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

Types of Investments

The following are a few basic types of investments with easy to understand explanations. If you are looking for investments for beginners, this is a great place to start. Learning about investing basics as a whole is an important first step towards earning a lot of money with securities.


Stocks are equity investments. By purchasing stock in a corporation, you become part owner in the company, called a stockholder. You have the right to vote in the company because you are a stockholder. You can earn money two ways with stocks. Capital gains are earned when the value of the stock increases. If you buy stock A at $10 and then sell Stock A at $13, you make $3.

Many corporations also pay dividends to their stockholders. This is often done on a quarterly basis. For example, Company B might pay $.25 per share you own per quarter. If you own 100 shares, you will be paid $25 every 3 months for a total of $100 a year. Corporations are not required to pay dividends. Usually, stronger and more established companies pay dividends consistently and new companies wait for growth. Read the full story