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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