Selecting a stock is not unlike shopping for most big purchases. You research the product, compare it to others for fit, quality, relative value and so on — perhaps compromising in some areas but not in others. Over time, you may become savvy enough to spot value or a prized possession easily.

You can approach stocks by looking to “buy what you know,” but you should also know what you’re buying from an investment standpoint. There are many lenses through which to view stocks, strategies to compare them and ways to hold them. Your goals as an investor can help determine how you analyze and hold stocks.

Here are some essential strategies to help you learn how to pick stocks.

1. Investment styles: Growth, income and value

For some investors, stock picking is all about finding stocks that fit a certain investment style.

Growth investors are looking for the next big thing, and are usually willing to pay a high price for a stock with future potential value. Companies in growth mode are reinvesting earnings and expanding quickly through hiring, new products, acquisitions and capital appreciation. Growth stocks tend to be more aggressive — as more investors drive up the price, it amplifies the risk that they won’t meet growth expectations for their valuation.

Income investors seek companies paying regular income to shareholders in the form of dividends. Even if you don’t need the income now, reinvested dividends function like regular returns that can help grow your investment. Income stocks tend to be found in older, more established firms, which may already be past peak growth years but are profitable and generally well run.

Value investors attempt to find underpriced bargains; that is, companies with underlying value not reflected in the share price. Specifically, they look for stocks with lower price-to-earnings ratios than the overall market, hoping the price will rebound. These are shares of companies that may no longer be in growth mode or may just have fallen out of favor. Value stocks are also more likely to pay dividends.

2. For long-term investors: Fundamental analysis

If you are looking for companies to invest in for an extended period of time, digging into the fundamentals can be a good way to understand its financial health and get to know the stock. Even if you’re not a business whiz, understanding these concepts and tracking them over time can help you compare the stocks of similar companies against one another.

Many publicly traded companies file annual audited 10-K financials with the Securities and Exchange Commission (SEC), along with quarterly 10-Q updates. In these documents, investors can see a company’s revenue, debt, cash flow management and other metrics. Many financial websites and online brokerage platforms will provide fundamentals as part of their basic stock quote information, as well as access to analyst research and recommendations. Analyst reports often help add qualitative information to your research, such as competition, new products or brand equity.

3. For active investors: Technical analysis

Short-term investors and active traders making bets on what will happen shortly rely on something called technical analysis, which ignores the fundamental value of a stock and instead pays attention to moves in stock price or other types of trading data.

Technical analysis assumes that all information to be known about the stock is built into its price, and prices tend to follow certain repetitive patterns or trends due to investor psychology. These trends may come in the form of tides lasting a year or more, waves lasting one to three months or ripples lasting less than a month.

Investors chart a stock’s trading activity in different ways to uncover certain trend lines and that may be predictors of future moves:

• Line charts track a stock’s closing price over longer periods, providing a broad view of the stock’s performance.
• Bar charts give a sense of a stock’s daily movements, or opening price, high price, low price and closing price (OHLC). This view can provide a sense of a stock’s volatility.
• Candlestick charts are similar to bar charts, with clear illustrations of the stock’s opening and closing prices. If the stock price closes higher than it opens, the difference or “wick” is positive.

A stock experiencing increasingly higher highs and higher lows over time is considered to be on an upward trend, and descending highs and lower lows would signal a downward trend. A sideways trend means that prices have been moving in the same general range. Looking at these charts, investors attempt to find levels of resistance, meaning points at which the stock may stop trending higher, or levels of support, meaning there’s strong enough demand to keep a stock from trending further downward.

Technical analysis can be complicated, which is why many active investors rely on tools offered by online brokers to help spot technical trends.

4. Broad stock picking: Diversified stock portfolios

An easy way to pick stocks is to buy many at once through an exchange-traded fund (ETF). These investments offer mutual fund-like diversification, but they trade like stocks. That means you can buy shares of the Standard & Poor’s 500 or NASDAQ 100 in the same way you might buy shares of Coca-Cola or Apple.

But ETFs come in many other shapes and sizes: You could use a handful of sector ETFs to build a full stock portfolio or balance stock holdings with a bond ETF. Interested in dabbling in commodities, currencies or hedge funds? There are ETFs covering alternative investments as well.

You can purchase ETFs through a broker, which means you might pay a transaction fee when you buy and sell them. Otherwise, ETFs tend to be very low-cost for investors who buy and hold.

Bottom line

Figuring out how to pick stocks seems to be as much about talent as skill, and even the most brilliant stock analysts can’t see around every corner. For the average person, investing in an ETF or mutual fund allows you to own stocks without having to select individual shares. You may not get the same shopper’s high, but there’s also less of a chance you’ll regret your purchase.

