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How to Choose the Right Stock cont.

  • How long you have to invest – Risky investments may show instant profits, but safe ones will take a while to grow.
  • How confident you are in a stock – If you do not feel that the stock has growth potential, it’s probably not a good investment.
  • How good of a deal you can get – Find the right deal at the right time. You have to compare share prices and see where the best opportunity might lie.
  • Business fundamentals – Does the company have a high Price to Earnings ratio compared to others? What is their operating profit %? Do they pay a dividend?

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