[header] How to choose stocks [title] Understand how macro analysis works. [step] Macro analysis has its basis in the large (macro) tendencies observed in the economy. Your goal is to understand how major forces are affecting the performance of the economy. 
Then, base your investment decisions on your findings. [substeps] For example, if the economy is performing poorly (inflation and unemployment are high while national output is low), avoid overpaying for stocks and be sure to diversify your stocks.