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Co-Wise: How do you pick a stock?
Trading and investing is an endless journey to take. It's hard especially at the very beginning. Skilled traderscan pass on their experience Show More
Trading and investing is an endless journey to take. It's hard especially at the very beginning. Skilled traderscan pass on their experience to the young blood and prevent them from unnecessary losses. Let's utilize your wisdom and help new investors grow up quicker. We invite you to post your investing stories, experiences, and reflectionson this topic.

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    Time flies! Mooers have topped the first topic off perfectly. Your enthusiasm and devotion really make moomoo a better community. Here comes the reward for your hard work: A qualified post will get 200 points, and 20 extraordinary mooers will get a stock. Since some of you have done a great job, we decided to upgrade the prize and give 888 bonus points to those excellent writers. Here are the winners, congrats to them, and don't for get click and read their posts!
    @mooboo
    How to know what to buy:  By using different strategies like value investing, swing trading, and day trading.
    @HopeAlways
    Picking the right stock: Introducing the value investing model favoured by Warren Buffett
    @NANA123
    The best way to pick a stock: Pick the companies you like and pick familiar&big companies.
    @战神鑫爷
    Pick your stocks by: 1. read up the daily news. 2. do some research by Using the app > quotes (find your desired stock)> financial (under balance sheet)
    @DEADSEED1111
    Do this step by step: create watchlists based on cost. 2. make note of short volume vs share float vs volume traded 3. start on researching the company 4. start looking at what the MOOMOO community is looking at 5. picking best gainer and abandon the weaks.
    @Powerhouse
    Do your homework! Control emotions: Set your goal and avoid emotion when making investment decisions. Remember to spread your risk by diversifying your portfolio
    @Txfen80
    Start what Gurus (ETFs) are buying: Buy EFTs and see their stock composition.
    @nigedernigeder
    HOW TO PICK THE BEST STOCKS TO INVEST IN: 1. DYDD 2. Don't put all eggs in one basket. 3. Avoid emotion apes when picking stock.
    @Jack Reddrop
    Ways to evaluate a stock's current price: 1. Price-to-earnings ratio. 2. Price-to-sales ratio
    @State Stefan
    Some fundamental analysis ratios for newbies
    @treydongui
    I'm not a vet of the market but I feel these are 3 of my most helpful overlooked aspects
    @Mama Cass
    Retired at 45
    @SoundInvestor
    Picking the Right Stock - Tips & Experience
    @Tupack H Mcsnacks
    This Cats Secrets to Investing
    @Matthew Bryson
    Three simple ways to identify companies that suit your need
    @aoimizu
    Start with the familiar
    @Sourav Pan
    How To Use Financial Ratios To Make Better Decisions
    @Panda2102
    Focus on the business , not the stock price
    @Vera Padisetti
    Find companies you understand
    @xReDeViLx
    How I pick my stocks.
    20 mooers above will get a free stock!
    The prize will include:
    $American Airlines(AAL.US)$
    $BlackBerry(BB.US)$
    $ContextLogic(WISH.US)$
    As for mooers who didn't win this time, please don't feel frustrated. There are still a dozen chances for you. Seize the chance, and the winner next round could be you!
    After reading these thought-provoking posts, you might feel fulfilling and have a lot to express. Who is the best author or the best mentor in your mind? Leave your comment to support them. It's a salute to the hard-working author, and also a priceless recognition to him/her. Building a comfortable and positive environment is our duty as a mooer, right?
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    Reward announcement!
    44
    There is no one perfect way to pick a stock. Investors with a long time investment horizon would tend to beat the short term focus of the market. Our investment objectives are important as it would influence the type of stocks we pick. Those interested in growth would seek out companies that show increasing revenue growth but earnings may be less predictable while those more concerned with capital preservation would go for undervalued companies based on value investing model favoured by Warren Buffett. When we become owners of a stock, we take a stake in the company.  If we do not understand the business well, the risk of failure is relatively higher. As such, it is ideal to find companies that we understand well. Doing some research to find out more on those companies we are keen in will allow us to understand more about their business, their market share, their growth potential and their competitors. Once we have shortlisted the companies, we should consider if they have  a sustainable competitive advantage or what Buffett would refer to as a moat, which can give a company a strong advantage over its competitors. After narrowing down to the companies with a good competitve advantage, we can start deciding on a fair price to pay for the stocks to determine if the price presents a good value. Financial metrics like P/E, P/S and P/B ratios can be used as a gauge depending on if we are looking at value or growth stocks. The final step in stock picking will be the margin of safety to minimise potential huge losses by buying companies below our estimated fair price. Value stocks do not need a wide margin of safety as compared to growth stocks with less stable earnings. We need to bear in mind that stock price is determined by future expectations. The past can only serve as a rough guide. It is near impossible to get the lowest price for a stock or to perfectly time the market. Once we have done sufficient research to make a calculated decision and when the stock price looks reasonable, we should not hesitate to buy.
