Become a Wise Investor

To win in the stock market you must actively monitor your stocks. In addition to this you must become a great researcher. Before deciding on a stock to invest in you should do a google search of your stock. I typically like to google "buy or sell (Company Name)". This usually brings general data regarding what analyst predict on the future performance of a stock. A buy rating signals that the analyst, typically from a credible research firm or financial position, feels optimistic about the future of that stock. Hence, he recommends that other individual buys the stock. However, before buying this stock you should do further research.

It is important that investors focus on what changes are occurring in international laws and trade agreements. Today tariff's are disrupting the health of our stock market. Thus, it is important that we keep in mind how products that use up the affected raw materials are affected in price and how the companies profitability is also affected.

In addition to reviewing the predictions of several analyst, I move forward to reviewing financial statements. Typically Public stocks listed in the Nasdaq are required to submit financial statements. The name of this file remains the same across all companies. It is called the 10k Annual Report. By googling the company name followed by the term "10k Report", you will be directed to the company page that provides info on the financial performance of the company. By practicing reading 10k reports you will be able to learn and master the skeleton of the company. An important aspect to focus on are the revenue in the current year compared to previous years. What is the trend? If its upward this typically signals future growth potential. In addition to this figure, I then move to the net income section. The net Income focuses on the profitability of a company so it is important that the net Income is positive. In addition to net Income, I observe the company debt. Is the debt high? Is it increasing or decreasing? These are important aspects because they shed light on the overall financial health of a company.