A tip for trading stocks is to remember that while smaller companies involve more risks, they often offer a higher reward than the larger companies when investing. Another tip for trading stocks is to be patient because it can take years for an investment to pay off and too many new investors want to cash in after a few weeks or months, notes Forbes magazine.
Another tip is to pay close attention to the earnings of a company including its book value and its operating cash flow, reports Forbes. This ensures that the stock is not bought at a higher rate than it is worth, which can sometimes happen when purchased from the over-the-counter OTC markets, reports Forbes. It is also important to know how to get up-to-date and reliable trading data (OTC markets), notes Forbes.