How to Pick a Good Stock For Investment

There are various factors that you need to take into account when picking a good stock for investment purposes, such as the company's profitability, operational efficiency, and so on. It is essential to learn about the stock market, how it works and how trading is done. You can easily find these useful information via the Internet, online articles, newsletters, reviews, etc.

It is always better to do some analysis before picking the right stock to invest. Technical analysis and fundamental analysis are the two basic areas of strategy to use in the stock market:

Technical analysis involves the use of trend lines, moving averages, chart patterns and technical indicators to predict the price movement, and to choose buy and sell points.

Fundamental analysis is a stock valuation method used to determine the value of a security. Examples of factors considered in fundamental analysis include cash flow, company debts, etc. Many stock traders use fundamental analysis or in combination with other tools to evaluate and pick stocks to buy.

* Next: Fundamental Analysis Ratio For Stock Picking