Understanding the Stock Market

Part
01
of six
Part
01

Best Criteria for Choosing Stocks to Invest In

Seven of the best criteria for choosing stocks to invest in include debt to equity ratio, price to earnings ratio, price to book ratio, earnings, profit margin, management, and business model & competition.

Debt to Equity Ratio

  • Before choosing stocks to invest in, an investor needs to find out the ratio of the company's debt compared to the amount of equity held by its shareholders.
  • This ratio reveals how well the company can repay its "debt obligations in the event that the company runs into serious financial problems."
  • Experts suggest that this ratio should be less than 1.

Price to Earnings Ratio

Price to Book Ratio

Earnings

  • In choosing stocks to invest, an investor needs to consider the company's earnings growth.
  • A growing net income shows that the "company knows how to effectively sell its products, slash or control its business operating costs or a combination of both."
  • Experts recommend that in choosing the stocks to invest, the company should have "no more than two years of declining earnings of 5% or more, during the past 10 years."
  • Recommended by: Miranda Marquit, Christian Hudspeth, and James Foord

Profit Margin

Management

Business Model & Competition


Research Strategy

To provide a list of 7 of the best criteria for choosing stocks to invest in, your research team scanned through expert publications to collate 7 of the most recurrent recommended criteria among multiple industry experts.

Profile of Experts

  • Miranda Marquit: She has over 10 years of experience covering topics on business investment, financial markets, and personal finance. She has worked with "Forbes, NPR, FOX Business, Entrepreneur, Yahoo! Finance, USA Today, Investopedia, The Balance, and MSN Money, in addition to U.S. News & World Report."
  • Christian Hudspeth: He is a nationally recognized financial expert with over 10 years of experience analyzing personal finance and stock investing trends. Christian worked in the commercial banking industry for 7 years. His articles have been featured in "Yahoo Finance, Business Insider, Nasdaq.com, and many other prominent sites."
  • James Foord: James is an economist and a financial adviser with over 7 years of experience in writing about economics and investments.

Part
02
of six
Part
02

Stock Research Guide

The steps an individual can take while researching stocks include setting investment goals, new stocks discovery, company analysis, choosing which stocks to purchase, and trade planning. The details of the stock research guide are provided below.

Setting Investment Goals

  • It is important for an individual investor to determine which types of stocks they are looking for as part of a wider trading strategy.
  • For instance, an investor should decide whether they prefer "long-term investments in blue-chip stocks or swing trades centered around small-cap stocks".
  • Knowing the types of stocks and companies one is interested in can assist in focusing on stocks worth researching.

New Stocks Discovery

  • Typical methods used to discover new stocks include personal experience, industry research, and stock scanners.

Personal Experience and Preferences

  • New ideas that can be used to conduct deeper research into individual companies and industries can be generated by interacting with colleagues, families, and friends about investing in the stock market.
  • Stocks can also be discovered when one sees a company advertisement or purchases the products of a new company.
  • When purchasing products, an individual should think about why they selected one over another, or why a neighborhood business such as a restaurant seems to be always be crowded compared to others.
  • One should not invest in a stock just because it was recommended by someone they know.

Industry Research & Research Tools

  • There is a wide range of platforms used for stock discovery and research. They include "stock news organizations, prime time programming on stock-related media channels, stock newsletters, and aggregator platforms that highlight new stocks".
  • Stock analysts can also provide very useful information for discovering new stocks. Many of them can be publicly followed on Twitter or through a blog or a paid private platform.
  • Newsletters or magazines which are offered by many industries can also be useful for obtaining basic information about companies in such industries.
  • It is advisable to use several stock discovery resources depending on the variety of stocks one is looking for.

Stock Scanners

  • Stock scanners are powerful tools used by technical traders to find new potential trades.
  • They are also used to view only stocks that meet a set of customized technical and fundamental requirements, so one can easily determine stocks that could be profitable for their strategy.
  • Fundamental traders also use stock scanners to classify companies based on their financial data. A stock scanner used for this purpose should have access to a broad range of historical and recent financial data for every company traded on major stock exchanges.
  • Fundamental analysis and technical analysis are two broad categories of stock analysis.
  • Fundamental analysis has to do with the analysis of a company's characteristics to obtain an estimate of its value. The process includes assessing the financial reports and financial health of a company, its leadership, its competitors, its markets, and its competitive advantages.
  • On the other hand, technical analysis is focused on the price of a stock and its volume activity.
  • Ideally, technical analysis is based on the assumption that the price of a company's stock reflects all its fundamental factors. Technical analysis considers the supply and demand of the market in order to predict a stock’s future price.

