Co-Wise: How do you pick a stock?

Trading and investing is an endless journey to take. It's hard especially at the very beginning. Skilled traderscan pass on their experi Show More

Trading and investing is an endless journey to take. It's hard especially at the very beginning. Skilled traderscan pass on their experience to the young blood and prevent them from unnecessary losses. Let's utilize your wisdom and help new investors grow up quicker. We invite you to post your investing stories, experiences, and reflectionson this topic.

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Sep 24, 2021 06:47

Reward announcement!

Time flies! Mooers have topped the first topic off perfectly. Your enthusiasm and devotion really make moomoo a better community. Here comes the reward for your hard work: A qualified post will get 200 points, and 20 extraordinary mooers will get a stock. Since some of you have done a great job, we decided to upgrade the prize and give 888 bonus points to those excellent writers. Here are the winners, congrats to them, and don't for get click and read their posts!
@mooboo
How to know what to buy: By using different strategies like value investing, swing trading, and day trading.
@HopeAlways
Picking the right stock: Introducing the value investing model favoured by Warren Buffett
@NANA123
The best way to pick a stock: Pick the companies you like and pick familiar&big companies.
@战神鑫爷
Pick your stocks by: 1. read up the daily news. 2. do some research by Using the app > quotes (find your desired stock)> financial (under balance sheet)
@DEADSEED1111
Do this step by step: create watchlists based on cost. 2. make note of short volume vs share float vs volume traded 3. start on researching the company 4. start looking at what the MOOMOO community is looking at 5. picking best gainer and abandon the weaks.
@Powerhouse
Do your homework! Control emotions: Set your goal and avoid emotion when making investment decisions. Remember to spread your risk by diversifying your portfolio
@Txfen80
Start what Gurus (ETFs) are buying: Buy EFTs and see their stock composition.
@nigedernigeder
HOW TO PICK THE BEST STOCKS TO INVEST IN: 1. DYDD 2. Don't put all eggs in one basket. 3. Avoid emotion apes when picking stock.
@Jack Reddrop
Ways to evaluate a stock's current price: 1. Price-to-earnings ratio. 2. Price-to-sales ratio
@State Stefan
Some fundamental analysis ratios for newbies
@treydongui
I'm not a vet of the market but I feel these are 3 of my most helpful overlooked aspects
@Mama Cass
Retired at 45
@SoundInvestor
Picking the Right Stock - Tips & Experience
@Tupack H Mcsnacks
This Cats Secrets to Investing
@Matthew Bryson
Three simple ways to identify companies that suit your need
@aoimizu
Start with the familiar
@Sourav Pan
How To Use Financial Ratios To Make Better Decisions
@Panda2102
Focus on the business , not the stock price
@Vera Padisetti
Find companies you understand
@xReDeViLx
How I pick my stocks.
20 mooers above will get a free stock!
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$American Airlines (AAL.US)$
$BlackBerry (BB.US)$
$ContextLogic (WISH.US)$
As for mooers who didn't win this time, please don't feel frustrated. There are still a dozen chances for you. Seize the chance, and the winner next round could be you!
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Co-Wise: How do you pick a stock?

HopeAlways

Sep 17, 2021 21:37

Picking the Right Stock

There is no one perfect way to pick a stock. Investors with a long time investment horizon would tend to beat the short term focus of the market. Our investment objectives are important as it would influence the type of stocks we pick. Those interested in growth would seek out companies that show increasing revenue growth but earnings may be less predictable while those more concerned with capital preservation would go for undervalued companies based on value investing model favoured by Warren Buffett. When we become owners of a stock, we take a stake in the company. If we do not understand the business well, the risk of failure is relatively higher. As such, it is ideal to find companies that we understand well. Doing some research to find out more on those companies we are keen in will allow us to understand more about their business, their market share, their growth potential and their competitors. Once we have shortlisted the companies, we should consider if they have a sustainable competitive advantage or what Buffett would refer to as a moat, which can give a company a strong advantage over its competitors. After narrowing down to the companies with a good competitve advantage, we can start deciding on a fair price to pay for the stocks to determine if the price presents a good value. Financial metrics like P/E, P/S and P/B ratios can be used as a gauge depending on if we are looking at value or growth stocks. The final step in stock picking will be the margin of safety to minimise potential huge losses by buying companies below our estimated fair price. Value stocks do not need a wide margin of safety as compared to growth stocks with less stable earnings. We need to bear in mind that stock price is determined by future expectations. The past can only serve as a rough guide. It is near impossible to get the lowest price for a stock or to perfectly time the market. Once we have done sufficient research to make a calculated decision and when the stock price looks reasonable, we should not hesitate to buy.
$S&P 500 Index (.SPX.US)$
$Apple (AAPL.US)$
$Microsoft (MSFT.US)$
$Alphabet-A (GOOGL.US)$
$Amazon (AMZN.US)$
$Meta Platforms (FB.US)$
$Tesla (TSLA.US)$
$NVIDIA (NVDA.US)$

