- Look for investing in companies with high returns on capital employed.
- Has strong cash flows.
- Prefer companies where the promoters own at least half the stock.
- Has a trading volume above 1 Lakh on daily basis.
- Company is listed both at BSE and NSE.
If you follow above startegy; you cannot go wrong as you at the first place are going for those companies in which company promoters themselves have faith and that is the reason they hold more than 50% stake in it. To undertake further analysis on said companies one can go through the below stock market books which are worth reading and will help you become a professional and you will be able to execute trades in a more profitable way.