Investment Tips

Stock Trading Ideas on Picking Stocks, ETFs, Learning Metrics and Patterns, & Much More

When you decide to give stock trading a try, the most obvious thing to do is do your homework. Furthermore, you need to know how to evaluate each option, regardless of your trading style. There are tens of thousands of stocks out there waiting on you to buy or sell. It helps to subscribe to investing newsletters that offer stock trading ideas and picks, but you must also learn as much as you can yourself.

Here are a few tips to help you out (assuming you are getting your portfolio prepared and have established your risk tolerance):

Think about the industries that interest you. Then check those industries’ performance and the companies and stocks involved. You can do this by looking over exchange-traded funds with a focus on that industry. What are that ETF’s top holdings? From there, you’ll need to filter the stocks based on specific criteria such as a particular company’s dividend yield and investment metrics.

Of course, you can always invest in the ETFs themselves. This investment is a comfortable option for those who want to diversify their portfolio but don’t want to do the work in narrowing down specific stocks. ETFs are somewhat similar to mutual funds, except that the former are listed on exchanges and share trades daily like any ordinary stocks.

Stock Trading Ideas to Play it Safe

If you want to play it safe with stock trading ideas, invest in one of the big-name corporations here to stay and won’t be going anywhere. These include Netflix, Amazon, Apple, AMD, Visa Inc., Walmart Stores Inc., and so forth.

Get yourself a Robo-advisor. These are becoming more mainstream as they help consumers who need low-cost advice. Online brokerage firms often offer a Robo-advisor as part of their services. In short, they are digital platforms that provide algorithm-driven, automated financial advice, and planning services. They base their advice on the investor’s financial situation, interests, future goals, and so forth.

Familiarize yourself with some of the metrics investors look at when researching stocks. These metrics include earnings per share (EPS), price-to-earnings ratios (P/E), return on equity (ROE), and so forth. As you learn more about analyzing stocks, you might start to identify patterns. You can then relate those patterns to how a share’s price may change in the short-term and long-term.

In times of economic turmoil and crisis, some unexpected opportunities are worth trying. Learn about these stock trading ideas by checking out Capitalist Exploits and their resources and picks.

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