Beta is the relation of a stock to the market. This is a way for stockholders to characterize a stocks movement. A Beta stock can move in three ways. First, a stock can move with no relation to the market. The market can experience an upward movement or head down yet the stock might not move. Second, a stock can move like the market. If the market moves up so does the stock. Lastly, the stock can move inversely from the market movement. Beta can be seen in most stock screens and is a good description of most stocks.

Risk. Risk can be computed through a stocks beta. If the number of the beta is 0.5, this means that the stock moves less than the market. If the market experiences a loss of 1%, the stock will only shift .5%. However if the stock shifts up, the stock will only gain .5%. This is known as the risk/reward tradeoff. In business, it is a common saying that ‘higher the risks, higher the profits are’.
The easiest way to making the high profit and low risk stock picks is to utilize online sites. If a non-experienced stockbroker chooses a stock without aid, the chance of getting it wrong is high. Wrong means loss of money, simple as it is. The other way around is to contact firms, that specialize in stocks. However, this option means having to spend for consultation.

The success of earning through high profit and low risk stocks is rooted in studying the stock market well. Effective consultation is also a way to lessen risk and increase profit.