Research, research, research: It is the key to successful investing. The SWOT analysis, which looks at a company’s strengths, weaknesses, opportunities and threats, is a model to help you examine all angles of a company and understand its strategic position in the market. Says advisor James Early: “A process you can standardize and apply to all companies is useful to most investors.” Other experts call it a “touchy-feely” model. What’s your thought on SWOT?

Strengths, Weaknesses, Opportunities, Threats: The SWOT Analysis

Putting hard-earned money into the stock market can be a scary move for first-time investors. Unlike a bank account, where you basically know that you’ll get interest -- a small, but guaranteed return on your cash -- buying stock gives you the opportunity to make a lot of money, or lose your entire investment. Diversification, or investing in a variety of different options, can help you balance any losses in one area with gains in another.

Why Investors Diversify: Spreading Your Wealth Across Assets, Industries and Countries