Shares of Slater & Gordon Ltd (SGH.AX) are moving on volatility today 0.00% or 0.00 from the open. The ASX listed company saw a recent bid of 3.11 on 4 volume.

Investors are often dealing with the decision of whether to sell a stock that has been a solid performer or hold on to it for more profit. This can be almost as trying as deciding when to buy a certain stock. Once investors have latched on to a certain stock, they may find it hard to let go. On the flip side, investors may also have to deal with cutting ties with a losing stock. With both scenarios, it may be important for investors to try to keep emotion out of the decision making process. Investors may feel that giving up on a losing stock can be admitting that a mistake was made. No matter what the circumstance, not letting go of a losing stock may lead to poor portfolio performance in the long run. Constantly keeping a close watching on fundamental and technical data can provide important information needed to stay afloat in the equity markets.

Next we’ll look at Return on Assets or ROA, Slater & Gordon Ltd (SGH.AX) has a current ROA of 2.17. This is a profitability ratio that measures net income generated from total company assets during a given period. This ratio reveals how quick a company can turn it’s assets into profits. In other words, the ratio provides insight into the profitability of a firm’s assets. The ratio is calculated by dividing total net income by the average total assets. A higher ROA compared to peers in the same industry, would suggest that company management is able to effectively generate profits from their assets. Similar to the other ratios, a lower number might raise red flags about management’s ability when compared to other companies in a similar sector.

Many investors may strive to be in the stock market when the bulls are running and out of the market when the bears are in charge. Investors often use multiple strategies when setting up their portfolios. Some may rely solely on fundamental analysis, technical analysis, or a combination of both. Investing can be an extremely tough process. Individual investors often strive to gather and analyze vast amounts of information in order to make educated decisions. Often times, investors may have initial success in the stock market, and then things may turn sour. Confidence may be necessary to make the tougher decisions, but overconfidence may lead to an underperforming portfolio. Overconfidence may cause the investor to make poor decisions because they are relying too heavily on personal interpretations.

Another key indicator that can help investors determine if a stock might be a quality investment is the Return on Equity or ROE. Slater & Gordon Ltd (SGH.AX) currently has Return on Equity of -1939.80. ROE is a ratio that measures profits generated from the investments received from shareholders. In other words, the ratio reveals how effective the firm is at turning shareholder investment into company profits. A company with high ROE typically reflects well on management and how well a company is run at a high level. A firm with a lower ROE might encourage potential investors to dig further to see why profits aren’t being generated from shareholder money.

Investors are constantly looking to find winning stocks that have been largely overlooked. With markets still riding high, this may not be the easiest thing in the world right now. Finding those perfect stocks before they become household names may take a lot of research and homework. Many investors will apply various strategies for picking stocks. If there was one that worked for everybody, it would make things super easy. Of course, this is not the case. Obviously, there are no guarantees in the stock market. Some investors may only focus on the fundamentals of a company and completely ignore the technicals. Others may choose to only watch technicals and never take a look at the underlying company information. Combining both areas of research may help give a better feel of what is going on with the stock in the long term and the short term. Individual investors who manage their own portfolios may need to put in a lot more time than those who don’t. Successful investors often have an uncanny way of filtering out the noise and keeping their focus on the right information.