How to Find a Great Stock Pick
There are more than 3,000 stocks in existence just here in America.
Count every stock in existence and finding a great stock pick for your portfolio becomes a difficult task.
Today, I want to tell you about two ways to find a great stock pick.
We'll look at the easy way and the hard way.
First, the hard way.
You may have heard of day trading.
This is where somebody buys a stock and then sells as soon as it makes a short term rise in value.
That can be within hours or even minutes.
Statistics show that over the long term day traders who do it on a part time basis, do not make money.
The reason for this is because day trading largely involves market timing.
Market timing is when the investor attempts to predict which way a stock or the broader market will trend in the short term.
Any investor who has ever tried to do this knows that even the professional trader makes incorrect predictions quite frequently.
Because of this, they employ other techniques to make their losses manageable.
Now do you see why making a great stock pick based on this method is so difficult? Unless you are a professional, you are well served to use a different strategy.
There are also those who aren't day trading by definition but are holding stocks for a short period of time attempting to play the short terms swings in the market.
This strategy is not a money maker either.
If you aren't patient with the market, you won't make money.
The bottom line is that patience isn't as fund but it's how money is made.
The easier way is to pick a stock that appears to be undervalued, buy its stock, wait for a longer period of time, and make money.
You might wait 3 months or 3 years.
You wait however long it takes but you know that at some point it is going to appreciate in value.
This is exactly what Warren Buffett does except he holds his investments for decades.
The strategy works well for the part time investor because they don't have to try to predict the short term markets.
They simply wait.
The only difficult part about this is picking the undervalued stock.
I have more than one article published about how to do this but once you do your research, what you will end up with is a great stock pick that is sure to make you a lot of money as long as your patient.
Count every stock in existence and finding a great stock pick for your portfolio becomes a difficult task.
Today, I want to tell you about two ways to find a great stock pick.
We'll look at the easy way and the hard way.
First, the hard way.
You may have heard of day trading.
This is where somebody buys a stock and then sells as soon as it makes a short term rise in value.
That can be within hours or even minutes.
Statistics show that over the long term day traders who do it on a part time basis, do not make money.
The reason for this is because day trading largely involves market timing.
Market timing is when the investor attempts to predict which way a stock or the broader market will trend in the short term.
Any investor who has ever tried to do this knows that even the professional trader makes incorrect predictions quite frequently.
Because of this, they employ other techniques to make their losses manageable.
Now do you see why making a great stock pick based on this method is so difficult? Unless you are a professional, you are well served to use a different strategy.
There are also those who aren't day trading by definition but are holding stocks for a short period of time attempting to play the short terms swings in the market.
This strategy is not a money maker either.
If you aren't patient with the market, you won't make money.
The bottom line is that patience isn't as fund but it's how money is made.
The easier way is to pick a stock that appears to be undervalued, buy its stock, wait for a longer period of time, and make money.
You might wait 3 months or 3 years.
You wait however long it takes but you know that at some point it is going to appreciate in value.
This is exactly what Warren Buffett does except he holds his investments for decades.
The strategy works well for the part time investor because they don't have to try to predict the short term markets.
They simply wait.
The only difficult part about this is picking the undervalued stock.
I have more than one article published about how to do this but once you do your research, what you will end up with is a great stock pick that is sure to make you a lot of money as long as your patient.