Guide for Those Willing to Start Investing

Great Tips for Novice Investors

Taking into account the difficult conditions of modern life that often cause financial problems, more and more people start to look for additional sources of income. And one of the most popular options is purchasing stocks. The number of companies represented on the stock market is constantly growing, that is why for novices it might be quite difficult to make the right choice. The following guide will provide useful tips, following which inexperienced investors will be able to avoid numerous mistakes.

twitch stocks

Financial situation

All companies that are represented on the share market provide information concerning their financial situation to stockholders. Thanks to the reports, which are usually published on the companies’ websites, it is possible to find out how much the firm earns or owes, among other things. When you open the report, you will probably be confused to see a lot of strange words and numbers but remember that the most important indicators you should pay attention to are the following ones:

  • revenue;
  • EBITDA;
  • net profit;
  •  

If these indicators keep growing, as in the case of Twitch stocks, it is a good sign and you can start considering investing in the company.

Dividends

It is also important to check whether the company you are interested in pays dividends to the shareholders. As a rule, the information on this subject is indicated in the firm's dividend policy. Thus, you will be able to find out how much dividends are paid by the company and how often it is done. The bigger this indicator is, the better it is. Usually, the dividend range of companies varies from 2% to 12%.

Stock growth potential

It is essential to understand what will be the future of the company to successfully earn on its shares. Predictions of how much the stock might increase are usually made by experienced analysts. Reading various forecasts, you can find out different experts’ opinions and make some general decisions. Later, after you acquire more experience in this field, you will also learn to make some predictions regarding the future of the share market representatives.

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