There are two main methods you can use to pick stocks for investing or trading.
I'm talking about terms called “fundamental” and “technical” analysis.
You need to understand the differences between these methods - if you are to use them successfully as an investor…
Use them correctly - and you stand to make big profits. Use them incorrectly and you could lose out big time.
... ››› more
The one question I always get asked when I meet new investors is, “How do I know what shares to buy?”
It's a legitimate question.
After all, if you pick the wrong share, you could lose out on potential profits. But, if you pick the right share, you could be smiling all the way to the bank.
If I'm honest, finding the right share is not easy. It's an art that the analysts at FSPInvest... ››› more
Once you decide to invest, you want to be able to find the best shares to buy. This means finding the shares that are going to perform the best.
So how can you find the best shares the stock market has to offer?
There are two main ways to go about finding them: Fundamental analysis and technical analysis.
Let's take a look at both techniques…
Finding the best shares to buy with fu... ››› more
Once you decide to invest in shares, it's not advisable to pick shares at random. You need to do some research first.
One popular method for finding shares to invest in is fundamental analysis. Whilst there are varying types of fundamental analysis, they all follow similar principles.
So what is fundamental analysis? And is it an investment strategy you should consider?
Read on to find ou... ››› more
There are so many financial markets you can trade. You may want to focus on South African stocks, international stocks, indices, commodities or forex.
So what's the best way to find potential winning trades?
There are two main schools of thought: Fundamental analysis and technical analysis.
So what is the difference? And what analysis suits you best?
Let's take a closer look…
W... ››› more
When it comes to selecting shares to invest in, you have a huge number of different investment strategies to consider.
If you think fundamental analysis is for you, you have to consider the different approaches. And, most importantly, which one is likely to give you the best results.
So let's take a closer look at the two main veins of fundamental analysis to see which one is the better bet... ››› more
One of the advantages of trading is that as well as potentially profiting from the rise of a company's share price, you can also make money on a falling share price.
But the key thing here is, what stocks to short?
Let's take a closer look at how selecting which stocks to short can produce the best results…
Shorting stocks based on fundamentals
When trading, you need to decide how... ››› more
When it comes to investing in shares, ask different investors and they'll use different types of analysis to decide what shares to invest in. They'll use technical analysis, fundamental analysis or a bit of both.
So what should you use when you trade forex?
Read on to find out…
Why technical analysis is your best bet for forex trading
If you want to trade forex, technical analysis... ››› more
When you embark on trading, you need to have a way of looking for trades.
Whether you want to trade shares, currencies or commodities, you'll need some type of system. You can't just randomly put trades on and hope for the best.
There are two main schools of analysis: Fundamental analysis and technical analysis.
So what's the difference between the two? And what's best for trading?
Re... ››› more
Every successful forex trader needs the backing of a solid forex trading strategy. Without a system to follow, you chances of failure increase.
There isn't one forex trading strategy for all traders. When it comes to forex trading, you need to find a strategy that suits you.
Over time you can tweak your strategy to suit you and your needs.
So where should you start?
Let's take a closer... ››› more
Fundamental analysis involves delving through all the available information you can get your hands on about a specific company.
One of the key aspects of fundamental analysis is using financial ratios to unearth what's really going on in a company's financials. And to work out whether it's worthy of your investment.
So what financial ratios should you use?
Read on to find out the key fin... ››› more
Investment great Warren Buffett uses fundamental analysis to uncover great stocks to invest in. He's now the world's fourth richest person.
Imagine if you could replicate just a fraction of his success?
To do that, you need to get to grips with fundamental analysis.
So what is fundamental analysis? What types of fundamental analysis are there? And what are the key things to focus on when... ››› more
In 1995, the world population was sitting at 5.67 billion people! And today, 19 years later, the world's population is at 7.24 billion people!
That means in almost two decades the earth now has 1,570,000,000 more people to deal with.
The population is clearly growing at a staggering rate.
That means demand for things like food production and supplies will keep on increasing.
So the o... ››› more
When it comes to trading, there are a number of strategies out there for you to try. Over time, you'll find a strategy that suits you best and your style of trading. And you can tweak it the more experience you get. But where should you start when it comes to your trading strategy? Read on to uncover what it should include…
There is a strategy out there for you
As a trader, you need to have ... ››› more
In the world of investing, there are a multitude of different financial ratios analysts use to try and whittle out winning shares. One of the most commonly used is the price earnings (PE) ratio. But what does is show you? And how can you apply it to your research? Read on to discover what you need to know about the PE ratio…
Why is the PE ratio so important?
The PE ratio is simply a shar... ››› more
When it comes to spotting a winning investment, there are a few things that you should be on the lookout for. Return on equity is one of the most important. Consistent return on equity signals a great business. As a shareholder, it can help you get rich over time. Read on to find out why it's so important…
Investment analysis is often a very complicated process, which you can't boil down t... ››› more
Trying to unearth a good investment can be difficult. But if you look out for a few key factors, you increase the chances of a profitable investment. One such key factor is consistent profit margins. Read on to uncover what you should look for…
The laws of economics make maintaining consistent profit margins very difficult, Dan Ferris in S&A Digest explains…
But the companies that do are ... ››› more
When you're searching for a potential winning investment, there are a few financial clues that you should look for. One of these crucial financial clues is gushing free cash flow. It's critical for analysing a business, and you can find it quickly and easily in a company's financial statements. Read on to find out what you need to know this financial clue…
Finding great investments is a diffic... ››› more
Everyone loves a bargain. But some people are willing to work harder to get it. Investors are like shoppers. Some will stand in line to buy the latest hot Apple product (or stock), while others will wait patiently until the product or stock they want goes on sale. Read on to discover the three most important ratios for finding value…
When investors look for cheap stocks, they often concentrate... ››› more
If you're looking to invest in a company for healthy dividend paying shares, it pays to focus on the potential for dividend growth, rather than just hunting for high dividend yields. Looking for high yields alone can mean you pay over the odds for a share. Read on to find out how to work out if dividend growth is already in a share's price…
Well there is a simple calculation that helps, based ... ››› more
Disclaimer Note that FSP Invest, a division of Fleet Street Publications (Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The advice in this website is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal situation, you should seek professional advice from a stockbroker or independent financial adviser authorised by the Financial Services Board.
We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions found in this publication.
Remember: Never invest more than you can afford to spare and that the value of any investment, and the income derived from it, can go down as well as up. The past is not necessarily a guide to future performance.
Editors or contributors may have an interest in investments commented on in this newsletter. However they have signed restraints to prevent the abuse of their position as contributors to this publication.