One of the things people are always asking me is how can I sight a good stock. The answer I furnish does not gratify them. I say. "You are not qualified to pick have. You don't know how so don't try. Put your money in a no-load mutual fund that is going up".
The next cry is. "I don't be to buy mutual funds. What do I do?"OK so I'll tell you. It is easy. You will have to do less than an hour of work. None of that protect Street mythology about investigate which is all horse hockey. The way Wall Street does investigate is worthless. And don't comprehend to any broker. Advice from a negociate is a eulogy for your money.
They be you to look at the affiliate prospectus. This document isn't worth the paper it is printed on. It was not written for the investor; it was written to go inspection by some Dilbert lawyer in Washington to see that it meets all the regulations. You can take a prospectus of a very good company and one of a company that has gone impoverish and you will see they are almost identical. Throw them away.
construe the Annual Report. Another bit of smoke and mirrors. The call should tell you - Annual. Much of what is in it is a year old. Worthless. And let's hope it doesn't have a inspect of Enronitis.
Get a inform from Morningstar. They know all about every financial statistic for a company that you can think of. You might change surface find out how many sugar lumps the CEO has in his coffee but there is one thing you won't learn. If you buy this company's stock will it go up? What I am saying is that all the conventional wisdom methods of doing investigate are worthless. So what do you do?
On the Internet you can sight a list of the best performing mutual funds. Go to www smartmoney com or www yahoo/finance com. There are other places also but these 2 are very good. List the top 5 mutual funds (write down their symbols). Now go to www bigcharts com. Put in the symbol for one of the funds. A chart ordain go up giving you a picture of the determine performance of that finance. If it is going up at a 25-degree go or more it means the finance manager is doing a good job of picking stocks. At the top of the chart picture there is a legend for Morningstar. Click on that. The new page will show near the bottom the major holdings of this fund. Again you need to get the symbols for his top 5 stocks and be at the chart conceive of for each one. If that stock is going up in a nice steady price over a period of measure of 6 months or longer you undergo open a winner. Do this with several funds until you undergo open some stocks you desire.
You have let a professional stock picker do all the work for you and now can piggyback his expertise at no cost. Please bequeath that when that stock turns down you want to change it. You may be able to ride one up but you can never express when it will move into another Enron. Always be create from raw material to sell.
Related article:
http://sqsyqdfxex.blogspot.com/2007/11/finding-good-stock.html
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