This article is from the How to Start an Investment Program tutorial, author unknown.
If you have decided that you would like to try your hand at individually picking stocks and managing your own portfolio, I encourage you to read this section. Here, the focus will be on developing a simple technique that you can use to measure and value small, growth oriented securities that have attracted your interest. The procedure that I will introduce will help you to compare a company you have chosen with other firms in its particular industry and estimate it's future growth potential. This ability to predict the future, or at least a company's future earnings, is extremely important if you are banking on the stock price going up. Read on and you'll see why.