What do you guys use for doing research?

Discussion in 'Professional Trading' started by chiefraven, Oct 7, 2006.

  1. what are some good sources you guys use for doing research on companies ... and finding good and reliable fundamental datas? So far, i'm only able to use yahoo's finance since it's free, but obviously this is not the best resource out there since a lot of the stuff on here are delayed. for example, shorts interests etc

    Also, i have just begun to trade earnings stocks.... so i was wondering what are some of the stuff you guys look at when studying stocks with earnings... what are the steps you guys take to do your research. what are the important facts you analyze? and how do you determine whether or not there's more sellers or more buyers at a given time?

    Any advice are welcomed.
  2. Pull a Budd Foxx.
  3. First, you need to go to the public library and grab some books. I have recommended the Dummies series of books in the past because they are easy for a beginner to understand. Then after you read those books, then move on to more complicated advanced books. I have been bashed on here for recommending these books, but hey, are you going to start out with the most complex book on technical analysis or do you start right at the beginning?


    Before you trade one dollar, you should be able to stand before me and give a lecture on every piece of data you can find on that Yahoo screen from the most basic data like P/Es to the charts to the financials.

    If you really want to research a company, then buy an analyst report for 30 bucks off of the Yahoo board that is authored by a known starmine analyst. Now just because the starmine analyst thinks its a buy or a sell, doesnt mean you have to agree. You go over his thesis, data and conclusions. Use his research, but come up with your own conclusion.

    Another good place to research a company is Morningstar and all the other usual websites. Remember, though, use their research, but draw your own conclusions.

    After you have concluded the research on the websites now its time to do some field work. If your going to buy some shares in a company, then it makes sense to experience their products first-hand. Starbucks is an easy one. McDonalds another no-brainer. I went to Ruth Chris Steak House when researching the company. Good steak, but I would have to say after the experience that it was a do not buy. It was simply too expensive, too fancy and it didnt seem as if there were that many customers. I liked the experience, but I didnt see where it would be all that popular because the average American simply wont be able to afford it.

    Make believe you are a police detective trying to solve a murder mystery. Everyone you talk to seems to have a different spin and may have other alternative motives. The witnesses cant seem to agree on the physical appearance of the murderer. Some people seem like their hiding things. In the same way, thats how you have to research these companies.

    Here is a good example of a company where you should not place your money at all. TMY-Transmeridian. If you go to their website, you will notice that the company does not have an email or a 1-800# to call. Its company headquarters appears to be out of a small well worn office park in the middle of nowhere. Some of the greatest companies have had humble beginnings like Google and HP starting out of rented garages. However, I dont think you want to take a chance with a company that doesnt appear to be professional. Basic things like a 1-800# and email should be present with any company...
  4. ====================
    which is IBD website, excellant tek/fundamental info.

    Candle charts of many time frames, wisdom is profitable to direct;
    moving averages, especially earnings season, anytime
  5. Here's a good idea.

    Get a job at a consultancy or service firm that targets or works closely with, Fortune 500 companies.

    You'd be amazed at how loose lipped some of them can be..