If you don’t research the stock you are purchasing first, you are doing nothing more than gambling with your money. Stock research will help you to improve your returns on the stocks you purchase. While all the research in the world on a stock cannot guarantee its value will increase, researching your stock purchases will improve the chances of making money.
There are a number of approaches to stock research you can employ and will take a look at those. Fortunately all publicly traded stocks are required to provide financial information about their company on a quarterly and annual basis. It’s from this publicly available information that most stock research is done. You could obtain copies of this information directly from the companies themselves, or you could use one of the many online trading companies, most of which have extensive stock research sections on their web sites.
There are two types of stock analysis research for predicting a company’s stock performance: fundamental and technical. Technical stock research looks for peaks, bottoms, trends, patterns and other factors affecting a stocks performance and is not tied to anything other than the company’s stock performance. Fundamental stock research looks more towards the company’s financial information (also known as quantitative analysis) and looks at a company’s revenue, expenses, assets, liabilities, etc.
Technical Stock Research
Technical stock research is a method of evaluating securities by analyzing statistics generated by market activity, past prices, and volume. Technical stock research does not attempt to measure a security's intrinsic value; instead it looks for patterns and indicators on stock charts that will determine a stocks future performance.