FlexSalary: Information, Eligibility Criteria, Interest Rates, Review & More
The FlexSalary App is a loan app that is run by an Indian NBFC named Vivify India Finance Pvt. Ltd. The company is registered with the Reserve Bank of India. However, there are not many good reviews regarding the app. However, the app and the company seem legit. Hence, we have dived deep and reviewed the app in this article for you.
This article will consist of a review of FlexSalary, which claim to be one of the “Best instant loan app in India without salary slip.” Furthermore, we will also give you details about the interest rates, eligibility, and other loan-related information. Finally, we have also added some useful customer reviews regarding Flex Salary. Hence, to get fully informed about FlexSalary, read on through to the end of the article.
FlexSalary – What Does It Offer?
FlexSalary is an app where you can get a loan if you are a salaried individual. According to the official website of the company,
“FlexSalary is an instant salary advance credit line that covers emergency needs of Indians before they get paid. It aims to aid all individuals who face a mid-month crisis by providing short-term lines of credit loans until they receive their salaries. We offer instant loans from Rs. 4,000 to Rs. 2,00,000 with flexible repayment terms.”
It basically offers a personal line of credit. Even if you do not have a credit history, you will be eligible to get a loan from FlexSalary. If there are people who cannot find any other way to get financing, FlexSalary offers an unsecured line of credit.
| Loan Aspects | What FlexSalary Offers You? |
|---|---|
| Loan Amount | ₹ 4000 – ₹ 2,00,000 |
| Loan Tenure | 10 months to 36 months (Based on the loan applied for) |
| Rate Of Interest On loans | 10% to 12% per annum |
| Loan Processing Fees | ₹ 650 only (One-time payable only upon Loan Disbursement) |
| Collateral Or Mortgage | No collateral required |
| Loan Review Time | Depending upon the amount of the loan (may take from 5 minutes to 7 days) |
| Late Payment Of The Loan | Up to 5 %, depending on the type of loan applied for. |
| Loan Repayment | Loan repayment is made automatically from the provided bank details as per the approved schedule. Repayment should be made through the mobile app of FlexSalary. |
| FlexSalary Customer Care Number | +91-40-4617-5151+919908935151+919100038349 |
| CIN Number | CIN U65923TG2016PTC110767 |
| Address | Unit A, 9th Floor, MJR Magnifique, Survey No 75 & 76, Khajaguda X Roads, Raidurgam, Hyderabad, Telangana – 500008. |
Is FlexSalary Safe?
Yes. FlexSalary is fully legit and safe. The website is also safe to use as it is HTTPS-secured and SSL certified as well. However, regarding the customer service of the company, many borrowers of loans have complained. Despite that, as per our experience, we think the app works quite well and is legit. Furthermore, the company has a CIN number, and it is registered through the Reserve Bank of India.
When Can Flex Salary Comes To Rescue?
There are certain circumstances where flex salary comes to the rescue. You need to get through the possible solutions that can make things easier for you. You need to follow certain steps that can make things easier for you to attain your requirements with ease.
1. Don’t Have Collateral
Flex salary will offer you unsecured lines of credit loans. You do not have to pledge to your assets if the collateral gets approved for your loan. You need to get through the complete process that can develop things in perfect order.
2. If Your CIBIL Score Is Low
Flexsalary will not focus on your CIBIL score to provide you with the loan you need in times of crisis. If you have a low CIBIL score then you must go through the best flex salary options to meet your requirements with ease.
3. Need An Emergency Cash
If you are facing a medical emergency and you need the loan on an immediate basis, then you must consider using Flex salary. You need to identify the perfect solution that can make things lucid for your business development.
4. Loan Is Rejected By Banks
If you have low income, bad credit history, and banks have rejected your loans, then Flex salary can be the best option for you. Flex salary will offer you loans at times of crisis. You do not have to pay any kind of interest to get these loans.
5. Don’t Want To Pay Excess Interest
If you are afraid of bearing the higher interest rates on your loan, then Flex interest loan amounts can be one of the best options for you. If you do not use money, you do not have to pay the interest.
6. If You Need A Loan For A Lifetime
Flex salary personal line of credit you can receive for a lifetime. Your credit limit gets filled up once you pay back the withdrawn amount. It works almost like that of a credit card. You need to identify the perfect solution that can make things easier for you.
Can You Get An Instant Personal Loan For Your Marriage From Flex Salary?
Yes!! You can receive an instant personal loan for your marriage when you opt for the flex salary. If you have an urgent need for cash in order to meet your marriage-related expenses, then Flex salary can be of great help to you.
You will get the help for money within a few hours. It can help you to get the desired amount of money for a personal loan when you need it the most from your endpoints.
How To Do FlexSalary Login? – Steps To Follow
The following are the steps through which you can apply for a loan through FlexSalary:
Step 1: Visit their official website and click on “Apply for an Instant Loan.”
Step 2: You will get a form on the next page, which you will need to fill out and add information into. Add all the documents required to get a loan from the FlexSalary platform.
Step 3: There are various verification processes available. You can either apply for Net Banking Verification or you can upload the documents on your own.
Once you upload the documents, they will verify your credentials and will tell you what you are eligible for. Through the app, it is almost the same. All you need here is to download the app and register your account with it.
FlexSalary – Eligibility Of The Loan
| Loan Requirements | Eligibility |
|---|---|
| Age Of the Borrower | 22 to 60 |
| FlexSalary Credit Score | Depends on the type of loan applied for. |
| Type of Employment | Salaried professionals only. |
| Minimum Monthly Income | ₹ 8000 (However, it can change depending on the loan amount applied for) |
| Work Experience | Work experience requirements depend on loan terms and amounts. |
| Required Documents | 1. Salaried Employees- Identity Proof (Aadhaar / Driving License / Passport / Voter ID) – PAN card – Address Proof (Driving License / Utility Bills / Aadhaar / Passport / Bank Statements / Voter ID) – Last three months Pay Slips – Photo with the applicant’s face clearly visible. (The applicant will be prompted to take a selfie or upload a photo while applying for a loan through the FlexSalary mobile app) – Net banking verification to validate the bank account and salary information of the applicant 2. Self-Employed Individuals- No loan is allowed for self-employed- The applicant must have an employment |
FlexSalary Reviews From Customers
The following are some of the useful customer reviews regarding FlexSalary that you can benefit from:
Syed Abrar:
“I’m very happy much satisfied with the service Uma Maheshwari are very nice she was helped me through out the process I got the loan amount as soon as the documents were collected best app.”
Manjeera Dhfm:
“My credit limit was activated in 1day. But I was not able to withdraw amount,due to my account issue, then customer support team interacted with me continuously and solved the problem. Thank you team. They are well mannered employee’s who have patience to listen the issue and resolve it quickly.”
Selva Raj:
“Last month urgently required some amount, one of my friend referred me Flexsalary and they had treat me as a friend and pay me the amount with very minimum documents. Thank you Flexsalary very fast, very effective good customer service really appreciate your overall performance.”
Summing Up
Hope this article was helpful for you in getting a better idea of the FlexSalary platform. If you are hoping to get a loan from this platform, you need to download the app and register your account. Furthermore, you need to upload all the necessary documents. They will verify and give you the loan within one to five days if you are eligible for it. Do you know of any better loan app, which is registered by the Reserve Bank of India, and offers instant personal loans? Share some of them with us in the comments section below.