    $S&P 500 index(.SPX.US)$
    $Apple(AAPL.US)$
    $Microsoft(MSFT.US)$
    $Alphabet -CL A(GOOGL.US)$
    $Amazon(AMZN.US)$
    $Facebook(FB.US)$
    $Tesla(TSLA.US)$
    $NVIDIA(NVDA.US)$
    39
    There are many, many ways to pick a stock, and this only makes sense because there are many, many ways to invest. From value investing to swing trading to day trading, there's a unique basket of stocks for each of these strategies.
    For value investing, we tend to look at metrics like PE ratio, free cash flow, shares outstanding and of course the debt and revenue of the company. We then decide on the intrinsic value of each stock and try to buy it at a discount. My top value pick as of today would be $Alibaba (BABA.US)$  , trading at just under $160 a share. The company's consistent revenue growth, buyback of shares and insane amounts of free cash flow make this a screaming buy, yet the performance of the stock is hugely affected by anti-monopolistic practices in China, which have had a direct impact on the company and the stock price. Yet, I still do believe that this is a play worth looking at from a value perspective.
    For swing trading, we look at stocks which are known to have high volume. We pick these stocks based on their short term developments and catalysts, whether it's an earnings report coming up, or a conference call, or an FDA approval. I like to pick stocks which I wouldn't mind owning in the long-run even if my strategy does not go to plan, so I still do my due diligence. One stock which I've been consistently making money from using swing trading is $NIO Inc(NIO.US)$ . However, due to the recent downward pressure, I've opted for $SoFi Technologies(SOFI.US)$ and $Palantir Technologies(PLTR.US)$ instead.
    For day trading, we're almost always only interested in the technical analysis. This is where candlestick charts and moving averages come into play, and we choose stocks based on where they're trading at and their respective volumes. Occasionally, meme stocks which receive a nice pump can also be a nice day trading opportunity. I've been day trading with stocks like $Atossa Therapeutics Inc(ATOS.US)$ and $ContextLogic(WISH.US)$ .
    I've left a bonus paragraph here for the "apes" who are trading stocks like $AMC Entertainment(AMC.US)$ . While these picks may not be well substantiated by company financials, it is possible to make huge bank during a short squeeze. My risk appetite is not suited for such picks, but I do know people who dedicate a small part of their portfolio to such plays, and it has turned out positively for them overall.
    Of course, one thing to keep in mind is that the stock market is dynamic. Things are changing around the world and we have to be able to adapt to different market conditions. Knowledge is your friend - read up on what's happening in the global economy and use that as a guide for your decisions! While you're at it, find out new ways to trade! Be it short-selling or trading options, it doesn't hurt to know new ways to benefit from market conditions.
    At the end of the day, do your own research! None of what I said is financial advice. However, what I can tell you is that it's very important to identify your strategy and stick to it. Know your own risk appetite, and refrain from investing in stocks due to Fomo (fear of missing out). At the end of the day, you're responsible for every decision you make, so think it through wisely and do your own due diligence - find out what works for you!
    Happy trading everyone!
