Criteria for picking stocks

[johenmo]

What is your criteria in order of importance for selecting a particular stock.
Examples-
1. PE ratio
2. EPS
3. Volumes
4. Trends
5. Company information
ECT ECT
Please keep in point form.

I'm interested in the above, not a debate on Buffet (though that's good in another thread!).

I don't have an order of importance, and I'm looking to buy and hold for a while. I'd have to say the following is the "primary" evaluation, then look at charts/price (more TA, which I'm still learning):

Debt/Equity
ROE
PE & PEG
CR
Int Cover
EPS growth
sentiment/rumour/ASF/external influences.....this point is that even if the rest is looking good, if people don't want it then I become wary.

There are a lot of companies that have good numbers above yet the price is still falling - subprime crisis, etc etc.

Anyone want to suport or destroy the above? LOL

 

[mattyhammer]

Yes, I don't disagree. But I still believe that anyone using a long-term 'buy and hold' type approach will never produce the same sort of returns that a skillful shorter-term trader could achieve.

As a newbie trader who has stuck his toe in the big blue and had it bitten off, how do I become a "skillful shorter-term trader' as suggested above???? There is so much lingo involved with trading and so many differing opinions on how to become successful at trading that I really don't know where to go. I hear so many things that say to read P/E ratios n calculate the capital of the company. I have no idea what all that is and how to analyse it. So what I'm asking is how on earth do I get myself out of the hole I have dug myself with my current level of knowledge without considerably losing too much more. I'm willing to learn, just not sure where to begin.....

 

[Aussiest]

Read Louise Bedford's Trading Secrets.

 

[r34ztune]

I would agree the potential to more earn day trading however would it be fair to say the potential risks are much higher? Also criteria for picking stocks is different for day traders as opposed to "buy & hold" approach?