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mPokket: Information, Eligibility Criteria, Interest Rates, Review & More
You might have heard of the mPokket loan app that claims to offer loans to self-employed and salaried individuals. It is a financial company based in Kolkata, India, and offers instant loans starting from ₹500 to ₹20,000. The major objective of mPokket is to offer loans to students, and small professionals, who need a quick and small sum of money for a few days. In this article, we will talk about the mPokket app and how you can get loans from mPokket easily. Furthermore, we will also discuss the legitimacy of mPokket, and also give you information regarding its safety. Moreover, you will get a listed overview of all the offerings of mPokket loans. Hence, to get fully informed, read on through to the end of the article. mPokket Loan - What Is mPokket? The mPokket app offers you instant loans if you are a young working professional or a student. The loan amounts are not high. According to the website, “With the goal to provide loans for students and young professionals in India who were not eligible for loans via traditional lending institutions, Gaurav started mPokket, an instant loan app, in 2016.” It is really easy to download and install the app from Google Play Store, and you can borrow instant cash from ₹ 500 to ₹ 20,000 within a few minutes. All you need is proper verification and state the reasons. The best part is that you do not need to have a credit history since most of the borrowers are students, and the borrowing amounts are not very high. mPokket App: How It Works! Are you a college student or a young professional needing immediate financial assistance? mPokket has got you covered! Here's a quick guide on how the mPokket app works, ensuring a hassle-free experience for those looking to meet their daily expenses or tackle end-of-month cash crunches: Download The App Head to the Google Play Store on your mobile device and download the Pocket instant loan app. Verify Your Number After installation, verify your mobile number by entering the one-time password (OTP) sent to your registered number. Sign Up or Log In Complete the registration process by signing up or logging in with your Google or Facebook account. Set A Password Secure your account by setting a password of your choice. Additionally, select your profession to tailor the loan offering to your needs. Submit KYC Documents Streamline the process by submitting your Know Your Customer (KYC) documents online, ensuring a secure and efficient verification. Bank Statements For Salaried Professionals Salaried professionals can expedite the process by uploading bank statements showcasing their salary credits. Selfie Video Add a personal touch to your application by recording a quick selfie video. Swift Disbursement Once all steps are completed, experience the convenience of having your loan amount disbursed in just minutes.With the mPokket app, access to instant cash is at your fingertips, providing a solution for your financial needs in a timely and efficient manner. Is mPokket Safe? Firstly, as we visited the website it seemed safe, as there is HTTPS security, as well as SSL security. Regarding the technicalities of the app, we could not find any problems either. However, as per the reviews of the customers, we found that they are mixed. Some of them really praised the company, while some were furious with them. mPokket Loan – What Do You Get? Loan AspectsWhat mPokket offers you?Loan Amount₹ 500 - ₹ 20,000Loan TenureUp to 3 months or 90 daysRate of interest on loans10% to 12% per annumCollateral or mortgageNo collateral requiredLoan review timeDepending upon the amount of the loan (may take from 5 minutes to 7 days)Late payment of the loan- Application of Penalties every day based on the overdue the loan(if you pay early, there are some discounts available)Loan RepaymentLoan repayment is made automatically from the provided bank details as per the approved schedule. mPokket Loan Eligibility Loan RequirementsEligibilityAge of The Borrower22 to 35 years oldmPokket Credit ScoreDepends on the type of loan applied for.Type of EmploymentSalaried professionals and self-employed individuals.Minimum Monthly IncomeAny monthly income is eligible to take loansWork ExperienceWork experience requirements change with the amount of the loan demanded. Required Documents1. Salaried Employees- Need to fill out KYC- Verification of KYC- Need to submit bank details- Bank account number & IFSC- Net banking is required for auto-repayment.2. Self-Employed Individuals- PAN card required- Address proof (Voter ID or Passport)- Aadhar Card- Bank account number & IFSC- Net banking is required for auto-repayment. mPokket Loan - How To Do mPokket Login? The following are the steps by following which you can log in to mPokket: Step 1: Download the android app. Step 2: Allow the app to access your device. Hit "Allow." Step 3: Sign up to mPokket with the help of Google or Facebook. Step 4: Register your account with mPokket on the next page. Based on your profile, select whether you are a student, salaried or self-employed. Step 5: You will get a borrowing limit on the next page. Just move on to the next page by clicking “Get Started.” Step 6: Add all the information related to KYC Verification, Basic Information, and Employment Information, and also add your Selfie Video on it. MPokket-Is it a Safe Personal Finance Option? Many individuals are taking NBFC loans nowadays. No doubt, these loans made personal financing easier. Gone are the days of hectic loan applications. You can actually get a personal loan in minutes. But how do such fast microloans affect your financial habits? Let's find out. After the pandemic, many salaried individuals faced unprecedented financial challenges. Many of us gave in and took several unsolicited loans. In some cases, private cooperatives lent money. In other instances, people resorted to individual lenders. However, MPokket is a considerably safer and RBI-accredited loan option. It makes our lives easier. We are often faced with small fund crunches. Experts say that such loans are not to be looked upon. However, there are no better options to ward off imminent fund crunches. Why do People Resort to Apps like MPokket? The answer is simple. People can get loans in the blink of an eye. All they need to do is get their KYC done. After that, your loan amount is credited to your bank account directly. The quick service may seem appealing. However, you may encounter a debt trap when dealing with such microloan apps. In India, more than 50% of Gen Z and millennials face the lurking debt trap. They suffer from financial mismanagement and debt issues. That's another reason why apps like mPokket are gaining growth. The Indian debt challenge is reaching its vulnerable apex. In the first place, individual debts are piling up. At the same time, the country's global market debt is also increasing. Loan platforms like mPokket deduct hefty taxes and charges when you borrow from the platform. That money goes to the government coffers. So, the Indian government also gives licenses to such apps. So, they are leveraged to operate freely. mPokket Loan Interest Rate The mpokket loan interest rate is a concern for borrowers. Microlending companies like mPokket give lucrative microloans. At the same time, the interest that they charge is hefty. At mPokket, loans start from 11.99% p.a. A common explanation is that interest rates are higher as the loan is collateral-free. However, experts say small-scale earners or students mainly apply for such loans. Charging a strapping interest won't help their cause. MPokket's website data, however, says that the starting mPokket loan interest rate is 2%. But there's a big catch. The interest rates are indirectly proportional to the CIBIL score or your creditworthiness. The lower your score, the higher the rate of interest payable. Based on your creditworthiness, mPokket may charge 0 to 48% annual interest against your loan amount. But most people are not concerned with mpokket loan interest rate only. Borrowers must pay other charges as well. For instance, there's a processing fee, a security fee, a channel fee, and GST and allied charges. Your mpokket loan interest rate will increase, even if you want to pre-close the loan. The same also applies to loan extensions or payment deadline extensions. I checked that the mPokket loan interest rate also increases when you choose a lengthy payback tenure. How To Delete mPokket Account? To delete mPokket account, you need to contact customer service by phone or email. However, you will need to clear your borrowings first. Follow the steps given in the mail to get details. Finally, you will get a confirmation email that your account has been deleted. mPokket Customer Care Number And Address mPokket Helpline Number (WhatsApp):033- 6645 2400mPokket Contact Number:033- 6645 2400mPokket Customer Care Number India:033- 6645 2400mPokket Complaint Number:+9133 6645 2400mPokket AddressPS Srijan Corporate Park, Tower 1, 12th Floor, Unit No. - 1204, 2, EP & GP, Sector V, Bidhannagar, Kolkata, West Bengal 700091Greivance Redressal OfficerSouvik DasmPokket CINU65999WB2019PTC233120 You can also get to see the mPokket Loan Defaulter List on the official website. mPokket – Top Customer Reviews Here are some mPokket loan reviews: roddyrex009: “I have paid l the dues and they stay scamming me now by saying you need to pay again. In my bank the transaction was successful but they said if it still shows in the app then u haven't paid lol what low class company don't ever take loan from @mpokket” Source arunn2514: “The features of this app that it provides small loans to students to satisfy their daily needs.once you apply for loan you have to wait for its approval and then you will get money.after paying your previous loan, you can apply for another loan.” Source saikrishnamothuku: “This is my monthly pocket bank and I'm using this app from 3 months nd it is used alot for me very very thanks to the founders of mpokket and every student must use it and it is very very useful for students. this app giving money in just 24 hours just try it.” Source Summing Up Hope this article was helpful for you to have a better idea of how the mPokket app is and how the financial company operates. If you want to know more about the mPokket app, we recommend you visit the website. Do you know about similar apps that offer loans to students and young professionals? Share with us in the comments section below. Explore More: 10 Best Investment App IPOE Stock – Present Price, Forecast, Statistics – Should You Invest? SUIC Stock – Present Price, Forecast, Statistics – Should You Invest?
