3. Five Simple Rules That Made Me a Better Stock Picker (No Get-Rich-Quick Schemes)

🏢 “I pick big companies with strong financials and real future growth. Stable today, scalable tomorrow.”

✅ Criteria 1: High Net Profit Margin
A company can rake in huge revenue… and still be failing.
You’ve seen the headlines: millions in CEO pay while problems
pile up behind the scenes.
Poor leadership, toxic work culture, high turnover, inefficiencies—things you won’t always see on a balance sheet, but they bleed into expenses.
The good news? You don’t need to dig deep or scan headlines.
It all shows up in one place: THE NET.
Because at the end of the day, net profit margin tells the truth.
Not the hype.
📊 Personally, I look for companies with a net profit margiin
over 10%.

💳 Criteria 2: Low Debt-to-Capital Ratio
Why does this matter? Think of it like this: if a company
suddenly shuts down, the debt-to-capital ratio becomes everything.
Debt gets paid first. Lenders and creditors are at the front of
the line.
Shareholders? They’re last—and they might walk away with
nothing.
But here’s the twist: not all debt is bad. Some companies
borrow to buy their own office space, upgrade technology, or expand operations.
That’s strategic debt—fuel for future growth, not just money
to stay afloat.
Personally, I look for companies with a debt-to-capital ratio
under 40%.

📈 Criteria 3: 1-Year Positive Sales Growth
Let’s be clear: this is 1-Year Trailing Twelve Months (TTM)—not
five years ago.
A company might’ve crushed it in the past—but if it can’t keep
up with evolving tech or changing demand, it falls behind.
📉 Falling sales usually mean lost market share. Customers
move on. Competitors move in.
So when I’m scanning a company, I’m looking at this year. This
quarter. This moment.
Because consistent sales growth means they’re not just
surviving—they’re still in the game.
🚀 Personally, I look for companies with last 12 months sales
growth over 5%.

🔄 Criteria 4: High Average Daily Trading Volume
When picking stocks, I look for companies that trade in high
volume—daily. Why? It’s all about supply and demand.
If you ever need to sell, you want buyers lined up.
💰 High trading volume = liquidity.
Low volume? That’s when selling becomes a struggle.
🔎 Personally, I target companies with an average daily
volume over 5 million shares.
If you’re just starting out, aim for 10 million for more breathing
room.

🧠 Criteria 5: Diversify by Sector
Don’t just throw your money at one hot industry. Pick a few sectors you personally believe in—then apply the
same strict filters.
📂 For me, I’m drawn to: Technology • Real Estate •
Financials • Restaurants • Food
🎯 Your job is to choose sectors you understand and feel
confident in. That way, you’re not just investing—you’re
curating a portfolio of high- performing, high-conviction picks.

🗓️ Final Tip: Review Regularly—Not Obsessively
Don’t check your portfolio every day. That’ll drive you nuts.
Stocks move. Headlines flash. Emotions flare.
📌 Review monthly—or every few months. Enough to stay
informed, not panicked.

🛡️ Bonus Rule: All In or Out—No Half-Wins
Some companies might meet 2 or 3 criteria.
But almost right isn’t enough.
🔥 I only pick the ones that match all four of my criteria.
That’s how you build a portfolio of conviction—not just
guesses.

🧭 Let your research do the heavy lifting. Trust the process.