How to Choose Stocks

Many see the economy as a great opportunity to buy quality stocks at bargain basement prices. Here are some tips on selecting stocks for your portfolio.

Difficulty: Easy

Instructions

1. Read the Standard and Poors financial guides. They release three guides (Small Cap, Mid Cap, and Large Cap) which give historical data on selected companies, ticker symbols, contact information, business summaries, and information on growth. Write down the ticker symbols of companies that look interesting and call the company to get a copy of their annual financial report to study. Companies with high assets and low debts are typically good bets.

2. Look at the Value Line Investment Survey. You can typically look at them for free at the library. These reports let you access data and figures on hundreds of companies in minutes. Look for companies that have a cyclic pattern and buy on the down cycle and sell on the up cycle.

3. Check out the mall and see what stores are busy. Then request a copy of their investor report. A busy store often suggests great profit potential.

Tips & Warnings

• Always consult your appropriate adviser and realize that the stock market can go up and down.

[missnye]

on 11/29/2009 Huh? I thought it was on how to choose sox. Good article!*****