Beware of “cheap” stocks

We are all looking for cheap stocks. Because if they are cheap, they will soon rise. So say our logic. But when is a stock cheap? Here are a review of  the most common tripwires when speaking generally about cheap stocks.

The best that could be desired as a private investor is to buy a cheap stock. To buy cheap and sell expensive is what we all dream about. But just wanting to buy a cheap stock unfortunately opens for a whole series of errors that may come to cost much money.

What determines the price of a stock?

This article explains what controls the price movement of a stock. There are three driving forces: economic growth, industry trends and the company's management. More than half of the share price is determined by external factors, which management has no control of.

When you invest in stocks, it is important to do some analyzing to find the attractive stocks. And let it be said at once: It is not an easy task.