    37
    Im not sure i can even fit all the metrics that i use without making it too boring but ill try. First is scanning the news for any clues of where the market is leaning towards,like oil prices, government program announcements, strength of the dollar, or mergers and acquisitions. After that I look up analyst upgrades to buy and strong buy and initiated coverage. I focus on small to midcaps under 30.00 since they will have the biggest increases percentage wise. Last is to look up insider buying, but you only want insider stocks that have good average volume and stay away from the financial companies(banks and trust). After all this, the list made will be from 10-20 stocks. Separating them by the size of their float, option contracts (length,amount available, amount purchased),and 20ma and 50ma. Checking news stories for them the last 30-90 days plus SEC filings and when ER was or if its coming up. To further break them down also figure how close they have been to their average volume the last 3 months. Doing all this should give you a top 5 or top 3 to choose from for the following days investments. But the most success i have had profiting off of stocks has been from watching stocks move in premarket and during market hours and jumping into them before they take off. On the downside that has also been how i have had the highest percentage losses, that and holding thru ER. So the safest and most profitable overall will always be the stocks that have been researched extensively and held the longest. That is the only way to succeed in the market. Daytrading and jumping from stock to stock should only be used for entertainment purposes because they have a 99% breakeven or loss outcome. My profits come from the tried and true investor method. The rest is just for a daily challenge with a lot of fun and excitement added in. Helps keep my mind sharp. Now you know all my secrets to investing so i wont be needed anymore.
    32
    Since I'm still relatively new to investing actively, this is what I've done over the last few months to gain experience.
    1) Buy what I'm familiar with
    I work in tech so I'm very familiar with the companies in this space. It is easy for me to pick out $Alibaba (BABA.US)$ and $Apple(AAPL.US)$ for long-term investments. They're the types that I don't have to worry about the daily ups and downs because I know in a few years, they'll be winners.
    2) Widen my knowledge in other industries
    I also have favorite industries that I want to explore more, and which I feel have a very good future although they may not immediately appear so. One of them is space. Real space stocks with a vision for making life better, and not just billionaires club tourism. I'm a huge fan of $Astra Space(ASTR.US)$ I can't wait to see how far they can go, and I'm also looking to enter $Rocket Lab USA Inc(RKLB.US)$, which is slightly different but just as full of potential.
    3) Community discussion
    I love it here on Moomoo because it has a community that is so generous in sharing tips on what to buy. These are quite risky but sometimes, it's fun to make a few quick bucks. The more rewarding part for me is, how different traders are analyzing their recommendations and there's just so much to learn. Thank you all so much for sharing your know-how.
    11
    I was a bit lost when started off my first trade. I picked an established firm which is under valued (low PB) and at near its historical low. Thinking that I had a good bargain but it turned south soon after, it stayed flat for a while and went down recreating historical lows.. The takeaway is market sentiment is important when picking a stock, try not go against the market unless you really fall in love with that particular stock and don't mind to hold it regardless the ups and downs. Nowadays I am more into growth stocks on their uptrend, well the risk could be higher but so for the return. I will look into volume to make sure the liquidity is good. I do believe buy the dip methodology thus adding my position during the dips provided I have faith in it. I also do short term trading for some trending stocks, building a smaller position and take profit when it hit my set target, then looking for next dip to repeat. There are still plenty of stuffs to be learnt and I will take one step at a time.
    3
    One of the best companies to own in china, in my opinion, is Tencent. Fundamentally and financially speaking, the company is very sound. The stock price has been in a very long-term uptrend. Tencent is consistently making tens of billions of dollars every month. The Chinese economy is one of the biggest economies in the world, and it still has more room to grow.
    What is scary about Tencent is that its share price has been on a downward trajectory for over 2 years. ...
    Is Tencent Making a Bull Flag?
    Is Tencent Making a Bull Flag?
    Is Tencent Making a Bull Flag?
    +2
    24
    Hello Mooers! Welcome back.
    How do you choose which stocks to buy (or pick)? For some, they prefer to go for popular ones like those in the FAANG group. Others goes for the exciting ones like those in the BANGS group.
    At the end of the day, almost everyone trade for one purpose, that is to earn extra money, which can be use to make their dreams into reality.
    Come, let's vote to see which stocks you are in.
    The FAANG group contains:
    $Facebook Inc(FB.US)$
    $Amazon.Com Inc(AMZN.US)$
    $Apple Inc(AAPL.US)$
    $Netflix Inc(NFLX.US)$
    $Alphabet Inc-CL C(GOOG.US)$
    FAANG is the most popular choices as most people are still working from home due to the pandemic, and will be buying things online.
