Stock Buying

One of the potential ways to earn a higher return is through stock buying. There are many ways to invest your money, but if you buy stocks, it's easy, it's convenient and can be done from anywhere in the world and in the privacy of your own home. Many people are afraid of stock market investing for fear that they might lose their money. While that is correct, you can lose money in any stock you might purchase, you can lose money in any investment vehicle. The fact is that investing in the stock market can be one of the most lucrative and rewarding strategies you can choose.

Just because the stock market is easy to invest in, doesn't mean that making money in stocks is easy. It will require that you study the markets, study industry sectors and individual companies to buy stock in. Research, while dull and boring, is key. It would be nice if when we turned on our financial cable news, that they would discuss information that would actually make us money, the reality is that this isn't the way it works. By the time the main stream media finds a winner, it's too late. The time for you to find stock market winners is in your own private research.

When looking for stocks to buy, you need the right tools for research. The following tools are what I would recommend:

• A brokerage account with a stock simulator
• A watch list of the best stocks to buy at some point
• A subscription to Investors Business Daily
• A subscription to Daily Graphs when you can afford it
• How to buy stocks books in your library for reference
• Annual reports of companies you are researching
• Folders and files for each stock you purchase that includes it's purchase price, a printout of it's chart when you bought it and when you sold it.
• Checklist for procedures you follow to analyze stock purchases
• Your list of stock rules

Once you have set up your home stock research department, then it's time to start to setting up your step by step checklist or system to make sure you don't leave any stone unturned in your investigation of whether a stock is ready to go on your watch list. For example, you might decide to start your screening of stocks with earnings. Earnings drive the profits of every company. Without earnings that are increasing, there's nothing fundamental to drive up the price of the stock.

This would then be the first step on your checklist. Brainstorm every step in your buying process and get it on your checklist. Over time, you'll fine tune your stock buying into a well oiled machine.