Easy 3 Steps to Great Stock Picking
Posted by HanaDaddy | Posted in Investment Tips and Ideas | Posted on 09/21/2009
Tags: portfolio management, stock, stock analysis, stock pick, stock picking, stock picks, stocks
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Stock picking is a very complex process and investors have different approaches. However, you should follow the general instructions to minimize the risk of investment. This article will explain the basic steps for stock picking performance.
Step 1. Decide the time and the general investment strategy. This step is very important because it will dictate the type of stocks to buy.
Suppose you decide to be a long term investor, you want to find stocks that have sustainable competitive advantages along with stable growth. The key to finding these stocks is to look at the historical performance of each stock over the past decades and do a simple SWOT (Strength-weakness-opportunities-threats) analysis on the company.
If you decide to be a short-term investor, you want to join one of the following strategies: