I also like to look at the stock relative to its peers – again www.finance.aol.com is good for this – look at the PE in relation to its peers. Stocks with silly PEs like 80+ I generally avoid. Price Earnings, Price Book, Price Sales are really best viewed in relation to the companies’ peers/competitors. Google finance is also good for this. If something is way overpriced in relation to its peers – I’ll pass thanks.

I will get shouted at for this – but you can also look at the message boards on yahoo and raging bull. It’s 99% crap but occasional gems are there. Any info from this source should be checked out elsewhere if possible.

So – now you’ve thrown some more stocks away and you have a list left of things where the pullback isn’t due to a cholera outbreak or the CFO and his secretary running away with all the cash.

For any stock – if you have any doubts at all – take it off your list. Even if it’s just a gut feeling. If on the other hand, your gut has a good feeling about a stock – ignore it. Certainly until you have been in the game a while.

If you don’t like the fundamentals but the stock does appear to have had a good rally day – then look at day trading the day’s action. There will be other people looking at this stock and they will have seen that it’s maybe resuming after a pullback and you may be able to pull a nice little day trade out of it.