Stock Market

3 Tips For Selecting Profitable Stocks

Choosing stocks is a complicated process. Every investor goes about it a different way, some choose a penny stock broker and other go it alone. But if you want to be able to select profitable stocks from an over-the-counter market having some general steps to follow is important and helps you minimize risk. So let me outline three possible steps you could take.

Step 1. The first step is to establish a time frame and strategic direction for your investing. Getting this strategy in place is what is going to dictate the shares you purchase.

For example, long term investors would establish a strategy around finding shares in companies with long term competitive strengths and a history of stability when it comes to growth. Because they are buying with the long term in mind they would look at historical trends over past decades and analyze the businesses strengths and weaknesses. Read the full story

Importance of Financial Statement Analysis

It is really important that every investor understands the investment basics of how to analyze corporate financial statements.  You shouldn’t be investing in a stock if you don’t know how to read their underlying financials.  It’s really fundamental in understanding the stock market and how it works.

Financial statement analysis is the backbone of understanding how a company functions and how it performs.  The numbers tell the true story of what is really going on in a company.  If you don’t know how to read a company’s financial statement, then you really don’t understand how to evaluate a company and it’s stock. Read the full story

How Are Stocks Traded?

Investing in stocks is not that hard. If you are trying to imagine yourself collecting pieces of certificates that confirm your percentage of ownership in a certain company then you can breathe easy now. Selling and buying of stocks do not work like that. You don’t have to shout on a trading floor to get the stocks you want.

Before we start on explaining the trading of stocks and how you can purchase them, first we need to know what stocks are. Stocks are one’s ownership in a company. If one buys stock in a company, he will have a piece of the whole. The more stocks you have, the bigger the ownership. Stocks can also be called in different names such as share or equity. It can also be of different types such as preferred and common stocks. Being an owner of a stock entitles you to the earnings of the company based on your ownership percentage. Usually these are just small amounts but if they are invested as long term stocks then the returns are usually higher because the company has time to mature. Read the full story