Welcome anindya_becit.
As to "Hot Stocks 2008" you may be referring to a book produced by Colin Nicholson. Colin is a very successful trader as well as a very good trainer of traders (phew!). He was involved in writing the course notes for what was then called the Securities Institute of Australia (course E114) where you can do a diploma/degree in finance and related discplines. I think they are now called FINISA or something like that. He distilled most of the (very extensive) E114 course into his book "The Agressive Investor". However, I believe he should have titled the book "The Agressive Trader" instead. Let me explain why.
There is a (informal) distinction between being a trader and an investor. The distinction also has tax implications. There is also a third group defined as speculators.
The distinction primarily relates to the frequency you buy AND SELL.
Traders tend to buy and sell on a regular and frequent basis. They are attempting to pick changes in the market that will give them a gain in what they decide is their time frame.
Investors are more long term (5-10 years or more). They might be frequent buyers but typically rarely sell. They do what is called "buy and hold". They tend to ride out market changes on the basis that over time stocks rise in value.
So the best distinction between a trader and an investor is the fact that traders are looking to sell at some point and crystalize their capital gain (or loss) as the case may be. Depending upon how long they hold shares for and how frequently they do this they will have to treat their gains as income (typically less than 12 month holding time) or treat their gains as capital gains and pay Capital Gains Tax (CGT).
Colin's approach is more trading than investing.
Now the question for you is what style suits your psyche and your skill set?
Also why are you looking to invest in shares? I assume you want to make money at the end of the day. Seems an obvious answer but underlying the question is an important point.
There is a way to invest (as against trade) in the stockmarket that has (and most likely will continue to do so) return an average of 20-25% return per year. It requires no other skill than the ability not to sell (at least for 10 years I am talking). You don't need to have the skill of someone like Colin to achieve those returns. I say this because this is the benchmark. If you can find a trading and/or investing system that produces better than a consistent 20% return a year then use that.
Most people in the market rarely achieve that gain. It is psychologically a lot harder than you think to "trade".
Best thing about the above is you can achieve it without having to give up your day job (eventually you can in 10 years but that is another story
).
Ok so if you think you can beat 20% a year return then go for it. Personally I do both. I use the 20% a year return as a backup strategy to my trading. At times I wish I only used my backup strategy
Some other info for you in analysing stocks:
1. there are two types of "analysis" - fundamental which means you look at the company, its financials, all the fundamental issues that affect the stock; or technical analysis which means you look at the historical share price and make decisions on what you think the next move will be. Technical analysts believe that the price incorporates all the fundamental issues so they tend to focus mainly on share price - Colin is a technical analyst.
2. everybody has a hot tip. Very few pundits have a good track record. Even fewer will show you their trades from their so called hot tips. Be your own judge of what is hot or not.
3. ignore the press. They get paid to write stories to sell advertising space. See point 2 above.
4. find a mentor - someone with a proven track record and learn all you can from them.
If you do decide to trade, you will find that your pyschology will come into play in a big way. On that, and before you start to trade, have a read of "Enhancing Trader Performance" by Brett Steenbarger. It may save you a lot of heartache down the track.
Enjoy the forums. Any other questions just ask away.