Step 1. Grab a Book form the library try to understand 'equity securities.' As an equity investor, when you buy stock you take an ownership stake in the company and assume a corresponding degree of risk. Which is why you want to do the required research listed.
Step 2. Grab a newspaper or a book to learn the language of the market, familiarizing yourself with such NASDAQ financial terms as 'price-earnings (PE) ratio,' 'margin,' 'option,' 'earnings per share' and 'leverage.'
Step 3. Analyze the holdings of several successful fortune 500 mutual-fund companies, noting which stocks they have held - and dumped - over the past three or four years.
Step 4. Start by reading the quarterly and annual reports that several large corporations have filed with the Securities and Exchange Commission (SEC).
Step 5. Sit down and start researching companies that you have personal knowledge of and a high degree of confidence in. Evaluate their SEC filings, looking for trends that indicate growth and continuing profitability.
Step 6. Online Research. Dozens of companies offer financial news, advice and analysis online
Step 7. Take advantage of all the information your brokerage has to offer regarding individual stocks. There a many other stocks available. Know what you are buying - and why - before you invest.
Step 8. Invest on paper for a few weeks and carefully monitor the performance
This process can be easy if you have the willpower and knowledge to move ahead
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