Share Market Tips or Stock Tips – Concept, Best Tips, Benefits, Methods & more
Whether you are new in the stock market or a professional, stocks tips are always welcoming, isn’t it? No one can interpret the stock market completely.
It is impossible to predict the exact ups and downs of the market.
So, even if you are a pro trader, listening to stock market tips from analysts, other brokers, and fellow traders won’t do any harm, provided you can implement it in the right way.
In this article, we will discuss share market tips in detail. We will check who provides these stock market calls, how they do it, and general stock market tips for all traders and investors.
What are Stock Tips or Share Market Tips?
Stock market tips or stock tips are the suggestions and advice that are given to the traders and the investors for better investment and trading opportunities.
The tips include which share to buy, which share to sell, when to buy and when to sell. Even tips include the price range within which one should buy or sell the shares.
So, stock tips are basic suggestions for investing or trading in shares. Share market tips can be categorized as quantitative and qualitative tips.
Quantitative Stock market tips
These tips are about the price level, units of the timing of buying or selling the shares. It is all about the quantitative aspects of trading.
Qualitative stock market tips
These tips are all about qualitative factors. These tips can include fundamental analysis and review of the stocks.
It can tell you about the future prospect of the stocks and others. Basically, it is over and above the price movements of the shares.
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Who provides Stock Market Tips?
Stock tips are generally provided by your brokerage house. They either provide free stock tips for all clients or they charge for personalized advice.
The stock tips are generated by the stock analysts – both technical and fundamental analysts.
The independent stock researchers, stock and financial research companies also provide stock market tips.
You can opt for share market calls from your broker, almost every broker has this facility.
The eminent traders, investors in the market also provide stock tips.
You can follow their tips and suggestions as they are highly experienced in the stock market.
Best Share Market Tips for Today or Tomorrow
Check out Best Stock Tips for Today & Tomorrow here. These are some of the most sort after stocks chosen for the same.
You can filter & check the Sentiments of each shares & then take your decision whether to Buy or Sell or Hold.
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Why Share Market Prediction or Forecast is crucial?
If you think you know everything about the stock market, think again. This market is so huge that no one can understand it completely.
Something new comes up every day and thus stock tips are important both for new traders as well as experienced ones. Here are the most important benefits of Share market tips –
- Firstly, when you are new in the stock market, you hardly know about the risks. It is important that you follow the stock market advice of experienced traders. It will help you understand where to invest your money. You can also understand how much investment is suitable for you.
- Stock market advisors who provide the stocks tips can help you minimize your risk. They can help you diversify your portfolio and help you understand which investment is good for you.
- When you hear stock tips, you can learn about the best stocks in the market for trading or investment.
- Share market tips can also save you major losses. If a stock is not performing well, you can sell the share listening to the tips.
- It is mostly used in intraday trading where traders buy and sell stocks very first. So, you do not have to do in-depth research for finding the right stocks for investments. You can follow the stock tips.
While following share market tips can really prove to be beneficial, but following them blindly is not.
You need to do your own research and then follow the tips if you find them useful and correct. There are many stock tips that are fake, you need to ignore them.
Different methods of Stock Prediction or Forecast
The share market tips you get are either found out by using fundamental analysis or technical analysis.
So, here in this section, we will be discussing the most important tools and techniques of both these types of analysis.
Fundamental analysis deals with both qualitative and quantitative aspects of the company. In simple words, it is the study of the company’s financials and performance over years.
Fundamental analysts use multiple information of the company to evaluate its financial standing. The tools and the techniques used in the fundamental analysis are –
- Company’s annual reports – These include financial statements like profit and loss statements, balance sheets, cash flow statements, and others.
- The company’s press releases are also being evaluated as announcements can affect the stock prices a lot.
- Then fundamental analysts evaluate the company’s management and their decisions.
- Trade agreements with other companies and many such details.
Fundamental analysis also analyses the global and domestic market for the product and services the company produces or render.
This is an important factor for providing share market calls to the traders.
Metrics used in fundamental analysis
Here are the various metrics used in fundamental analysis –
Earning per Share
Earning per share is one of the most important matrices that is used for evaluating the performance of the company.
It is calculated by dividing the Net income of the particular company post taxation by its total number of outstanding shares.
Analysts can give a buy signal for the share of the company whose EPS is higher. Higher EPS signifies a higher return to the investors.
Return on Equity or ROE
Return on Equity or ROE is another very commonly used matrices in fundamental analysis.
