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Showing posts with the label ROI vs Share target price

ROI vs Share target price

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Dear  Investor or Trader  Try to understand 2  Different Strategy for Good investor or trader  is who understand the value of  money  I have seen many of investors and trader but only 10 % follow steps  90% fail to understand the difference between  R O I ( Return on investment ) & Target given by your broker any of financial Advisor    R O I:- Is what you are investing and what you gaining on your investment over the period of time  Example-   you invented 100000/-Rs your return on value is 5000/-Rs for a month so your Return in 5% TARGET  Given by your broker or financial consultant     Example  ( XYZ ) person says this stock can move up to 500/-RS from 450/-RS  base on whatever  fundamentals or technical so return on your invested capital is  11.1%   either it could be in one month 1-day or 1 year so always try to understand in which thing you are interested? My  answer is ROI  ( don't stick price target )  understated the basics  if you are getting a good return in  a month