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Home How to buy stock
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Written by Administrator   
Thursday, 26 March 2009 02:56

How to buy stock

In this section i've listed some basics about how to buy stock online and basics of stock picking:

How do you know what stocks to buy?

This is a good question, but there really isn't any one answer. The reason there isn't any one answer is because different people use different methods and criteria for finding and buying stocks.

Some people just look at the world around them, taking note of the products and services they use in their lives on a daily basis. If they run across one they like, they might decide to look closer at the company and make an investment in it. And this is a great way to invest! If you use a product and you like it and will buy it for yourself, chances are other people will like it and buy it too.

Other people take a more scientific approach to investing, preferring to find stocks using stock screeners. Using this approach a person will run a query based on certain criteria, like earnings growth or size of company for example, and the screener will return all stocks meeting that criteria. They can then take that list and further research any of the companies in the list they might find interesting investments. (I personally have used Yahoo's screener which I like a lot). Still other people may invest based on what the economy is doing, prefering to stick to with whatever stocks are "hot" or in fashion at any particular time. So, there really isn't any one way that works best for all people. It really comes down to what you are comfortable with and what works best for you.

For those who may be interested, I will soon be adding additional information on my own methodology for picking stocks. What seems to work best for me is a combination of using screeners, along with looking at the economy and buying into sectors that are growing. So check back soon!

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Last Updated on Sunday, 29 March 2009 14:20