Thursday, May 12, 2016

What should I know about the stock I buy?

Hey there! I've been investing for a few years and I'm glad to say I'm in the positive. So far, my strategy has been buying well-known companies that are doing things I like. I buy several times a year, buying on the dips. I know you can't catch a falling dagger, but I at least want to get in on a down day or down week. Finally, I try to balance my portfolio rather than buy all one stock. I've only exited trades where I didn't like the direction of the company.

But, yeah, I know nothing about the underlying stock. I might like Ford because I think we are going to see an increase in car sales over the next few years... but, that doesn't mean Ford IS a good stock. I might like Zillow because I think people are going to buy more real estate online over the next few years... but that doesn't mean Zillow is a good bet on that market.

So, the question is: what can I do to make myself more informed? Like what numbers should I look at and where can I find them? If it helps, I do my stocks at Scottrade. I always hear about indicators and fundamentals, but I'm not sure what is useful and what is noise.



Submitted May 13, 2016 at 12:46AM by CreepySteveEnt http://ift.tt/1VVjF2R

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