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Becoming A Landlord – What Should You Include In Your Budget?
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Feb 20, 2023
IPOE Stock – Present Price, Forecast, Statistics – Should You Invest In It In 2022?
In case you have invested in IPOE stock and looking for its best review, you have arrived at the right place. In this guide, I will be answering whether IPOE stock is worthy of investment in 2022. Through a step-by-step analytical process, I have extracted the final answer by conducting proper research. So stay tuned with us and keep reading till the end. IPOE Stock - The Origin IPOE Stock is issued by Social Capital Hedosophia Corp CI A (IPOE), a financial services company that is a next-generation leader. It's a publicly listed acquisition business with a unique purpose. They completed their previously announced deal on May 28, 2021, and brought SoFi public. SoFi technologies, INC, a publicly listed consumer-focused financial technology platform, was founded as a result of this deal Current Price Of IPOE Stock At present, that is on April 18th, 2022, the price of IPOE stock is $22.010 USD. Prediction Of IPOE Stock Price Below, a prediction of IPOE Stock has been put forward for better accuracy while giving the verdict. I have taken into consideration both the historical and forecast data. Take a look: 1. Historical Data DateOpening priceClosing priceMinimum priceMaximum price2022-04-14Open: 0.510Close: 0.580Low: 0.470High: 0.5802022-04-13Open: 0.5075Close: 0.550Low: 0.465High: 0.5502022-04-12Open: 0.5010Close: 0.550Low: 0.5010High: 0.5502022-04-11Open: 0.510Close: 0.510Low: 0.510High: 0.6202022-04-08Open: 0.452Close: 0.452Low: 0.452High: 0.5702022-04-07Open: 0.550Close: 0.538Low: 0.529High: 0.5502022-04-06Open: 0.540Close: 0.550Low: 0.490High: 0.5502022-04-05Open: 0.450Close: 0.490Low: 0.450High: 0.5302022-04-04Open: 0.570Close: 0.577Low: 0.550High: 0.5772022-04-01Open: 0.460Close: 0.460Low: 0.460High: 0.4602022-03-31Open: 0.450Close: 0.450Low: 0.450High: 0.4502022-03-30Open: 0.450Close: 0.450Low: 0.450High: 0.4502022-03-29Open: 0.450Close: 0.465Low: 0.450High: 0.4802022-03-28Open: 0.451Close: 0.480Low: 0.451High: 0.481 Analysis: The historical IPOE Stock price demonstrated above indicates that from 28th March to 14th April, the IPOE stock price has got an increasing trend. This rising trend is observable in opening price, closing price, maximum and minimum prices. 2. Predicted Future Data May 2022Open: 30.021Close: 31.466Min: 30.021Max: 31.645Change: 4.59 % ▲June 2022Open: 31.296Close: 32.150Min: 30.960Max: 32.396Change: 2.65 % ▲July 2022Open: 32.584Close: 33.335Min: 31.711Max: 33.335Change: 2.25 % ▲August 2022Open: 32.462Close: 33.737Min: 32.462Max: 34.086Change: 3.78 % ▲September 2022Open: 33.840Close: 35.025Min: 33.401Max: 35.025Change: 3.38 % ▲October 2022Open: 34.152Close: 34.903Min: 34.152Max: 35.776Change: 2.15 % ▲November 2022Open: 35.597Close: 36.178Min: 35.091Max: 36.527Change: 1.61 % ▲December 2022Open: 36.281Close: 37.466Min: 35.842Max: 37.466Change: 3.16 % ▲ Analysis: The IPOE stock forecast data above denotes a rise in price from May 2022 to December 2022. This rising trend is observable in all the opening, closing, minimum and maximum prices. 52 Week High And Low Of IPOE Stock Price Here are the 52-week high and low values of IPOE Stock in 2022. I have bifurcated the data into two parts - Historical and forecast data. 1. Historical Data 52 Week High52 Week Low21.814.14 2. Predicted Future Data 52 Week High52 Week Low31.64521.007 IPOE Stock Performance By 2022 Analysis: As you can see in the graph above, the 4-year IPOE stock forecast is explained. From April 2023 to April 2026, a sharp upward rising trend is noticeable in IPOE stock price. So, it’s evident that it’s worthy of investment in 2022. IPOE Stock Performance By 2023 January 202336.59338.03836.59338.2173.8 % ▲February 202337.86838.78937.53238.9682.37 % ▲March 202338.61939.90738.28339.9073.23 % ▲April 202339.03440.65839.03440.6583.99 % ▲May 202339.78541.06139.78541.4093.11 % ▲June 202341.16342.34840.72442.3482.8 % ▲July 202341.47542.22741.47543.0991.78 % ▲August 202342.92043.60442.41443.8501.57 % ▲September 202344.03844.78943.16644.7891.68 % ▲October 202343.91745.36143.91745.5403.19 % ▲November 202345.19246.04544.85646.2921.85 % ▲December 202346.47947.23145.60747.2311.59 % ▲ Analysis: For the coming year, that is 2023, the IPOE stock price would rise from January 2023 to December 20223. The changes highlighted in the extreme right column are all positive which is quite impressive. Frequently Asked Questions (FAQs) 1. What Is The IPOEStock Price Today? The IPOE Stock Price today is $22.010 USD. 2. Will IPOE Stock Price Go Up? Yes. In a year, the IPOE stock price might rise from 22.010 USD to 31.645 USD. 3. Is It Profitable To Invest In IPOE Stock? Yes. In a single year, the long-term earning potential is +43.77 percent. 