How to Pick a Profitable Stock

by Gily Tenorio on October 5, 2010

in Stocks

Investing in stocks is one of the best investment you can ever have if you have the knowledge on which
stocks can be profitable in the future. When I say investing in stock, it means a long-term investment plan.
Meaning, you will put a fixed amount of your money in the stock in a regular period, just for example, P10,000 for every quarter.

Investing involves risk since you cannot predict what will happen in the future. If you do know what will happen tomorrow or next week, you will be rich instantly. However, all of us cannot predict what our investment will bring to us by guessing. We should have basis for our investment decisions or criteria we can use to select which stock will be a good investment.

Choosing a profitable stock involves predicting which stock will appreciate in price and will give good return through dividends. Some of the characteristics of profitable stock that I consider are the following:

1. It has low Price to Earnings (P/E) ratio

2. It gives consistent and increasing dividend

3. It has good management

4. It consistently innovates and increase it earnings

5. No debt or with low debt

Picking a stock is not easy for beginners since there are many stock you can invest in. However, if you will focus on 2 or 3 stocks you can have time to study them and decide for your self whether it will be a good stock to invest in using financial data you can get online. You may follow my recommendations above on how to choose a profitable stock.

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{ 2 comments… read them below or add one }

Danecca March 1, 2012 at 04:30

 this post is very informative. thanx for posting! =)

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learnfe March 1, 2012 at 06:12

Hi Danecca,

You’re welcome. If you have other questions about blogging, just drop me an email. I’ll reply as fast as I can.

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