So many companies! Which one shud i...

[terra1174]

Hundreds of companies are listed for me to buy stocks from. the problem is which ones should i trade stocks with? how do i tell the bads from the goods? this problem been puzzling me for quite awhile now. u can tell by that i'm jes a newbie

Helps be appreciated! thank you

[WallStGolfer31]

I don't know how new you are to investing, so I'm gunna just start off with the utmost basics.

First know what you are looking for, then use a stock screener or summary to find what you are looking for. Narrow it down from there.

[Stocktrading101]

Terra, your best bet is to start reading some books and keep exposing yourself to more. It is excellent to be asking questions, and I am happy to see you doing so! Choosing a good company to invest in comes by narrowing down the field by finding what you are looking for and going from there. The two major ways to narrow down a stock are based on fundamental research or technical research. Fundamentals are the main stats about the company, Earnings per share, How big it is, Sales Growth, etc. while technicals can be based on how much volume (which we covered in the other thread) the stock trades, patterns, and the like.

As always, I hope this helps Terra, and I wish you the best with your entry into the stock world.

-Blain

[terra1174]

First of all, thanks to Blain and Golfer for your time

So you guys are saying that it's important for me to know what i'm looking for and that i should choose a good company based on fundamental and/or technical reseaches. That means i should take more times understanding a certain company before i invest it in, instead of simply investing hoping the price will go up? I guess i was wrong then....

Another thing is, how do i know what it is that i am looking for? i do not have any ideas? Mind giving me some examples?

[Matt Moss]

For starters, instead of looking for companies, I would start by looking for investment strategies. As Blain stated, there are two main schools of investing: fundemental and technical analysis. Fundemental analysis involved looking at the balance sheet, the multiples, and various financial ratios compared to benchmarks or industry averages. Technical research involves studying price-volume charts, momentum, oscillators, and other methods not necessarily reliant on what the company does or its financial position.

You can learn about these various methods of investing at www.investopedia.com, www.investors.com, www.stockcharts.com or by simply doing a GOOG search. While there are pages and pages of information about these two schools of stock picking (you can spend a lifetime studying it), specific questions on various aspects can be answered by forum members if needed.

Once you have your strategy in place for how you're picking stocks, you're much more equiped to screen for stocks because now you know what you're looking for. The first step, however, is to figure out your strategy.

Good luck!

[gijoe9]

Hi Terra Here is what I do when I am looking for an opportunity. I READ A LOT. I read on several internet sites including this one I read business and local news. I stick to things I know and understand. I know about resource based companies because of where I live. I know a little about manufacturing for the same reasons. I know a little about tech compnies becase of the time I spend on my computer.
I look for the bigger companies in those sectors and then I start to assess where they stand right now. I also look for juniors who are growing and have the potential to grow bigger than they are now.
How I choose them is based on the reaserch I do on that company. I also talk to my friends about the companies I find and get their opinions on them.
I developed this way of finding stocks over a period of a few years and as I continue to learn I refine the process. You must start by learning the language of the market and this takes some time. As you begin to learn you will find your questions will change and become more specific. It takes time, a little patience, and some determination to learn this stuff.
I hope this has help you and if not please keep asking questions.
Joe

[terra1174]

....I feel....enlightened by what you said, joe! i think i know what to do now. thanks, you're a good moderator, you too Matt!

[gijoe9]

You are welcome