4. What Will Be IPOE Stock Price In 5 Years? According to the IPOE Stock Forecast, the future price will be 70.355 USD. 5. What Is IPOE Stock Forecast 2025? As per IPOE Stock forecast 2025, the prices will remain positive along with an increasing trend. Should You Invest In IPOE Stock In 2022? To summarise, IPOE stock appears to be a viable investment opportunity in 2022. It's mostly due to the long-term earning potential of +43.77 percent in a single year, as well as the possibility for profitability. However, because this business is so volatile, make sure you follow every change, volatility, highs, lows, and statistic. See you in the comment section. Disclaimer: Respected Readers, the IPOE Stock price facts, and the data we presented above are all assumptions. All the data refers to those present on the leading cryptomarket websites. The actual values might be different on the basis of the market situation. Please note that share/stock prices are subject to market risks. Read all the documents and examine them carefully before investing. Also Read: BNKU Stock: MicroSectors US Big Banks Index 3X Leveraged ETNsTUI Share Price Forcast: Everything You Should KnowPooCoin Stock Forecast: Everything You Should Know
Apr 25, 2022
How To Choose The Right Stocks: Tips For New Investors
Fundamental and technical analysis are two common methods for identifying and picking stocks. Fundamental analysis examines a company's business and industry conditions to identify stocks with strong growth potential at a good price, typically used for longer-term trades. Technical analysis, on the other hand, identifies statistical patterns on stock charts to predict future price and volume moves, typically used for shorter-term trades. Beginners in the stock market can find it intimidating. However, understanding basic trading and understanding how to buy share online can make it easier. Various methods, like attending financial events or using online platforms, can help pick stocks. Therefore, investors with a long-term horizon have an advantage over Wall Street's short-term focus, making informed decisions. This article will help you with effective tips and strategies for selecting the best stocks. Tips To Choose The Right Stocks Here are some of the top tips that can help you pick the right stocks for your investment— 1. Finalize Your Goal Every investor comes with unique goals for their portfolios. However, most young investors aim to increase their portfolios over time. Older ones, on the other hand, focus on capital preservation as they near retirement. Also, some investors are more interested in generating regular income through dividends and distributions. Nevertheless, considering your goals when investing is important, as there are no rules. For income investors, look for stocks with good dividend yields and cash flow to support those dividends. Younger companies with promising revenue growth but unstable earnings are attractive to growth investors. For capital preservation investors, look for stalwart businesses with steady and predictable profits. Therefore, it's important to consider your age and goals when selecting companies to invest in. 2. Understand The Business Where You Invest When buying stock, you become a partial owner of a business. Therefore, without understanding the business, you risk failure. Trusting yourself to own a company fully means you need help understanding that more than appointing great management is necessary to ensure their performance. You can find competing companies everywhere, and they can impact you indirectly. For example, when you buy medicine at a pharmacy, you know who makes the equipment and who buys the spare parts. When you get a car fixed, you know who makes the spare parts and who makes the spare parts. Therefore, using these companies as a starting point for research and finding competitors in each industry can help you understand how a business makes money. If you need to understand how a business makes money fully, you may need to research or find a different company. 