This page shows you how to research a stock, that you've heard from a friend, CNBC or some other source. If you don't have a stock in mind, go to the Stock Picks , top sites , Strategies section and technology pages for some ideas.
If you want to retain your hard earned cash you will need to do your DD (Due Diligence) before purchasing a stock. Invest only money that you would be willing to lose. Don't invest your rent money in the stock market. Please see our disclaimer.
If you are just starting out we recommend that you diversify your portfolio. Diversification is important, to reduce your portfolios risk. Don't put all your eggs in one basket. Now that you have a stock in mind, how do you check it out?
Will this stock go up, go down, do nothing? There are many theories on how to predict this. The two main methods of assessing a stock are fundamental analysis and technical analysis. The former looks at a stocks fundamentals. This is what kind of company, its prospect for growth, how good its earnings are. The latter looks at the past and recent price history of the stock or the chart. This chart will tell you the strength of the company without every looking at the fundamentals. We like to check a number of sources on the internet and some non-internet sources. See our recommended research method here.
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