Co-Wise: How do you pick a stock?

alaric

Sep 21, 2021 09:41

How do I know what to buy? Here's my process

There are many, many ways to pick a stock, and this only makes sense because there are many, many ways to invest. From value investing to swing trading to day trading, there's a unique basket of stocks for each of these strategies.
For value investing, we tend to look at metrics like PE ratio, free cash flow, shares outstanding and of course the debt and revenue of the company. We then decide on the intrinsic value of each stock and try to buy it at a discount. My top value pick as of today would be $Alibaba (BABA.US)$ , trading at just under $160 a share. The company's consistent revenue growth, buyback of shares and insane amounts of free cash flow make this a screaming buy, yet the performance of the stock is hugely affected by anti-monopolistic practices in China, which have had a direct impact on the company and the stock price. Yet, I still do believe that this is a play worth looking at from a value perspective.
For swing trading, we look at stocks which are known to have high volume. We pick these stocks based on their short term developments and catalysts, whether it's an earnings report coming up, or a conference call, or an FDA approval. I like to pick stocks which I wouldn't mind owning in the long-run even if my strategy does not go to plan, so I still do my due diligence. One stock which I've been consistently making money from using swing trading is $NIO Inc (NIO.US)$ . However, due to the recent downward pressure, I've opted for $SoFi Technologies (SOFI.US)$ and $Palantir (PLTR.US)$ instead.
For day trading, we're almost always only interested in the technical analysis. This is where candlestick charts and moving averages come into play, and we choose stocks based on where they're trading at and their respective volumes. Occasionally, meme stocks which receive a nice pump can also be a nice day trading opportunity. I've been day trading with stocks like $Atossa Therapeutics (ATOS.US)$ and $ContextLogic (WISH.US)$ .
I've left a bonus paragraph here for the "apes" who are trading stocks like $AMC Entertainment (AMC.US)$ . While these picks may not be well substantiated by company financials, it is possible to make huge bank during a short squeeze. My risk appetite is not suited for such picks, but I do know people who dedicate a small part of their portfolio to such plays, and it has turned out positively for them overall.
Of course, one thing to keep in mind is that the stock market is dynamic. Things are changing around the world and we have to be able to adapt to different market conditions. Knowledge is your friend - read up on what's happening in the global economy and use that as a guide for your decisions! While you're at it, find out new ways to trade! Be it short-selling or trading options, it doesn't hurt to know new ways to benefit from market conditions.
At the end of the day, do your own research! None of what I said is financial advice. However, what I can tell you is that it's very important to identify your strategy and stick to it. Know your own risk appetite, and refrain from investing in stocks due to Fomo (fear of missing out). At the end of the day, you're responsible for every decision you make, so think it through wisely and do your own due diligence - find out what works for you!
Happy trading everyone!

Co-Wise: How do you pick a stock?

Mcsnacks H Tupack

Sep 17, 2021 00:11

This Cats Secrets to Investing

Im not sure i can even fit all the metrics that i use without making it too boring but ill try. First is scanning the news for any clues of where the market is leaning towards,like oil prices, government program announcements, strength of the dollar, or mergers and acquisitions. After that I look up analyst upgrades to buy and strong buy and initiated coverage. I focus on small to midcaps under 30.00 since they will have the biggest increases percentage wise. Last is to look up insider buying, but you only want insider stocks that have good average volume and stay away from the financial companies(banks and trust). After all this, the list made will be from 10-20 stocks. Separating them by the size of their float, option contracts (length,amount available, amount purchased),and 20ma and 50ma. Checking news stories for them the last 30-90 days plus SEC filings and when ER was or if its coming up. To further break them down also figure how close they have been to their average volume the last 3 months. Doing all this should give you a top 5 or top 3 to choose from for the following days investments. But the most success i have had profiting off of stocks has been from watching stocks move in premarket and during market hours and jumping into them before they take off. On the downside that has also been how i have had the highest percentage losses, that and holding thru ER. So the safest and most profitable overall will always be the stocks that have been researched extensively and held the longest. That is the only way to succeed in the market. Daytrading and jumping from stock to stock should only be used for entertainment purposes because they have a 99% breakeven or loss outcome. My profits come from the tried and true investor method. The rest is just for a daily challenge with a lot of fun and excitement added in. Helps keep my mind sharp. Now you know all my secrets to investing so i wont be needed anymore.

