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/biz/ - Business & Finance

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197512 No.197512 [Reply] [Original]

What do you look at in a stock?

For the life of me, I can't figure out where to start, there just seems like there is too much information.

>> No.198137

Can someone sticky this?

>> No.198147

>>198137
sent ;)

>> No.198149

Trade volume
Short-term patterns
Research who's buying the big shares and why

>> No.198169
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198169

Solid wood construction, foremost. Metal fittings are a nice feature, but not required. Avoid soft woods. Also, check the neck clearance.

>> No.198191

>>197512
i just pull up their latest quarterly, their website, stock history, wiki page and drink it all in

then i search for more specific things, look up internet rumors and chatter (taking it with a pinch of salt obvious), comments by people speculating on their stock, comments on their products by consumers, maybe dox a few employees and figure out what they are saying

I try to tie major stock movements to news events, I try to find the sales of various products and how much money they are making, I learn about the limitations of the information I have

I then do the same for their peers, learning more about the industry

you just have to develop your own critical thinking skills and use them, when you are researching by yourself there is no teacher to tell you when you are wrong, no one to say "don't do that, that's a confirmation bias" or "that's a red herring, focus on something more important", you have to have mental discipline

>> No.198197

>>197512
Stocktwits.

>> No.198263

>>198191

>b-but XYZ is up 5% today I'm gonna buy
>down 0.26% crash crash crash sell sell sell
>where can I find all this already researched?

>> No.198326

Outstanding shares, current price, business assets, business debts, business earnings, basically everything Graham talks about in The Intelligent Investor and Security Analysis.

>> No.198855

>>198169
Eh, 6/10 I cracked a bit of a smile.

>> No.198863

>>198326

>outstanding shares
>not locked out shares

>> No.198901

First, I hear about the stock/think about the stock.
Then: I pull up TD Ameritrade(you can use Yahoo Finance) and look over it's price history, dividend(if any), P/E ratio, and peergroup. I also check news items, financials, and upcoming dates(conference call/earning report)
Then-then: I go to SeekingAlpha and look up the stock. Read bull and bear thesis on it, and try to pick apart their arguments in my head.

Ask myself if I'm happy with what I see, and how long am I looking at owning it for? Short term trade or long term?
How much am I spending on it? My minimum position is 2k. 20$ transaction costs(buy and sell), over 2k is only 1%.

>> No.199326

Bump

>> No.199360

I look at book to market ratio. If that's where I want it to be, I look at what the company sells, where they're positioned within the industry, and I check their financial health.

That said, if you're asking these questions, just buy mutual funds from Vanguard or DFA.