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Step 1
Sectors.
One good way of looking at stock is by the sector. For instance, the financial sector. When a few of them were going bankrupt, it brought the price of many of the others down as well. So other stocks in your sector can sometimes affect what you stock does. -
Step 2
Read charts.
If you do not know how to read charts, learn. This is one of the most important things about the stock market. This way you can look at how it has done in the past to predict what it will do in the future. There are multiple functions on a chart, so try to learn and understand the majority of them before you start buying. -
Step 3
Wait for a good price.
After you have learned about the stock market and how to buy and sell. You might just be ready to buy. Even if the stock only goes down a dollar before it rallies, that makes it where you can buy even more shares. So look for the signs to see what the stock market is doing. -
Step 4
Watch the stock market regularly.
Even if you do not have money invested yet, start watching. That way when you do start to invest, you will understand what is going on in the stock market. This will help you better your chances of making a good pick. -
Step 5
If you would like more information be sure to click related articles on this page, for links to similar ehow articles.
Comments
TheTradersCoach said
on 11/23/2008 Let's add step 6:
Stocks in tension - like a pendulum, stocks tend to seek a balance, price-wise. So, including all 5 steps above, look for stocks in a state of price tension. This approach releighs on pure technical analysis.
John McLaughlin, Stock Trader - Consultant / Coach / Mentor
http://www.DayTradersWin.com
luv2blog said
on 11/7/2008 This is very helpful. Adding to my favorites. Picking the right stock has always been difficult for me.