You must have gather experienced that the stock exchange is not a casino ground, its purely a development matter of institutions or the companies where there is your return expect to come narrating with national-international economic and political situation. If this narrator factors goes in negative direction there is huge changes of erosion of capital investment. This is why one has to see the duration when the above narrator you think to get shape positively. After how long the economic and political changes are reviving, in which situation are you investing? Is the situation is favorable than go otherwise keep stay out. Even in critical situation weather the company will able to give profit or what is the aspect of company? Such notes have to be set up in your mind. You know the stock exchange is no more than gathering of companies which do suffer in changes of business cycle. So in your nearest stock exchange what sort of companies are mostly listed this differ lot accordance their business stance. Building confidence is the first part.

2. Understand the risk on your on portfolio 

One who does not see other respective investment opportunity and know his/her money is going to freeze, it is really worthwhile to step for stock investment. But to be honest your investment period has to be not least months. Borrowed money used to have higher risk as in the short period no one can expect fast return. Higher interest borrowed money is even tipsy unless the rate is not reasonable and for long term. You need to understand first of all that the money is fresh or borrowed. There is chance to save as well as earning possibility if the borrowed money is utilized for long period with reasonable interest rate. The next weather your money is essentially is expected to use somewhere in near future or not! These small things has to be aptly fit before investment.          
3. Diversify in investment

The only answer is to be secure. You know every business can not move in same way, where as in stock exchange we can see sector wise different listed companies. Sometimes one business sector used to face difficulties, at this movement another sector price used to be strong.  To be secured in entire your investment it is good to invest in different company's share, but you need to have study of different fields from where big potential lies and put more stakes on that field. As little is your investment little the return that is why with respective diversification in investment there should also rationalize the amount. 

4. Never, ever invest on a hot tip!

Whenever banking interest rates starts to shrink movement when consumers are spending high, internal money supply stays strong, investment areas starts competitive in earning or lets say when you see the money has less purchasing power usually stock exchange booms. In this movement economically people used have money into their pocket means their confidence of earning took speed and indirectly stock price shoot up, to be known for we such economic adherent this is hot period. What exactly period was in second half of 1999 till to end 2000. If you are studying economic development and starts to find above development then don't enter into the stock. Why?We will get few share even in huge investment due to higher price the second thing is that there used to be very exception room of price increase. In addition economic turn around is very much possible due to the reason of overflow of investment at such period.

5. Don't be greedy!Naturally this sin is bad in every prospect. 

After all above five basis tools it is most important to know potential companies, isn't it?          

Way to find out potential companies?

1. Reasonable evaluation:  One has to be able to evaluate a company in reasonable way based in economic practice. Find out company, which is developing rather faster than economic growth of a country. While evaluating a company don't forget the security position. Is the price-earning ratio's are below the average and so market price to book value? If you see picture is rather positive than only be sure that there is up trend share price potential of a company.

2. Low prices: Much you get shares in low price better for you, higher a price of company is lower the return. This is why find out low price and don't forget to see the price development of last 52 week high – at least 25% less. The more, the better.

3. Catch growing company: "Good growth Search for strong growth momentum." Make sure both revenues and earnings are rising- and are likely in the future. This is a part where an investor needs to watch.

4. learn balance sheet: If the company balance sheet is not clean at that movement better stay out. Are the expenses which they had shown is seen around them or after the expenditure there strength has build up in administration field and as well in other part or is the money is flowing under their table. You know the Enron and Worldcom scandal. Here in Nepal change in their accountancy is most popular. Try to find out the reality.

5. normal' Dividend payers: In the last two year how much dividend & has been provided by the company and is possible for next two years to come? If the possibility is there, in such a case it will be more helpful to stay in marginal profit even the movement at such political and economic surroundings. Companies that pay dividends often have more stable earnings also which means price increase potential is less that is why here in this point either sell out such company share or stay neutral for low returns if you wish.
More……………………….RAMSBAY is there. 

one you earn money try to be there [Wild...]