How to find out if a stock is worth investing in in 3 seconds | by Kola Gbadamasi | October 2023

Otherwise, stock up.

A picture from Joshua Mayo we Unsplash

What if I told you that you don’t have to read the Financial Times, devour hundreds of pages of corporate spreadsheets, or put up with Jim Cramer’s mad antics on Mad Money screaming about worthless stocks?

Most of the things you believe to be true about stock picking will probably lose you money and put you in the 90% of investors who fail.

Some traders and investors are profitable with different investment strategies, although some methods are more difficult to master than others.

One such method is used fundamental analysis. Here, you’ll look at a company’s stock portfolio, including its assets, earnings and expenses, and determine whether the company is likely to be a strong investment choice.

The problem with this method is that it doesn’t reveal the stock’s immediate potential. Even if the fundamental analysis looks good, it does not necessarily mean that the value of the stock will increase.

It could take one, five or even ten years for the share price to increase substantially.

Technical analysis, another popular investment method, allows you to read a company’s stock price on a chart. This type of analysis gives us more information about the current opportunities present in the stock.

Not in ten years, but in the next few days or weeks.

However, many private investors lack the necessary knowledge on how to use this method correctly.

Investors who learn how to read technical information can determine whether a stock is a fair investment three seconds.

If it takes longer then it’s probably not worth another look. Invest your hard earned money in another stock.

Having spoken to a number of fundamental investors over the years, I have found that they tend to use an element of technical analysis to help determine when to invest.

That should tell you all you need to know about how effective technical analysis is.

By focusing on technical analysis, trend followers like myself have found an effective and simpleā€¦

Leave a Comment