| In Part two of the Stock Market Investing for | | | | and reduce the number of things you have to look |
| Beginners series, we looked at the Bottom Up | | | | at. It does this by following rules that the user enters |
| approach for choosing a stock to invest in. It is | | | | and works extremely fast compared to a human. |
| important to have a system for choosing the right | | | | You will need to think logically when entering the rules |
| candidates to invest in that does not take hours or | | | | for the computer to follow and also go through the |
| days to perform as this will had additional stress to | | | | process auditing the results to see if there are any |
| your trading activities. | | | | errors. Once these checks are done, it should work |
| The Top Down approach to filter through the | | | | really well and be a valuable tool. |
| thousands of stocks is the inverse of the Bottom Up | | | | Another really good way to achieve great results is |
| approach. You identify a market first (like the US | | | | to use a service. A stock picking service traditionally |
| Stock Market) then narrow the search to a sector | | | | charges a month fee to provide members a short list |
| then go through the companies within the sector. | | | | of stock picks to invest in. Like the computer |
| This gives you the bird's eye view of the market | | | | program you will need to perform an audit for the |
| you will be trading in and will define the sentiment of | | | | quality. If the service provides a cheap trial or a 30 |
| the 'arena' you will be trading in. This helps a lot | | | | day money back guarantee you can test their |
| because if the market as a whole is falling apart it | | | | customer service and follow the picks real time. |
| may not be prudent to start buying into that massive | | | | There is no sense in looking over a provided tract |
| force. Calling market bottoms is very difficult and | | | | record as anyone can put that together after the |
| most professionals do not engage in the activity. | | | | fact. Many professionals use these types of services, |
| Many usually wait for the market to turn and then | | | | rather than doing it in house as it is usually cheaper. |
| consider looking for value to invest in. | | | | In the next installment we will explore the execution |
| Both Bottom up and Top Down take time and there | | | | of performing a stock trade and what is important |
| are a few ways to reduce the commitment required | | | | before you 'press the button. Always consider |
| to do a good job. One of the best ways is to use a | | | | consulting an unbiased professional before you risk |
| computer program that will go through all the choices | | | | any capital on a trade. |