By Luke Cameron
Dealing with stock investments is a very tricky and risky job.
Some even compare it to gambling because there is always no
guarantee on what the outcome of the trade will be. What
separates the gamblers from the investors is research. Data
gathering and analysis is an important part in the success of
You may not have the time or the patience to conduct
experiments; however, there are individuals or firms available
to offer you their services for a certain fee. There are
brokerages, especially the larger and more stable ones, which
offer research for the existing clients.
The most successful investors consider research as a part of
the entire trading process. When you give importance to
research before buying or selling, you are already investing.
And the result of such research will be beneficial.
The first thing you should do if you want to know how to
research stocks is to gather data about the current trade
practices being employed in the stock market. You should also
be aware of the different companies playing in the market. The
most unbiased sources you will be able to acquire are actual
filings of publicly traded companies.
There are different reports that can be presented by a
One is the 10-K. This is somewhat similar to annual reports,
they are available for download at the website of SEC. The
report that is filed quarterly is called the 10-Q and the one
that is filed for certain important changes in between is
called the 8-K.
The reports contained in the aforementioned reports are the
latest information on the company's financial status - their
income, expectation, competition, lines of businesses and the
members of the board. Fundamental analysts use this
as tools to be able to come up with their trading strategies.
Companies produce quarterly and annual reports to be
among its share holders. However, the contents of the reports
are available for public knowledge and scrutiny. These reports
have some data similar to 10-K's and 10-Q's, but there are
several subtle and minimal changes as well. These reports can
be very beneficial on how to research stocks.
For a minimal fee, certain brokerages offer copies of chart
data of the different companies participating in the stock
market. Most of these companies are their clients for whom
also offer research services.
Another source of data are newsletters. These newsletters
contain the most recent events and updates that are happening
in the stock market and its active players. There are so many
newspapers available to help aid investors. However, with the
large number of these newsletters, it would be a little bit
challenging to find reliable publication.
CEOs, CFOs and other members of the board often give
or conferences to the financial press. They give information
the company's financial status and assures the public their
companies are sustainable and strong.
All the data that has been gathered during should kept in mind
and used to be able to make it big in the stock market. It is
very important to know how to be able to research stocks in
order to find reliable data to help aid in the formulation of
About The Author: Luke Cameron is owner of Top Finance News -
an online magazine offering news, tips and articles on finance
related topics. His website can be found at: