Everyone wants to try their luck in the stock market. It gives them the chance to get some extra bucks that they can throw in their savings account. But the stock trading game is not an easy one to play. You have to be really strategic and resilient, and the stock market will be your cash cow.
As a beginner in stock trading, your biggest challenge is to find the best stocks to invest in. The stock market keeps changing every day. There is a wide range of investment opportunities to choose from. You have to pick the one that’s most profitable for you. But how exactly do you do that? Here is a quick guide to get you started.
Mark your boundaries (budget, risk, interests)
First of all, you need to see where you stand as an investor. What is your budget limit? How much risk can you take? And, most importantly, what interests you? The answers to these questions will give you a rough idea of where you can invest in the stock market.
You don’t even need outside help to get that idea. This is a personal research phase before you jump the gun on buying any stocks. So,go ahead and mark your stock boundaries.
Lay down your options
As you are probably new to the world of stocks, you’ll need professional help in this. So, you can either talk to an expensive financial advisor, who takes hundreds of dollars for a 5 minute counselling session. Or, you can try an online stock screener tool that gives you a thorough research of the stock market and finds you the best investment opportunities to put your money in.
The best stock screener tool will save you a lot of time and help you find the most profitable stock options as per your needs. You can customize your search results by price, revenue, interest, and so many other filters.
You can also reach out to other investors through the stock screener investor community. Interacting with more experienced investors will help you navigate through the stock market. Their financial advice will also give you more confidence in investing your money.
Evaluate your top picks
Once you get a list of best stock investment opportunities with the help of the stock screener and the investors’ community, it’s time for you to evaluate your top picks. Do a background check on the parent companies, their performance, and yearly returns. Also, find out how many investors are putting their money in those companies and how are they performing in the recent months.
Check out which companies are having the most earnings in the last two or three months and why. If a company is doing something right, you will find out by the growth of its earnings. But that does not necessarily mean that the growth trajectory has to be exponential. No, even small but regular earnings growth is a positive sign for you to take a shot and invest in the company.
Another important detail that you should check about these companies is their debt-to-equity ratio. Every company carries a debt, even Amazon. But the actual performance indicator is its debt-to-equity ratio. So, make sure you watch out for companies that have higher debt levels relative to their equity because that’s not good.
When you do this research on all the top companies on your stock list, you can picture yourself investing your money in each of those companies and getting the profit. It’ll be easier for you to choose one or two stock options when you have clear pictures of their outcomes in your head.
Welcome to the world of stock investment!
The stock market is not always a fair play, but a mind game. As an investor, you should be ready to take your chances on your hard-earned money with a bold heart and a speculative mind. With the right stock screener tool and strategy, you can easily find the best stock opportunities. When you do, place your bets and hope for the best. But remember, always make an informed decision before investing your money.
By Boris Dzhingarov
© 2021 Copyright Boris Dzhingarov – All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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