How to analyze whether you should invest in a stock.

>>1428870

The thing about 52 week high and lows, is that it doesn't mean it will not go any lower and higher. You could still lose a lot of money buying at a 52 week low if the company gets worse.

>>1428892
Okay, true. But on the flip side, doesnt it lower the risk if the fundamentals and news forecasts are okay?

What if im looking at a company that just keeps going down because nobodys thinking about it, but it is still making good money as a business and has no long term flaws in its marketing plan?

I pay $20 for a company that used to be worth $65. It could go back up, or it could crash to 0, for some magical reason. I could stand to lose $20 a share, but if people start liking its value per share, because of the lowered price, it could go back up with less risk on my end. I could stand to lose 20 a share, but that is the MAX I would lose.

>>1428870
Also, realize that some company's stock are traded emotionally and there really isn't a pattern to it. Consider MGT for example.

>>1428904

It depends on the company. I bought a bunch of shares at around a dollar of this one company who had been at $8 and had been delisted from the Nasdaq. They got a contract with the military and the price went up to $3.50 so I made some good money. That said I could have lost it if they didn't get those contracts. So that wasn't anything to do on the part of my skill as an investor but rather the the luck the company had getting those contracts.

Also it really depends on institutional investors if you really want something to change the price of a stock.

>>1428904
>What if im looking at a company that just keeps going down because nobodys thinking about it
Then you are looking at some field that is very new. I remember such times 20 years ago in regard to vidya. Now it's regular business. If you have such a sector, it will work but the changes are slim that you know something the market doesn't

>>1428870
>I have never invested in stocks before, but here is what I would do to analyze a stock
A lot of /biz/ threads start this way

>>1429978
Really? To me most /biz/ threads start: HOW DO I MAKE MONEY?!?

>>1428870
>Run the stock through the Nasdaq dozen
>Look for stocks that are nearing 52 week lows
I think you might be memeing too hard at this point.

>>1429995
No, no, im just retarded.
Memeing would involve something like this.
Maybe.

>>1428870
>I have never invested in stocks before
Don't look at those graphs
Buy a solid ETF and let the ETF do the job for you. After a year, look at the graphs again and in the meanwhile try to read as much business news as you can so you know what's up. Also read annual reports of companies you're interested in investing in.

>>1429990
>A lot
>most
these words have different definitions

>>1428870

You could try out the CANSLIM model. Read "How to make money in stocks".