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Steps To Do Fundamental Stock Analysis On Your Own

April 17, 2021

Has anyone ever asked you to become your own lawyer or own doctor? No, right? Then why should you become your own stock analyst? Why can't you get professional help for investing?

Well, you can. But sometimes, people who love to eat, take up cooking because they want their own inputs. Like that, there are smart investors who want to play their own games when they want to earn more.

They say "look before you take a leap" and it's so true when you are investing in stocks. Even looking only won't be enough, you have to dig deeper to analyze with several resources and tools.

If you want to make the most of trading, you have to use your own brain. The stock market is never the same for two different investors. Also, relying on agents often turn out to be a big loss. This article will talk about how you too can think like an analyst without taking anyone's help.

Analyzing Stock Is A Thorough Process

Whether you are a first-timer or trying to up your game for quite a long now, start thinking like an analyst. To be more precise, try to understand what to buy or sell at what price. Experts usually zoom in on a single sector or industry and focus on the top brands within this segment.

Before analyzing your own stocks, focus on the affairs of each company you have shortlisted from your niche. Break your work into:

  • Checking the financial statements and gathering every possible information about the company
  • Cross-checking the facts, research the company's suppliers, consumers, and competitors
  • Reaching out to the company and interact with the management to gain in-depth knowledge

In short, you have to connect all the dots to get a good understanding on the brand. You should do your own research before making an investment. Research on several stocks in the same industry to grasp a comparative analysis. In today's tech-savvy world, getting access to information is never an issue. Be it a win or a loss you have no one else to blame at the last.

Start From What Is ALready There

Your decision will be yours but you can listen to what others have to say on a particular industry. Stock market is a competitive niche and millions of investors are constantly analyzing different trading styles. Following different analyst reports is the most workable way to start your research. This way, you can save a lot of time by streamlining your preliminary work. But you should not follow an analyst's recommendations on buying and selling stocks. You can go through their research reports to get a quick overview of the company and its growth. The rest of the decision should be yours only. Smart research always narrows down your efforts and you can form a final decision.

Conclusion:

In short, there is no secret mantra on how you analyze a stock. Different industry deals with different stocks, and you need to identify what works the best for your financial goals. Listen to everyone else but use your own brain to analyze potential stocks and finally buy or sell them.

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