Company Analysis

  • After finding potential stocks through the discovery process, the next step is to conduct more comprehensive research. This involves analyzing the companies providing the stocks and the stocks' technical strength as well. The analysis should include financial data, corporate leadership, qualitative factors, and valuation.

Financial Data

Corporate Leadership

  • It is not as easy to analyze a company's leadership as financial information, which involves immutable numbers.
  • It is however important to carefully scrutinize the executives of a company who control its interest, the company's leadership history, their results, and their plans outlining the future direction of the company.
  • A company's leadership can determine how profitable the company becomes.
  • Prospective investors should be wary of company boards that are mainly composed of company insiders. There should be several independent thinkers who are able to provide an objective assessment of the actions of the management.

Qualitative Factors

  • There are many other factors that can determine the worth of a company in the future that are difficult to quantify.
  • For instance, the presence of diversified streams of income and their stability can determine the long term stability of a company.
  • The competitive advantages of the company compared to that of its competitors can also determine its stability and future growth.
  • Historical and current growth rates of the company should be closely analyzed to know if they are sustainable.
  • The company's brand identity should also be considered to determine whether it resonates with their target audiences.

Valuation

  • Venture capital firms and institutional investors assign a valuation to a company and which gives a good indicator of the company's outlook.
  • Stock prices will likely be a direct reflection of a company's valuation and valuation trajectories can be used to search for trends in the growth of a company.
  • Another possible indicator of a company's stability is market capitalization. Highly capitalized companies are typically perceived to have more stability than companies with small capitalization.
  • But stability does not automatically translate to short term or medium term profit.

Choosing Which Stocks to Purchase

  • Once the research has resulted in focusing on some specific stocks, there are other factors that should be considered before selecting which stocks to purchase and when. These include strategy alignment and technical analysis.

Strategy Alignment

  • Any stock that an individual plans to purchase should be in alignment with their overall trading strategy.
  • It is important for the time frame over which the stock price is expected to increase to match the time frame of their investment.
  • Things to consider include the duration within which the stock is to be held, one's risk tolerance, reasons for selecting a particular investment over other options, and understanding of the factors impacting the investment.

Technical Analysis

  • Technical analysis can be useful for selecting potential points of entry and exit into a stock.
  • If the price of the stock is above the set price level of an individual, they might need to wait before purchasing it.
  • Technical analysis is also useful for taking a wider view of the profit potential of a stock by identifying the trends.
  • Trends can provide a strong indication of the continued movement of a stock in a particular direction, and before an individual decides to go against a trend, there should be strong evidence gathered from other research.
  • Ideally, a stock can be bought when it is poised to move upwards, or when it's upward trend is strong.

Trade Planning

  • The final part of stock research is planning one's trade into the selected stock.
  • When trading, there are various components of the trade to look into including entry price, stop loss level, position size, profit target, commissions, and trade execution.
  • An individual's stock research and strategy should provide suggestions for the appropriate values for each of the components.
  • A profit, usually determined by technical analysis, should always be targeted when entering a trade. However, it can also be based on fundamental analysis.

Research Strategy

To provide a detailed stock research guide that is new-investor friendly, we obtained information from insights and advice published by investment experts and professionals. The experts include the following:

Dave, an expert trader with over eight years of trading experience who has authored over 100 articles on Day Trade Review, a trading information site.
Terin Miller, the author of dozens of articles on TheStreet, a site that provides financial and investment information from top Wall Street experts. He has also written for The Wall Street Journal and Barron's.
Dayana Yochim, an investment and retirement expert who has written many articles for NerdWallet and other publications and has also made contributions to various personal finance books.
Joshua Kennon, co-founder and managing director of Kennon-Green & Co., an asset management firm with around 17 years of experience in investment writing.
Cabot Wealth Network, a company that provides investment advisory services to over 200,000 investment professionals and individual investors in 141 countries.

