Could you describe your stock picking method in one or two lines? If not then you really need to think about clarifying your method.
Investors who cannot concisely describe their method in a way that the layman would understand are probably over complicating things.
Newspapers often have reports about different companies and give buy or sell recommendations.
Believe it or not, this is possibly the most common stock picking method.
I don't believe that you will make great returns this way.
From my experience these are probably incorrect over 50% of the time.
Another way of selecting stocks is from a stock trading newsletter.
I love these for a couple of reasons.
I like to read the detailed analysis that goes into making these recommendations...
it helps me learn.
I also like viewing past performance.
I know that this doesn't mean that future performance will be the same but I am more likely to trust people who have done well in the past.
I also like the excitement of them coming through the post.
Investors who only rely on fundamentals for stock picking are missing out on a huge area.
This area is technical analysis.
In technical analysis you monitor price movements as well as other indicators.
It is a great way of timing the market.
I wouldn't attempt trading this way without doing a technical analysis course.
This subject can be quite involved and people can often misinterpret things.
Don't let this put you off as it really is a great way to invest.
You can make money from investing in a lot of different ways but one of the best ways of doing it is by having your stock picking up to scratch.
Spend a little time on improving your system and the markets should reward you for it in the long run.