The following is a collection of some basic stock market tips to give you a head start into the world of stock trading and/or investing.
3. Target growing companies with a strong balance sheet. A key metric to watch out for is the amount of debt a company employs in its capital structure. A company with a higher debt to equity ratio than the industry average should be considered a risky investment. Study the cash flow statements of the company over a period of time to determine whether the company is able to cover its debt interest obligations with the amount of cash it generates from its operations.