Check Fundamentals Before Investing In Stocks

Queries I bought 20 stocks from three companies for Rs 30,000 in 2009. The stocks from two companies have given me 60 per cent returns overall till date. How long should I hold them, and what should I do with the underperforming shares, where I lost 50 per cent of their value? For stocks which have performed well, as well as those that have underperformed, check what all has changed over time, namely, the company’s earnings, i.e., whether sales and/or profits have increased or the company’s valuation has jumped sharply with respect to its earning. Lastly, check the future estimation of the company and the sector. To decide on the timing of sale, do a technical analysis, which can be gleaned from investor behaviour, such as observing how investors have reacted in the past. Check if the stock has broken its 52-week lifetime high, which is generally a bullish signal reflecting...