Business People Club

Search All Topics !

How to pick stocks?

0 like 0 dislike
160 views
by UncleRhino
What are the best ways to pick stocks?

Advertise With Us

Create and Manage Your Sponsored Content

Promote Your Products and Services

 

  • Niche Categories
  • Flat Pricing
  • Unlimited Views
  • Sell Products
  • Highlighted Sponsored Post
  • Sell Services
  • Promote Causes
  • Reply To Customer Inquiries
  • Build Backlinks
  • Promote Affiliate Links
  • Instant Notifications
  • Build Author Profile
  • Cancel Anytime
  • Get Started

Your comment

Your name to display (optional):
Privacy: Your email address will only be used for sending these notifications.
Anti-spam verification:
To avoid this verification in future, please log in or register.

1 Comment

0 like 0 dislike
commented by HistoryGuy
Stock picking is a very complicated process and investors have different approaches. However, it is wise to follow general steps to minimize the risk of the investments. This article will outline these basic steps for picking high performance stocks.

Step 1. Decide on the time frame and the general strategy of the investment. This step is very important because it will dictate the type of stocks you buy.

Suppose you decide to be a long term investor, you would want to find stocks that have sustainable competitive advantages along with stable growth. The key for finding these stocks is by looking at the historical performance of each stock over the past decades and do a simple business S.W.O.T. (Strength-weakness-opportunity-threat) analysis on the company.

If you decide to be a short term investor, you would like to adhere to one of the following strategies:

a. Momentum Trading. This strategy is to look for stocks that increase in both price and volume over the recent past. Most technical analyses support this trading strategy. My advice on this strategy is to look for stocks that have demonstrated stable and smooth rises in their prices. The idea is that when the stocks are not volatile, you can simply ride the up-trend until the trend breaks.

b. Contrarian Strategy. This strategy is to look for over-reactions in the stock market. Researches show that stock market is not always efficient, which means prices do not always accurately represent the values of the stocks. When a company announces a bad news, people panic and price often drops below the stock's fair value. To decide whether a stock over-reacted to a news, you should look at the possibility of recovery from the impact of the bad news. For example, if the stock drops 20% after the company loses a legal case that has no permanent damage to the business's brand and product, you can be confident that the market over-reacted. My advice on this strategy is to find a list of stocks that have recent drops in prices, analyze the potential for a reversal (through candlestick analysis). If the stocks demonstrate candlestick reversal patterns, I will go through the recent news to analyze the causes of the recent price drops to determine the existence of over-sold opportunities.

Step 2. Conduct researches that give you a selection of stocks that is consistent to your investment time frame and strategy. There are numerous stock screeners on the web that can help you find stocks according to your needs.

Step 3. Once you have a list of stocks to buy, you would need to diversify them in a way that gives the greatest reward/risk ratio. One way to do this is conduct a Markowitz analysis for your portfolio. The analysis will give you the proportions of money you should allocate to each stock. This step is crucial because diversification is one of the free-lunches in the investment world.

These three steps should get you started in your quest to consistently make money in the stock market. They will deepen your knowledge about the financial markets, and would provide a sense of confidence that helps you to make better trading decisions.

Related posts

0 like 0 dislike
0 comments 150 views
How to buy penny stocks?

is it good idea to buy penny stocks? and how to buy them?

by Octopuppy
0 like 0 dislike
1 Comment 169 views
How to be successful trading stocks?

What are the ways to be successful trading stocks?

by PlaySeal
0 like 0 dislike
1 Comment 153 views
How to invest in penny stocks?

Is it good idea to invest in penny stocks? How to do it?

by ForceSoldier
0 like 0 dislike
0 comments 713 views
So Many Garcinia Cambogia Choices. a Single Should pick?

An additional difference: Greek yogurt will be lower in sugar. This is due to the fact that Greek yogurt contains less lactose ... . Exactly what a way accomplish control of your eating routines!

by DottyVirtue
0 like 0 dislike
0 comments 299 views
Free Advertising Tips - How to Write Ads that Sell

If you are interested in free advertising you are not alone. The fact of the matter is that more and more people are diving ... a bit of practice you will be creating free advertisements that convert!

image
by Knighttime
0 like 0 dislike
0 comments 339 views
How To Advertise And Build Brand-Name For A Product Online

According to the research of authors Al Ries & Laura Ries, there are 22 immutable laws of branding to build a product into world- ... don't you try to speech-up your business by online advertising?

