Free Stock Analysis

The definition of free stock analysis is pretty obvious. I'm sure that you can search all over the internet and find any number of opinions about which stock is going to be the next big thing. You may have noticed that the word “opinion” was used rather than the word analysis. This was no typo because there really is no such thing as stock analysis without research. If there is no research involved then we would have to consider it an opinion, which in most cases as it turns out in no more than an uneducated guess.

So can you actually find good free stock analysis? The answer is yes and no (I'll bet you knew I was going to say that). To say that the quality of analysis varies is an understatement to be sure. As an example, a number of years ago one of my associates made a public recommendation of buying Ford at $2.00 per share or less. Everyone thought he was crazy as Ford's stock price continued to plummet. Today, of course, he and everyone that followed his analysis are up about 900%.

The example of the excellent call by my associate is rare in the world of free stock analysis, but it does happen. The key here is that when you do find some stock research that appeals to you the smart thing to do is to keep track of the results of the analysis.

Checking the results of someone's free stock analysis is actually pretty straightforward. It's also absolutely essential if you plan to follow their stock research at any point in time in the future. This is really a no-brainer as tracking performance results is really the only way to make an accurate determination of the level of competency of the analyst. This can be as simple as periodically checking a stock's price online. A more efficient way of doing this is to basically open up a free practice account with one of the many online stockbrokers that offer them. With this type of account you can simply take the trades as suggested by your favorite analyst and see how they progress within your mock stock trading account.

One of most important things to keep in mind is the source of any free stock analysis. We're not talking about whether it's a gigantic company or an individual making stock picks out of their garage. Remember that just because a company is huge doesn't mean that they are right. What really counts is the results of their stock research.