| |
| |
|
|
Stocks & Mutual Funds Information |
|
|
|
How to Pick Winning Stocks
There is nothing more exciting than finding an undervalued stock and seeing it explode out of nowhere rising in value 100% or more in a few weeks. Some stocks can move as much as 1000% in a year and?. Even after the stock market crashed in 2000, some stocks still have gone up 500% or more in a year. So how do we find these? Well first let me say that there is no way to know which ones are going to double or triple in value. If we knew then we could literally "bet the farm" on the trade. The main thing we can do as swing traders and position traders is to uncover stocks that have the potential for profits based on certain technical parameters found on the charts. There is not enough room in this article to go into depth on the technical analysis of stocks, but what I am going to do is share with you the first step in sifting though the thousands of stocks that trade each day. One of the easiest ways to cut your list of stocks down is to use a stock scanning software such as "Stockfetcher.com". What it allows you to do is program in any criteria you want and then it will automatically spit out a list of stocks that meet those exact criteria. Let me give you some specific examples?. For starters say you only have a small account of $10,000, you shouldn't be looking at expensive stocks that are in the $50-$200 range. This is because when they are too expensive, you can't buy many shares. So, the first thing I would do is tell the software to only give me a list of stocks under $20. I would also have it screen out stocks less than $2 as I don't want to trade penny stocks. Second, I only want a list of stocks that trade at least 500,000 shares a day. The more volume the better as there is more liquidity. This means that it will be easier to buy or sell shares at any time. Stocks with high volume have much less chance of being manipulated by market makers and market insiders. Third, I want stocks that have a lot of volatility. Volatility is what causes fast movement over a short period of time. Old blue chip stocks such as Caterpillar, Ford or Kellogg's don't move that fast and have little volatility. To make sure you have volatility, I would tell the software to find only Nasdaq stocks. Since this comprises of mostly tech stocks, the odds are much higher of strong and fast moves. Fourth, if the market is in an uptrend then I want to be a buyer so I could program in the following? Look for stocks with a relative strength of 90 or above. This will ensure that the stock has a lot of upward market momentum. You could even add an additional filter to cut the list down more. For example: Tell the software to look for stocks that made new highs within the past 90 days. You could use the exact opposite approach to short stocks in a bearish market. Look for stocks with a relative strength of less than 10 and made new lows within the past 90 days. What is really cool about stock scanning software is you can do the job in less than a minute. Without this software the work is slow and tedious. Once you run the scan you should have a relatively small list of stocks to examine closer. The final step is to examine each stock for certain technical analysis patterns that can lead to explosive moves. However, as I said above there is just not enough room to go into detail here. Hope this gives you some food for thought and points you one step closer to your goals. This article is courtesy of Dr. Jeffrey Wilde, a trading veteran with 15 years of experience in all major markets. He is a trading coach to over 1500 traders in 47 countries. For additional info: http://www.win-at-trading.com
MORE RESOURCES:
Stocks-Mutual-Funds - Google News |
|
|
|
RELATED ARTICLES
Its A Duck If it walks like a duck, quacks like a duck and looks like a duck it must be a duck.In the stock market if there are more buyers than sellers, more stocks are going up than down and the trend of the general market is higher it must be a bull. Invest In The Stock Market For The RIGHT Reason, Using The RIGHT Choices Invest in the stock market for the RIGHT reason, using the RIGHT choices!Investing in the stock market is not purchasing a stock at 25 dollars a share, hoping it will go to 35 so you can sell it, then hoping it will drop back to 25 so you can buy it back, so that you can sell it again at 35, and so on and so forth.In my opinion, that is gambling. Stock Investment Advice Stock investment advice is easy to find. Do you get cold called by brokers with the latest investment tip? I have, as have countless others around the globe. How Eating Bitumen Made Me a Better Trader Trading is a fascinating activity.There are so many layers to it. Finding A Good Stock One of the things people are always asking me is how can I find a good stock. The answer I give does not please them. Hot Stock Trader: How to Pick Momentum Stocks with Ease and Simplicity Most stock traders know that momentum trading can be a very profitable activity. You can make big amounts of cash in a short period of time. How To Make, And Keep, Money Trading Stocks If you are serious about making and keeping money by trading stocks, then there are three things you need to do, and do well.Money managementOrdersTrading systemMoney managementMoney management comes first. A Stock Market Investment Strategy I feel that an investment strategy in the stock market can instill in the individual investor not only an assured confidence in all future stock market investments, but also an almost Zen-like sense of peace and well being. A stock market investment strategy spelled out, proven, and instilling within the investor the power to succeed in the stock market with an assured confidence. Trading Stocks -Never Forget About A Past Trade We all know that emotions control every decision that an investor makes in any type of money related vehicle. Whether is be the stock market, real estate, art work or antiques, emotions ultimately set the final price on both sides of the transaction. Momentum One of the basic laws of physics states that a body in motion will continue in motion in the direction it is going until interrupted by another force.That basic physics law also applies to stocks and mutual funds. Dividend Reinvestment Plans: Investing on Automatic Pilot If you're like many investors who squander those small dividend checks from your stock portfolio, a Dividend Reinvestment Plan (DRP) might be just what you need. Just as its name implies, a Dividend Reinvestment Plan allows you to reinvest some or all of those dividends into more stock of the issuing company. Box Of Chocolates Ever have one of those sample boxes of candy? Each little piece is beautifully wrapped in colorful foil or decorated with an interesting design. Taste just one. Stock and Fund Dividends When is a dividend not a dividend?The latest thing "conservative" brokers are preaching these days is to buy stocks that pay dividends. Everyone likes dividends. Protectionism First let's see what protectionism is. According to Mr. Will the Stock Market be Lower in October? The stock market often closes a week in the middle of a "perceived primary-trend range." SPX closed at about 1,234 Fri, which is between a multi-year Fibonacci level at 1,253 (i. You Wont Like This Why? Because I am going to shatter your conventional wisdom as I have many times in previous columns about the lies that Wall Street continues to tell you. This time we are going to go deeper into the economy to unearth the truth about lies the politicians are telling you. Trading as a Business What can I expect to make my first year of trading?We get questions like this one quite often. We find that most aspiring traders don't have a clue as to what to expect from the market. Where Is The Beef? Where is the beef? Or maybe it should be where is the bull? Market, that is? The chief investment strategists and analysts of the major brokerage houses have been promising us a new bull market.So far the bull hasn't come in from the distant pasture. Hedge Fund Advertising Have you seen all those big full page ads for hedge funds in the Wall Street Journal, the Financial Times, Investors Business Daily? You haven't. Maybe they are being drowned out by the regular mutual funds who continually tell you how great they are. Trading vs Investing I often hear from people, "I don't trade. I invest.
|
| home | site map |
| © 2006 |