Friday, April 4, 2014

How To Pick Stocks For A Small Investor?

stock picking. How to select stocks or shares?
Being a small investors, stock picking could be a challenge as most blue chips are deemed too expensive for us and penny stocks are being too risky.
Not sure whether you folks have any rules or tricks in stocks selection. For me, I set a few criteria and resource to ease my search.

My criteria to pick the stocks :

1. Stock Price Range : >= SGD0.20 and <= SGD1.00
2. Financially stable/strong : With steady growth, fair PE (Price Earning) ratio and not debt heavy (basically the usual Value Investing parameters)

3. Preferably is a Dividend paying stock

My resources to pick the stock(s):

1. Identify the stocks through Financial news sites or blogs. Example : The Edge Singapore, and Share Investment etc..

2. I will digest those stocks in the news and evaluate them based on the criteria that I've set above and for those that met my criteria, I will put them in the Watch List and trade them with my desired price.

What about you? How do you pick your stocks?
P/S: For this week alone, I've parked the following stocks in my "Watch List" :
Company (symbol)                Last Price    Dividend Declared
Baker Technology (568)        SGD0.310    5 cents
Design Studio (D11)               SGD0.545   6 cents

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