I basically get a summary from ChatGPT about history and what’s in the news. Then I look at motley fool to see insider trades and institutional ownership. I’m new to this so the financials, key metrics, overview and multiples only make a little sense to me as of yet. I’ve heard to research a stock for a full day. I’m researching but I’d like to know how an experienced trader/ investor does this
Posted by doittodem
12 Comments
I search through r/wallstreetbets and do the opposite of what they’re doing.
Go to SEC Edgar and search any ticker. You’ll be able to see any document that the SEC requires, but specifically, look for their 10-k. It’s their annual reporting that contains almost anything you’d want to know about a company. It’s not going to contain a ton of ratios and stuff, but it’ll have the data that the ratios use
Vibes
I invest in what I understand, which is tech.
I spend and unhealthy amount of time completely ignoring traditional metrics like fundamentals and profits, instead diving in to the competitive advantage, the TAM, the underlying technology that company has and a bunch of other things that trad investors ignore.
If I like what I see I’ll hunt down other who’ve seen similar and spent hours reading their insight and doubling down until proven right and/or others realise what we had a couple years later and cash out at peak tulip mania.
The answer to your question varies wildly depending on what sector you’re investing in. The above wouldn’t work for old school value investors or dividend chasers. But I’m a 10x hunter and so that’s my personal approach.
See what the regards are pumping and try to get out before the rug pull.
What I’ve found to be effective is scrutinising a stock I’m interested in by using ChatGPT 👍
I check short ratio, forward non-gaap eps, debt situation on Finviz. Finviz also compiles terrific eps estimates into the future based on analyst recommendations…I use these a lot. eg [https://finviz.com/quote.ashx?t=ADBE&p=d&ty=ea](https://finviz.com/quote.ashx?t=ADBE&p=d&ty=ea) Ideally…if I can get a healthy stock with eps projections under a 2 year forward PE of 10…I’m happy.
I’ll then dig into Seeking Alpha to check the cash flow history and read the most recent written analysis.
Then I’ll use Grok and Gemini (both are way better than CGTP) to really dig into the qualitative issues for the company. Grok is actually amazing for stock research. I’ll be looking at history, I’ll ask why the stock dipped or rose at a certain date, I’ll ask about competition, pipelines, possible headwinds etc… For a stock I really want to buy, I love to ask that AI convince me not to buy it.
If I’m doing an earnings play, I check the earnings date, stock history, what earnings whispers is saying, option activity, and try to research more short term trends in the market the stock serves.
i prefers crypto to stock …perhaps having a good broker
I chant and do dance rituals until I get gains. /s
I DCA into ETF. Other than that, I’ve noticed current trends are private companies getting large govt contracts. Either that, companies working for larger (successful) companies.
Simple. I wait for everyone to panic and sell that stock that I’ve always wanted. I then wait for a bottom or close to it and then I buy it. For example United health care was always on my radar to diversify i didn’t want to buy it for 600 so I waited and bought it in the 240s. But I’m more of a numbers kinda guy.
I used to read quarterly reports then got lazy, lol. But you should. There are pamphlets on how to read quarterly and annual reports too. It’s worth it to become familiar with them. I did. Get to know what all the fundamentals are. Look up terms you don’t know while you are reading, not later. It’s the only quick way to learn them. That said, Im remarkably amateur on a lot of investment topics.
I take a look at the business description to see if it has catastrophic risk and is in a business I think I can understand. The business must also be in an industry I can understand, and the industry must be something that has produced wealthy people in the past.
Then I look at 10 years of financials on quickfs to see what annual reports I need to read as well as work out the returns on capital and tangible assets. I do these numbers by hand using the data from the most recent 10k and the balance sheet from the most recent filing as screeners mess these things up all the time. They can just be using different formulas than I do, but because they don’t list methodology or may pull the wrong numbers, I’d rather just use my own.
From there, I find what general interest reading I can about the industry. Then I start reading 10k’s of their competitors, suppliers, and customers of they are available. I want to know how much market power, terms, and pricing power they have. I look at inventory turnover, gross margins, and other small items that can give me an idea of business momentum.
I also read all of the transcripts, and conference calls.