Is This the Right Way to Analyze Stocks? A colleague recently pointed out that a structured approach is key when investing, and skipping steps can lead to costly mistakes. They follow a Top-Down Analysis Framework, which breaks down like this: ๐น Macro Overview โ Whatโs shaping the market? โ Global trends ๐ โ Key economic indicators ๐ ๐น Sector Analysis โ Where is the money flowing? โ Major players & industry trends ๐ผ โ Risks & regulations โ๏ธ โ Historical performance ๐ ๐น Company Evaluation โ Which stocks truly stand out? โ Revenue & management insights ๐ฆ โ Shareholding patterns & profit margins ๐ โ financial ratios ๐ฐ ๐น Buying a Stock โ When & at what price? โ Risk vs. reward โ๏ธ โ Earnings reports & volatility ๐ โ Timing & technical analysis ๐ฐ๏ธ It got me thinking how many of us actually follow a structured process like this before investing? Or do most just jump straight to picking stocks? Would love to hear your thoughts. How do you approach investing?
Download the medial app to read full posts, comements and news.