A muffled drum can spoil the symphony of the entire orchestra. Similarly, a stock that continually fails can undermine your confidence in the merits of your portfolio during this unpredictable market volatility. But there are some recession-proof cash cows. You just need to develop the art of timing the market perfectly.

This recessionary trend has proven many market experts wrong. Some of the stock selection tips that may never let you down are:

1. Diversify wisely, paying due attention to upcoming industry segments. Currently, the energy segment is worth looking at. A hot industry can turn cold in a short period. The fierce challenge to your portfolio comes from technological advances dominated by computerized trade. The suggested investment limit by industry or geographic area is 20%.

2. The stock business has turned out to be an industry dominated by gurus. There are some experts and there are many who consider themselves experts. In any case, remember that you are investing your money. Gurus will not compensate you for losses. If they make ten predictions, one or two will turn out to be correct in any case. This fact will be highlighted in future articles by these Gurus, and the failures will be swept under the rug. Always make your decision.

3. Instead of overthinking predictions, stick to the fundamentals.

4 cent Inventory they tend to be highly projected by stakeholders. Stocks that change hands at less than $5 per share are called “penny stocks.” Think ten times before you invest in a penny stock, whatever merit you see in the stock. The chances of big wins are as good as winning a prize in a lottery.

5. Follow the teachers. They are teachers because they are wise. They have a great establishment and have access to a lot of information, which a common investor cannot imagine. The chances of your decisions going wrong are remote.

6. Profitability is the word that excites an investor. Think deeply why earnings stories are so publicized. Are you being cheated? Earning profits alone is not the yardstick for judging the merits of the business. Do these companies borrow heavily? Trust those companies that finance growth from profits.

7. Request details, in addition to what is disclosed by the company in the financial statements. You need to develop some expertise to read between the lines of the stated position and the actual cash flow position. You need to know how much money is coming in, not going out.

8. Borrowing money from financial institutions and through stocks is a progressive sign, but an investor needs to see for what purpose the company borrows. If the earnings increase substantially after paying the interest on the loan, it makes sense to borrow. As a matter of principle, the chances of heavily indebted companies landing in trouble are real. The usual debt service charges, rising interest rates, will reduce profits and the company must be able to withstand such shocks and yet maintain the level of profits.

9. Growing company means rising stock prices. Rising prices mean investors are paying more attention and jumping in to buy. Stock prices reach inappropriate levels. Be careful when you enter the market. Such stocks show a lot of volatility. And you have to be there at the right time. If the timing isn’t right, even the best performing company won’t be able to help you.

The above are general stock picking tips. But there is no final answer, whether you should invest in a particular stock or not at any given time. All investment related questions have multiple choice answers and you have many options. Continue to learn and refine your investment methodology.