Analyzing Stocks

Analyzing Stocks

This entry was posted in Uncategorized. Bookmark the permalink.
  1.      When we want to invest in stocks, we must first determine what stocks we should invest in. This process involves first deciding what sector to choose and then we need to analyze several stocks so that we can pick the best one.

        We need to use a website such as FINVIZ.com to look at stocks in a specific industry. Let’s suppose we want to look at energy stocks. Let’s also choose Oil and Gas Drilling companies. Using the Chart function, we can eliminate any stock that is in a downward trend. We want only stocks that display an upward trend, and only two stocks are showing an upward trend: CEP and KOG.

         Finally, we use a financial website such as YAHOO.finance to view the news releases for these two stocks. If we find any negative news, for example, poor earnings report or analyst downgrade, then we will disregard these two stocks and renew our search for stocks to invest in.

        After inspecting the news releases for CEP and KOG, we can see that some risk is involved if we were to invest in these companies. Perhaps we should renew our search.

Leave a Reply