When choosing a stock to invest in, like making any decision, there are a variety of paths that you can choose. The key to choosing the best path asking and answering the right questions. When you're choosing to make a relatively short term investment in a stock, you shouldn't throw your due diligence out the window, and forget about asking the questions that validate the company you're selecting as a sustainable one with growth potential.
What sectors do you expect to outperform within the next few weeks?
What does the company's balance sheet look like?
What does the income statement look like?
What do the statement of cash flows look like?
What does the technical chart for the company look like?
How does it compare to other companies in the same industry?
How does it compare to other companies in other industries in the same country?
What stories are in the news for the industry right now?
What events increase sales in this companies market?
My intent was to make this decision tonight, but I couldn't answer all of my own questions with confidence. The only thing worse than making no decision is making a high-risk uniformed one. So, I'll continue to do more Halloween research and hopefully be ready to place a buy order on November 1.
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