Part
03
of six
Part
03

Stock Stability Guide

There are several helpful indicators to measure stock volatility, such as beta, standard deviation, variance, and ATR. The following information presents an overview of some key aspects related to stock stability.

Stock Volatility

  • To determine stock stability, investors must understand and verify the stock's volatility. Volatility is the measure of the dispersion of returns for a given security or market index. In other words, volatility is the range of price change a tradable financial asset (security), including stocks, faces over a given period.
  • Dispersion, in the financial context, describes either the possible returns on an investment or the risk inherent in a particular security or investment (the higher the dispersion, the riskier and more unstable the investment is). The dispersion and, therefore, the volatility can be measured by different statistics, such as range, variance, beta, alpha, and standard deviation. However, these methods are not considered a precise science, as they present many variables.
  • Despite popular belief, volatility is neither a good nor a bad thing. It is merely a riskier option that can result in better outcomes or more significant losses.
  • Some choose volatile options as a long-term investment, as it is possible to buy stocks at a discount price, in a strategy called buy-and-hold. The investor holds the share for an extended period, sometimes for years, to collect the rewards of the company's incremental growth. This strategy allows investors to buy stock in a stable company when the price is low, and then wait for cumulative growth in the future, albeit it is not a sure bet.
  • Those who favor short-term trades may likewise bet on volatility. There are two types of short-term volatile traders. The first is called Day Trader, an investor that works with changes that occur second-to-second.
  • Swing Traders, on the other hand, usually work with a longer time-frame (days or weeks). As the price fluctuates back and forth, short-term traders can use chart patterns and other indicators to anticipate the highs and lows of an investment.

Implied Volatility vs. Historical Volatility

  • Implied volatility (also known as projected volatility) is a metric used by options traders to calculate probability using supply and demand. It represents the expected fluctuations of stock or index in a given time frame. This metric allows traders to estimate how volatile the market will be going forward.
  • Historical volatility is based on past trading ranges and price changes. It is calculated using increments ranging from 10 to 180 trading days. By comparing the percentage changes over extended periods, investors can gain insights on "relative values for the intended time frames of their options trades."

Types of Risk

  • To properly understand how volatile the stock can be, it is vital to grasp the kind of risks it may face. There are two primary risks: systematic risk and unsystematic risk.
  • Systematic risk relates to the risk inherent to the entire market or market segment. It is also called "market risk," and "undiversifiable risk." It affects the whole market, not just a particular stock or industry, and it is usually unpredictable and not possible to avoid.
  • The only way to mitigate this type of risk is through hedging (an investment that protects investors from risk situations, such as derivatives or options) or with the correct asset allocation strategy.
  • Because systematic risk incorporates interest rate changes, inflation, recessions and wars, and other notable changes, it is not possible to mitigate it through diversification, as these shifts are likely to affect the overall market.
  • Systematic risks usually affect riskier securities more drastically, including stocks. For instance, during the Great Recession in 2008, simpler assets, such as U.S. Treasury Bonds, became more valuable, while riskier securities were sold off in large quantities, diluting their value.
  • Unsystematic risk affects a specific group or individual security. Known as "diversifiable risk," "idiosyncratic risk," or "residual risk," it can be reduced through diversification. Factors that may induce unsystematic risks include business risk, financial risk, operational risks, strategic risks, and legal and regulatory risks.

