Lessons On Buying Stocks

How To Select The Right Stocks At The Right Time


The seven lessons in this course explain the characteristics of successful stocks and the forces that push them up. The first seven lessons explain specific traits to look for when buying stocks.

3) Sponsorship

Being large investors, Foreign Institutional Investors (FIIs), mutual funds and other professional investors exert a large amount of influence in the stock market. They buy and sell stocks in large quantities, which, in turn, impact the stock prices upwards (whey they buy) or downwards (when they sell). Here, you'll learn how to spot the stocks in which these institutional investors are interested in.

Institutional investors’ stock trades result in a stock’s price moving up or down dramatically.

Institutional investors include mutual funds, FIIs, domestic financial institutions, pension funds, banks and other financial institutions that trade in stocks in bulk on a daily basis. In fact, institutions account for a massive chunk of all trading activity. Clearly, this implies that when institutions target a stock for purchase, it's more likely to go up in price thanks to the increased demand they create.

Institutions make a living buying and selling stocks. They employ analysts, researchers and other specialists to gather comprehensive information about companies. They meet with executives, evaluate industry conditions and study the outlook for every company they plan to invest in.

While following stock purchases and sales by institutional investors is smart, it’s also important to check the stock’s fundamental parameters before making your trade. Check the company's earnings, sales growth, return on equity, etc. Factors such as the stock's Relative Price Strength, the industry group's performance and the health of the overall market must be considered too.

  • Institutional investors represent the bulk of trading activity in the market. As such, their buying and selling power can move a stock's price up or down dramatically.
  • You can learn to spot which stocks institutions are buying and selling by watching for surges in trading volume.
  • Look for stocks with an increasing total number of institutional owners in recent quarters. Look for those stocks that are owned by more funds each quarter.

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9 Comments


Alpesh bhadaniya
Jul 21, 2018 at 07:03 Reply

Plz also post in other vernacular language or in hindi so if people having no such knowledge of market they also easily understand


Team StockAxis
Jul 25, 2018 at 11:02

Dear Alpesh bhadaniya ,

We will try to inculcate others languages too in our post. Thank you for your feedback Sir.

Regards,
Team Stockaxis


Koka ram
Jul 14, 2018 at 10:55 Reply

Right now I have stopped trading after following for 15-20 years and took a break after sensing it's not for monthly fixed income group with investment around 15-20 lacks and felt waste of time and source of income to the brokers. Instead I would have earned bank interest with out breaking my head. Because I use to study and invest because of that effort I did not loose my investment. Now that I reached peak of my age since sensex has reached all time high slight interest is creeping in me so I will be reading your guidelines and try to come back. Hope benefit from your blog. Kokaram


Team StockAxis
Jul 16, 2018 at 02:59

Dear Koka ram,

We are honored that our lessons are proving helpful for you to take interest in the market again and helping you gauge better investment decisions.

We recommend you to also read the following blogs.

Has the Recent Correction Made Valuations Attractive?

5 Rules to Deal With a Volatile Market

Using the EV/EBITDA multiple smartly!

Use The P/E Ratio Smartly!


Regards,
Team Stockaxis


SANKARANARAYANAN RAMASWAMY
Jul 14, 2018 at 01:55 Reply

Wonderful lesson, I learnt about the importance of the purchase/sale made by Institutions !!! We should be alert while going for purchase/sale and to consider the movement of Institutions also !!! Thank you so much for such valuable guidance.


Team StockAxis
Jul 16, 2018 at 03:01

Dear SANKARANARAYANAN RAMASWAMY,

Thank you for visiting us and believing in us!

We recommend you to also read the following blogs.

Using the EV/EBITDA multiple smartly!

Use The P/E Ratio Smartly!


Regards,
Team Stockaxis


Vinod shah
Jul 14, 2018 at 01:22 Reply

All your lesson useful to understand share market and share price moment thanks


Team StockAxis
Jul 16, 2018 at 02:42

Dear Vinod shah,

Thank you for your appreciation, Sir.

We recommend you to also read following blogs.

Using the EV/EBITDA multiple smartly!

Use The P/E Ratio Smartly!


Regards,
Team Stockaxis


R Srinivasan
Jul 14, 2018 at 12:26 Reply

Very good guide for small investors.


Team StockAxis
Jul 16, 2018 at 02:40

Dear R Srinivasan,

Thanks for your appreciations, Sir.

We recommend you to also read the following blogs.

StockAxis Market Intelligence

Has the Recent Correction Made Valuations Attractive?



Regards,
Team Stockaxis


RAM LAKHANI
Jul 14, 2018 at 12:22 Reply

Useful insights.


Team StockAxis
Jul 16, 2018 at 02:39

Dear RAM LAKHANI,

Thank you for visiting us and believing in us!

We recommend you to also read the following blogs.

StockAxis Market Intelligence

Has the Recent Correction Made Valuations Attractive?

Use The P/E Ratio Smartly!


Regards,
Team Stockaxis


Husain asghar
Jul 14, 2018 at 11:48 Reply

These are the exercises which give wider acceptance to an advisory,leading to enhanced loyalties in its customers. Kuddos, keep it up.


Team StockAxis
Jul 16, 2018 at 02:45

Dear Husain asghar ,

Thank you, Sir, for your appreciation and motivation.

We recommend you to also read the following blogs.

StockAxis Market Intelligence

Has the Recent Correction Made Valuations Attractive?

Regards,
Team Stockaxis


Rama Raju Kunadharaju
Jul 14, 2018 at 11:43 Reply

maybe you can send the lesson


Team StockAxis
Jul 16, 2018 at 02:38

Dear Rama Raju Kunadharaju,

Please elaborate on your query.

Regards,
Team Stockaxis


suryakant pataskar
Jun 24, 2018 at 03:04 Reply

very useful lessons i appriciate thanks


Team StockAxis
Jun 27, 2018 at 11:49

Dear Suryakant Pataskar,

Thank you for the appreciation, Sir.

We recommend you to also read the following blogs.

StockAxis Market Intelligence

Has the Recent Correction Made Valuations Attractive?

Regards,
Team Stockaxis