Let’s face it. New Year’s resolutions often start with fixing last year’s unresolved issues. And if pledging to begin learning how to invest in stocks — particularly, how to invest in stocks for beginners — is one of your goals for 2022, start with an honest and realistic look at what you want to achieve and how you’ve done so far.
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With the coronavirus crash and rebound, plus ongoing concerns about Covid variants and inflation, the ever-present emotions of hope, fear and greed have the potential to wreak havoc on investor psychology. That’s why it is crucial for both beginning investors and seasoned pros to keep in mind the fundamentals of how to invest in stocks in 2022 and beyond.
To that end, let’s take a look at three factors that will streamline your research and improve your stock picks: stock ratings, a simple routine and understanding the concept of support and resistance.
How To Invest In Stocks: Get Pass Or Fail Stock Ratings Using Stock Screens
In MarketSmith, the IBD database covers over 9,000 stocks. How can you reduce that to a more manageable number of the best stocks to buy and watch? Two tools will quickly streamline your search: IBD Stock Checkup and IBD Stock Screener.
With Stock Checkup, you instantly get pass, neutral or fail stock ratings for any publicly traded company. Based on the CAN SLIM Investing System and over 130 years of stock market history, these unbiased, computer-generated ratings give you a holistic look at the fundamental and technical health of each company and its stock.
For example, the Composite Rating reveals how your ideas stack up against all other stocks. Take Nvidia (NVDA). It currently earns a 99 Composite Rating, meaning it is outperforming 99% of all stocks in terms of the most important stock-picking traits.
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Stock Checkup also gives you a grade for earnings and sales growth, industry group rank and other key metrics— relative to all other stocks on the market. It’s an easy way to see if your stock is a leader or a laggard.
Using the stock screener, you can also instantly sort through thousands of stocks to identify only those that fit your own custom criteria. Looking for IPOs that have 25% or greater earnings and sales growth? Want to find stocks on IBD stock lists like the IBD 50 that expect a 50% or greater EPS spike in their next earnings report? The stock screener enables you to do that and more.
Use This Simple 3-Step Routine To Understand How To Start Investing In Stocks
Beginning investors have many questions when trying to understand how to invest in stocks. One common mistake is to focus solely on the individual company, ignoring general stock market trends. Another is to focus exclusively on a company’s…
Read More: How To Invest In Stocks In 2022: Start With Stock Ratings, A Routine — And