Chapter 20 Choosing Stocks: Finding the Right Ingredients

The easiest job I have ever tackled in this world is that of making money. It is, in fact, almost as easy as losing it. Almost, but not quite.

̶̶ H. L. Mencken, in the Baltimore Sun, June 12, 1922

How do you pick a stock? With about 8,000 to choose from, you need to narrow down the list. When picking stocks with call options in mind, you will need to combine fundamental and technical tests to ensure that you pick those stocks with the greatest potential for growth and that offer you the very best options positions.

As a starting premise, be sure to observe four basic rules for picking stocks:

1.Always pick stocks that are strong on their own merits. A common error is to pick stocks based ...

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