The stock advisors/ analysts use this metric for understanding how much profit the company is generating using the shareholder’s investment.
It is calculated by dividing the earnings of the company after tax by the shareholder’s equity. Here the net earnings of the company are put to use.
The share market advisors can advise you to buy the stocks if the ROE is within the range of 13 to 15.
However, ROE can be manipulated as well. It can go up if the company is having very few assets.
Beta can be an extremely useful metric when comparing one company’s share price to the industry. It can be calculated by comparing the share price to the benchmark index.
If the Beta is above 0, then it signifies that the stock has a correlation with the industry. However, any value below 0 suggests that there is a negative correlation.
If the Beta is higher, then the risk factor tends to be higher as well and vice versa.
Dividend Payout Ratio
Dividend payout ratio is another very important metric that the stock advisors use for providing stock market tips to you.
As it says about how much percentage of the profit is being paid by the company as a dividend. So, according to the dividend payout ratio also stock advisors suggest stocks.
Especially for those investors who are looking for regular income from stock investment.
Other Important Ratios
Similarly, there is dividend yield ratio, P/E ratio, Price-to-book ratio, and others which help in determining the stock and other assets performance in the near future as well as in the long-term.
While the investors rely on fundamental analysis mostly, the traders, daily traders rely mostly on technical analysis.
The stock advisors who provide tips for the day traders and other stock traders also find out opportunities using technical analysis in most scenarios.
We will here see the tools and techniques used in technical analysis. So, technical analysis is basically the study of charts, technical indicators, and other technical tools.
These tools are used for analyzing and understanding the performance of the stocks. It helps in understanding the price movement and trend in the price of a stock and the overall market.
Tools used for making Predictions using technical analysis
Here are the list of Tools that helps in Technical Analysis & Prediction –
Technical charts are the most integral part of technical analysis. These charts can be real-time charts that have the real-time prices of a stock or any asset which you are predicting.
There can be charts with historical data as well. So, these charts can be used to understand the price movement over a particular period of time.
There are multiple time frames like 1 minute to 1 hour to monthly or yearly charts.
The stock advisors look at these charts and implement multiple techniques (which will discuss below) to find out which stock is performing well, is there a price trend reversal coming, and others.
After technical charts, technical analysis is rest all about technical indicators.
Technical indicators help the analyst to understand market trends, buy and sell signals, entry and exit points, price trend reversal, and many other aspects of the stocks.
Techniques or strategies used in technical analysis
Here are few major techniques used in Technical analysis for Stock Forecast –
Moving Averages are one of the most commonly used techniques. Generally, the 200-day moving average is used widely, however, there are other Mas like 50-day MA which is also in use.
Support & Resistance
Support and Resistance is another big technique used by technical analysts to predict the market. It helps in understanding if the price trend is going to continue or not.
Relative Price Index
Relative price index is another such tool used to gauge the market. It helps in understanding whether the stock is overbought or oversold.
So, now you know how the stock prices are being predicted and how analysts generate tips. Let us now check the basic yet most effective stock market tips in the next section of the article.
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Stock Market Calls for Traders and Investors
There are some basic stock market tips while on other hand there are stock-specific tips as well.
Here we will discuss eighteen basic stock market tips that you can follow for better stock market experience and higher profit.
Price below Support Level – 1st Share Market Tips
Is the price of the share you bought falling? Has it fallen below the support level, sell it off. Square off your position and forget about it for some time.
You must not hold on to loss-making shares for long. It can only add up to your losses. Thus, it is important to cut loss-making shares out of your portfolio as early as possible.
Wait for Right Moment – 2nd Stock Market Tips
If you are making a profit from one share, and the price is rising constantly, wait. Do not try to book profit soon.
However, you need to keep a constant check on the company.
Evaluate its financials, operations regularly, check its press releases if any and keep an eye on the industry it belongs to or any government announcement regarding the same.
If everything remains stable, do not sell the stocks, let the gains increase.
Shares with Falling Price – 3rd Stock Tips
Do not invest in a share whose price is falling. If the price is falling, then it can fall more so, investing in the stock can be a wrong decision.
You must wait till the price starts jumping up again. Once you see a certain rise, then buy.
Using Average – 4th Share Market Calls
You must try to average up when you are trying to buy shares.
Invest in Penny Stocks – 5th Stock Market Calls
If you are investing in penny stock, make sure you know about the stocks pretty well. You must first do paper trading.
