How To Pick Stocks: Simple Version
18 August 2004Here’s a simple method for picking winning stocks. Keep in mind now that there are no sure-fire, no risk ways to invest in stocks. It just isn’t possible. If it was easy, we’d all be Zillionaires.
First, go to the first page of one of our stock pick lists (UltraValue, XtraValue, iSpeculate, UltimateLeaders, UpperCrust, room2run, GETshort). These stocks have good earnings and have recently reported. Next bring up our “stock quote popup” box that will give you a quote and simplified chart. Put the popup on the right side of your screen so that you can see the list of stock symbols and list price to the left. Now plug in a symbol and hit return. What you are looking for is a clear uptrend. Only consider stocks that are in an uptrend. Downwards, sideways or eratic up and down are not suitable. Make a list of stocks from any of our lists that meet this first requirement.
Next you will take this list and go to your favorite search engines, investing forums and investing news sources to search for news that may effect the stocks perfomance. Once you have a list of stocks in a current uptrend and the good / bad news about each candidate, you will be ready to purchase those companies that excite you.
There, wasn’t that simple? Now what you need is a plan to get out of the stock. To the downside I’d set a stop at 4-8% below your purchase price. As far as getting out with a profit, you will have to decide when to get out. Personally I would get out for sure on any parabolic spurt upwards and before the next earnings report.
Soon I plan on developing a more comprehensive “How To Pick Stocks” that will add more variables to consider when looking for the best stocks to buy.
By Harvey
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