best
company for buying a share you must keep in mind.
Aggressive investor how to choose the share
Photo by Adam Nowakowski
Aggressive investors always spend more time in the market and they will take more risks and also will make more profits this is the nature of the aggressive investor.
Company and share analyzing
The aggressive investor has to analyze the past and present situation of
the company the individual investor and institutional investor have to spend
more time in the market this is the difficulty of these investors. Before
choosing the share of the company you have to analyze the PE ratio that should
less than 9% and current radio have to greater than 1.5 % the company debts
have to less than 10% and you have to analyze the losses at least of 5 years of
the company and dividend should give that company then finically earnings
growth has too good. And you have to analyze the value of the tangible asset
that price has to less than 1.20% of net asset you can find that in the balance
sheet of the company. The aggressive investor has to follow these criteria for
choosing companies’ shares.
The aggressive investor and defensive investor have to make discipline
in investing then you can become a successful investor.
Conclusion
The defensive investor and aggressive investors have to choose the best
share always most of the beginner investors doing some mistakes in buying the
company’s share. All investors have to make disciplined for buying shares and investors
have to prepare before buying shares suppose if that a company suddenly down in
the market you have to manage that risk so you should prepare before investing.
The aggressive investor and defensive investor have to follow some criteria
then you will get some clarity for choosing shares.
This knowledge I gather from the intelligent investor book by Benjamin
graham bell
I hope this blog post will give you 100% contentment
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