Originally Posted by
Footballpunter
*not financial advise* The stock market has been a total disaster since 2021. S&P500 down 20+% last year and so is nasdaq. However, there are still ways to make money in it. To start, you have to pick a company with good underlying fundamentals. This is also called fundamental analysis.
Here is an example of many you can do. Take a look at a company's financial report, look for their free cash flow, if they are cash flow positive, then pit it against their total debt. The question you are asking here is do they have the availability to pay off their debt. If yes, then that's good. If not, then ask how long can they last until they run out of money? Let's say for a shitty company like Nikola, they only have enough cash to stay afloat for 6 more month. Then you know that within these 6 month, you would have to 1, do a stock offering that will dilute their shares, meaning stock going down, or 2, borrow more debt, which will put pressure on the bottom line with extra interest payments. So just by doing this simple and quick analysis, you know that this stock is gonna tank. And guess what, they just recently announce they will do a stock offering that will double the current shares outstanding, or in simple terms, a $2 stock will turn into $1 stock afterwards. When you have this kind of knowledge, then you probably won't invest in it and lose money.
*again, not financial advise, don't sue bro*