Many have thought about investing in stocks. However, in which stocks is it more profitable to invest? How do I find the right stocks? There are no unambiguous recommendations in this regard, but there are some simple general rules.
Instructions
Step 1
Shares are securities issued by a company to raise additional funds. By purchasing a share or shares, a person invests part of the funds in the company and, thus, becomes its co-owner, gets the right to a part of the company's profits. Profitable investments in stocks can bring a fairly high return. But in order to invest profitably, it is important to have at least a minimum of knowledge in the field of securities and their circulation.
Step 2
There are two main ways of investing: investing in shares of a well-known stable company, which is growing slowly but surely and steadily, or investing in shares of a young, fast-growing company, which, however, does not have a high level of stability. Accordingly, the first path will bring you in most cases a small income, but you can be sure of this income, especially if you invest in "blue chips" (as the shares of the largest US companies are called). The second path can greatly increase your investment, but you should not be sure of this, since an unstable company can stop development and "go to the bottom". Those who are not afraid of risk choose developing companies. Which path you choose depends only on you and your knowledge and capabilities.
Step 3
To find stocks that suit you and choose an investment strategy, you should follow simple rules:
1. Before buying shares of a company, study the entire history of its existence, even if the company appears to be absolutely stable. A lot of information can usually be found on the company's website and on the Internet in general. Particular attention should be paid to information on the websites of well-known brokers and investment funds. It is best to analyze the history of the existence of several companies and compare them.
2. As a rule, it is more profitable to choose stocks of large companies. Due to the large size of their market capital, the risk of a decline in the value of shares due to the speculative behavior of traders on the exchange is quite low. They are also more stable.
3. Do not miss the opportunity to attend the general meeting of shareholders of the company whose shares you have acquired. So you can find out the future plans of the company.
Step 4
If you are unsure of your knowledge of securities, you can invest in stocks through a mutual investment fund (UIF). The specialists of the mutual fund themselves will choose the shares for you and form the investment portfolio. Nevertheless, in order to choose the right mutual fund and control its work, it is still better to have at least a general knowledge of investing in stocks.
