Investing Tip #63: Understand Key Stock Picking Criteria

Before buying individual shares it’s important that you know, and completely understand, the key stock picking criteria.

Broadly speaking, you should consider these two factors while evaluating your stocks: growth and valuation. Ideally, a stock should exhibit high growth and be priced reasonably. Use EPS, P/E ratio and price-book value for stock picking.

Study this criteria until you fully understand what you’re looking for.

If you want to learn more check out these resources:

  • The Newbie Traders Guide to Investing Jargon
  • Key Value Stock Fundamentals for Screening Stocks

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