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Stock Picking Tips And Hints

Being able to pick a good stock is what makes investing in the stock market work. Unless you can do this, you will not be successful in your investments. many people allow their broker to pick their stocks for them. I would suggest that you should develop your own system and see if you can move away from a dependence on your stock broker. If you were to do this, you would be able to have an online investment account and save some money on brokerage fees. Some stock picking tips to help you are as follows:

You should be your own person. Study and learn what makes up a good stock. Find out how to look at the fundamental and technical analysis of a company. Look at what indicators were present when a particular companies stock did well. This means looking back at some history. This shouldn't be that hard. In your studies you can find what others suggest as good ideas, and then test them with actual historical results.

After your research, establish your entry criteria. You should only search for those stocks that fit your criteria. Be patient and wait for the investments to meet your criteria. Do not panic. You have established in your mind what will make up a good investment entry point. Do not let what you may hear or read affect your decision making.

As soon as you find a stock or a situation that fits your criteria, then act right away. Do not try and second guess if this is right. You have established what makes a good investment, now have the courage to act on your research.

Be consistent with your investment strategy. You should also have a determined exit point. This would be events dealing with either fundamental or technical analytic occurrences. When you have reached your exit point, then get out of the stock and move on. If you have acted right, you have probably made a good profit from the stock investment. Find another stock that will allow you to repeat this successful action.

Be able to exit a loser when you need to do so. Too many times we become emotionally attached to a stock, or are afraid to pull the trigger to minimize our losses. You should be able to pull the trigger, and walk away from a mistake.