Stock Picks are a great way to find new stock ideas, small cap stocks, growth stocks and stock sectors that are hot right now. Some stock ideas are penny stocks, some are hot stock trades that could have a large amount of potential. Investors should always remember that they should never invest in a stock pick unless they can afford to lose their entire investment.

Stock picks aren’t without their fair share of risk and investors should consider their own risk tolerance level and always consult their financial advisor. When searching for new stock ideas it’s important to screen stocks and make a list of stocks to watch. Some of the best small cap stocks and penny stocks are found by completing your own due diligence and learning as much as you can on stocks through books and other media outlets.

Do not discount stock market experience; in the stock market experience is very important. Experience comes with stock trading and researching stock information.

Stock information from specific companies is important to pay attention to when you find a stock pick and want to follow the small cap stock. Also, stock newsletters usually release new stock picks and stock ideas. Investing in the stock market requires attention to detail and following stock sectors that are hot and not. It is important to remember the saying that a rising tide can lift all ships and this goes the same for sectors and industries in the stock market. Growth stocks in an industry or sector that is hot become hot stocks as a group and many of them begin to move within that industry. Investors can usually find stock updates on stocks in hot sectors as many publishers start following these stocks.

One type of stock idea, penny stock picks require investment research and there is not as much stock information on them. Remember, to always complete your own daily stock analysis on penny stock picks. NASDAQ and AMEX stocks are also popular in the stock market.

Remember to look at a company’s financials including a stock’s balance sheet, income statement and cash flow statement. Usually a stock pick profile will cover one if not all of these financial statements. There are also key ratios that investors can use as tools to consider a stocks value when completing stock market investment research.

A key ratio that is commonly calculated by stock market investors is the P/E ratio, known as just the PE ratio or Price to Earnings ratio or even known as the "earnings multiple" or just the "multiple". A P/E ratio of a stock is a measure of the price paid for a share relative to the annual income or profit earned by the firm per share. A higher P/E ratio means that investors are paying more for each unit of income. The P/E ratio is calculated by dividing the stock price of a share by the annual earnings per share. Annual earnings per share is known as EPS. Generally, stocks with higher earnings growth will have a higher P/E and those with lower earnings growth will have a lower P/E.

Some investors like to receive intraday stock alerts on growth stocks for day trading. Day trading is also known as swing trading. There are a lot of stock ideas that are offered as free stock picks out there that give new stock information to those not finding as many new stocks as they’d like.