The Nepalese Security Market is still not mature. We have limited number of financial instruments and the financial market has a small width. So taking these points into consideration, you might be thinking that investing in Nepalese Security Market is not complicated. But market is market. It has its own trend, cycle and pattern running. If you underestimate this market, the only way for you is DOWN, DOWN and DOWN. So investment, even in a small and immature financial market like Nepal, has to be done wisely and with caution and care. To avoid any investment hazards and casualties, you need to start your investment after a thorough stock screening.

Screening the stocks and putting them in your investment basket is not that hard as it seems. The first and foremost step to stock screening is listing out the criteria to select stocks out of the horde. It’s easy: ask yourself the following questions.

1. How much money do I want to invest?

2. How long can I keep the money afloat in the stock market?

3. What is the risk appetite level for me?

Now when you have answers to the questions stated above, you have reached the first milestone. So the step forward now should be to embrace the second milestone. On your way to the second milestone, you must be clear of what exact sort of companies are you going to invest in. At this point, you need to find answers to following questions.

1. Which sectors (hydropower, commercial bank, development bank etc) am I going to invest in?

2. Within each sector, which companies are in line with my first milestone?

3. Now how many companies do I put in my investment basket?

4. Which companies, selected in b, have excellent management, vision and better financial juice?

Now with the answers for the above mentioned questions, you inch towards the second milestone. So when you finally reach the second milestone, you know the list of companies which best fit your investment criteria and yes your investment goal. Thus with first and second milestones clear, your next step will be to invest in the screened companies. But this is not it. You need to gear up for meeting the final and ultimate milestone: the “Winning” milestone. You reach the “Winning” milestone when your investment goals are met, your portfolio appreciates and your investment values grow.

But in the meantime, when you are between second and third milestone, watch the market carefully, get hold of the market news and always keep those companies, in which you have invested, within your radar. These simple but intrinsic bits and pieces help you come out a true winner.