This means tracking the share continuously. Paper trading simply means trading with imaginary money to understand the share before actually investing in it.
Danger of Free Tips – 6th Share Price Tips
Free stock tips are great but not always. You cannot believe the free materials, stock tips advice, or share market calls You need to evaluate on your own and then only invest.
The free services are generic services and may not suit your investment style. So, you need more personalized stock market tips not generic.
Don’t Blindly Trust Anyone – 7th Stock Price Tips
Listening to relatives and friends regarding your investment is good to an extent. However, you cannot blindly trust them.
You and your friend have different risk appetites. You both have different investment approaches. So, the stock he is investing in, cannot be the right choice for your portfolio.
Research & Due Diligence – 8th Share Market Tips
Research and due diligence is the key to success. In investing and trading, you need to do your own thorough research.
Stock tips you get, you must cross-check them before implementing. Go through the company’s details thoroughly.
Know your Company – 9th Stock Market Tips
Always try to buy stocks of such a company that you know about. For instance, we all know about Colgate or Tata Motors and similar companies.
So, this helps you to understand the business better. You have faith in these companies. This also helps you get all the financials of the companies easily.
Invest via Exchange – 10th Tip for Stock Recommendation
Always try to invest in the stock market via exchange. If you are not a highly experienced trader or investor who understands OTC trades, do not go for them.
Always invest via stock exchanges.
Invest in Profit Making Shares – 11th Stock Tips
The simple mantra in the stock market is “do what is good for you and stop what is not”.
So, this means that you must keep investing in shares that are making a profit for you and stop investing in those which aren’t.
You do not have to keep on running after loss-making shares.
Don’t Trust News Always – 12th Share Market Calls
Media can be a big-time manipulator in stock investment.
They have news which is never been announced by the companies and sometimes, they do not even show what is actually being announced.
So, it is high time you must keep an eye on the real news before you invest. Do not believe the media and blindly invest in any stock.
Avoid Mass Buying or Selling – 13th Stock Market Calls
The stock market is huge and there are multiple shares. If you find there is a mass buying or selling of a particular share, there is no need to jump into the same.
You can select your own shares as per your investment profile and risk appetite. Do not do what everyone else is doing in this market.
Trust your Gut – 14th Tip for Share Market Trading
Be true to yourself when buying or selling the market. It is very important to trust your gut feeling when you are investing in this market.
No World of Magic – 15th Tip for Stock Market Trading
You need to understand that the stock market is not the world of magic. Here you need to take a calculated risk to earn profit.
There is no magic wand to make you a billionaire overnight. You need to invest with conviction to earn from the market.
Choose Right Brokerage House – 16th Share Market Tips
Choosing the right stock brokerage house is very important whether you are investing or trading. You need to see which services they provide.
Their charges and offers. Then how experienced they are and their research and advisory department is strong or not.
Don’t use Margin – 17th Stock Market Tips
If you are new in the stock market, do not use a margin facility. It is highly risky to use margin when you are not aware of the market.
No Emotions Trust Numbers – Final Tips for Stock Market
Finally, you cannot be emotional when trading in the market. If you have made losses, square off your position, and close the chapter.
You do not have to rush after the share to make a profit. You also need not make up your losses in a day. All these mentalities can lead to bigger losses.
Share Market Tips or Stock Tips – Conclusion
Stock market tips are boon for investors and traders if they can use them properly. It is necessary to perform your own research and then follow the stock tips.
You can hire a stock advisor for giving your personalized share market calls. It is important that the stock tips are personalized to suit your investment portfolio.
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Share Market Calls or Stock Market Recommendation – FAQs
Here are the list of FAQs on Stock Market Recommendation or Share Market Calls –
What are share market calls?
Ans: Share market calls are stock advice given to the clients of the brokerage house by the stock advisory team of the brokerage house.
Who are fundamental analysts?
Ans: A fundamental analyst uses financial data and information of the company along with qualitative information to find out whether the stock price of the company is accurate or not.
Who are technical analysts?
Ans: A technical analyst is a person who uses technical charts, indicators, and other technical tools to predict the stock market.
What is a market trend?
Ans: Market trend is the trend in the price movement of the shares. It is either bullish which means the market is going upward or bearish meaning the market is going down.
Is it safe to use stock tips?
Ans: Yes, it is safe to use stock tips, provided you have done your own due diligence about the company and the stock.
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