When asking yourself the question, “What shares should I buy now?” it’s important to do some research on companies that have caught your eye.

When you’re looking at what shares to buy, you’re examining the company, its sector and its place in the overall market, if you’re doing your job correctly.

A major part of fundamental analysis is researching a company you want to buy shares in. As the name suggests, this form of analysis is the way to get to the “fundamental” heart of a company and analyse its worth. If you’re looking at what shares to buy, what better way to go about it than to analyse your preferred companies? This is what fundamental analysis really is – analysing the financial data that is “fundamental” to a company – its earnings, its profits, its dividends.

Fundamental analysis can help you identify some bargain stocks out there that have been caught up in the market maelstrom – and sold off well past their value simply because of the negative market sentiment. Of course, when you’re researching what shares to buy, technical analysis is equally important – looking over the company’s chart, and identifying trends.

The best way to “suss out” what shares to buy is to combine fundamental and technical analysis to give yourself some perspective on a company. This is also the best way to build an individual strategy to trading and investing, using whatever approach is personally suitable.

Also remember when you’re asking yourself what shares to buy now, look at the company’s role in its industry and the greater perspective. You might want to buy shares in a company that looks strong with a good balance sheet and decent fundamentals – but the industry may be facing toughness, and this could weigh on the company.

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