Stock Trading and Other Things

What are Key factors to consider when investing in stock market?

What are Key factors to consider when investing in stock market. I am looking to invest in smaller companies with smaller stock prices. I am also looking to invest short term and long term. What are key factors to consider when investing short term and long term. Such as, P/E ratio, dividend yield %, profit etc...

Public Comments

1. ENRON

2. Investing is about investing in businesses, yes the various ratios tells you something about the business but as an average of say temperature over a week is less indicative of overall average then one of the entire year, these "key factors" are less accurate and less indicative of the business as the businesses gets smaller. Smaller businesses are difficult enough to research and the data is of course less reliable as the business are smaller. Many brokers will deal with fractional shares, a small price on the share is not an advantage. Knowing the business is an advantage so you're looking in the wrong places for an investment.

Being a penny stock isn't a detractor from making a business a good investment but penny stocks are not where you go to find good investments, there are fewer there and it's harder to determine who they are. Small stocks at small prices are not for beginners and experts find easier pickings else wheres.