| Discovering the absolute best stocks on Wall | | | | to maintain its self-esteem, its self-confidence, and |
| Street to buy stock in is a demanding task | | | | its overall integrity because a trade gone bad with |
| without a doubt. There is an abundance of | | | | no plan to cope with it can cause severe pain. |
| important information available in the Financial | | | | The mind will do a good deal more to avoid pain |
| Markets that can overwhelm quickly, and even if | | | | then it will to gain pleasure, especially when that |
| you are up on everything, there are still other | | | | pain is extreme. Extreme pain then generates |
| factors difficult to anticipate that can take a | | | | break free mentality, which is often costly. |
| usually great trade and convert it into a loss, and | | | | This defensive routine once going slows the mind |
| this can transpire almost overnight to even the | | | | of proper reasoning, which is basically the minds |
| most profitable businesses stock. | | | | ability to reorganize thinking quickly to deal with |
| Let me ask you this question if you will, what is | | | | the rapidly changing environment. By the time this |
| your goal for having capital in the stock market in | | | | cloud is gone, many Investors both experienced |
| the to begin with? Is it to own shares in an | | | | and inexperienced have found themselves stuck in |
| exceedingly strong corporation for which you | | | | a long position just riding it out. |
| unquestionably just like and believe in, and that | | | | Ok now that we've got that dealt with let's |
| you've successfully done your homework on | | | | proceed. |
| which all points in the direction of great profits; or | | | | Alright, so you have determined the overall trend |
| is it to profit on Wall Street, and yes there is | | | | within the markets and have located the sectors |
| quite a difference between the two? | | | | and industry groups that have the strongest |
| What am I saying? What I am saying is this, if | | | | relative strength that you want to invest in. Now |
| you do not locate the money first prior to | | | | it's time to find the stocks that are going to be |
| investing, it more than likely will take you longer | | | | excellent to buy. |
| to see the profits that you are looking for. | | | | Below are 20 points that you should be carefully |
| For instance, think about this, you're fueling up | | | | paying attention to as you search for the best |
| your car but the pump is only pumping 1 gal | | | | stocks to invest in. |
| every 10 minutes. This could keep you at this | | | | 1. A company is showing that it is having problems |
| pump for a while especially with a big tank, ok | | | | growing on a per share basis when it |
| now what if that same pump was pumping 10 | | | | demonstrates good sales and net income yet low |
| gallons ever minute? We want to invest in stocks | | | | earnings. |
| that are pumping the 10 gallons a minute, and all | | | | 2. Good sales and earnings growth over time is |
| stocks have cycles depending on what is going on | | | | most often associated with companies that grow |
| in the markets. | | | | the most over time. |
| Subsequently, before even beginning to search for | | | | 3. 25% Earnings growth over 3 or more quarters |
| stocks to purchase we must first ascertain what | | | | is the sign of a company that is leading. |
| direction money is flowing in the Financial Markets? | | | | 4. Top stocks just before their impressive growth |
| Would it be coming into the equity markets or | | | | cycles typically have had earnings growth in the |
| would it be moving into the fixed income | | | | most recent available quarter of around 70% |
| markets? If equities then are the market's as a | | | | 5. Small and mid-cap stocks sporting 38% - 79% |
| whole overbought or oversold and are there any | | | | earnings estimates are worth looking at. 23% - |
| substantial divergences amongst the direction of | | | | 41% for large caps. |
| the big Indices and say Momentum or the MACD | | | | 6. Are the company's products or services in |
| histogram. If none and price motion is being | | | | demand? Sales numbers reveal this information. If |
| confirmed then we want to know how the | | | | they are consistently growing over time then yes, |
| Sectors as a whole are performing are they | | | | if sales are shrinking then demand is falling off. |
| getting stronger or are they getting weaker? If | | | | 7. What supplies does the company need to |
| stronger, then of which Sectors and Industry | | | | make their products are there any notable |
| groups is cash coming into and displaying sturdy | | | | changes in the supply chain coming? |
| relative strength, finally which stocks would be the | | | | 8. Companies that are undervalued that have |
| best to invest in? I make use of Point-n-Figure | | | | shown outstanding earnings growth over the past |
