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The thing to consider of share Business for Sorting Portfolio

Shah Newaz Mazumder, Guest Writer | banglanews24.com
Update: 2022-02-07 14:31:28
The thing to consider of share Business for Sorting Portfolio

Portfolio sorting is an important tool in stock trading. Because based on this the investor can take his profit home. The first quality of a good stock trader is his ability to sort his portfolio. There are multiple strategies to ensure a stable income by reducing the level of risk by adjusting the portfolio. Risk mitigation can be achieved through sector-wise investment by dividing the total investment into several parts.

We can get better results if we follow the following rules in sorting portfolios:

1.    Diversification of products: Companies that expand their business through the diversification of their products should be included in the portfolio.

2.    Attractive Growth and Product: Companies that attract the market through the quality and diversity of their products and achieve EPS growth quarterly should be included in the investment portfolio of such high growth companies.

3.    Implementation of Expansion Programs: The Company implements expansion programs by expanding the scope of its business and providing new products or services. There is a possibility of future market price increases for the organization which undertakes all the growth activities including increasing the production process of manufactured products, factory expansion. So this class of company should be kept in the portfolio.

4.    The use of ever-new technology to save cost: In today's world, many modern methods have been discovered to save costs or increase production. The use of such technology plays a leading role in the development of the organization. This increases the growth rate of the company.

5.    Management Changes: The organization can progress by hiring skilled and experienced managers. Therefore, companies with efficient and good managers can be included in the investment list.

6.    Number of shares: Institutions in which a small number of shares are held by ordinary investors and most of the shares are held by the owner party and institutional investors.

7.    Shareholding: Companies with the highest number of shares held by directors and foreign and institutional investors have good profit margins if they are included in the portfolio.

8.    Top Market Demand: Companies whose demand for their products or services is at the top of the market demand, as well as companies producing products with international demand, are considered to have the advantage of having an investment list.

9.    Constantly using new modern technology: We need to see that all the companies that have been able to attract the attention of the customers by constantly improving the quality of the product or service by using the latest modern technology can come out of the conventional trend and achieve much higher growth. So you have to keep an eye on the shares of those companies for investment.

10.     Price: The strategy of buying at a lower price alone does not guarantee the profit in all cases. Whether the shares of the invested company have an underlying energy-based value and, if necessary, the appropriate value must be considered. This means that you have to choose to invest after making sure that the market price of the stock is dynamic.

11.    Price Fluctuation: The stock s elected for investment needs to be averaged over the business or biennial rate. First of all, you have to find out the minimum price range and time, you have to decide on the investment considering the price and time. On the other hand, there must be a plan to sell at the maximum limit.

We know the stock market is constantly changing its character, so it is not fair to expect good profits from a portfolio. Keep an eye on the market situation and try to increase profits by reducing the level of risk through periodic portfolio updates. Ultimately, profit-making should be the main goal of stock trading.

Writer: Md. Shah Newaz Mazumder, Head of Operations & Assistant Professor, Daffodil Institute of IT, Chittagong. Email:[email protected]


BDST: 1304 HRS, FEB 07, 2022
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