Stock Picks

Written by Jessica Duquette
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Maybe you read the newspaper for the latest margins in the NYSE. Or, perhaps you have a weekly phone call with your investment advisor. However you plan your stock picks, there is a lot of research that backs up each decision.

Financial Statements

Often times you can base your stock picks on the company's financial statements. How were their earnings the past few years? These numbers will determine the amount of risk involved in the stock you are looking to buy. This information is available on the corporate website of whichever company you are looking to invest with.

Financial analysts work with stocks every day. They can identify trends and good opportunities. They can also tell you what not to buy. Relying on a financial advisor is always a good way to determine your stock picks.

How Not to Pick Your Stocks

Two ways not to determine your stock investments are by taking the advice of current stockholders or depending on insider information. Current stockholders obviously want more people purchasing their stock. With each new purchase the price of their shares increase. Therefore, current stock holders are definitely not the most objective people to rely on. Obtaining insider information is illegal. So unless you want to share a jail cell with Martha Stewart, best pick your stocks based on information from financial statements, analysts or by sheer dumb luck.

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