Stage 5 – Read the recommendations

Get a hold of broker recommendations, movements and target prices and assess what their opinion is on the stock and why. They’re the ones with deep pockets and foot soldiers to be able to find out what’s hidden in the closet of the business. But be mindful brokers can have ulterior motives if they’re associated with the stock in any way (even just trying to sell some), so focus more on the information and research points than the actual recommendation and price target. If you do this over time you become sensitive to the trend in earnings and recommendations and how the “mood” is shifting.