Alpha and Beta

  • Alpha and beta are used by investment managers to calculate, compare, and analyze returns. Daniel McNulty, a former chief investment strategist at Goldman Sachs, stated that separating a single portfolio into two portfolios, an alpha and a beta portfolio, enables investors to have greater control over the entire combination of exposure risks. This creates an alpha-beta framework, a way to measure portfolio returns.
  • The primary risk measurement statistic is called beta. It measures the dispersion of a stock related to a particular benchmark or market index, often the U.S. S&P 500 index. The standard beta measure is 1.0, any stock with a beta higher than 1.0 is considered more volatile than the overall stock market. In contrast, any stock with a beta of less than 1.0 is considered less volatile.
  • In practical terms, if a stock has a beta of 1.6, it will be more affected by any changes in the market than a stock with a 1.0 beta. So if the market goes up 10%, the 1.6 beta stock will go up 16%. However, if the market goes down 10%, the stock will go down 16% as well.
  • A stock with a beta of less than 1 indicates a less disperse return or a less volatile stock. The same logic applies, if a stock has a beta of 0.87 and the market goes up 10%, the stock will go up 8.7%, and the reverse is also true.
  • A beta of greater than 1.0 means the investment has more systematic risk than the market, while less than 1.0 indicates less systematic risk than the market. A beta equal to one says the investment carries the same systematic risk as the market.
  • An Alpha statistic, on the other hand, measures a portfolio's risk-adjusted returns. A performance higher than the beta indicates a positive alpha, while a negative alpha indicates the lack of success of the portfolio.
  • Essentially, it symbolizes the strategy's ability to beat the market, also referred to as excess return or abnormal rate of return. It is a measurement of performance, which indicates when a strategy or portfolio manager beat the market return over some period. Unlike beta, which can be earned through passive index investing, alpha is the result of active investing.
  • It is generally used to rank active mutual funds and investments. It is exhibited as a single number that refers to a rating of the performance. For instance, if a mutual fund has a +6 alpha, it performed 6% better than the benchmark index (market). Any Alpha higher than zero indicates that the investment outperformed.
  • Beta indicators can be found here.

Variance and Standard Deviation

  • Variance analyzes the fluctuation of the returns in a time frame, in order to see how far apart each realized return is from the stock's average return. "The higher the spread, the less favorable the variance is." A higher variance indicates that the actual return will probably significantly differ from the expected one, which means that the lower the variance, the less risky the stock is.
  • The square root of the variance is called standard deviation, and it is usually used as it is easier to interpret If the stock movement is wild and rapid, the standard deviation will be higher, indicating a riskier investment.
  • Standard deviation is used to calculate the possible future outcomes with simple logic: the more volatile the returns in the past, the more unpredictable the next performance may be. The greater the volatility of returns, the higher the standard deviation is. And accordingly, the higher the standard deviation is, the greater the risk.
  • The logic applies as follows: If stock X has a 2% return in three consecutive years, stock X never deviated from the initial return (from year one); consequently, it has a standard deviation of 0. Stock Y has a -25% return in year one, 5% in year two, and 70% in year three, therefore, it will have a higher standard deviation. S2
  • To determine the deviation, the investor must (1) find the mean data set (adding each value and then diving by the number of values), (2) calculate the difference between each data value and the mean, (3) square the deviations, (4) add the square deviations together, and (5) divide the sum of the squared deviations by the number of data values. Or use a standard deviation calculator, like this one or this one.
  • Using the previous example, stock Y has a standard deviation of 39.65 and is riskier than stock X. Generally, an index fund will have a low standard deviation. In contrast, an aggressive growth fund will have a high standard deviation relative to stock indices, as it aims for higher-than-average returns; which one is preferable will depend on the investor's profile.

Important Technical Concepts

  • The average true range (ATR) is an indicator of market volatility, which is typically "derived from the 14-day moving average of a series of true range indicators." The higher the ATR level, the higher the stock volatility will be.
  • A simple moving average (SMA) is an arithmetic moving average calculated by "adding recent closing prices and then dividing that by the number of time periods in the calculation average." Popular trading patterns that use this concept are the death cross and the golden cross.
  • A death cross happens when the 50-day simple-moving average (SMA50) crosses bellow the 200-moving average (SMA200), indicating that further losses are bound to happen. The golden cross occurs when a short-term average breaks above the long-term SMA, which usually shows future gains.
  • Relative Strength Index (RSI) indicates whether a stock is being overbought or oversold. RSI evaluates stocks from 0 to 100; when the value is above 70, the security is likely being overbought or overvalued. If it has an RSI reading of 30 or below, it is probably being oversold or undervalued.

