What is the appropriate amount of time to spend while researching stocks?

It depends whether you are trading or investing in stocks.

 

If you are trading in stocks then you do not need to spend a lot of time on fundamentals. Rather, here you should read charts, trends, patterns etc and get more involved in the day-to-day market activity. In addition, traders just work 5 days a week as the market is closed on the weekends. Hence, they can’t trade on Saturdays and Sundays.

On the other hand, while investing- you need to spend a lot more time studying stocks compared to trading. Here maybe you have to invest a couple of hours daily to study the company (even on weekends). Choosing stocks for long-term investment is not similar to choosing stocks for intraday. You need to do a rigorous study of the company, its management, financials, competitors etc.

Besides, the time required to research a stock also depends on your knowledge, your familiarity with the industry, your past experience with analysis, and visibility of the company (how easily the company’s information is available). With time and experience, stock research analysis becomes easier and effective.

 

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