How do you set criteria for choosing stocks?

[Suba]

Everyone has different ways to make certain criteria in choosing stocks, often I make criteria or form certain indicators in choosing stocks, by making lists, according to the type of company production, the amount of dividends distributed, the rate of profit growth etc. so that I will easily determine stock options, of course we choose the most superior. How do you determine the best criteria for choosing stocks?

 

[Pousinha]

This year I began with stocks, as brazilian Cental Bank didin't stop cutting interests rate, following the example of american Federal Banking. Our savings, that only few years ago were 15% interests rated, turned miserably under inflation. I needed to become a bit aggressive, talking about investments. As brasilian federal treasury investments is my favourite (it's still rewarding a good interest rate), has the fault being a long lasting investment and withdrawing before the expiring deadline could be prejudicial, depending on the market mood during the withdrawal time. So I began to study the stock market (if we don't study hard, we risk big losses), in the beginning aiming to increasing stocks value, but ending with dividends preferences. I look for:
1) financial strenght and stability of the company
2) production field (I prefere electricity companies and big established banks, used to be the best in my country)
3) dividend yeld
This for now, but I intend to study more, as owning stocks become more and more important where I reside.

 

[chicnthin]

I usually prefer famous corporation, mainly in banking industry that has great performance. I check not only the technical analysis, which I uses different indicators and strategies to decide which company and when I'm going to buy and sell, but also the company's fundamental analysis, so I could determine the financial health of the company.

 

[Sincerem]

Everyone has different ways to make certain criteria in choosing stocks, often I make criteria or form certain indicators in choosing stocks, by making lists, according to the type of company production, the amount of dividends distributed, the rate of profit growth etc. so that I will easily determine stock options, of course we choose the most superior. How do you determine the best criteria for choosing stocks?

I usually follow updates and signals from group of expert traders of stock and shares. That enables me to determine a superior stocks that will bring profit in the process of investing through it. Even if I'm not all that skilled when it comes to buying potential profitable stocks. I try my best to follow realtime update to have a chance to make a good mark.

 

[WhiteHouse]

REVENUE

How much money the company is doing. If the company is growing you will see this metric going up year-over-year (YoY). Revenue is different from profit as a company might increase this metric and have huge costs, bringing the balance to the negative side (loss).

 

[Alexandoy]

The dividend is the proof of the pudding, so to speak, especially if the company would issue stock dividends every year. Buy their stocks and for sure you can earn stock dividends at the end of the year. However, I think there is a minimum number of shares to qualify the stockholder for a stock dividend and it depends on the corporation. That is the reason why blue chip stocks are always in demand because of the stability and the expected stock dividends.

 

[Highflyer]

I consider the following when choosing my stocks;


Trends in earnings growth.


Company strength relative to its peers.


Debt-to-equity ratio in line with industry norms.


Price-earnings ratio can help provide market value.


How is a company treating its dividends?


Effectivness of executive leadership.

 

[giddy]

A first criterion for selecting stocks to buy can be the capitalization of companies: although it is a criterion that “says little” if used individually, it is worth emphasizing that the size of the company is in any case an index of market power, of the ability to make of scale, ownership of brands or technologies exploited globally

 

[ranaabubakar263]

If you're feeling a little uncertain about your current investment strategy, you're not alone. Many investors have watched the market rebound without a meaningful rebound in their financial well being. But, that's not an excuse to leave it that way.Determine what degree of risk you can live with and afford. Focus on creating a stock picking strategy that is designed to preserve capital and control risk. The most important objective should be to preserve capital. You need to make sure to “stay in the game!”

 

[Ojonuyo]

According to me, the number one criteria for choosing a stock is the stability of the company issuing the stocks. You might end of purchasing stocks from a company or business that is battling financially and at the long run to pay you your interest becomes stories that touches the heart. Hence ensure the company is stable before you buy

 

[Akumari45]

You can't set criteria for choosing stocks. It is the responsibility of your stock agents to decide. Some stocks might looks so lucrative that a customer might want to jump at it. But the agents know the actual face values of every stocks and are in better position to advice their clients on what criteria to set up in their stocks transaction.

 

[Oliver 20]

Good current and projected profitability. When picking stocks, it's essential to think about an organization's monetary basics, including profit, working edges and income. Together, these variables can portray the organization's present monetary wellbeing and how beneficial it's probably going to be in the close and long haul.

 

[Seun4luv]

The criteria are firstly : Good current and projected profitability. Favorable asset utilization. Conservative capital structure. Earnings momentum. Intrinsic value (rather than market value).

 

[Mawome]

Your question is very important especially to those who just joined stock market business recently. If you are buying a stock first thing to do is to check the monthly dividends, for example with three dollars you can buy a stock, if you check under the stock you will see the monthly dividends sometimes five dollars or seven as the case may be.

 

[Eodine]

Use five evaluative criteria: current and projected profitability; asset utilization; capital structure; earnings momentum and intrinsic, rather than market, value.
Ask whether an investment is consistent with your asset allocation and if a stock's characteristics are within your risk-tolerance levels.

 

[eenya00]

In determining what kind of stock I want to buy I put various factors into consideration before buying. for instance I tried to make a future projection about the company I want to buy the stock from, what is there business model, is it a futuristic business or its service is not needed in the foreseeable future. these are some of the things I take into cognisance before buying stock

 

[Bousine123]

For me i think about the niche in which the company that own the stock is operating. If it's ones that would be around for the next 15 years, I will consider investing in it.

 

[Kubiat-Abasi]

Personally, I check their past reviews and record, I also check leadership capabilities, market value, the asset utilization and profit tenacity and lastly I choose longevity.

 

[nimzy]

I agree with you but what I also believe is that you can get involved in any thing that you do not have much knowledge about that will definitely lead to your failure. but when the knowledge is there then you start making list of those reputable companies which you will attached with to give you a better future.

 

[Setho]

Whenever I want to choose talks I tried to look at the offline penetration in itself. I try to evaluate how long the company can still in business and how big their competition are.