Thursday, December 9, 2010

FA - Steps to buy stocks

Steps when using FA to buy stocks :

1. Look at the sector versus the economy.
2. Look at the company's numbers to ensure 
- not over-valued, 
- profitable, 
- not too highly geared
- has good cashflow. 
3. Compare the company's numbers to its peers. 

There are other things to look at in time but these 3 points form the core of my fundamental analyses. 

Then, I use technical analysis (charting) to decide on fair entry points.

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