Quote from Sunshine4ever:
Hi all,
I am a novice to stock trading and I have few questions for you guys:
⢠Where do you set up a watchlist- You set up a watch list on a yellow legal pad.
⢠How many stocks should you have- around twenty.
⢠How do you choose stocks- This is part of the ' blend ' which is investing. You make a list by blending styles-- deep value (low PE high growth rate) with stocks in fashion, or mo mo stocks. Then as the days go bye you come back and run all your symbols through yahoo finance or wherever and you see which stocks do better than the market on up days? Which stock hold up better than others on down days. Each stock is it's own world and is owned by different sort of investors, you need to know that you like the way a stock trades in BOTH up and down markets before you buy it. As you narrow your favorites to perhaps 5 then you look at sectors. Which one ties in with the mood of the market now? Are we in a heavy industrial mood or are we in a fast tech mood? A biotech mood? what is the market rewarding? China? US? Small? Large? From this you then run insider trading scans from any source and if you see if a company issues zero priced stk and lets everyone cash out at a regular basis. These companies are interested in enriching themselves not the shareholder. After that go to a Yahoo message board and get the feel for what kind of idiots are playing the name... a truly good purchase will have almost no message board chatter! You will be in before the move. Now that you are down to two stocks the hard part comes: Which one? I usually end up buying both and later discarding one! But that comes from a position of strength, if you can only chose one then you go to the financial report and see who is having the strongest quarter over quarter growth which one's profit margin is better. these are the two key questions to consider as earnings reports approach because if you go by this metric you will not be ambushed by a bad earnings report. Sometimes the worse looking stock runs because of a new product so you always have to be ready to bye the other name.
⢠How often is it updated- weekly
⢠Where do you trade- anywhere.
Thank you!..
thanks ..