Picking stocks for profit can be learned as a skill. Improving that skill takes time, practice and patience. Much will depend on your trading strategy or system which will guide you in making winning stock picks. The stocks you pick will be influenced by your trading strategy and no matter what that is your choices will provide better results by folling a consistent strategy.

There exists several different trading strategies. {Choosing which strategy to use|Your choice of an overriding method will depend on your personality and your financial (goals|outcomes|aspirations).

Following are four types of trading method:

1. Fundamental Trading: Stocks are picked based on fundamental analysis, which examines aspects like earnings history or projected earnings, stock splits, company reorganization or acquisitions.

2. Technical Trading: Based on closely watching charts, graphs, lines on stock or index graphs for signs of convergence of divergence that might indicate to buy or sell. There are many different chart types and technical indicators that can guide picking stocks.

3. Momentum Trading: Based on identifying stocks that are undergoing high volume trading and sticking with them to ride the momentum and gain substantial profits. The big profits are in the big moves. 4. Scalping: Making dozens or even hundreds of trades a day in order to scalp a small profit.

Picking stocks can also depend on your overall methodology; whether you plan to engage in day trading, holding stocks for the medium term or whether you will employ a buy and hold srategy. Technical analysis combines well with day trading and medium term trading for identifying and picking stocks. Momentum trading can be highly effective for medium and long term trading. Fundamental analysis is important to pick stocks for a buy and hold strategy where stocks may be held in a company for years.