Guides · Getting started
How to choose a stock as a beginner
In short: Pick a company you understand, check that it makes money consistently, that its debt is reasonable and that its price is not extreme compared with its profits. Then never put everything on one stock.
Understand the business
How does it make money? Who are its competitors? Will people still need its products in 10 years? If you cannot explain it in two sentences, it is harder to hold the stock when it falls.
The numbers to check
Revenue and profits over several years, debt, dividends and the P/E ratio (price relative to earnings). Each stock page on the radar shows them when available.
Risk
A stock can lose 50% even if the company is good. The radar shows each stock's expected volatility and risk of a sharp drop: two forecasts that proved themselves on years never seen.
FAQ
How many stocks should I own?
People often say at least 15 to 20 stocks from different sectors to diversify. An ETF does it in one go.