How To Become An Angel Investor
Stock Investors Should Invest in Companies That Have a Good Earnings History
There are many ways to become an angel investor.
This article will focus on the most lucrative ways to make money in the stock market.
Angel Investor Groups For Beginners
The method I would suggest first without any dought is to join VC Crowd, (See Below) That way you can be in a safe environment and you don't need any skills or experience as the club does all the work for members and give members shares every month as part of their monthly allocations.
The amount of shares you get depends on what level you join at. See the example image.
That's it simplified. Basically, The club builds your portfolio of diverse private shares in companies that have been through a rigorous selection and due diligence.
The club has had proven results in turnarounds and liquidity events and all members are extremely happy and excited about some of the startup companies in our portfolios and that includes me.
To join the private VC Crowd Visit Here for more information visit the posts below
Now Going It Alone – How To Become An Angel Investor
One of the other best ways to become an angel investor is to purchase options. Options give you the advantage of becoming an investor in the stock market without exposure to risk. If you are not yet familiar with the advantages of options trading,
This will provide you with some background on options trading and the terminology used.
If you want to make a large profit by investing in the stock market, you should do two things. First, you should invest like an Angel.
This means that you should invest money in shares and stocks that you know are going to go up. For example, if you know a company called XYZ, which is producing cars, you should buy a lot of shares of XYZ just before the stock starts to rise.
Then when the stock starts to rise, you should sell your shares and make a nice profit. This is a simple example, but this is what you should do.
Second, you should invest in something that you do not completely understand. This is because without understanding it, you are less likely to get scared and sell when it goes against you. For example, I would not invest in a drug company.
It is very risky because the company could fail.
So I would rather invest in cars. But if I do understand it, I will sell right away because the thought of it failing would make me sell too early.
The thought of your money going to a company you do not fully understand is probably the scariest part of options trading.
So What Should You Do? Angel Investing For Beginners
You should always invest money in something you understand. That means you should invest in companies like General Electric or McDonald's.
These are major companies that have large capital reserves, and they are already profitable. So you should always invest in stocks that have high intrinsic value and good earnings.
If you want to play it smart, you should pick stocks that have a history of going up in the long term. This means you should not pick companies like McDonalds or Proctor & Gamble.
These are companies with questionable earning power.
So they are very risky. Instead, you should look for companies that have made good profits in the past, and are somewhat well established. These companies have a better chance of making strong capital returns. The sad part is that they are not very stable.
Now then, How To Become An Angel Investor, They will have ups and downs in earnings, and the stock will probably fluctuate in value. But we are not looking for stable companies here. What we are looking for is companies that have a good earning history.
As I have said earlier about, How To Become An Angel Investor you should always invest in companies that have a good earning history. You can also look for good companies in the news.
Looking For Good Companies
How To Become An Angel Investor, If you are looking for good companies to invest in, you should read the financial statements of the company. Look for their strengths and weaknesses, their strong and weak quarters, and their expected financial results.
Look for the way they are using debt, and whether they are using debt wisely. You should also watch the quarterly statements to see if they have accumulated any debt.
The financial statements of a company are a statement given to the company shareholders that lists the assets, liabilities, revenue, expenses, shareholders equity and other information about the company.
Financial statements are required to be in the most current version. To do this you need the documents through the various exchange, usually the stock exchange.
In addition to the financial statements, you should look at the management team of the company. By doing this you will be able to know if the management have the right knowledge and skills.
You should check if the company offers great products or services. You should check whether the company have a patent of its product. If the company have a patent and it is used by other competitors, then this is a good sign.
You should check if the company has a current license. A current license means that other companies can use the product and can make products in the same line.
If the company offers great products then the stock price of the company should be high. If the stock price is low, then there is a possibility that the company may not be making good profits. This is a reflection of the stock holders losses.
You should also check the value of the stock. The value can be estimated by comparing the stock price with the value of other companies stocks. If the stock price is higher than the value of the other companies stocks, then the stock should be a good buy.
The most important thing that investors look at while choosing a company to invest in is the Earnings per share. Earnings per share (EPS) is a measure of profit and loss of a company. To calculate EPS you divide the net profits by the number of shares outstanding.
EPS is important because it is a measurement of how much money a company make over a period of time. This means the company made more money than it lost in terms of share price. The net profit can be considered as operating profit minus investments and losses.
Check The EPS Growth
If the product is great, you should also check the EPS growth and profit growth for the past three quarters, to see if the earnings are growing consistently. If they have, then you should go ahead and invest in their stock.