Selection of trading and investing picks

Since I am just a learner , I continually face predicament of stock selection either for trading or for investment. Most of the time I get lost in indecision resulting in loss of opportunity. However, there are certain experienced members adept at this process , thus taking advantage of opportunities, thus making a lot. of money. I understand the same difficulty is being faced by many investors who are just in learning stage ,like me. Hence I solicit wisdom on this issue by experienced members.

 

@ shakti ji

it is a common problem i observed in stock traders or investors ... mainly because psychological correction needed sir
knowledge is not a problem sir , utilization of knowledge or application of knowledge are main problem ...
first remember one thing sir , no body in this world are 100 % success or skillful , mistakes are common for human , at the same time losses are common in business also , we should not try to make up our losses in trading or investment , we should accept our faults and try to focus on winning trades or winning investments ...

in my experience ' we should apply simple rules for investment or trading "
make with just 6 rules below trading or investment selection rules is better and effective
because lot of rules application in short time we may forget some rules or confusion arise sir

first take good stocks list with your investment choice if market crash , our investment gives good returns in future
take quality stocks number 50 in entire 5000 stocks list with your simple 5 -6 rules of selection
and divide sector wise , it may be comes 10-12 sectors finally
2 nd selection process take 2 stocks from each sector from 50 stocks final list

so you reduced 50 to 25 stocks approx

that is the final portfolio

invest slowly in those stocks according to stock prices corrections

take top 5-8 stocks in that selected stocks for trading purpose also

every 6 months ( 2 quarters ) review your portfolio

keen focus on these 25 stocks every day ... technicals or fundamentals what ever you want
if you miss any good stock in remaining 4950 stocks approx in listed companies dont worry , those are not for you ....
dont miss any multibagger or good stock in your final 25 stocks list is most important
keen focus is needed in those 25 final selection stocks , it will give success to you sir ....

finally i want to say , hard work for making Trade or Investment System Rules
after making system only follow and surrender to those rules .... it will remove all emotions from you and give success sir

ALL THE BEST SIR

 

Don't you face the problem of getting the exit timing right?

 

Yes, this is yet another problem.In this context It is also believed that it is very difficult to time the market. But kindly also suggest by using common sense how to select among good companies keeping in view risk reward ratio. I am told that all good companies are not good investments. Do you approve of this thought?I am sure you will throw new light on this very vital subject. Your core holdings appear very imprresive.Reflects your expertis.

 

Yes I agree with not all good companies are good investments.

Also not all good companies can be invested into. Managing such a portfolio would be a nightmare. So choices have to made especially amongst companies with a sector almost equally good. I would never just keep buying into multiple similar companies and just stick to my choices if they are turning out good. Herein some esteemed investors are seen to be holding almost all good NBFC's, Pvt Bank's, HFC's... which clearly doesn't appeal to me.

I actually don't mind paying premium (higher PE's) so long as the company has a good track record and a decent management, for there is always a reasons why markets allow it - the market knows best

And yes I would never invest in companies where

the accountants use the financial loopholes to hide the debt in their annual results.