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Gopal Vyas@gopalvyas221
Nov 08, 2016 02:48 PM, 9667 Views
Trade How to Choose Good Stocks to Invest in:

There are literally thousands of stocks available for purchase on the stock market. So how do you go about finding the right ones to buy? Often it is helpful to use a stock screen, a set of criteria that you can quickly compare stocks against to see if they meet your requirements. You should first sit down and come up with a list of your investing objectives; once you have that you should be able to come up with a suitable screen . Your selection criteria for the initial screening should be a few quantifiable measures that you think are the most important for your investing.


Here are a few criteria worth considering(and of course there are many others):


Earnings growth


Recent earnings surprises


Price/earnings ratio


Dividends


Marketcap or size


IndustryRelative strength


10 Questions to Ask Before You Buy a Stock!




  1. What Does the Company Do?




  2. Is the Company Profitable?




  3. What Is the Company’s Earnings History and Outlook?




  4. How Richly Is the Company’s Stock Valued?




  5. Who Are the Company’s Competitors?




  6. Who Runs the Company?




  7. How Clean Is the Company’s Balance Sheet?




  8. Have You Read the Company’s 10-K and 10-Q Annual Reports?




  9. Are There Any Red Flags That Call Into Question the Company’s Integrity?




  10. Is the Company’s Competitive Position Sustainable?




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