Quality of Stocks Vs Quantity of Stocks

Quality of Stocks Vs Quantity of Stocks : It is quality of stocks that matters and not the quantity.

Quality of Stocks Vs Quantity of Stocks : Beginners Guide to Stock Market. It is quality of stocks that matters and not the quantity. Let us understand in detail.

Quality of Stocks Vs Quantity of Stocks

Most beginners or new investors to Stock Market in India buy shares that cost less. What they don’t understand is that it is quality of stocks that matters and not the quantity. You can buy thousands of cheap stocks with your savings but you won’t make any profit with these stocks. Real money is made from good quality of stocks when held for a long time.

How to Buy & Sell Shares : Quality Stocks Vs Quantity Stocks

Most investors with limited money think that they should buy more cheap shares than fewer high quality expensive shares. This is completely wrong approach to share market investment or equity investment. The problem with cheap shares is that they don’t go up. Neither such companies pay good dividend. Also such shares are very difficult to sell at profit.

Most share trading experts and stock market professionals will advice to buy shares of a good company even if it costs more. Diversify your Investment Portfolio with good stocks. You decrease your risks and increase your chances of making profit with good quality stocks. It is also important to allocate enough time to the stock to grow.

Understand:

• When to Buy or Sell Stocks
• Share Trading Mistakes to Avoid
• How to Predict Stock Market Direction

Is it Good to Invest in Cheap Stocks?

No, at least for beginners, it is NOT Good to Invest in Cheap Stocks. Without Proper Fundamental Analysis of a Company, beginners will not be able to Pick the Best Stocks to Buy.

Cheap stock price does not indicate that it is good to buy. Low-priced stocks or Penny Stocks have very less chance of going up. Such low priced shares are more volatile stocks.

With high-priced value stocks this chance is good. This is one good reason why you should buy high priced stocks. Hence, it is better to buy stocks with high price and avoid stocks with low price.

Learn:

• Stock Analysis using Value, Growth, Income and GARP
• What is PE Ratio (Price-To-Earnings Ratio)
• Share Market Crash – What to Do? Buy, Sell, Hold?

Conclusion

So, what is Good – Quality of Stocks or Quantity of Stocks. Well, it is Quality that matters and Not Quantity.

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