when you buy the stocks, how~~?

Question

I am wondering when you buy the stocks, how you pick up the good
stocks from your point of view.
I am really interested in choosing the profitable stocks in the future.
why don't you share your skills or knowledge with me? I like to learn
how you decide to buy the stocks.
have a nice day and enjoy the rest of weekend!!

Answer 1

First, the stock must have good fundamentals. For good ideas on searching for stocks with good fundamentals, look at William O’Neil’s book called "How to Make Money in Stocks." This book combines fundamental analysis and technical analysis and teaches that the best thing to do is to use both strategies together. I am sure, you can find this book in libraries, and you may read it if you are interested.

Next, screen for stocks with good technicals. I use Telechart to screen the 7000+ stocks in the universe, but there are also many good stock screens available online. 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
Earnings 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
Stochastics are not overbought
Good Industry in good Sector (Top 20% industries)

After this, your selection is down to a dozen or so, and for these I check the recent news, Schwab ratings, MSN ratings, etc.
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Answer 2

The stocks I pick are selected by a computer program which uses buy and sell rules that have been back tested and produce a statistical 50% chance of selling at a profit with gains more than 4 times the loses. The stock buy sell rules are based on the stock's; open, close, high, low, volume and market; DJ, NASDAQ, S&P500 movement and volumes. Generally speaking, go with the trend! If the market is going higher, be buying stocks that are moving higher and sell your losers quickly. Higher stock price movements is not statistically sufficient, there needs to be volume also. When the market is moving sideways, its been best to buy stocks on their pullbacks, keeping a tight mental sell stop. Check out the Yahoo group ComputerProgramPicks.

Answer 3

The smartest thing is to put your available funds into at least 6 different types of shares. Some experts recommend you should put money in nearly 20 different shares to diversify safely. Spread your investments into totally unrelated sectors, e.g. banking and IT. This ensures if one sector fails to deliver results, you can earn decent returns from the others.

You should not only diversify across the different sectors of the stock market but also into other investment avenues till you develop confidence in the stock market. An intelligent investor will use some portion of their investment money and invest it in secure investments like bonds and bank deposits though they provide less interest.

Answer 4

I use the Morningstar stock screener that my public library subscribes to.
I have three theories. The first is select stocks with at least 10% growth in revenue, at least 10% profit margin, and net profit increase over the last five years. My second screen is for stocks that pay at least 1.5% in dividends and good earnings increases. My last screen is for low cap stocks with real explosive earnings.
I totally avoid stocks that have any scandals, record keeping problems, or merger activity. I also avoid financial stocks and health care because their numbers can be very misleading.
Here are seven stocks I really like: Apache (APA), Excelon (EXC), Raven (RAVN), Starbucks (SBUX), Genessee & Wyoming (GWR), United Tech (UTX), and Sonic (SONC).
Good Luck!

Answer 5

Feel free to check out my daily picks that I post one the Bulls & Bears Yahoo group page. I run scans daily and search for stocks then share them with the group. My style tends to be more trading rather than investing and I specialize in trading options. Do you know how to read stock charts? After I run the scans I then review their charts and look for the patterns that support future movements. The Bulls & Bears group is a yahoo group of traders that share info, trading styles, and news related to certain stocks. Check out the group at the following address:

http://finance.groups.yahoo.com/group/bulls_n_bears/

Answer 6

Very simple. Think about what products are popular now or will be shortly and who makes it. When you pick a stock, you should be able to explain to someone else exactly what the company does and 3 reasons why you want to buy it. Also think about what the potential risks to the stock are.

Answer 7

i would say when the market is bearish when it is down, and the stocks u r picking are cheap may be couple of cents to couple of dollars, when the market turns bullish you are going to make some money, second thing when your buying stocks it has to be long term. lets just say you have bought a stock at $10 and it has gained only 2 cents after 5 years its time to sell that;s what i think

At least thats how i picked

Answer 8

I do not pick profitable stocks. IMO, it is a waste of time. Instead, I buy index mutual funds and move on with my life.

Here are experts from my free book:

"Fundamental analysis works sometimes in the short run, but rarely over the long run. Every year, there are investors and mutual fund managers whose portfolios of stocks beat the market index that particular year. So, there is some validity to it. However, to do this consistently requires intuition that borders on clairvoyance, and even the best fundamentalists eventually make mistakes. The further into the future fundamentalists try to predict corporate earnings, the wider their degree of error. So, over long periods of time, fundamental analysis does not appear to help investors beat the stock market average by a significant amount, especially when you factor in expenses.

The reason that fundamental analysis, technical analysis, or any stock-picking procedure usually does not produce superior long-term results is because the analysts have to be correct such a high percentage of the time in order to overcome the extra costs of research and frequent trading. In her book All About Stocks, Esme Faerber quotes a study from T. Rowe Price that shows investors would have to be correct 70% of the time with their stock selections in order to beat the market's average return. Even a 50% correct track record produced inferior results due to transaction costs. The longer a fundamentalist invests, the more money he has riding on his picks, but the more chance he has to screw up. It only takes a few wrong choices to negate most of the positive benefits previously obtained. And even if you are willing to perform fundamental analysis, you have paid the "expense" of your free time … time that could have been better spent with family, friends, or Xbox. There are no special prizes or additional virgins in the after-life reserved for the elite few that beat the S&P 500 index." - page 117

"In chapter 7, I stated that one of the hardest concepts for new investors to grasp is that the markets can be both rational and random at the same time. People do not like situations where they have no control over the outcome. This is why Wall Street has created the illusion that they are experts. Their various fakeries hide the fact that they, themselves, cannot beat the market's average over long periods of time through superior stock selection or proper timing. CNBC's minute-by-minute coverage, Scottrade's commercials showing you their latest "powerful investing tools", technical analysis charts … these are all just investing pornography. Just like porn, their images appear to be real, but real investors do not do it this way. The sooner you get the notion of randomness through your thick skull, the quicker you will be on the road to financial independence for retirement. Don't fight it. You'll only make things harder on yourself.

In essence, there is only one way to make money in the stock market over the long run. Buy a stock and wait for unpredictable events to occur which raise its price. Then either collect the dividends or sell it for a capital gain. Since you cannot know which stock will go up and by how much, you might as well hedge your bets by owning a diversified lineup of many different stocks. In fact, you should own a very large batch of them. And since neither you nor I can predict these random future events, there is no reason to believe that one particular group of diversified stocks will eventually do better than another batch of the same type. And you might as well do this as cheaply as possible, since there is no incentive for owning a batch with higher expenses. I wonder … what investment vehicle accomplishes all of this?" - page 120

Get a free copy of my book from my website, downloadable in PDF format. Click on my profile and read my info to get the website. Enjoy.

Answer 9

never thought of that til nw
probably sumtime in future with bit more maturity 4 dese things

Answer 10

http://www.tradingzoom.com/