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How to research a stock before you buy it

A beginner's checklist for judging a stock with data instead of tips — trend, momentum, and measured base rates.

A trading skill, taught as a rule + its measured base rate. Educational — never a recommendation to buy or sell.

If you're going to pick individual stocks, the difference between gambling and investing is one word: research. Not a hot tip from a group chat — a repeatable way to judge the odds. Here's a beginner's checklist. Educational only; nothing here recommends buying any stock.

1. Is it in an uptrend?

Start with the simplest, most robust question: is the stock above its 200-day line? Names above their long-term trend have historically behaved better than those below it. It's not a guarantee — it's a base rate that tilts the odds.

2. Is momentum with it or against it?

Has the stock been strong over the last 6–12 months? Momentum is one of the few factors that persists in survivorship-free data. Fighting a downtrend because a stock "should" bounce is how beginners lose money.

3. Is it overextended?

A great company bought at a screaming-hot price can still lose you money. Check whether it's overbought or sitting in a reasonable pullback zone — entry price is part of the odds.

4. Read the base rate, not the story

Every stock has a story attached to it. Stories are cheap. What's rare — and what actually helps — is the measured base rate of the situation you're in. That's the whole point of our data: you decide with odds, not a narrative.

Do it in 30 seconds

Look up any ticker's factor scorecard — trend, momentum, and overbought status with measured base rates, on one page. Research first, buy second.

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Educational content on trading concepts and their historical base rates, measured on survivorship-free US-stock history. Past statistics do not predict future results; nothing here is investment advice or a recommendation to buy or sell any security.