How To Pick A Profitable Stock For Beginners
Whether you have millions to invest or a couple hundred dollars, dedicating a certain amount of money to buying stocks is easy — choosing the right stock to buy is the difficult part. And if this sounds like you, don’t worry, we’ve all struggled to make wise investing decisions at one point or another and luckily, I’m here to guide you in the right direction!
So first off, what is a profitable stock? A profitable stock is any stock that is undervalued that you can acquire and then sell at a later date in order to realize a profit. Now, while this sounds easy enough, and it can be when using my advice, there is some work to be done to be able to identify these stocks and this potentially lucrative decision requires you to understand some core fundamentals with the respect to the companies you are investing in.
Core Fundamentals
Firstly, you will need to assess the price. Knowing the price of shares and their history as you evaluate a company’s stock, will indicate whether or not you may able to acquire a profitable stock. Second, there’s revenue growth. When a company’s revenues increase, typically so will its share price. Buying stocks companies that are consistent with revenue growth is generally a safe bet.
