RE: New to Eve4 Dec 2020 14:26
Cam, I'm not precious at all about how it works for me but it might not be what you want. I personally would steer clear of investment mags, (including on-line such as the Motley Fool as an example). I never, ever read broker forecasts as they are worse than useless. They tend not to be helpful often enough and its just another cost which eats into the profits of your stock picks. But that's just my experience.
How and what you decide to invest in will be coloured by your time frame and (profit) expectations. I am not a Buffet fan but if you are going to invest in something for a while, at the very least 6 months, then I think it is very helpful to understand the business and what it does. Personally I am happy to buy more of a stock that's rising rather than more of a stock I own that is falling in price. (Never catch a falling knife is term used to buy more of a stock you own that suddenly goes down in price)
Are you going to be a value investor (ie look at the fundamentals of the business cash flow, debts, capital, profit etc) or use TA technical analysis such as looking at price charts and the patterns they create to try and guess the next move? How active do you want to be? buying and selling a few times a year or a few times a week?
Lots of things to mull over but truly if you don't have a plan (whatever its based on), ie why are you buying now, what so special about the SP right now ? what price do you expect it to go to? what price would you sell at If you have made a mistake. How long do you expect to hold this stock?)
If you don't have a plan it becomes difficult, nigh impossible to judge if you have picked successfully due to your expertise, or just got randomly lucky. (I can tell you now if its random you will lose more than you win and by some margin.)
Most Pi's lose more than they win in this game. That should tell us all something!
Good luck