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How to Buy Stocks at Bargain Price?

by | Last Updated On September 27, 2022

Learn How to Buy Stocks at Bargain Price or Discounted Price. Tips to Buy Expensive Stocks at Undervalued Discounted Price.

Learn How to Buy Stocks at Bargain Price or Discounted Price. Unique Tips to Buy Expensive Stocks at Undervalued Discounted Price.

How to Buy Stocks at Bargain Price

How to Buy Stocks at Bargain Price?

Many good and expensive stocks are often available at bargain prices or discounted price. With some basic tips and tricks, you can easily spot these stocks and buy the shares.

Here are some expert tips to find and buy stocks at bargain:

How to Select Stocks to Buy at Bargain or at Discount

  1. If you follow the stock market and related news and updates, find out stocks that other investors are not interested in because of some short-term temporary reason.
  2. If a sector is doing well but some stock within the sector is not doing well and is not favorable to investors, watch those stock. Do some research and Fundamental Analysis of a Company and pick the best stocks.
  3. Use the P/E Ratio to determine good stocks that are out of favor. Stocks with low P/E ratio can sometimes signal out of favor stocks.
  4. Pick stocks and study their Price-to-Sales Ratio. Look for stocks that have high Price-to-Sales Ratio in the past but are temporarily low at the current market situation.
  5. Look for stocks that have about 20% or above Earnings Growth and a P/E Ratio at about 10. These stocks are worth investing. Sometimes these stocks are overlooked by investors and you can take the opportunity to buy them at bargain price.
  6. Look for stocks that have higher Return on Equity (RoE). This data will tell you how much your investment will earn.

Learn:

FAQs: Buy or Sell Stocks

Yes, it is Good Idea to Buy and Sell Stocks. Emerging and Developing Countries like the Indian Economy will keep growing for the next several Years. Investors must cash upon this opportunity. Investment in stocks is also a great way to defend inflation.

Buy Stocks When:

  • There is Market Crash or Correction;
  • Undervalue Stocks with Good Growth Potential;
  • The company shows growth of about 20% to 25% in last 3 years and last 3 quarters;
  • Leading mutual funds are investing;
  • Leading and trending sectors such as Textile Stocks

Sell Stocks When:

  • Other opportunities can earn a greater return;
  • Stock is plunging;
  • Your expectation is not met;
  • Your stock has made new highs;
  • Earning of a company is not improving over 6 to 9 months.

You should cash out your stocks when:

  1. Your investment goal is met (OR Not Met);
  2. Company Acquisition;
  3. You need the money;
  4. You need to Reshuffle your Investment Portfolio;
  5. There is Better Investment Options for High Return

You can understand if it a Buy or Sell Market, if you understand When to Buy or Sell Stocks.

Conclusion

Using above tips, investors can easily find good stocks that are out of favor and are worth investing.

I hope now you know How to Buy Stocks at Bargain Price. Please SHARE this with others. Thanks!

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Nikesh

Nikesh is a Banker and Experienced Financial and Investment Advisor with over 20 Years of Experience in the Field of Finance and Investment. He possesses vast experience in the field of Stock Market, Mutual Funds and Investment Portfolio Management. Keep visiting for daily dose of Share Trading Tips and Tutorials.

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2 Responses

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    June 13, 2022

    […] How to Buy Stocks at Bargain Price […]

  2. Stock Analysis using Value, Growth, Income and GARP - Beginners Guide
    June 22, 2022

    […] There could be stock that may have been underestimated or overlooked by other investors. These stocks can have value. Maybe prices of these stocks have gone down because of some bad news or event or maybe the stock falls in a sector that is underestimated by most investors. Take a Look at: How to Buy Stocks at Bargain Price […]

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