Research Strategy

To provide a detailed yet straightforward guide on how to determine stock stability, the research team leveraged information provided by white papers, news sites, and industry-related sites, such as Investopedia. For the Investopedia articles used, we verified the contributors, in order to ensure they would fit the “investment experts and professionals” criteria. Some examples of experts used are as follows:
James Chen — Director of Trading & Investing at Investopedia, former head or research at Gain Capital, and author.
Jim Chappelow — Independent consulting economist, former managing economist and lead editor at ITR Economics.
Cory Mitchell — Professional trader who worked for Fortune 500 companies managing currency exposure and risks.
Jeff Krohnfeldt — 20+ years of experience in the financial industry working as an account manager.
Daniel McNulty — Former chief investment strategist at Goldman Sachs
Part
04
of six
Part
04

Stock Market Trend Guide

Stock market trends can be understood based on its several simple components, including the definition of a stock market trend as well as the process of conducting a trend analysis.

Trend Analysis Definition

  • A stock market trend is the overall direction that a group of stocks or other related assets appear to be moving over a set period.
  • These trends can be upward (i.e., stock price increases), downward (i.e., stock price decreases) or sideways (i.e., the relatively horizontal movement of stock prices over time).
  • Trend analysis is a technical analysis technique that uses past data to anticipate such future stock price changes.
  • More simply put, trend analysis is the process of determining the general upward, downward or horizontal movement of stock prices over time, and then expecting that trend in movement to continue.
  • Notably, such trend analysis contrasts with fundamental analysis, which is a separate approach for stock market investing that considers only the underlying health of individual companies, rather than larger stock market trends, to make investment decisions.

Benefits of Trend Analysis

  • Overall, trend analysis can help an investor predict how the stock market may move in the future and thereby improve related stock returns.
  • Ideally, trend analysis will enable an investor to make profits by choosing the right moment to enter and exit stock investments.
  • Additionally, understanding stock market trends can also be a safeguard, which enables an investor to identify the beginning of a problem or new trend and exit a stock or market sector before the shift is widely recognized.
  • However, some economists suggest that stock market trends and related analyses are less helpful, given that history does not always repeat itself.
  • Moreover, some investors believe that stock prices perfectly reflect their market value, and therefore incorporate any market trends.
  • Finally, human error or lack of sufficient data can also undermine the effectiveness and benefits of a stock market trend analysis.

Conducting Trend Analysis: Determine Market Segment

  • The first step in actually performing a trend analysis is narrowing the field of view to a particular market segment.
  • Market segments could include an industry (e.g., pharmaceuticals, automotive), a type of investment (e.g., bonds, REITs) or other category that is more narrow than the overall stock market.
  • Once a market segment is determined, it is essential to identify and research which factors might impact the performance of that cohort, such as new regulations, raw materials or consumer trends.
  • These factors should include not only external forces (e.g., government legislation) but also internal forces (e.g., appointment of a new CEO).

Conducting Trend Analysis: Analyze Segment Performance

  • Once a market segment has been defined and researched, the next step is to understand the segment's recent historic performance on the stock market.
  • This can be accomplished by reviewing the category of stocks / assets over a set time frame such as one month (month-over-month) or one year (year-over-year).
  • Generally speaking, yearly time frames are considered more accurate, and better predictors of future market activity, given that they eliminate variables like seasonality while still retaining a relatively recent perspective.
  • For example, a review of swimming pool stocks could provide deceptive results within a monthly time frame, given that this industry experiences significant general shifts between the summary and the winter.
  • In particular, a monthly drop in sales between August and September could be misinterpreted as a downward trend, rather than a function of seasonal demand.

Conducting Trend Analysis: Identify New Trends

  • Determining a specific market and then understanding its recent historical performance enables the last step in stock market trend analysis, which is identifying potential changes in trends.
  • One method for identifying changes in trends is following the news, which often reports the events that cause "dramatic" shifts in stock prices, such as new legislation, earnings reporting, lawsuits or new products.
  • While value investors typically ignore such news catalysts, momentum investors make the "majority" of stock market decisions based on such news events.
  • Other methods for identifying new trends in a particular market segment include the use of stock screeners, which enable investors to view stocks by industry, size and other characteristics, as well as technical and economic indicators.
  • Technical and economic indicators are some of the "main tools" used in technical analyses, and are essentially indexes or metrics which are released by third parties.
  • These indicators incorporate extensive historical data and calculations to demonstrate shifts in factors such as specific stocks, a country's housing supply or even an entire economy's growth.
  • Other strategies used in trend investing include chart patterns as well as indicators such as rate of change (ROC), moving average indicators, trading patterns and momentum indicators.