If you are determined to own individual stocks, it makes sense to start small and build slowly as your confidence in stock investing grows. You can even start with no money and a completely hypothetical portfolio. There are many stock market simulators online to help you experience stock trading without the risk. Either way, until you understand your appetite for volatility, individual stock investors should only risk excess or “fun money” you can afford to lose.

If sharing a joint account at the bank with someone feels like a relationship milestone, sharing a joint investment account definitely is one. You don’t have to be married to comingle brokerage activities, but if you are married, there are plenty of reasons to consider a joint investment account.

Joint investment accounts might be used to simplify household finances, to manage an account on behalf of another or to pool resources and make a combined asset purchase. But before you invest in a joint account, understand how joint ownership works and how it potentially impacts your finances.

How do joint investment accounts work?

Joint investment accounts allow two or more people to invest together. You can invest in just about anything with a partner, including stocks, bonds, and funds; property (such as vehicles); or real estate.

Combined ownership in financial assets is referred to as joint tenancy. There are two main types of joint tenant accounts: joint tenants with rights of survivorship and joint tenants in common. The main difference is how the shares are divided should one owner pass away. Each has benefits and drawbacks, depending on your needs.

Joint tenants with rights of survivorship

Joint tenants with rights of survivorship (JTWROS) gives each party equal ownership interest in the overall account. Married couples often choose this type of joint brokerage or banking account because rights of survivorship mean the surviving owner has rights to the deceased’s share. Upon the death of one owner, the assets automatically transfer to the other. However, the JTWROS can be broken before that if one owner decides to leave.
Typically used by:

• Spouses or couples who want to share investment assets.
• A parent investing for the benefit of a child.

3 benefits of JTWROS accounts

• Keep assets out probate. Settling a deceased person’s last will through the probate process can be complicated and potentially drag on for months, making it difficult for the surviving spouse to access assets. Some couples strategically place assets in JTWROS to avoid probate. Like other accounts with named beneficiaries, these accounts automatically transfer ownership to the surviving spouse and are typically not included in probate.
• Everything remains equitable. Both owners of a JTWROS account share the benefits of the assets and repercussions of the liabilities. This mutual self-interest can keep the account from being manipulated by one spouse if things go south in the relationship between account owners.
• Account owners can leave at will. JTWROS owners must enter into the ownership agreement at the same time. But if one owner wants to leave the investment, a JTWROS can be broken. Both owner’s assets can be sold and equally distributed, or one co-owner can sell his or her share to another party, changing ownership into a tenancy in common structure (described below).

Drawbacks of investing through JTWROS

• Surviving owner has control. In the case of one co-owner’s death, full ownership automatically goes to the surviving owner. The surviving party gains full control of the asset, regardless of any contrary instruction in a will or trust.
• Shared ownership means shared responsibility. If one co-owner is in debt and a creditor comes after the joint assets or freezes the account, both owners stand to lose equally. This is an important consideration, especially when sharing a joint account with a non-spouse. It’s worth noting that in some states, married couples get the same benefits of a JWTROS through something called tenancy by the entirety, but creditors are not able to come after the shared asset.
• Special taxes may apply. Depending on who you co-own the assets with, how much your assets are worth, and other factors, you may face gift or estate taxes on your account. Consult a tax professional to find out what you may be liable for in your specific situation.

Joint tenants in common

Joint tenants in common allow multiple people to share fractional ownership in a property instead of equal ownership. There are no automatic rights of survivorship with joint tenants in common. When one owner dies, their share of the investment automatically goes back to their estate, unless otherwise specified in a will.

Typically used by: Multiple real estate investors who want to share ownership in a single property, and keep the interest of each separate should one party pass away or leave the investment.

Benefits of JTIC

• Clear lines of ownership. With a JTIC, each owner can make decisions independently. Shares of ownership can easily be sold without disrupting the ownership structure, so new owners can be added to the investment at any time.
• More beneficiary control. Co-owners can specify who will inherit their shares, otherwise it will automatically go back to the estate upon the death of the owner.

Drawbacks of JTIC

• May be exposed to probate. If one owner passes away without a will, the shares will likely have to pass through probate and could impact the overall investment.
• Shared responsibility for debt. When multiple owners sign a mortgage together, all are exposed if the property is foreclosed. If one person stops paying the mortgage, the others may have to cover payments to avoid this.
• Co-owners can increase uncertainty. If you are investing with outside parties in a JTIC, those parties can choose to sell their shares at any time. If one owner wants out and you can’t agree, they can file an involuntary partition asking a court to divide up the property or sell and split the money.

Should you use joint investment accounts?

As you can tell from the above, the question of whether to open a joint brokerage account with someone is a complicated one.

A joint tenancy with a spouse is an easy way to share investments, avoid probate, and keep continuity of ownership should one spouse pass away. Joint tenancy ownership with others may make sense depending on the circumstances. But before sharing ownership of anything, it helps to tread carefully and understand the risks.