To The Moon

I hope my article can help my fellow tigers to understand what is “prospecting” and “judging” in stock trading. First and foremost, we need to understand that "prospecting" and "judging" are not standard terms typically used in the field of stock trading.

Prospecting

Actually if you are someone who are always practising the process of seeking out potential opportunities for investment, then you can use this term informally as ‘Prospecting’’.

To bring the context closer to stock trading, when we do prospecting, we will involve researching and identifying stocks or other securities that have the potential for future growth or profit.

Methods Involved In Prospecting

Myself is ‘Prospecting’ as I always used various methods like fundamental analysis, technical analysis, or a combination of both to involve in the process.

Fundamental analysis involves examining a company's financial health, management team, industry trends, and other factors to assess its potential for growth. Technical analysis involves studying price charts and market patterns to forecast future price movements.

To be really successful in prospecting, it require consistent practice, careful analysis and consideration of various factors, including economic conditions, industry trends, company performance, and market sentiment.

Judging

On the other hand, "judging" in stock trading might refer to the process of evaluating the potential risks and rewards associated with a particular investment opportunity.

Traders usually need to consider various factors such as the company's financial health, competitive position, growth prospects, industry trends, regulatory environment, and overall market conditions. This is part of the process of judging.

On top of that, traders might also assess qualitative factors such as the quality of the company's management team, its brand reputation, and its ability to innovate and adapt to changing market conditions.

What Does It Involve Additionally?

To make judgement in trading more successfully, it often require the involvement of assessing the current valuation of a stock relative to its intrinsic value or potential future earnings. This evaluation helps traders determine whether a stock is overvalued, undervalued, or fairly priced.

Other than these, to be effective in judgement in trading requires experience, knowledge, and critical thinking skills to make informed decisions in the face of uncertainty and market volatility.

Summary

Once we understand both prospecting and judging, we would find that we need to have both to complement each other to make us effective and successful in trading.

Appreciate if you could share your thoughts in the comment section whether you think it is important to have prospecting and judging to complement each other to be effective and successful in trading.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.