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The next tip is to investigate how other stocks similar to what you want to invest in are doing. This gives you an idea of how well a stock is performing and if it is very different from others in the same market.
Let’s say that you were looking at the stock in Macy’s (NYSE: M). You might notice on a chart that Macy’s stock is rising up and down in value with no real long-term trend evident. Look at other stocks in the same retail field to see if Macy’s is a good stock to invest in. You might look for information on Kohl’s (NYSE: KSS) and see that Kohl’s stock has been steadily rising in value. Maybe Kohl’s might be a better stock to invest in because of its performance.
Check multiple stocks in the same field. If you are going to work with a retail stock, check four or more retail-oriented stocks to see which one is developing the best. Review the backgrounds of these companies to see what makes these groups profitable or functional.