Trend Validity

  • Meanwhile, there are a number of criteria which can be used to asses the validity of a trend.
  • First and foremost, a trend is considered valid only when it has three or more associated data points.
  • Additionally, trends are more legitimate when the change is sharper and occurs over a longer time period.
  • For example, a limited upward movement in a stock price during one day of trading would not be considered a significant or credible trend, whereas a steep upward movement in a stock price over a year would represent a highly valid trend.
  • Overall, the longer a trend exists, the "greater the weight it carries."

Research Strategy

Please note, this guide to understanding stock market trends is substantiated by a wide variety of investment publications and experts, including Investopedia, SmartAsset, Full Time Finance, MoneyControl, Motilal Oswal and Timothy Sykes. Although an investor's approach to stock market trends and related analyses may vary, this guide seeks to provide an overarching and relatively comprehensive summary of what stock market trends are, how they are analyzed, and what trends are considered more or less valid.
Part
05
of six
Part
05

Best Stock Analyzing Books

Five of the best books about stock market analysis, ranked by customer reviews, are Think & Trade Like a Champion, Stocks for the Long Run, How to Day Trade for a Living, Dual Momentum Investing, and The Neatest Little Guide to Stock Market Investing.

Think & Trade Like a Champion: The Secrets, Rules & Blunt Truths of a Stock Market Wizard

  • Think & Trade Like a Champion: The Secrets, Rules & Blunt Truths of a Stock Market Wizard, by Mark Minervini, was published on January 1, 2017.
  • "Starting with only a few thousand dollars, Mark turned his personal trading account into millions, averaging 220% per year for more than five consecutive years with only one losing quarter." The author is featured in a number of books on the best stock market traders and money managers.
  • Think & Trade Like a Champion has the best customer ratings out of all books in the Stock Market Investing department on Amazon, with an average rating of 4.8 out of 5.
  • Some of the areas covered in the book are stock selection criteria, understanding general stock market trends and trends in the price of a specific stock. The book covers both day trading and long-term investing strategies.

Stocks for the Long Run: The Definitive Guide to Financial Market Returns & Long-Term Investment Strategies

  • Stocks for the Long Run: The Definitive Guide to Financial Market Returns & Long-Term Investment Strategies, by Jeremy Siegel, was published on January 7, 2014 (fifth edition).
  • Jeremy Siegel is a Professor of Finance at the Wharton School of the University of Pennsylvania. Wharton School is consistently ranked as one of the top business schools in the US, with alumni like the legendary investor Warren Buffett.
  • Besides numerous recommendations by industry experts, Stocks for the Long Run is also well-received by the general public, ranking second in the Stock Market Investing department on Amazon, with an average rating of 4.8 out of 5.
  • The book aims to be the definitive guide to analyzing the stock market, but it especially focuses on how to evaluate if a stock investment is good for short term or long term growth and general long term investing principles like portfolio optimization.

How to Day Trade for a Living: A Beginner’s Guide to Trading Tools and Tactics, Money Management, Discipline and Trading Psychology

Dual Momentum Investing: An Innovative Strategy for Higher Returns with Lower Risk

  • Dual Momentum Investing: An Innovative Strategy for Higher Returns with Lower Risk, by Gary Antonacci, was published on October 31, 2014.
  • Gary Antonacci has over 45 years of experience as an investment professional. He has been in the field ever since he received an MBA from Harvard.
  • Dual Momentum Investing is among the best-reviewed books in the Stock Market Investing department on Amazon, with an average rating of 4.7 out of 5.
  • The book is focused on how to understand the trends of a specific stock, the best criteria for choosing stocks, and understanding trends in the stock market.

The Neatest Little Guide to Stock Market Investing

  • The Neatest Little Guide to Stock Market Investing, by Jason Kelly, was published on December 24, 2012 (fifth edition).
  • Jason Kelly is a bestselling financial author. He also publishes the Kelly Letter, a newsletter on stock market investing that helps individuals with little to no experience with investing in the stock market.
  • The Neatest Little Guide to Stock Market Investing is among the best-reviewed books in the Stock Market Investing department on Amazon, with an average rating of 4.7 out of 5.
  • The book is heavily focused on criteria for stock selection and on the appropriate timing of stock market purchases. It also deals with how to evaluate if a stock investment is good for short term or long term growth and with how to determine if a stock is stable or volatile.

