Some Tips

If you wish to make money quickly, stock market is a great trade to be in. Stock market rewards its followers very well. If you invest wisely, follow a solid strategy, you can easily make more money then any other regular job. In this article we will learn how to pick stocks from a small list by comparing the companies.

Lets us look at few ways which can increase your earning manifold in stock market:

* Comparable companies: When you pick up a company, you should pick top firms in the same industry so that you can compare performances in same industry. Many websites like yahoo finance list all the top companies in same industry. It is easier to make a MS Excel Spreadsheet and then compare. When you invest in stocks, MS Excel will be of great help to you.

* Data in spreadsheet: When you have created the list of companies, create separate columns where you will list down company name, ticker, current price, number of fully diluted shares, market capitalization, total debt, EBIDTA, net income, 3 - 5 yr growth rate (estimated), P/E. You can fish out this information for each company at its website or you can calculate it from your picks by using the annual balance sheet. Each company that trades on stock market will release a balance sheet with its financial numbers.

* Titrate the Excel Sheet: You will need to remove companies that do extremely well or typically bad as they will affect results. Remove any outliers that you may find in this list of companies. In case know the reason behind these outliers, adjust it accordingly. The particular company may be showing its assets differently or could be any other reason.

* Comparison of companies: You can now compare the companies using all this formation. Technically, you are looking for high growth companies. This research is all about getting right stocks so that you can make quick money. You can find companies that are good now or put some on watch list.

The spreadsheet is your tool to keep your thoughts rational. In stock market most people fail because they let their heart take decisions. The key to make money in stock market is not to work with heart but with head. A good trader will be in same emotional state when he loosing money or making money. The entry price and exit price will be decided by the value you think a stock will deliver. To make quick money on stock market you should devote time and energy to analysis. This may look intimidating if you are a beginner but with little study you can understand and learn easily.

There are many websites and books which can help you in this matter. Read articles published on websites. You can find some template excel sheets on internet also. They can form your guide and help you on way to make money. Making quick money on stock market is very easy , all you need is some patience.

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