Apr 16, 2012

Posted by in Penny Stock | 0 Comments

Tips For Getting The Most Out Of Free Stock Picks

There are numerous websites and mailing lists that provide investors with free stock picks. However, it is important to understand how to properly utilize these picks. Considering the state of the economy, it is important for investors to perform thorough research before investing in any stock. Fortunately, these services can provide investors with tips on which stocks to research, and this can save considerable amounts of time during the research stage of investing.

What To Look For From Free Stock Picks

Generally, these picks are on lists that have the name of the stock and a few key points of information about each one. However, in most lists of free stock picks, there is not enough information to allow an investor to make an informed decision. Fortunately, the information provided can dramatically reduce the number of hours an investor will spend looking for investment opportunities.

Usually, the free stock picks will include the most recent closing price of the stock, the 52 week average and the market the company targets. These three pieces of information will serve as the core of the investor’s research on the stock. In particular, the price points provided by the publication can immediately eliminate many stocks that will be too expensive for the investor. Additionally, the 52 week average can provide insight into the volatility of the stock. Together, these two factors can help guide an investor in selecting or eliminating stocks from consideration.

Using Free Stock Picks For Deep Company Research

Once the viable stocks have been selected, the investor will need to perform further analysis about each company. In particular, the investor should concentrate on earning’s growth, competing companies and price trends. Together, these factors encompass the majority of fundamental research that should be performed on companies prior to investing.

When researching a company’s earning’s growth it is important to consider the historical trend of the data. For example, a company that is experiencing explosive growth may present a prime investment opportunity. In contrast, a company that has experienced a steady decline in earning’s growth should generally be avoided.

Additionally, the companies that are the primary competitors of the recommended stock should be researched thoroughly. Primarily, investors should look for major product launches. Lastly, when evaluating free stock picks, it is vital to research the price trends of the recommended stock. Entry and exit strategies are one of the most important aspects of successful investing. Therefore, it is vital to purchase a stock when the value is at an optimum level.

There are a variety of services that offer stock recommendations. However, investors must thoroughly research the recommended stocks before investing. This will ensure that an investor can gain the most from free stock picks.

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