How to Pick Successful Stocks

Many traits are important to investing successfully in the stock market, but doing your research is the key. Devote a lot of time to picking profitable stocks.
Difficulty: Moderate
Instructions
Things You'll Need:

* Access to company financial reports (often found in Yahoo Finance, or like sites)
* Access to daily, monthly and yearly stock quotes
* Access to daily, monthly and yearly personal investment statements

1.Do your homework. Research any stock and company associated with a stock before investing in it. Research company reports, financial statements and projected outlooks for the company -- both financially and through potential acquisitions or changes.
2. Follow a stock you want to buy for at least one month before investing in it. Follow each day's gain or loss and compare it to performance the year before. This will allow you to assess how strong the company is financially and whether it is on the right track.
3.Don't pick an obscure stock just to try and cash in if it hits big. Picking a stock to get rich quick is like trying to win the lottery. These types of stocks are few and far between, so avoid falling into an investment trap when your money could be seeing better gains elsewhere.
4.Evaluate what industries are seeing the most gains or are in the news the most. For instance, if computer companies are seeing record stock gains, it's too late for you to get in on the action. Don't buy in at a higher price just because the price is still going up -- remember that what goes up, must come down -- or at least level off. Instead, focus on industries with steady streams of income and might be more up-and-coming --perhaps instead of computer companies, companies that create computer parts.
5.Don't panic, and don't fall in love. Don't panic if a stock you have invested in all of a sudden plunges. The market works on fluctuations, and it will more than likely come back up again over time. In addition, don't fall in love with the products a company makes. This may make the investment more personal, and you may not treat it as business and a way of making money. Remember the age- old mantra, "It's business, not personal" as you evaluate stocks.