How to know when to buy and sell stocks and commodities ?????

Decision of when to buy, sell or hold position is one of the most difficult decision in stock market trading. Traders must be very careful while taking this decision. As their returns depends on it.The quality and timing of right decision matters a lot to earn better returns in stock market. Financial Advisors can help in taking wise decision. Stock Tips of market experts can be useful in-case a trader is not able to decide what to do under such market conditions. Using following criteria traders can decide whether to buy/hold/sell : Determine the intrinsic value and compare it with market value Every stock has market value and its intrinsic value.Market value of the stock is the value which you see when you go to buy/sell a particular stock.Intrinsic value of the stock is the actual value of that stock at that point of time irrespective of stock market condition.For example: Market value of a particular stock of Reliance is Rs30/share and intrinsic value of that share is Rs25/share then it can be said that the stock is overvalued. Similarly if stock's intrinsic value had been more it can said that it is undervalued.rnOn determining the intrinsic value of a stock it can be decide whether to buy or sell that stock. In-case it is overvalued it should be sold out and if undervalued then traders must buy it at lower cost. Compare price-to-earning(P/E) ratio to industry's average price-earning ratio Price earning ratio gives the measurement of company's current share price relative to earning per share.Industry's average price earning ratio is the average of all the company's belonging to that industry. For example you are looking for average price earning ratio of IT industry then it will be average of all the company's of that industry.rnIf P/E ratio of your company is much higher then it is advisable to sale that stock and vice versa if it is low. rnAbove discussed are few criteria based on which it can be decided what should be a wise decision under such market conditions. However there are many other points which are to be considered. In case of commodities demand and supply is the factor on the basis of which it can be decided whether to buy or sell that commodity. As some of the commodities serve as raw materials to manufactures of goods. These manufactures often worry about price fluctuations of these commodities as it will directly increase their cost of production .Prices of commodities are direct result of variation in its demand and supply. If demand is high prices will rise and if demand is low prices will also be low. Depending upon this demand and supply nature of that particular commodity trader can decide whether to buy or sell. However if a trader is unable to perform such fundamental analysis or is not having sufficient time to perform such analysis then he can go for advise of financial service providers. They can suggest you accurate commodity tips which will help you in earning good profit. The decision of buy or sell must be taken very carefully and must be favorable and according to current market needs.