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5-Step Investing Process




Our 5-Step Investing Formula is a disciplined investing process using Web-based tools. We've helped over 167,000 people learn to invest with facts, not emotion. The benefits are less stress, better results and, dare we say it, fun.

The 5 steps are:
Step 1: Searching for an Investment
Our alumni have access to over 65 prebuilt and back-tested online search tools to consistently deliver the top 25 stocks according to parameters such as "Great Earnings, Sales & Cash Flow Growth" or "Strong Long-Term Growth." With these prebuilt searches, it's easy to screen stocks according to a wide variety of criteria. You can even build your own searches or refine prebuilt searches to pinpoint the stock types that suit your strategy. This incredible depth of search ability gives our alumni a significant advantage in all market conditions.

Step 2: Fundamental Analysis
It doesn't matter whether you find stocks in a search or in the newspaper, or if you want to invest in a company you're familiar with. By doing a quick fundamental analysis on a company through our Phase 1 and Phase 2 scoring system, you can confidently reduce or limit the amount of emotion that comes with an investment decision: either a stock passes or it doesn't. Fundamentals tell you the good and the bad, helping reduce risk. Good fundamentals provide a great foundation for companies to build on. How long does the analysis take? About 60 seconds per company once you've been trained.

Step 3: Technical Analysis
Once you've compiled a list of fundamentally solid stocks according to the Phase 1 and Phase 2 scoring system, you monitor them for the opportune time to buy and sell according to technical indicators. Technical analysis is useful in forecasting potential direction - to time your entry and exit points. With our red and green arrow system, you can learn to accurately interpret several technical charts (Moving Averages, MACD, Stochastics, Volume, Support & Resistance) in just 30 seconds per stock. And that's all the info you'll need to consider whether it's time to buy or sell!

Step 4: Portfolio Management
Every day active investors are moving between steps 1, 2 and 3 looking for great stocks and watching for buy and sell opportunities. Managing that information effectively is critical to your success. Our online analysis and strategic portfolio perspective tools make it easier than ever before to build, manage and monitor portfolios.

Step 5: Industry Group Analysis
The final step in the systematic investing process is to be aware of how the different industry groups are performing. An industry group's strength or weakness can account for a huge portion of the potential move of a stock. If an industry group is out of favor, it is unlikely that a stock within that group is doing much better. Every stock belongs to one industry group or another. Which group it belongs to depends on what the company does or produces.
Having a tool that helps you do industry group analysis allows you to better focus your attention on the very best market sectors and to make sure that a stock you are considering is in an uptrending industry.
 
INVESTools
The advantage of having an easy-to-follow, step-by-step investing process with easy-to-use Web-based tools is that you rely on facts to make decisions - not emotions. The benefits are less stress, better results and, dare we say it, fun.
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