Where to get share dealing advice

New traders and investors often want to know what the hot shares to buy are. This question involves a more in-depth answer, you want to know how to determine the hot shares advice rather than just have someone tell you that a certain stock is hot right now. Without knowing why the stock is hot you really are learning nothing and are just taking someone elses word at face value that may or may not be founded on sound factual information. Lets take a look at how to determine on your own if a given stock is hot or not.
• What is the catalyst for growth within the company?
This is an important question to ask before buying shares in any company. You need to know what their main growth factor is moving forward, that is, what products or services are they currently producing or perhaps have on the drawing boards that will contribute to consistent longer-term growth? A good way to find out about new company products is simply to go to their main corporate website and read about their plans to maintain and drive growth within the company. If you can really find much information that seems like it would contribute to expansion of the companys profits, than you may want to put this stock in the "not" category instead of the hot shares to buy category.
• Check the annual report
There is a plethora of relevant and important information regarding every company listed on the major world stock exchanges located in their annual company report. Annual reports are in-depth documents that describe the details of the companys activities over the past year, as well as its plans for the future. Some of the more important aspects of an annual report you will want to focus your attention on include the Chairmans report, the Directors report, and the company financial statement. Annual company financial reports are generally made available to the public on the companys website for those non-shareholders who would like a report.
• How does a prospective hot stock compare to its competitors?
Every company listed on the ASX share market, or any other stock exchange is grouped into what are known as industry sectors. Here you will find other similarly related companies that are generally competitors to the company you are researching. By comparing the financial positions and factors contributing to continued growth of other companies to the company you are researching, you can determine whether or not a prospective hot stock to buy is keeping pace with its sector and its competitors.
• Don't invest blindly
Never take anyones hot shares tips at face value. It is fine to get shares advice from people you know or your stock broker, or even people you don know that well. But don ever blindly buy shares of a company JUST because someone told you the stock is really hot. Take all shares recommendations with a grain of salt and do your own research before you invest. Many stock brokers have a financial self-interest to get you to trade more; this might lead them to make less than honest stock recommendations just to collect a commission. Similarly, many hot stock tips come from other self-serving sources that might be less than concerned with your financial well being. Do your own research and get familiar with any company before deciding they have hot shares to buy.
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