Research is an important part of any successful investment strategy.  In a time when unprecedented volatility creates both risk and opportunity, one must gather as many pieces of relevant information as possible before committing capital to any particular investment.  From the idea generation process, to fundamental analysis, to due diligence and even trading execution; it is crucial to have appropriate resources which strengthen your odds of success.

I have received several questions about my investment process, where I get my ideas, how I research fundamentals, what types of technical indicators I look for,  and on and on.  This post is an attempt at answering some of those questions but in the interest of full disclosure, I want to explain that several of these resources offer referral programs which extend revenue sharing to me if you sign up for their products.  While I certainly would appreciate any contribution to the “Zachary Scheidt Family Christmas Fund,” I want to make sure all my cards are on the table.

Starting off, one of the best resources I have found for uncovering solid growth companies is Investors Business Daily.   Each Monday the paper runs the “IBD 100″ which is a list of the 100 growth companies which have the most promise as successful investments.  Also, on Friday I enjoy looking through the “your weekly review” section which highlights stocks that are trading in positive patterns.  Finally, the “New America” section each day provides a great preliminary overview of a company that is usually worth following up on and keeping on a watch list.  You can get two weeks free  by clicking the box on the right to see if you find it useful.  I use the online edition and typically download each days paper in a “PDF” file in case I want to go back and see the article in its original form.  The online subscription allows you access to years worth of archived reports as well.

Since ZachStocks  concentrates on new issues and secondary offerings, it is important for me to keep track of the “syndicate calendar.”  Ben Holmes has done a good job of developing this site which not only keeps readers current on which deals will be pricing, but also gives applicable color on how each deal is shaping up.  Links from MorningNotes to the offering prospectus, and to lists of other deals by each underwriter are a nice touch.  Unfortunately, I don’t have a special deal for my readers, but if you click on the logo, call the number and tell them Zach Scheidt referred you, I’m sure you will be taken care of.

Once I have a company picked out that looks promising, I find it helpful to go directly to the source and get a good bit of information from the company itself.  Most public companies have a section on their website for investor relations where you can find SEC filings, earnings releases, and annual reports.  Earnings releases are especially helpful to me because not only do you get the fundamental data from the previous quarter, but typically management sheds some light on the business climate and expectations for coming quarters.  I have a hard time listening to conference calls although there can be some very important data discussed.  Often these calls are recorded and transcribed so investors can read through instead of listening to the audio version.  Seeking Alpha offers access to many of these transcripts free of charge so it is worth looking to see if your company is covered.

One of the most influential books which inspired me to become a professional investor was “Market Wizards” by Jack Schwager.  I still have the dog-eared copy here on my desk and find that each time I read, I find another story that inspires me.  Jack Schwager is an excellent speaker as well as author and I have arranged for a free viewing of one of his seminars.  The deal actually gives you free access to four different speakers educating listeners on particular trading strategies.  If you are into seminars and learning from the masters, there are hundreds of videos available via subscription, so take a look at the free ones first and see if this might be a valuable resource for you as well.

Finally, for technical analysis, I have found the experts at MarketClub to be very worthwhile.  The website offers screening tools, charting services, technical analysis, and alerts to help you stay current with the names you are following.  While I use MarketClub for my stock positions, the company’s expertise on commodities and interest rates is perhaps what they are better known for.  And with a subscription to MarketClub, you automatically get access to their Trader’s Blog featuring many current observations on markets from strong writers around the globe (and they even let me squeak in for a guest appearance).

On top of these resources, I find the Wall Street Journal (and Barrons) very informative.  Staying current with many different official and un-official news sources is an important part of this dynamic business.  It is a privilege to be able to trade and write about markets for a living and I appreciate your readership.

Happy Holidays from ZachStocks!