Sunday, December 30, 2012

Working with a Stock Watch List


I am taking the time to help others learn the best and basics in evaluating Stocks to slip investment using both very important and technical analysis. Both tools are equally important in making serious decisions with your dollars!

If you wish to get Stocks, treat it thence business, NOT A PART TIME. (ex: a retail outfit will not make any money if it hasn't got goods to sell; well the same for investors, without gains, you can't invest). You need rules and you will need to follow these rules or money Obtains LOST. Once proven rules have been about, they cannot be broke or you might lose money. Everyone loses money combined investing but we will need to learn cut losses quick as well as gains to develop. Small losses are acceptable many people teach us lessons that helps win big!

Start pursuit by looking for Stocks together superior fundamentals. After fundamentals are established, look to see this particular particular Stock is darning on good company, by this i mean a strong deal group - similar Stocks, historically move quite similar direction (this is step not opinion). This is not to imply every Stock in the industry group will move higher or lower web site sister Stock is getting in that direction (this was obviously a generalization rule). After the industry group has been shown strong, determine if overall marketplace is in a specific vogue (up, down or sideways).

If you could long a Stock, potential clients must be in a game title confirmed up-trend, if you are short a Stock, make a decision a down trend. Note that 75% ially Stocks will follow to the overall market. Don't fight the craze, the market is almost always RIGHT.

Let the market as well as your Stock dictate how long you're the one in a position. No problem about time frames; price and volume will explain to you when to exit the position providing you follow rules.

After fundamental have been about, you must study the technical side of individual Stock, the specific industry group and the general market trends. Record if the Stock is forming the base, if it's about to rescue their life from a base, if it's extended or frauds pulling back to fundamental support line.

At that period, add any qualifying Stock in your watch list or buy the Stock by means of the technical entry signals (remember the fundamentals have been established earlier).

Key numbers to enhance fundamentals:

Earnings (current, retired: quarterly, yearly and project estimates)

Sales (current, past: quarterly, yearly and future estimates)

Return as to Equity (ROE)

Price/Earnings Growth (PEG)

Price/Earnings Ratio (rise in the long term of base)

Debt/Equity

Assets, Liabilities

Accumulation/Distribution ratio

Up/Down Volume minimum past several months

Number from Institutional Holders (is in the process increasing or decreasing recently)

Key things to use for technical analysis:

Look at the one year daily chart

The 1 year weekly chart

Check volume mission when bases are formed

Look o Point & Figure charts for support and resistance lines

Look for brand spanking new 52-week highs

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