Research Strategy

To find some of the best books about analyzing stocks, we resorted to scanning the largest bookstore in the world, Amazon. Amazon has a department dedicated to stock market investing, which we have scanned in order to find the best books. We have selected those books that have the highest customer review score, including only those books that have over 100 customer reviews to enhance the objectivity of reviews. Most of the books are also recommended in various articles on websites like Forbes and the Business Insider, but we have primarily relied on customer reviews since the books needed to be accessible to the general public.
Part
06
of six
Part
06

Stock Publications

Below, we have provided 25 articles from reputable outlets and industry experts regarding investments in the stock market. These articles span a range of topics, including how to research and select stocks, how to follow trends in markets and in individual stocks, how to interpret and leverage earnings calls and reports, and when to practice short-term versus long-term investment strategies, among others. For each article, we have provided a brief statement regarding what the article discusses, by whom it was published, and, if available, when it was published, along with a hyperlink to the article.

Researching Stocks, Selecting Stocks, and Following Trends

  • A guide on how to research stocks and criteria on which to choose them, published by The Balance and last updated in 2020, can be found here.
  • A guide on how to research stocks, published by The Street in 2019, can be found here.
  • A guide on how to research stocks and their trends, published by Fidelity Investments in 2019, can be found here.
  • A guide on how to use market value ratios to follow the trends of a given stock and to help determine its stability or volatility, published by The Balance and last updated in 2019, can be found here.
  • Several criteria to consider when choosing which stocks to invest in, written by RTS wealth management CEO David Robinson and published in 2018, can be found here.
  • A guide on how to analyze and select stocks, published by Charles Schwab in 2019, can be found here.
  • An article discussing how to follow market trends and find top-performing stocks, published by Investor's Business Daily in 2019, can be found here.
  • An article discussing how to spot stock market trends before they become obvious to the public, published by Forbes in 2016, can be found here.
  • An article discussing the analysis of trends in the stock market, published by stock trading expert Timothy Sykes in 2019, can be found here.
  • An article discussing long-term versus short-term stock trading, how to select stocks, and various methods of stock analysis, published by the investment organization Smart About Money (SAM), can be found here.
  • An article discussing how to identify trends in individual stocks, published by Swing-Trade-Stocks, can be found here.
  • An article defining trends and describing how to use them in one's investment analysis, published by Investopedia in 2019, can be found here.
  • An article describing three types of trends and how to leverage them when analyzing stocks, published by US News in 2019, can be found here.

Evaluating Earnings Calls and Associated Reports

  • A guide on how to evaluate earnings calls and picking up on valuable messages within them, published in 2017 by the Chicago Booth Review, can be found here.
  • An article describing the importance of evaluating earnings calls and how to evaluate the information contained within them, published by Cadence Translate in 2018, can be found here.
  • A guide on how to analyze earnings reports, published by Forbes in 2014, can be found here.
  • A guide on how to read and interpret earnings reports, published by trading expert Timothy Sykes in 2018, can be found here.
  • A guide on how to read earnings reports, published by NASDAQ in 2016, can be found here.
  • An article discussing the things to look for in an earnings report, published by US News in 2016, can be found here.

Short-Term vs. Long-Term Investments in the Stock Market

  • An article discussing the merits of short-term vs. long-term investments, published by The Balance and last updated in 2019, can be found here.
  • An article discussing the different strategies associated with short-term and long-term stock trading, published by The Nest in 2019, can be found here.
  • An article discussing when to sell or hold stocks, published by Investor's Business Daily in 2019, can be found here.
  • An article discussing how to master short-term stock trading, published by Investopedia in 2019, can be found here.
  • An article discussing how to select stocks for the long term, published by Investopedia in 2019, can be found here.
  • An article discussing the long-term "buy and hold" method of investing, published by Business Insider in 2019, can be found here.
Sources
Sources

From Part 03
From Part 06