What is your stock picking method? Is it successful? These are questions that you need to be 100% sure of if you are going to make excellent returns.
People that do well have and method and they stick to it.
People generally don't do well and float from method to method.
A lot of people leave their stock picking to the 'experts'.
When I say 'experts' I mean the financial pages of newspapers.
People read stock tips in the financial paper and make an investment decision based upon that alone.
I am not criticizing this as I used to do that when I started out.
Can you really make superior returns that way? I know that I didn't.
A better way of doing it would be to use a stock trading newsletter.
These often give recommendations but go further by giving more detailed research.
The two advantages of this method are firstly you get to learn from the analysis that the professionals do and secondly you often get to view their track record.
They often have a portfolio where you can see how their picks have performed over time.
These methods above generally make their recommendations based upon fundamental analysis as a way of stock picking.
Something that is increasing popular these days is technical analysis.
Technical analysis is more about analysing price movements rather than balance sheets.
Technical analysis, as the name suggests, can be quite tricky.
I would suggest a technical analysis course before you started to implement this method.
If can learn and apply it correctly though it will improve your trading performance.
There are lots of different stock picking methods that you can use and we have been over a few here.
Don't feel that you should restrict yourself to only one of the methods.
Why not experiment in combining a couple and seeing how you get on with that?