Best Stock Buying, How to Choose They
Learn How to Pick the Best Stock Buying is a daunting process, even for those who have been trading for a while, but not necessarily so, we need to ask Their first question is, "Why do we want to buy? An investor seeking to buy and hold a 5-10-year, will have a different purchase criteria to the short-term day trader or stock options writer, so eager to buy our For the rest of this article, I assume that we are looking for a long-term investment holding strategy for stocks
Of course, there are many companies that offer a stock of stocks that are "Black box" solutions, get rich quick plans, and software that will give you accurate trading signals.Although some of these systems may work at some time, but in the long term they will eventually fail because the market Essentially driven by factors other than statistical analysis of historical data, which in the past has occurred in a particular way and can not guarantee that it will behave in the future – this is the case of many wealthy investors in the world!
As a full-time technical trader, I have found that over the years, the simpler the system is, the better I use, and almost all the information I use is free on the Internet. What is needed is some hard work Work and a lot of practice.I used to identify the process of stock is mainly a technical method, but also includes the basic elements of macro-level analysis of the process if fully explained on my website, but the principles are as follows
One step is to consider the economies of the countries you are investing in as some stocks and sectors perform better than they did during the recession and vice versa.For example, utility companies performed well in early recessions as professional funds are looking for guaranteed income The next stage is to view the country's major indices and build a long-term view from the charts. In the US, it will be the S & P 500 or Dow Jones 30, FTSE 100, 250, or 350. Then we Start looking deep into the industry to see those performing well and those are doing well – obviously we are looking for stocks in the long-term uptrend and good sector sectors
We are now starting to look at the stock charts for these sectors, In order to identify good performance and long-term long-term growth trend.I use the only indicator of this stage is the volume, and simple moving average.We are looking for any strange volume mode, analyze the formation of candles, find support and resistance levels, . In view of some possible prospects, we then filter these daily to find stocks on our Watch list for the day's price increase of 2%. This highlights the active target stock. Before buying, we will look at the possible earnings date , Dividend dates, directors' transactions, and any other clues or warning signals that may give us notice before we place an order. Finally, when placing orders, we always have a stop position to prevent a sudden reversal in price. Overall, we are looking for a balanced portfolio of stocks in different sectors – we do not want all the eggs in one basket
The only software I used for the above analysis is a simple end-of-day data Chart Pack – This allows me to run the required filters (by industry or price changes) and do all the support and resistance and moving averages that I need for the analysis.
Essentially, the process begins with a macro and moves down to the microscopic using techniques and underlying data in a series of stages. It's simple and free, and I've been using it for years, with great success. For new traders, I also recommend using free online stock trading games because it allows new traders to practice strategies, learn about markets, learn how to place orders, and make all the terms stock trading comfortable
To be A successful stock trader, you need to know the best stock to buy – success lies in your initial effort – I hope the above helps a little