Co-Wise: How do you pick a stock?

aoimizu

Sep 17, 2021 11:07

Start with the familiar

Since I'm still relatively new to investing actively, this is what I've done over the last few months to gain experience.
1) Buy what I'm familiar with
I work in tech so I'm very familiar with the companies in this space. It is easy for me to pick out $Alibaba (BABA.US)$ and $Apple (AAPL.US)$ for long-term investments. They're the types that I don't have to worry about the daily ups and downs because I know in a few years, they'll be winners.
2) Widen my knowledge in other industries
I also have favorite industries that I want to explore more, and which I feel have a very good future although they may not immediately appear so. One of them is space. Real space stocks with a vision for making life better, and not just billionaires club tourism. I'm a huge fan of $Astra Space (ASTR.US)$ I can't wait to see how far they can go, and I'm also looking to enter $Rocket Lab (RKLB.US)$, which is slightly different but just as full of potential.
3) Community discussion
I love it here on Moomoo because it has a community that is so generous in sharing tips on what to buy. These are quite risky but sometimes, it's fun to make a few quick bucks. The more rewarding part for me is, how different traders are analyzing their recommendations and there's just so much to learn. Thank you all so much for sharing your know-how.

Co-Wise: How do you pick a stock?

SpyderCall

Jun 25, 2023 23:27

Is Tencent Making a Bull Flag?

One of the best companies to own in china, in my opinion, is Tencent. Fundamentally and financially speaking, the company is very sound. The stock price has been in a very long-term uptrend. Tencent is consistently making tens of billions of dollars every month. The Chinese economy is one of the biggest economies in the world, and it still has more room to grow.
What is scary about Tencent is that its share price has been on a downward trajectory for over 2 years. ...

Co-Wise: How do you pick a stock?

Mars Mooo

Sep 16, 2021 09:09

What would you buy (or pick) today?

Hello Mooers! Welcome back.
How do you choose which stocks to buy (or pick)? For some, they prefer to go for popular ones like those in the FAANG group. Others goes for the exciting ones like those in the BANGS group.
At the end of the day, almost everyone trade for one purpose, that is to earn extra money, which can be use to make their dreams into reality.
Come, let's vote to see which stocks you are in.
The FAANG group contains:
$Meta Platforms (FB.US)$
$Amazon (AMZN.US)$
$Apple (AAPL.US)$
$Netflix (NFLX.US)$
$Alphabet-C (GOOG.US)$
FAANG is the most popular choices as most people are still working from home due to the pandemic, and will be buying things online.
The BANGS group contains:
$BlackBerry (BB.US)$
$AMC Entertainment (AMC.US)$
$Cenntro Electric (NAKD.US)$ or
$Nokia Oyj (NOK.US)$
$GameStop (GME.US)$
$Sportradar Group AG (SRAD.US)$
BANGS group are popular among new investors and speculators during this pandemic. BANGS To the Moon.
The SAAEO group contains:
$Salesforce (CRM.US)$
$Activision Blizzard (ATVI.US)$
$Adobe (ADBE.US)$
$Electronic Arts Inc (EA.US)$
$Oracle (ORCL.US)$
Will you choose the SAAEO group as the affordable version of the FAANG group?
The PfANG group contains:
$Pfizer (PFE.US)$ (covid vaccine)
$Align Technology (ALGN.US)$ (clear dental aligner)
$Nano X Imaging (NNOX.US)$ (digital x-ray devices)
$Guardant Health (GH.US)$ (biopsy test for cancer)
This group is one that you should not miss! Will there be a need to jab every month/week (and jab includes age 12 and below) if the virus is able to mutate into stronger variant(s), which may translate to more profit after selling/shorting these stocks??
Others:
Please write down below the stocks that you feel it will make your dreams become reality sooner.
Some examples can be:
$ARK Innovation ETF (ARKK.US)$
$ARK Fintech Innovation ETF (ARKF.US)$
$BioNTech (BNTX.US)$
$Moderna (MRNA.US)$
$Novavax (NVAX.US)$
$Robinhood (HOOD.US)$
$Futu Holdings Ltd (FUTU.US)$
Please feel free to discuss in here too.
If you like this post, give it a LIKE , and thank you all for your support and open discussions.
Hmm ... maybe we can see crypto like $Bitcoin (BTC.CC)$ , $Ethereum (ETH.CC)$ , $Dogecoin (DOGE.CC)$ , $Zilliqa (ZIL.CC)$ go to the Moon soon!?
Apes together, STRONG.

