By what means,I can investigate companies to make sure whether it is worthy to buy their stock?

Question

I'm 27,and I want to invest on the stock market.But I have no idea on choosing stocks.I'd like to do my homework,but I don't know how.

could you please tell me:

1,where can I get the pertinent information and figures of companies which I'm interested on.

2,By what methods,I shoud reserch those data?

3,what conclusion I shoud make before I put money in the market?For example,the stock price is lower than the company real worth.

Thank you!

Answer 1

Check performance of fund manager in case of mutual funds.

company balance sheet in case of shares.

Answer 2

Check here for some good info:

http://www.estocktrades.info

Good Luck!

Answer 3

You are starting out with some great questions.

1.  I like to use 4 sites for online research of a company:

a.  Yahoo! Finance

b.  Google Finance

c.  Briefing

d.  Earnings

2.  By focusing on company data, you're suggesting fundamental analysis.  I prefer to combine fundamentals with the use technical analysis of a company.  I want to know when Earnings are going to be released.  I want to know if any analyst meetings are approaching.  Basically, I want to know if a stock has a catalyst to push it up or down in the near future.

Then, I use technical analysis to check the stock's trend.  I look for specific chart patterns.  I try to identify the support and resistance of the stock to see what are good entries and targets for any move up or down.  Finally, I use indicators to confirm trend and fine tune my entries and exits.

3.  The only suggestion I can make here is decide what level of risk are you willing to take with each trade.  All of what you asked and what I propose are a part of any effective trade plan.  Defining where you are, what you want, and how you will get there are all facets of a good trading system.  Deciding what sectors you will trade, and trading styles meet your investment goals and risk tolerance are important to determing your conclusion on whether to execute a trade.

Good luck and Happy Trading