Where do I go to find good stocks to invest in?


Got this question from a member of my mailing list the other day.

John,
 
Where do I go to find good stocks to invest in?  Is there a particular source you’d recommend?
 
Albert

Unfortunately, I’m about to make an example of Albert here.

The very short, very simple (and definitely smart-alecy) answer to the question he asked is the NYSE, NASDAQ, London Stock Exchange, Tokyo Stock Exchange, etc. There are good stocks for investment all over the world.

My guess is that’s not the question Albert is trying to ask, though. I’m thinking he’s asking how to identify good stocks to invest in – what tools or resources help in that process. The problem is the question is too vague. In order to answer it with any real meaning I’d need to have an idea of Albert’s objectives, time horizon, and things like that. It makes no sense for me to recommend something that is good for identifying long-term plays if he’s looking for something more momentum oriented. I also need to know went type of investing/trading style Albert favors. If he’s favors technicals, it makes no sense for me to suggest something fundamentally biased.

I’m not trying to slam Albert here. It’s just that his question is typical of the type of question many market newbies ask. They are much, much too general for anyone to really be able to help them except by blind luck. Do yourself a big favor and be as specific and detailed in your inquiries as you can be. It will go a long, long way to help get you the information and advice you’re after.

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About the Author
John Forman, author of this blog, has traded for more than 20 years, is a professional market analyst, and authored The Essentials of Trading. He is an active participant in trading forums, consults for trading related businesses, as published literally dozens of trading articles, and has been quoted in a number of books and in the media.
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  • http://blog.mdwoptions.com/options_for_rookies/ Mark Wolfinger

    John,

    I copied most of your post in my Options for Rookies blog:

    http://blog.mdwoptions.com/options_for_rookies/2008/07/what-other-blog.html

    Excellent advice. My question is: Do novices understand enough about the topic to ask a question that provides the information they seek?

  • http://www.theessentialsoftrading.com John

    Mark – They may not have the knowledge yet to get down to real specifics, but they can certainly frame the question in a much more answerable way. If Albert had provided even a simple outline of his objectives then I could probably have taken that and taken it somewhere. He didn’t give me anything upon which to base my guidance, though, so it would be irresponsible for me to just start rattling off recommendations.