What do you look for when picking stocks?

Question

What are some important things to consider when buying stocks?

Answer 1

Industry, general market conditions, the history of the stock, and the risk involved. Buy in gloom, sell in boom.

Answer 2

1

Answer 3

First of all, you need to know that buying stocks and hoping the price will go higher is not the only way to invest in stocks.

Another way to profit is to find awful companies and bet that their share price will go down (short selling or shorting).

When you bet on stocks going up, you're afraid that the market will crash.

When shorting, you're afraid that the market will go up.

My advice: bet half of your money on each side of the market, so that you can make money whatever the market does.

Now to your question: there are many things to look at when investing in a company.

If I had to choose one single factor before buying shares of a company, it would be what the insiders are doing.

Imagine that you are the boss of a listed company. If you know that you will deliver blowout results for the next quarter, wouldn't you be tempted to buy shares of your own company?

As long as you file your transaction within 48 hours, it's legal.

You can have access to information about insider transactions on Yahoo! Finance. The first link is to insider transactions for IBM. For information about other companies, enter the ticker right of "Get Insider Transactions for:".

The second link is to my website, in case you want to know more about this approach.

Let's make money!

Good luck

Marc

Answer 4

I buy in companies that I do business with & still appeal to me after I have researched the company. I would never purchase a fast food chain stock due to the fact that I don't eat there. Nothing against them, I simply don't do fast food.

Also... pay attention to the FUTURE. Think of what will be needed by you, your family, those around you & your government. : )

Answer 5

Is their product a vital product? ie oil
Is the economy expanding rapidly? ie India and China
Are they a monoply? Microsoft
Do they pay a good dividend that is increasing? Bank America
Do they have a good growth record over a long period of time? MMM
Are they non-cyclical? drug companies and health care
Are they a leader in their field? Canon
Are they a good company currently out of favor? Home Depot, MMM, Microsoft, Wal Mart

Do they have a low PEG ratio? APA, COP, DVN, NBR

Answer 6

In actual fact the best indicator for share selection is to look at charts for that particular company. I have finished a course by Nik Halik that educates you in this area- its helped me out so much! If you go to http://www.customcases.com.au and then click on " Financial Freedom Institute" for further information on the course.

Another great resource is this FREE 295 page E-book that looks at Shares and Property, great intro read. You can download at:

http://www.masteryinwealth.com

Good luck!

Answer 7

perhaps you can try forex. which is also excellent way for you to invest.

The FOREX or Foreign Exchange market is the largest financial market in the world, with an volume of more than $1.5 trillion daily, dealing in currencies. Unlike other financial markets, the Forex market has no physical location, no central exchange. It operates through an electronic network of banks, corporations and individuals trading one currency for another.

try forex from here:

http://www.bernanke.cn/easy-forex/

Good Luck && Wish you make a fortune!

Answer 8

consider 3 things: fundamental analysis, technical analysis. and sentiment analysis. you have to look top down approach like, look at the economy,the market, sector that your stocks in, and finally your stocks
Yes you could learn invest by yourself. it is your money, you should know how to do with it. for starter check this site out.

http://www.pathtoinvesting.org/index_fla...
http://www.stockcharts.com
http://www.streettalklive.com>... university. a lot amount of information. It will serve you well
I accumulate in good amount in 401k at the young age.I could share with you. when consider invest in stock market. you should consider basic 3 things:

fundamental analysis==(economic data,finincial health, management, business model, competetion)>>what to buy

technical analysis==(chart+indicator)>> when to buy

Sentiment/schycho analysis==>>mood of investor, Contrarian point of view.
Market cycle===>> check out book Trader Almanac by jeff hirsch will give you inside stuff
When you combine 3 thing, It is one of the powerful knowledge goinh with you for the rest of your live

At the age of 32. my 401k is amassed 74,000.00 and 30000.00 in taxble account. by follow simple rule

Answer 9

companies that are adept at using martket resources whatever their field may be that are constructive and socially conscious,and either help the quality of life on the planet or provide basic needs,

Answer 10

a sustainable competitive advantage, a long history of increased earnings, lots of free cash flow, a low PEG ratio