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Our best guess would be that you have just decided to start investing and are completely new to the world of investment and stocks. If directed properly stocks can either be your best friend or your worst enemy.

Taking care of personal finances and accumulating wealth is not a minor issue, its rather a difficult task. But there are certain questions which always dwell inside the mind apart from investment .Picking a stock is difficult task to do and if not done with the proper knowledge it can lead you to the road of disaster. How to choose a stock of a company where you can invest and get a better return?

Its a heavy task like said above and no childs play but once you are perfected with the art of picking stock, you not only going to make some good profit but also enjoy the whole process of investing.

There are many myths and misconception in the mind of the new investors and one of them is that they think there is an infallible strategy that will lead them straight to a Mount Everest road without any failure but sadly that is not true, as exciting the word stock may sound, the stock market is still like a roller coaster ride, once you are on it, you will get unexpected surprises and hence there are chances you may fall .

There is no scientific method of picking up a stock instead choosing stocks is an art which you have to practice and learn slowly with an open mind. There are some techniques but then again you will have to be careful with the way you apply them, though nothing guarantees a quick route to gold mine but with some practice you sure will be able to avoid making bad investment at least.

Before you go ahead the first thing you need to do is determine the type of investment you want to make. Enhance your portfolio and determine its purpose, investors who are interested in income, capital preservation or capital appreciation requirements will totally have a different investment criteria whereas people who are income oriented will invest in the low-growth firms industries. There are different types of investors and to narrow down the type where you fit in is easy, the tough time comes when you have to decide on the company where you will invest your wealth.

There are many things you will have to see in a company before investing:

1. It is not possible to have one formula which will guarantee you success for life long nor can you. There are many factors which affect the company in many ways, and some of them are intangible as well as tangible.

2. It is hard to measure the intangible components of the company. Looking at the chart, profits, data is easy and you can calculate that in no time but how can you calculate the quality of a company? Its reputation, staff etc.;

3. When you are inquiring about a company make sure that you dont overdo it as it wont assure you of the stock instead it will create a well of doubts in your mind and you will not end you investing anywhere.

4. Before you choose your stock, find stock ideas, these are the stock worth buying, read blogs, watch news on stock market. make sure you are in touch of the market everyday so that you are always up-to date about the changes and impacts of things on stock. This can only happen if you will keep your mind and eyes open.

5. Look out for major announcements by company, their new products because anything can affect the perceived value of a company.

Once you have finalized on stocks you want to buy, make sure to see the investor presentation, if you want to have a depth of scrutiny about a company to round up on the stock which will earn you more profit then you will have to take a look at the investor presentation, they contain balance sheet, profits, income statement of the company and helps you to determine which stock will outrun the other run hence making you sure of your investment.

Making an investment is hard but once you have the knowledge for picking the stocks you can enjoy every bit of it, 100% success is not guaranteed but at least it will help you to block the bad investment on your way. There are no secrets for success in this field at least but again with proper knowledge and your basic instinct you can accumulate your wealth and make a good investment.