Stocks are one of the best ways to create wealth, but it comes with the responsibility of doing thorough research and learning before implementing anything. Most times, newly listed stocks are one of the best to invest in, as you can get profits in the early stages.
With thousands of new stocks listed every day, many still find it hard to find good stocks; new stocks with a low P/E ratio are generally better than those with a High P/E ratio. Also, you should know that it is better to go for newly listed stock whose company has a lot of cash in its balance sheet than one with a lot of debt.
Note: This is not financial advice, Even though this method is risk-free at the moment, we can predict the future. Invest wisely.
Brace up, as we will be discussing everything you need to know about finding newly listed stocks, the top websites, and tools where you can find one, and how to make profits from them.
How To Trade Stocks
For those who don’t know much about the stock market, it can be one of the hardest things to trade in, but this is not entirely true because, with the right guidance, anyone can learn how to trade stocks.
Without wasting much of your time, trading stocks need only about four steps for you to start, and below we will be discussing those four steps.
1. Open a Trading Account
The first thing you would want to do before you can be able to trade stocks on the stock market is to open a trading account with any stock broker of your choice. When creating a stock trading account, it is always recommended that you create two; one to be used for constant practice and the other for your professional trading.
In addition to this, you should also read the reviews of the stockbroker you are about to choose to ensure that you are choosing the right one — Nothing spoils a trade like a bad stockbroker.
Just as said above, when creating a stock account, you should have one that is used for constant practice and one that will be used for the main trading. So, before doing anything in the stock market, it is better advised that you get a crash course about trading in the stock market and learn everything within your reach.
Since the best form of learning is by practicing, the next thing you would want to do is to implement what you have learned using the other non-professional stock trading account.
3. Set a Trading Budget
In the account used for practicing your trade, you can set up a trading budget to help you not exceed your limit. For instance, you can add about $500 only to your practice account, which will be used to practice constantly until you are no longer a novice in the stock trading market.
While using a practice account, learn how to use market orders and limit orders and also always check to see if you are making profits. Doing all these constantly makes you move from being an amateur trader to a professional trader.
Top Websites to Find Newly Listed Stocks
Here are some of the trusted websites where you can find newly listed stocks and others that can make you profits.
Motley Fool is a financial and stock market advisory website that can help you learn a lot about the stock market and newly listed stocks that can make you a lot of money. They offer different recommendations for both newbies and experienced traders about the stock market.
Each month, the Motley Fool offers different kinds of newly listed stocks that have the potential to make profits for a stock trader. Apart from the stock listing they do, they also offer services related to portfolio management and expansion.
This is another website based in Chicago that can offer stock traders a lot of advice and recommendations for newly listed stocks. They have both free and paid services, although you will get more options and choices when you subscribe to their premium.
The newly listed stocks’ recommendations are not limited to one location; they offer their services to those in Asia, the United States, Africa, Europe, and the Middle East. Other services they offer on their website include API integration options and hybrid securities research.
Although they are no longer popular as before, Yahoo! Finance is a goldmine for stock traders as you can find different kinds of newly listed stocks from which you can make profits.
Although you can still get a lot of information from their free services, subscribing to their paid services gives you many more features than you can imagine. Subscribing to their paid version gives you access to sweep in their portfolio holdings, stock worth summary, and daily trading charts.
Bloomberg is a news reporting firm that has built a good reputation for the recommendations they make around the stock and other financial markets. Stock traders can get from them the list of stocks currently doing well, as well as newly listed stocks with great potential.
The Wall Street Journal is very similar to Bloomberg as they both report everything happening around financial markets, such as stock and the crypto market. They offer detailed information about data fluctuation in the stock market and newly listed stocks that are doing well.
How To Analyze Profitable Stocks
To analyze stocks, certain things need to be put into consideration to make the right decisions around any stock you want to trade, and they are:
● Check the Price-To-Book (P/B) Ratio
When analyzing the stock you want to buy, one of the first things you should evaluate is the P/B ratio of the stock. The price-to-book ratio of a stock is the value of the company if it is sold or it crashes currently; this is very important as any company, with the right circumstances, can fold anytime.
● Check the Price-To-Earnings (P/E) Ratio
After the P/B Ratio, another thing to check when analyzing stocks is the price-to-earnings ratio which is the steak of stock if there are sudden increases in the stock’s price.
● Check the Price To Earnings Growth (PEG) Ratio and the Dividend Yield
When analyzing a stock, it is very important to check its dividend yield and the price-to-earnings ratio before purchasing to be safe.
Trading stocks is one of the best methods of making money, but you have to learn certain information about it to trade very well and make a profit.
Above, discussions of how the steps to take while trading stocks were held and how you can make a profit doing so. You will also learn about the top websites where you can go to learn newly listed stocks that can make a profit and how to analyze stocks.
Also, check out Arbitrage Trading – How to Trade Crypto With Zero Risk