The main goal of picking and investing in stocks is to create wealth either for the short term or the long term. The practice of picking and investing in stocks is a combination of art and science. There is no one right way of doing it. There are a variety of approaches and different investors have had success using one or more approaches or combinations of approaches.

The most well-known approaches to picking and investing in stocks are as follows:

Fundamental Analysis

Qualitative Analysis

Value Analysis

Growth Analysis

GARP Investing

Income Investing

CANSLIM

Dogs of the Dow

Technical Analysis

There are also three further strategies which are worth knowing which will also be discussed in this series. These include:

Jim Cramer’s Strategies

Warren Buffet’s Strategies

Intrinsic Value

Before using any of these stock picking and investing approaches or combinations of approaches, it is important to take heed of the following considerations:

1. Don’t invest with money that you actually need to cover your day-to-day expenses.

2. Ensure that you have a reservoir of emergency funds and do not use it to invest in stocks. This would come in handy in case you lose your job or encounter some family crisis that requires some immediate expenses. Your emergency fund according to a variety of financial experts is between 6 months and 12 months of your salary. The greater the amount of your emergency fund the better.

3. Educate yourself as much as you can. Depending on the extent of your knowledge. Try to find out about different ways of investing. Review a variety of Web sites and read books of successful investors as well as of various investment techniques.

4. Determine what your investment goals are, what your risk tolerance for investment is, and how much you are willing to commit. It is important to set some goals and have an investment strategy. Of course as time progresses and you become more experienced and acquire more knowledge, and as your life conditions change, you may have to refine your strategy. It is however, important to always have a strategy than no strategy at all.

5. Once you start making earnings from your stock investments, it would be best for you to create a budget. This would ensure that you use your earnings in the best possible way to ensure that you fulfill your short term and/or long-term goals.

Table of Contents

1. Introduction
2. Fundamental Analysis
3. Qualitative Analysis
4. Value Investing
5. Growth Investing
6. GARP Investing
7. Income Investing
8. CANSLIM
9. Dogs of the Dow
10. Technical Analysis 1
11. Technical Analysis 2
12. Technical Analysis 3
13. Technical Analysis 4
14. Jim Cramer’s Strategies
15. Warren Buffet’s Strategies
16. Intrinsic Value