Stock Playing Strategy for Beginners, Choose Stocks from Preferred Industries

Before starting any investment, make sure you have studied the potential risks and rewards that you can achieve so that they match your investment goals. Don’t forget to learn from the experiences of those who have done it, and you can start from our official website, http://www.forexkenya.net/.

Stock investing has a big risk, so beginners should start from a small amount first, for example, around 10 to 30 million. Remember that you can lose money in investing in stocks because the risk is quite high. Start small as you slowly explore the stock investing environment, so that even if there are downsides, they won’t be too big. If you don’t like news, now is the time to be diligent in following business, economic, and even political news. Stock investing is best done when the economic situation is stable or experiencing an increase. You must be clever at reading the economic situation of the country to make an assessment (at least a rough assessment) of economic growth.

The best stock investing should involve an understanding of the product, so ideally, novice investors should choose a product they like. You can choose stocks from companies whose products you use frequently or companies whose products are something you are familiar with. However, don’t forget to look at the reputation and actions of the company, including the opinions and observations of economists on its potential. The ideal stock must have a large market capitalization.

This is so that the share value is not easily manipulated by individuals for their interests (the term “stock fryer”). Individuals with sufficient capital are usually able to manipulate the price of shares with small market capitalization values, but they cannot do so with large stocks. PE is the term for the ratio of price per share divided by net income per share only. There is no stipulation on how big or small the PE value limit you have to choose because this must be compared with PE of similar products. This is the importance of having insight into other products that are similar to the stocks you choose to invest in.