| methodology to keep track of all of these things. | | | | 6 months to a year are potential big winners. |
| This really needs to be to be understood prior to | | | | 9. ROE of 17% or greater demonstrates that a |
| searching for stocks. Simply because a company | | | | corporation is using shareholder money wisely and |
| is strong doesn't indicate that the Sector or | | | | is generating good profits. Big winners sport |
| Industry group in general is or will be supported | | | | around 17%. |
| by the Professionals and Institutions. And if not | | | | 10. Price run-ups on unprofitable companies will |
| the stock quite possibly could do nothing but | | | | almost always fail. Check headlines to find out |
| waste time which lowers yearly returns, or even | | | | what's going on. |
| worse undergo a sell off which could then force | | | | 11. Some industries are more profit sensitive than |
| you right into a long-term position and transform | | | | others for example, retail, which can result in |
| operating investment capital into useless | | | | slower growth. |
| investment capital. As I believe it was Warren | | | | 12. The strongest companies will always show |
| Buffett which once said, "There exists a time to | | | | stronger relative strength. |
| work for a company, and there exists a time to | | | | 13. Leading groups tend to posses stocks with |
| own stock in that company," and it makes a | | | | positive relative strength. Use groups that are |
| world of difference in regards to investing. It's | | | | increasing the most to find stocks in. |
| about locating the cash first! | | | | 14. All other things in place areas of tight |
| Knowing this that leads us to the next point that | | | | consolidation can set the stage for big moves up. |
| we need covered before looking for stocks and it | | | | 15. Generally, if a stock strikes its 50-day moving |
| should always be kept in mind. With regards to | | | | average and then heads back up it is a sign that |
| your success in the stock market, before you | | | | the Professionals are still supporting it. |
| get started there is one golden law that you will | | | | Professionals will often use the lower prices of the |
| want to be aware of, that you'll want to keep in | | | | 50-day moving average to increase their holdings |
| the forefront and that you will always be | | | | in strong companies. |
| practicing while in the Wall Street dream machine; | | | | 16. High sell volume that brings price below the |
| "Never, involve yourself emotionally with your | | | | 50-day moving average is a very strong sell sign |
| trades or investments, Ever! Always, trade having | | | | as it signals Professionals are not supporting it like |
| a Plan that includes entry points, protective put or | | | | they have been and it probably won't recover |
| stops, time limits for results, and profit sell points!" | | | | quickly. |
| Stay away from the markets until you have all | | | | 17. Breakouts need to be confirmed, to do this |
| this information in hand with a solid grip. | | | | check relative strength if it is breaking out at the |
| Bear in mind price cycles are to a some degree | | | | same time it is confirming the breakout. |
| of accuracy measurable, Elliot Wave Principle | | | | 18. If you see relative strength breaking out |
| proves this, so you can determine the trend | | | | ahead of a stock this is a potent indications of a |
| employing channels and from that figure out how | | | | good move to follow. |
| much a trade may be worth maximum based on | | | | 19. Too many large stock splits, 2-1 3-2 in a signal |
| how long you plan to hold, and next sell along the | | | | year is a bad sign and should be considered an |
| way up. The closer to the max profit potential | | | | opportunity to sell or at least to tighten up |
| the more risky the trade will become. If a channel | | | | protection. |
| line is broken, however, this is a strong indication | | | | 20. Don't buy overvalued stocks unless you have |
| of a change in trend either up or down depending | | | | a great reason. Go to valuepro.net to get a quick |
| be prepared. | | | | look at valuations. |
| We do have one more point that needs to be | | | | You can use Yahoo finance to do research on |
| dealt with prior to locating stocks; in such a | | | | stocks they do a great job. I'm sure you have |
| circumstance that you turn out to be emotionally | | | | your favorite sites as well. So with this top down |
| involved with your stocks and things go wrong, | | | | approach you have a good bird's eye view of |
| beware your brain will more than likely go into | | | | what you'll need to study. |
| defense mode and first seek to protect its | | | | I hope this Article was helpful? Good luck and I'll |
| reasoning around the buy from the outset. It is a | | | | see you next time around! Thank you for taking |
| natural process that the subconscious mind uses | | | | the time to read! |