How Do You Research for Good Stocks & Make Your Picks?

How do you usually research for a good stocks to buy? What are the things you are considering when picking stocks to buy? Here I want to open a discussion about researching for good stocks to buy.

Stock market investing will only become profitable if you bought stocks at a low price and sell it at high price. However, knowing undervalued stocks or stocks with low price will take some time. A reader asked this question last night through email.

If you want to ask questions about stock market investing, just go to contact page and send me an email message. The next time you will visit this personal finance and investing blog, you will get the answer to your questions in one of the latest posts.

Research for Good Stocks

When researching for good stocks, you must look fundamentally. There is a thing called “fundamental analysis” wherein you will analyze the stock performance. The past performance of a stock and the expected growth are one of subjects when analyzing stocks.

Use different financial ratios when researching for good stocks. You should study how much the stock worth. When doing stock valuation, you have to calculate the intrinsic value. You should know when the stock is at its margin of safety. Look for historical stock prices.

Research for Good Stocks from Good Companies

Many investors are looking for the best stocks to buy. Successful investors do buy only the stocks that has a room for growth or that has a potential for growth. When picking stocks, you have to consider stocks of a “good company”. Does the company provides high quality service?

Always ask yourself, if I buy this stock, do the company will grow overtime? Is it worth buying? Am I familiar with the products and services offered by the company?

What about you? How do you usually research for good stocks? Are you doing fundamental analysis? Or do you have your own stock analyst to do the work for you? Share your opinion in the comment box.