How to pick a stock in just 2 minutes!

Everybody wants to be rich! And that just in less time. Gentlemen, there is no way you can make money in less time (unless you’re Gambling). Stock market provides you platform where you are not only investing your money but your time, hard work, knowledge.

        Well, money comes from good choices that you make, and the ability to make good choices comes from bad choices that you made in the past. And to make bad choices you must initiate. To minimize the number of bad choices that you’ll make as a beginner, I’ve come up with this Article which will help you to choose Perfect Stock in just 2 minutes. In this article will discuss picking up stock in the finance sector.

Picking up Stock in the Finance sector

While picking up stocks from the finance sector don’t go with the company that doesn’t know or the name you never heard. First of all, make out the list of all the Companies. See the fundamentals of the company. Usually these two types of company which lends money to customers, First which gives a secured loan. Meaning, A secured loan is a loan backed by collateral—financial assets you own, like a home or a car—that can be used as payment to the lender if you don't back the loan.  And another one is Unsecured Loan which is not backed by collateral or financial assets you own.

                        So, while choosing the firm which you want to invest in go for the one who’s distributing secure loan For Example LIC Housing, Manappuram Finance, DHFL PNB Housing, etc.

Also, check for the NPA’s of the company. NPA Means Nonperforming Assets. What is NPA and how to find it check this article—What is NON PERFORMING ASSETS of Company?

Nonperforming assets help us to identify the quality Stocks. Usually, the NPA rate of 0.3% is considered to be good NPA rate.

Check Balance sheets of the company. See whether it has made a profit as compared to the previous financial year.

Another thing which needs to be checked while picking up stocks from this sector especially the banking sector we should check how much Saving accounts and current accounts does it have. Which shows us the liquidity of the company.  

                             That's all for today we'll be discussing many things in this Stock Market Analysis series. Leave your comment below if you have any queries or suggestions.