Are you going to be a long-term investor or a short-term trader?

 The basics  When it comes to choosing stocks to invest in, there are a few basics that you need to understand. The first is that there are two main types of stocks: common stocks and preferred stocks. Common stocks are the most popular type of stock and they are what most people think of when they think of stocks. Preferred stocks are a bit more complex, but they can offer some advantages over common stocks. The next thing to understand is that stocks are bought and sold on stock exchanges. The most well-known stock exchange in the United States is the New York Stock Exchange (NYSE), but there are also exchanges in London, Tokyo, and other major cities. When you buy a stock, you are buying a piece of a company that is listed on one of these exchanges. Lastly, you need to know that there are different ways to make money from stocks. The most common way is to simply buy stocks and hold onto them, waiting for the price to go up so that you can sell them for a profit. However, there are also other ways to make money from stocks, such as short selling and dividends.  How to choose stocks to invest in: Doing your research .Once you understand the basics of stocks, it's time to start doing your research. The best way to find good stocks to invest in is to use a stock screener. A stock screener is a tool that allows you to filter stocks based on certain criteria. For example, you can use a stock screener to find all the stocks that are trading below their 52-week high. When you use a stock screener, you can also set up alerts so that you will be notified when a stock meets your criteria. This is a great way to find stocks to invest in, because you can let the screener do the work for you. How to choose stocks to invest in: Deciding what to buy  .Once you've found some stocks that you're interested in, it's time to start deciding what to buy. The first thing you need to do is figure out your investment strategy. Are you going to be a long-term investor or a short-term trader?  If you're a long-term investor, you're going to want to buy stocks that you believe will increase in value over time. For example, you might want to buy stocks in companies that are growing rapidly or that have a lot of cash on their balance sheets.  If you're a short-term trader, on the other hand, you're going to be more interested in stocks that are volatile and that move up and down a lot in price. These stocks can be more risky, but they can also offer the opportunity for quick profits. 

Author Sezgin Ismailov