3. Evaluate The Market Before Investing Before adding a position, consider the broader market's movement, as 75% of stocks move with it. Moreover, buying stocks when the market is trending increases the chances of successful trades. The moving average of a major index, such as the S&P 500® Index, can show market momentum. Therefore, potential events like Federal Reserve policy meetings or earnings announcements should be considered. These events can affect your trading. Thus, following the market closely and investing when the market is trending up can increase your chances of success. 4. Determine A Fair Price Investors should consider various metrics to assess a stock's current price and value. These metrics include the following: Price-to-earnings ratio (PE). Price-to-sales ratio (PS). Discounted cash flow modeling. Dividend yield. The PE ratio is suitable for established companies with steady profits and growth, while the PS ratio is more suitable for growth stocks with unstable earnings. Historical averages can be a good guide, but future expectations should be considered. Next, discounted cash flow modeling involves estimating revenue growth, profit margin, and expenses for the next few years. Consequently, these factors are discounted by the required rate of return and divided by the number of outstanding shares. Dividend yield is also crucial, as an above-average yield may indicate a good stock price. Investors should avoid yield traps and develop their own dividend discount model. 5. Maintain Your Safety Margin To ensure successful stock picking, buying companies trading below your estimate for a fair price, known as your margin of safety, is crucial. This helps prevent losses if your valuation needs to be corrected. A 10% margin of safety is sufficient for stable earnings and a strong outlook. For growth stocks with less predictable earnings, a wider margin of safety of 15% to 30% is recommended. This ensures protection in unexpected events, such as a new challenge or a larger company entering the market. It is not necessary to get the lowest possible price for a stock; trust your research and take the price when it looks good. Building a diversified portfolio of stock picks across various sectors can lead to winning investments. Technical Signals When Selecting Stocks Technical analysis is a crucial tool for stock selection, consisting of three steps: Stock screening. Chart scanning. Setting up the trade. Stock screening involves identifying a list of 20-25 candidates using technical criteria narrowing it down to three or four candidates by scanning the charts. Moreover, the chosen candidate may be considered trading after a detailed chart analysis. To set up a screen, consider factors such as price and market capitalization, sectors and industries, and momentum. Long-term investors look for strong sectors and industry groups, while short-term investors should look for weak ones. Momentum traders typically identify strong, uptrending stocks for buys and weak, down-trending stocks for shorts. After compiling a list of candidates, look for those with good entry points, such as breakouts or pullbacks. The Virtual World Of Stocks Online investing is popular for many investors due to its ease of use, commission-free trading, and easy-to-use platforms. Moreover, opening a brokerage account with an online broker takes only a few minutes and requires basic personal information. Funding can be done through a check or electronic transfer. Online trading allows trading dividends, tech, and other stocks, with options available for a small fee. However, penny stocks, defined by the SEC as those selling for less than $5 per share, should be viewed with caution due to their volatility and potential for manipulation. It is essential to research the company's business before making a decision to invest in online trading. Read Also: Simple Tips To Diversify Your Stock Portfolio Backorder Vs Out Of Stock: Essential Things To Know About It
Mar 23, 2024