Idk if this counts as a necro but it's still on the first page of the forum!
Yeah, I've been doing it for a while. My ground rule is that stocks are 90% psychology. The market cap of a stock is a little less than what most people expect it to be in the future. So the actual fundamentals matter little. It's the perceived value that really counts!
I did look a lot into technical analysis but found most of it BS. TA is great for warning flags, but if you invest in smaller tech companies like I do, it messes up a lot.
My best tip is to look for the secret sauce. Some checklists I do:
1. Is the solution tackling a big pain point? My best investment was a private hospital and an insurance company simply because the gov hospitals were doing a horrible job. Second best investment was a transportation company. You don't need to read finance magazines and all, just think about what would make the world a better place, and invest in companies that are doing that.
2. Is the team good? I don't look for smartness, I look for toughness. Think Tony Stark. Most people on a BOD are smart enough. But few can make right decisions under pressure. And the truly brave people are the ones who push forward an innovation and tackle important problems. They're more likely to not get disrupted and they'll solve big problems fast. Any rags to riches guy is gold. I'm biased but I don't like MBAs as CEOs, yellow flag. Directors who don't put their picture up, red flag.
3. Is the market niche enough? A lot of people invest on market size. This kinda overinflates the price. What people don't invest is niche market. A pharma that focuses on one cure than all. A tech company that specializes in search. A company that does electric cars only. Companies often reach good growth here, and may break out into bigger markets.
4. Scaleable model. This seems obvious, but I usually avoid companies reliant on projects. Mainly construction companies and some B2B ones. So far all my major losses were on these.