subject: How to Find a Good Stock to Invest [print this page] To find a good stock to invest is not an easy task but with the help of stock broker it can be so easy for any investors but to find a good stock broker is another thing that requires some research work, you can start by contacting your friends who have being in the business for quite some time and let him know your intention.
Secondly, make sure he has practiced gainfully before meeting him, possibly you can ask him to introduce you to his broker; having done that you must watch the instrument you intend to buy and you should not just leave every thing to the broker, as it is a matter of money and should at least read some articles on stocks trading or attend one or two seminars on stock trading, though that does not make you a professional but to enable you have an idea of what you want to venture your money.
Having done that, you should have gathered a bit of knowledge on stock trading, then you can go online as we are in a jet age time, the internet has made everything easy for us all, any one can find facts about various companies stocks, there are lots of them; you can even trade stocks online now but that is not your prerequisite, as that requires proficiency.
The liquidity of stocks is when you can sell your shares profitably; this can be done when you see that the volume of that particular share within one previous week is high, and then you can liquidate your shares.
Another important points you have to act upon are, to take time and study the undervalue stock to avoid them.
These are four factors you have to study to know, if certain stocks are under valued or overvalue:
These are market capitalization Strategy: P.E Ratio, E.P.S Strategy, Timing of the market is also important.
After discovering the stocks of your choice you can now meet the broker introduced to you and ask him some questions on the instrument found online, if he has a good opinion about them you can then venture into the instrument through the broker, as some one who is not a broker can not self trade except by the trained brokers.
These are 3 Categories of stocks available for investment:
Small Cap Stocks: these are stocks that are traded in cents and are very risky because they are very volatile.
Penny Stocks: Are Stocks traded between $1 and $5; they attract medium risk but they more stable than the cap stocks.
Blue chips: These are more stable stocks that are traded above $5; I rather recommend these set of stocks for a beginners to venture, investment on these types of stocks are usually profitable because the companies are readily established.
What I am saying in essence is that, you should try your possible best to see that what you intend to do is what is what doing well before putting your money on it by making some findings.
Written by: BG. Olatunji How to Find a Good Stock to InvestBy: Boluji Olatunji
