As I alluded to in my post about why you can share your stock ideas, finding great stock picks requires that you put in a little work.
Sorry if you are sick of hearing it. But this is a theme I’m going to drive home here. Good stock picking takes work. Okay?
And now that the preamble is done…
The Key To Finding Good Stock Picks Is:
Plan and simple. No shenanigans. The more stock research you do, the better your stock picks are going to be. How can you argue that point?
But one thing we can talk about are some ways to accelerate your stock picking research so you can get the best ideas… as fast as possible! If the key to good picks is research, then better research means more opportunity… right?
So there is a strong theoretical case for better and faster research, if you’re trying to get better stock picks. But more practically speaking:
If you’re like me, you don’t have much time to do stock picking research. Your dog isn’t going to walk itself. That day job occupies you during trading hours. And your portfolio just kind of stagnates…
— So how do you do research for good stock picks faster?
Well, you know what’s NOT the fastest?
The most tedious part of stock research is looking through all the stocks in all the world to figure out which ones meet your criteria, right?
Talk about a pain. And it’s not like you are just looking for stocks at a certain price. Good stock picking is much more complicated…
Usually, when you are looking for a stock idea you will be investigating a large number of signals, indicators or metrics for each stock you’re looking at. On any given day it’s conceivable you could be considering 10 different data points for 4,000 different stocks.
So how do you take in all this data?
You don’t. It’s information overload. Instead…
Stockcharts.com is another great stock screener that a lot of day traders use to kick-off their daily research. You can use it for free. And alongside price you can call up almost any other technical indicator.
Personally, I like to find good stock picks by using stock screeners that scan for fundamental criteria. Book Value per share, P/E and Debt/Equity are some of the metrics I rely on when looking for my own ROE.
There are some other tools and tricks I have up my sleeve to save research time. But if I give it all up on the first date you won’t come back for more. So check out some of the stock screeners above to isolate your own ideal investment.
And leave any thoughts on your favorite stock pick in the comments below.
Thanks for reading,
By the way, sometimes I write these posts for myself, as much as you. Hope you found this to be a helpful reminder about good stock picking.