stocks to invest in- lending money by the customer on the asset through a standard procedure.

The art of lending money by the customer on the asset through a standard procedure followed by the financial institutions is known as investment. Before doing the investment, one should have basic knowledge about the trading.

They also should get the details of the trading rules and regulations. Also they can get the information even from the employees of the financial institutions. Dematerialized Personal account or DP account has to be opened before doing the actual trading is done. Proof of identity is to be produced for opening the trading account along with permanent account number card. Generally people are advised not to trade directly after opening the account. They are asked to get more familiar about the trading operations before doing it actually. Investors who are very much experienced about the trading operations advise the new entrants to this shares business about the guidelines they need to follow in doing the trading. After understanding the basic definitions in trading and little exposure to the trade, one slowly starts do the trading.

The investor initially needs to know necessary information about

the stocks, sector to which they originally belong. Generally it is segregated as IT, metal, auto, bank, oil and gas, health, mid-cap, small-cap sectors. Then the list of stocks is prepared according to the sector wise distribution. The further step he does the sub division of the stocks from the main list of sectors. A good investor then gives priority to the ranking of stocks. The ranking of stocks is usually awarded in this manner - highest, above average, average, below average and lowest.

Highest: The rank is awarded to the stocks for the optimum performance they have shown on a yearly basis as well as they are anticipated to perform best for the next 12 months.

Above average: If the performance of the stocks slightly goes beyond the average performance generally kept as some standard by the trade market for the stocks.

Average: The rates traded for a year by the most of the stocks with reference to the starting price and ending price they have traded.

Below Average: The stocks, which perform below the average price in reference to their starting and ending price.

Lowest: They are also known as under performers. Stocks, which generally trade below the par, come under the lowest category.

From the ranking system most of the investors would get some idea about the stocks. The ranking system of the stocks also brings in the attention of most of the experts to make a clear analysis.

The next criteria the investors need to see about safety of the stock.

Ranking is also given on the basis of safety to see how safe they are:

Usually large scale and financially sound companies are designated as high safety ones, fundamentals of these companies are strong, growth is slow and steady, their shares also move in a brisk pace. Huge returns cannot be expected in a very short period. The next ranking in this one is low safety, given to the companies, which are started with less investment, profits are achieved in short duration of time, fundamentals of these companies are not stronger when compared to large scale industries. The stocks of these companies move very fast from lower rate to a higher rate and also come down to a very low rate.

One should be cautious in trading with these kinds of stocks, which can give huge gains or even big losses. Investor should also look into the risks involved in a stock. Even before investing into a stock, one should get the technical analysis of the stock from the technical analyst or expert. Investor also can get the opinion from technical analyst about the stock in which he has the idea of investing.

The market depth of the stock should be carefully analyzed; most important feature is sentiment of the trading stocks, properly taken into account in order to invest in that. Background of the company, quarterly results, type of sector, price of the stock, and so on should be taken into consideration to do investing. Selection of investing is done by taking into view of the majority of the peoples sentiment, which can work to the success despite the lack of strong fundamentals. Invest in the stocks, which have been listed in the market, which gives decent returns to the investor.

One can invest in the stocks where the in flow of Money is seen more when there is announcement of dividend, which contributes in the rise of the share price due to the participation of more depositors in this trading. Initially one is interested in investing in the stocks that are of reasonable price, low risk factors and stability of price. People often are very much interested in investing with stocks that have a good target in a short period of time. Investments in stocks are also done in the long-term perspective. The money deposited in the stocks that have a steady rise in their value. Financial assets of company also make the people to whether to invest or not. Valuations of a stock are of two types. One is under valued stock and other is over valued stock. Almost all the traders prefer to invest in the undervalued stock rather than invest in the overvalued which after some time has to come down to the undervalue level.