i want to learn how to pick stocks
 

I read the Wall Street Journal when I get the chance, and I've read "One Up On Wall Street," but I still don't feel like I know anything about predicticting the future performance of a stock. can anyone point me in the right direction?

Re: i want to learn how to pick stocks
 

Link for predicting stock performance.

Re: i want to learn how to pick stocks
 

1. Buy some cheap darts and a corkboard and some scotch tape.

2. DO NOT practice your aim. Just throw.


natedogg

Re: i want to learn how to pick stocks
 

1. Buy some cheap darts and a corkboard and some scotch tape.

2. DO NOT practice your aim. Just throw.



I bought a chimp and trained him to do this for me. They are also excellent at choosing agricultural commodities. If you can't afford a chimp, a rhesus monkey will do the trick but they don't diversify as well. I use them for executing trades tho, like Chewy below:

http://coecs.ou.edu/Sarah.J.Crain/computer_monkey.jpg

Re: i want to learn how to pick stocks
 

Go to the best business library in your area.

Read Buffet'ts letters at www.berkshirehathaway.com

Re: i want to learn how to pick stocks
 

I have a trading system that makes millions of dollars a day, but I'm just too busy to actually use it myself, so instead I sell it to people like you for a $25 Neteller transfer.

Re: i want to learn how to pick stocks
 

What's your account?

Re: i want to learn how to pick stocks
 

[ QUOTE ]
I read the Wall Street Journal when I get the chance, and I've read "One Up On Wall Street," but I still don't feel like I know anything about predicticting the future performance of a stock. can anyone point me in the right direction?

[/ QUOTE ]

Expert advice:

1.) Find a good stock and buy it.
2.) When it goes up sell it.
3.) If it doesn't go up don't buy it.


Seriously, the big money in stocks has been made by people who buy and accumulate undervalued stocks. Market downturns are seen as buying opportunities. You need cashflow and conviction. Start with material by Benjamin Graham and Warren Buffett. Don't read internet stock message boards!!

Re: i want to learn how to pick stocks
 

Learn to read a 10K and 10Q.

Learn Discounted Cash Flow analysis.

Learn how to spot warning signs by trends that occur on the balance sheet.

Learn the basic ratios and how to screen and narrow down the field.

Learn how to break a business's model down into a paragraph or so, and then honestly debate the merits of the business model with yourself.

Learn to be patient.

Start looking at small and mid cap stocks that are less likely to be efficiently valued.

Buy and hold stocks that you believe in based on the above foundation.

Re: i want to learn how to pick stocks
 

Disclaimer: I am just some guy who is NOT an accountant or financial advisor.

If you're going to think of it as "picking stocks", you should probably stick to index funds.

Start by identifying some publicly-traded firms you would like to own. Then, for each firm, figure out how much you'd be willing to pay to own it. (You can make do with basic math, but you cannot do without common sense.) Consider the firm's position relative to actual and potential competitors. (Sometimes you'll have no idea how much a certain firm is worth. When this happens, either gain more expertise or move on to the next possibility.)

Once you are comfortable with an estimate of the value of a firm, compare your estimate to the firm's market capitalization. (If buying the whole firm for it's current market capitalization is a good deal, buying shares of the firm's stock is also good deal as well as long as management's interests are aligned with those of shareholders.)

Perform a bit of due diligence before buying. Look at how management expenses employee stock options, finances acquisitions, takes care of rank-and-file employees and suppliers, etc. If the price is right and if you have no qualms about what the firm does or how it does business, buy some stock.