Professional investors follow many different methods to hunt down stocks to recommend, from computerized screening programs to gumshoe field work. Sri Lanka Equity Forum http://forum.srilankaequity.com and Sri Lanka Equity Research Online http://research.srilankaequity.com are the most valuable tools available to the Sri Lankan Stock Market investors to obtain latest information and tips to carryout stock screening.
You can find much information about public companies at their own Web sites. Most publicly traded companies maintain an investor section that contains financial data and timely reports about business conditions, such as 10-Ks and 10Qs. The SEC Web site, www.sec.gov.lk and Colombo Stock Exchange Website www.cse.lk is also a valuable resource.
With stocks, though, it's often more important to know what to avoid. Here are key mistakes to avoid:
• Overpriced goods: Be cautious about highflying stocks. They may be closer to the end of their run than the beginning, no matter how good the company is.
• Hunches and headlines: Leave impulse buying for the supermarket. Have patience about selling. Time gives individuals a rare edge because longer horizons make losses less likely.
• Pump-and-dump scams. Internet chat rooms, bulletin boards, unsolicited emails, newsletters -- even radio and TV ads -- can all be sources of stock touting. Don't take the bait.
• Love-struck stocks. You may love a stock, but it won't love you back. If losses start to mount, you have to know when to break it off and sell. Best defense: Stay disciplined and diversified.
• Climbing on bandwagons: You'll almost always be too late. Instead buy into companies with a history of superior earnings, barriers to entry in their field and a track record of wise investment.