    The BANGS group contains:
    $BlackBerry(BB.US)$
    $AMC Entertainment Holdings Inc(AMC.US)$
    $Naked Brand Group Ltd(NAKD.US)$ or
    $Nokia Oyj(NOK.US)$
    $GameStop Corp(GME.US)$
    $Sportradar Group AG(SRAD.US)$
    BANGS group are popular among new investors and speculators during this pandemic. BANGS To the Moon.
    The SAAEO group contains:
    $Salesforce.com Inc(CRM.US)$
    $Activision Blizzard Inc(ATVI.US)$
    $Adobe Inc(ADBE.US)$
    $Electronic Arts Inc(EA.US)$
    $Oracle Corp(ORCL.US)$
    Will you choose the SAAEO group as the affordable version of the FAANG group?
    The PfANG group contains:
    $Pfizer Inc(PFE.US)$ (covid vaccine)
    $Align Technology Inc(ALGN.US)$ (clear dental aligner)
    $Nano X Imaging Ltd(NNOX.US)$ (digital x-ray devices)
    $Guardant Health Inc(GH.US)$ (biopsy test for cancer)
    This group is one that you should not miss! Will there be a need to jab every month/week (and jab includes age 12 and below) if the virus is able to mutate into stronger variant(s), which may translate to more profit after selling/shorting these stocks??
    Others:
    Please write down below the stocks that you feel it will make your dreams become reality sooner.
    Some examples can be:
    $ARK Innovation ETF(ARKK.US)$
    $ARK Fintech Innovation ETF(ARKF.US)$
    $BioNTech SE(BNTX.US)$
    $Moderna Inc(MRNA.US)$
    $Novavax(NVAX.US)$
    $Robinhood Markets, Inc.(HOOD.US)$
    $Futu Holdings Limited(FUTU.US)$
    Please feel free to discuss in here too.
    If you like this post, give it a LIKE , and thank you all for your support and open discussions.
    Hmm ... maybe we can see crypto like $Bitcoin(BTC.CC)$ , $Ethereum(ETH.CC)$ , $Dogecoin(DOGE.CC)$ , $Zilliqa(ZIL.CC)$ go to the Moon soon!?
    Apes together, STRONG.
    8
    Reading all the posts in the discussion, I remembered when I was still a novice in the stock market 1 year ago. At the beginning, my mom gave a lot of money to me, she said I need to learn how to manage finances. I was very flustered and confused, but I had to make a difference. At that time, I started buying stocks unstructured.
    I’m very shy, so in reality I fear to ask the experienced investors. But now, I meet a lot a lot of mooers here, I can share my points freely. When freshmen pick the stock, the most important thing is to ask yourself, "Do you like the company?"
    Buffett once said “don’t do when you are unfamiliar.” Investment is not just a gambling, it’s an information war, every industry has its own information barriers. In-depth understanding of a certain industry and thorough research on a certain company can enable us to break the information asymmetry to the greatest extent and help us make as comprehensive and scientific decisions as possible.
    When you don't have any ideas, choose leading companies, such as Facebook, Amazon, Apple, Microsoft, and Google, which are the "FAAMG" we often hear. Since I was in college, I have been using an iPhone. I have a strong sense of faith in it, so Apple is my faith stock.
    There are two points to note:
    1. No matter how well-known companies enter a downward trend, they shouldn’t easily intervene.
    2. Don't touch junk stocks.
    Finally, I think the easiest way to choose stocks is to choose from the S&P 500+, Dow Jones 30+, Nasdaq 100 index stocks, which are enough.
    $Apple(AAPL.US)$  $Facebook(FB.US)$  $Amazon(AMZN.US)$ 
    If you have some other ideas, welcome to chat with me.
    15
    another different kind of post.
    CPI gets released in about an hour. The market is going to do what the market wants.
    And ROTATE, and PUSH
    It's a stock pickers market! and iam a stock picker 🤓
    Alright, let's get to it. 🤘
    My picks:
    iam in ALL of these. My position sizes and time frames vary, but I have a long position in all of them. There is no particular order, I'm just posting while im going through the charts as i check in on my positions.
    $Deere(DE.US)$
    My big green port is g...
    UPDATE June 13
    UPDATE June 13
    UPDATE June 13
    +20
    12