Having a systematic process for stock selection can substantially improve portfolio returns over haphazard stock picking. Many investors make the mistake of buying good stocks going the wrong direction, and others don't know how to distinguish a good stock from its peers.

The first step in overall analysis of the broader market and specific sector to ensure that your investment isn't "swimming upstream" and fighting the overall trend. The criteria for doing this are described, with numerous links to free charts to assist in the method.

More detailed technical and fundamental analysis is warranted only if the market and sector analysis pass inspection. These tests include relative strength, fundamentals, trend, support, and resistance levels, insider trading, and more.