Finding a winning stock depends upon how you conduct your stock market research on a given company. Methods vary according to the sectors and types of investments. For example, a share that you consider suitable for day trading may not be the one suitable for investment with a long term perspective.



Theory and practice are two sides of the same coin. Your theory is the experience of the other man. What is the content of any book on the subject of shares? It is the practical experience, research and analysis of someone else-the author! But this author depends less upon the fictional events and goes by the hard facts related to the share market.

With several thousands of shares listed in the exchanges all over the world, if you are a regular and serious investor, you will be continuously interested in picking and choosing the shares for making profits. You can not be assured of continuous profits from a particular company. Even if a company gives regular profits to the investor, the level of profits may not be the same. To bag the best shares in your kitty and to be on the winning spree, you need to be the student of the vast syllabus related to shares. This syllabus is vast and varied. The Wall Street Journal, Investor's Business Daily etc. Some of the newspapers are available on the electronic format. Many monthly magazines give you the latest information. Through the voluminous information it is for you to sieve the big ideas and good catches.

Once you are seized of the general mood of the market, come to the sector that you are interested in. Next, make a list of the companies for your share market research. Look into important stock screeners to refine your search based on profits, annual revenue and many other parameters. Having zeroed in on some particular share, ask the following questions as for each company, from the perspective of the big picture of the share market as visualized by you.

Will it face the downward movement, if the sector as a whole is adversely affected?

How it will brace up to the competition?

Taking into consideration the overall state of economy, where does the share of the company stand? What is your firm opinion about the share? Does it merit your care? Check out the rating of some important analysts but let it not be the part of your decision making. More than one analyst can go wrong. Majority of analysts may favor a particular share, but they all can go wrong!

As you proceed with your research and analysis, you may come across, what you consider to be a stunning investment opportunity. Your calculations and estimates as for that company from all ends may appear to be correct, but as a prudent investor you need to make further investigations, before jumping into conclusions. Try to meet the top officials, if possible the CEO, and get the correct picture. Ask many questions, as many professional analysts do!

Good investing demands that you have good trading education. It is better to invest in such tools of education than to do the investment that leads to losses. Lack of education and experience land many investors in trouble. Seek the education at the right place. Some research in this area will take you to a skilled and experienced broker who will understand your needs. But there is no tested trading system as such that will tender winning shares to you one after another. The systems are being continuously updated and you need to catch up with the trends in the share market to be on the right side of the fence.

There is no permanent victory or defeat in the share market. What is true is the systematic approach and permanent effort.