CA Sujay Deshpande advised that one should invest in Indian and US stock markets to enjoy the benefits of long-term returns, stability, and therefore wealth creation. US stock markets being dominated by large-sized corporations offer low volatility as compared to Indian Stock Markets. He explained the Japanese Candlesticks method for analysis of stock price movements. This method provides more detailed and accurate information about price movements, as compared to bar charts. This was introduced in 1700’s by Munehisa Homma based on 4 Factors –opening price, high price, low price and closing price.
He advised taking into consideration the following factors while investing in stocks:
1. Time Period
2. Price of share and Intrinsic Value
3. Analysis of Balance Sheet
4. Dividend History
5. Company Size 6. Volatility of Market