Co-Wise: How do you pick a stock?

NANA123

Sep 20, 2021 07:42

The best way to pick a stock

Reading all the posts in the discussion, I remembered when I was still a novice in the stock market 1 year ago. At the beginning, my mom gave a lot of money to me, she said I need to learn how to manage finances. I was very flustered and confused, but I had to make a difference. At that time, I started buying stocks unstructured.
I’m very shy, so in reality I fear to ask the experienced investors. But now, I meet a lot a lot of mooers here, I can share my points freely. When freshmen pick the stock, the most important thing is to ask yourself, "Do you like the company?"
Buffett once said “don’t do when you are unfamiliar.” Investment is not just a gambling, it’s an information war, every industry has its own information barriers. In-depth understanding of a certain industry and thorough research on a certain company can enable us to break the information asymmetry to the greatest extent and help us make as comprehensive and scientific decisions as possible.
When you don't have any ideas, choose leading companies, such as Facebook, Amazon, Apple, Microsoft, and Google, which are the "FAAMG" we often hear. Since I was in college, I have been using an iPhone. I have a strong sense of faith in it, so Apple is my faith stock.
There are two points to note:
1. No matter how well-known companies enter a downward trend, they shouldn’t easily intervene.
2. Don't touch junk stocks.
Finally, I think the easiest way to choose stocks is to choose from the S&P 500+, Dow Jones 30+, Nasdaq 100 index stocks, which are enough.
$Apple (AAPL.US)$ $Meta Platforms (FB.US)$ $Amazon (AMZN.US)$
If you have some other ideas, welcome to chat with me.

Co-Wise: How do you pick a stock?

iamiam

Jun 13, 2023 06:25

UPDATE June 13

another different kind of post.
CPI gets released in about an hour. The market is going to do what the market wants.
And ROTATE, and PUSH
It's a stock pickers market! and iam a stock picker 🤓
Alright, let's get to it. 🤘
My picks:
iam in ALL of these. My position sizes and time frames vary, but I have a long position in all of them. There is no particular order, I'm just posting while im going through the charts as i check in on my positions.
$Deere (DE.US)$
My big green port is g...

+20

Co-Wise: How do you pick a stock?

Vera Padisetti

Sep 18, 2021 08:39

Find companies you understand

When you buy a stock, you become a partial owner of a business. If you don't understand the business, you're setting yourself up for failure.
Would you trust yourself to take full ownership of a company whose business you don't understand? Even if you appoint great management, how are you supposed to know if they're doing a good job?
You can find companies anywhere. You use dozens of products and services every day, so take a moment to consider the companies behind them.
Also consider companies that may impact you indirectly. Many businesses don't ever deal directly with consumers. When you go to check out at the supermarket, who makes those machines that take your payment? When you buy your medicine at the pharmacy, who's actually making those drugs? What equipment are they using? When you get your car fixed by a mechanic, where do they buy new parts and who makes those spare parts? When the signal on your phone drops because there's not a cell tower in sight, who's really responsible for building new towers and who makes the equipment that goes on those towers?
You can use the companies you encounter every day as a jumping-off point to research various sectors and find competitors in each industry. If you don't fully understand how a business makes money, you either need to do some research or find a different company.
$Apple (AAPL.US)$ $Tesla (TSLA.US)$ $Amazon (AMZN.US)$ $Netflix (NFLX.US)$ $Meta Platforms (FB.US)$ $Microsoft (MSFT.US)$

Co-Wise: How do you pick a stock?