How do you utilize daily stock picks?


Quick Answer

To utilize a daily stock pick, enter the company name or ticker symbol into a financial website, and then perform fundamental analysis on the data, explain both Nasdaq and About.com. This approach can help an investor decide whether to purchase a stock.

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Full Answer

The Nasdaq website offers an advanced search feature to look up a stock pick on a particular exchange or view some of the most active stocks by volume. Visitors can also register an account through Nasdaq to enter stock picks into the stock-screening software. This software offers advanced financial metrics such as growth score, value score and market capitalization.

Some of the basic financial metrics to consider when performing fundamental analysis on a stock pick are earnings per share and price-to-earnings ratio, notes About.com. These metrics consider a combination of earnings, growth and value in the marketplace. Each quarter, companies report earnings figures that impact these metrics. Investors can look up the associated earnings figures of stock picks and compare them to industry competitors.

An investor can purchase shares through a broker after analyzing a stock pick, states the Houston Chronicle. Investors must first identify the level of control necessary and then determine the appropriate amount of capital to commit. An investor must also choose a buy type, such as a market order, limit order or stop order.

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