Like anything else in life, your chances of becoming a wildly successful stock investor squarely rest on your ability to pick the right stocks on a daily basis. “Daily tiny wins” – you may call it. This in turn depends on your deftness in discovering or inventing new stock ideas (or themes or “motifs”). Ideation is perhaps the most valuable skill to develop in the world of stock investing.
Let’s look at a few avenues you can use to mine and generate your killer investing ideas.
t’s the age of social media. Ideas are formed, ripped apart and analyzed actively by experts and newbies alike. Social media has been the greatest leveler and the investment community exemplifies this fact beautifully. The popular social media platforms – Facebook, Twitter, YouTube – and tools inspired from them or on top of them, like StockTwits and TickerTags, are an endless source of excellent stock ideas.
Stock screeners are a big part of a value investor’s life. Great screeners make it easy to find the right stocks out of the tens of thousands stocks out there. As you gain more investing experience, you’ll naturally develop an intuition to find the best stocks. Upon close examination, you’ll find that that intuition is made of several components. You plug in those components – criteria – into the screener and find your next best pick. We highly recommend the screeners from MorningStar and Stockal.
Tags and Themes
Motif Investing (and Robinhood’s tags) is based on the idea that when a market expands, it’s natural all that all the companies operating in it will benefit. In other words, motifs are stocks grouped by a specific idea. To understand this, consider the example of a tablet motif, which contains a mix of of semiconductor, hardware, memory and display stocks. Similarly, Stockal tags stocks based on themes. If you search for a theme, you will find all the stocks that are related to that theme. This is another neat way to pick and profit from your stock ideas.
published in partnership with ForewordMoney.