How do u know which company to invest in on the sharemarket?

Answer 1

There are different strategies, and some of them tell you to do the opposite things. For example, one book might tell you to sell your stock if it goes down a little bit, and another book might say if your stock goes down, you can buy more. Don't be confused by things like that. All investment and trading strategies can be divided into two groups: Technical Analysis or Fundamental Analysis.

Technical Analysis means people look at charts trying to figure out what the stock will do in the future by studying its past. They look at price patterns and draw trendlines. If they find a good chart, they decide to buy the stock and may keep it for a few months or a year until they sell it.

Fundamental Analysis means people are researching facts about a company and looking into financial records to find out what the company is really worth. If they find a valuable company at a low price, they buy it and may end up holding it for 5-10 years until it goes up.

Technical analysis (TA) and fundamental analysis are deep subjects and they both work if you learn them well. To give you an example, Warren Buffet made money by studying fundamentals. Other traders make money by studying charts.

I use Telechard to screen the 7000+ stocks in the universe. From there I narrow the selection down to what I call myUniverse of Stocks to approximately 2500. This screen is based on...
Price > $5
90 day Volume > 250,000
Capitalization > $100M

From here I use multiple screens to narrow my selection down to several hundred by choosing for instance...
Relative Strength >70
MoneyStream >70
Profit Margin in the upper 50th percentile
Revenue Growth
Earinings Growth
PEG < 1.5

Once I have my selection I look at the charts for a good buying opportunity...
MACD crossing above the zero line
Stocastics are not overbought
Good Industry in good Sector (Top 20% industries)
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Answer 2

Despite their volatility, trading penny stocks can be extremely lucrative. Here are three ways that you can profit from investing in penny stocks https://tr.im/Kvinb

The good news about penny stocks is that you can buy a good amount of shares without going broke. It’s thus easier to get a good stake in a company for less than you would pay for stock of a larger organization. To find a company that you feel confident investing in, make sure to do your research. Don’t just choose a company because you saw an article about it, or because your friend is investing in it.

Answer 3

I pick companies that interest me. I suggest YOU do the same. Why invest in something you really have no desire to know about?... : )

Look around you and see what your family, friends and co-workers are using everyday. Pick something that you like from that and then research it to see if you can buy it directly from the company or if you need a broker. There are hundreds of companies that you DO NOT need a broker for so check online here under "direct stock purchase plans" to get you started.

Just remember to invest in things YOU use and that interest YOU.

: )

Answer 4

A lot of interested traders are asking themselves the question if you can really make money with binary options? The answer is that you can indeed make money in binary options trading. Learn here https://tr.im/Mrnwm

Obviously this is a perfectly legitimate question considering that most people have not traded binary options in the past and generally believe that investing is a very difficult activity.

However, you will have to put an effort into it. You will have to learn money management, reading of charts as well as the usage of indicators.

Answer 5

I use Scottrade, they have S&P reports & a screener function. I look for high ROE & ROA (and you should learn what these are before you start investing in stocks) I personally like both to be over 15% with one over 30%. I read the company report, look at its history (ROE & ROA can be temporarily inflated). Careful they aren't too high, I saw one with 1,500+% ROE, but all it owned was patent rights which were expiring in two years... Read the analysts recommendations. If your daring you might learn to calculate the EVA. I would find about 50 companies to try to follow closely adventually investing in about 40 of them over time.

Portfolio theory shows that by diversifying you can lower your risk you need to take to earn a certain return, if the returns on those assets aren't perfectly or highly correlated. In simple terms, you get 90% of this risk reduction with 15 dissimilar investments & nearly 99% with 30-40. In other words, (all you '99 day traders, which I was partly guilty of) a portfolio of 15-40 tech stocks are not dissimilar; tech stocks in your portfolio good, all tech stocks bad.

Start with conservative stocks, large banks, consumer goods. I personally follow Wachovia, Citigroup, PepsiCo & Proctor & Gamble. These are usually slower but consistant growers that pay ever increasing dividends.

Then look at the stage of the economy and add to the portfolio what should do well over the next few years in the future. We probably in the early part of the later stages of this bull market, tech often does well. Look at demigraphic trends, the baby boomers are all in their peak earning years and pouring money into retirement investments so Non-Bank Financials might be something to consider.

And so on, add a new investment as you can. Look at its long term prospects (yeah buying a hot stock & selling is fun but then you have to give the government part of your windfall) ask your self, will this last. You'll be wrong sometimes, who in 1970 could imagine the growth in cell phones & the decline in land lines when AT&T seemed like a unbeatable monopoly? But that's why you've diversified. Stay away from fads, and hot stocks like Krispy Kremes was, and Crocs currently is. Qualcomm is a perfectly fine company but if you bought it at the peak (like a friend of mine did), your still at 1/3 your money. Look for value, look for consistancy, look for long term growth. Invest in some out of favor stocks, mine Home Depot. Invest in some racing along, mine F5. Its the variance in the types of investments you make that reduces the overall risk of the portfolio versus the expected returns of it. Since you only need about 30 take your time and add good parts. Also, talk to the women in your life. Star mutual fund manager Peter Lynch got his best ideas from raiding his wife & daughter's shopping bags.

Answer 6

You must know which companies you will buy and you buy them at a discount prices. You can decide whether you would buy this company or not by browsing financial statements and make an informed judgment.

Answer 7

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i have attended a lot of seminars, read counless books on forex trading and it all cost me thousands of dollars. the worst thing was i blew up my first account. after that i opened another account and the same thing happened again. i started to wonder why i couldn,t make any money in forex trading. at first i thought i knew everything about trading. finally i found that the main problem i have was i did not have the right mental in trading. as we know that psychology has great impact on our trading result. apart from psychology issue, there is another problem that we have to address. they are money management, market analysis, and entry/exit rules. to me money management is important in trading. i opened another account and start to trade profitably after i learnt from my past mistake. i don't trade emotionally anymore.
if you are serious about trading you need to address your weakness and try to fix it. no forex guru can make you Professional trader unless you want to learn from your mistake.