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Beginner’s Guide To Stock Investing: How To Find Low Risk Stocks

As a beginner to stock investing, you want to start out with very simple and low-risk stock picks.   These stock picks aren’t necessarily 10-baggers (1,000% return on your investment) but they mitigate the risk of losing (too much) money.  These are stocks that will, for the most part, follow the market.  As a beginning stock investor, I feel that it is extremely important to start out with low risk stocks so you can get a feel of how the stock market reacts to certain news, numbers, and rumors.  Here are several important metrics you need to look at in order to find a low risk stock as a beginner to stock investing.

Earnings Per Share (EPS) of over $2

EPS stands for earnings-per-share.  This number is calculated by taking the profit of a company and dividing by the amount of shares outstanding.  In its simplest form, here is what the formula actually looks like:

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