image
by HuggingDuck
0 like 0 dislike
0 comments 175 views
Disaster Preparedness For Your Small Business: How To "Weather" Any Storm

In the event of a potential disaster, do you have a business continuity plan for your employees and your business? Are you backing up ... the right data is being copied and that it can be restored.

by MagicalCyborg
0 like 0 dislike
0 comments 205 views
Problems With Spam? Learn How To Treat It

The first step in your antispam campaign may well be to understand spam and how it works. Spam is usually defined as unsolicited e-mail ... ." Wrong! They're spammers and you're now on their list.

by AmazingKitty
0 like 0 dislike
0 comments 170 views
Top 10 Things People Do Wrong at Interviews, And How To Avoid Them

A face-to-face interview is the most stressful part of the job search for many individuals, but it is also a critical component ... your interest and inquire about the next step in the hiring process.

by Madept
0 like 0 dislike
0 comments 138 views
What A Wholesale Supplier Expects From You - How To Ask For Distributor Accounts

You wouldn't think of going to a job interview unprepared-you'd never get called back. Yet many eBiz owners approach ... professional and prepared, you can greatly increase your success with them.

by BouncyOracle
0 like 0 dislike
0 comments 285 views
The Warning signs of Online Fraud and How to avoid it

The number may seem grim for Web-based commerce. In 2004 in the Unites States alone, computer users logged in more than 207,000 ... you're doing it in a mall or on the information superhighway.

by Dragonig
0 like 0 dislike
0 comments 137 views
How To Start an Internet Business – The First Step

The vast majority of web sites are destined to fail before they are even built. Why? Because people building sites almost always put ... little reason to build a site that has no chance of success.

by GreedySmile
0 like 0 dislike
0 comments 235 views
How To Fully Automate Your Website So You Don’t Waste Time Working

So you don't have a way of managing all of the customer responses coming through your inbox? I can relate, please let me share ... when a customer assesses you and your site faster than you realize.

by Knighthawk
0 like 0 dislike
0 comments 164 views
Avoiding the Scams: How to Find a Business Opportunity That is Right for You

It is heartbreaking to me that so many women with big dreams get knocked down by ruthless business opportunists who take ... a business opportunity that will be both fulfilling and profitable.

by Finderpros
0 like 0 dislike
0 comments 169 views
Business loan and how to acquire it

Business loan can cater to your each and every aspect of your business. The urgent requirement of funds for your business can be ... a business loan and expand your business, the way you want.

by Cybora
0 like 0 dislike
0 comments 241 views
How To Effectively Market With Video On The Web

Online video publishing has indeed taken the Internet by storm in recent years, making the use of video for marketing, promotion ... video communication through video publishing & sharing on the web.

by HairyFoal
0 like 0 dislike
0 comments 177 views
How To Increase Traffic To Your Website: Increasing Sales With More Traffic

When all is said and done, the marketing principles that apply in the brick and mortar world have similar applications in ... You will enjoy true online business success today and tomorrow.

by GardenParrot
0 like 0 dislike
0 comments 167 views
Top Internet Marketing Blunders and How to Avoid Them

Internet marketing can be a tricky business if you do not know what you are doing. That is one reason that so many marketing beginners ... and have a link to your e-mail address on the home page.

by GraveGrass
0 like 0 dislike
0 comments 135 views
what are seo contests and how to rank better in SEO Contests

The keyword is totally unique in the eyes of the search engines, and there are strong rules in these contests. Some of the ... can make sure that your webpage tops the search engine result pages.

by DopeyPotato
0 like 0 dislike
0 comments 163 views
How to Make Money in an Online Magazine

Many people are now trying to involve themselves in an online business. There are a variety of online business opportunities, you go ... business will assure you of a great success in the future.

by Emufasa
0 like 0 dislike
1 Comment 263 views
How to develop a new product?

New product development is one of the most important components of product policy and product management. Product lines and products are ... ; it gives rise to new versions of the existing products.

image
by Camella
0 like 0 dislike
0 comments 205 views
Top Internet Marketing Blunders and How to Avoid Them

Internet marketing can be a tricky business if you do not know what you are doing. That is one reason that so many marketing beginners ... and have a link to your e-mail address on the home page.

by Dingopher
0 like 0 dislike
0 comments 232 views
How to write a Killer Ad?

Copywriting is an essential element in the marketing of any product. More so, in a shrunken global village. Whether it's online ... consider these factors and you'll copy up with a Killer Ad.

by MagicalCyborg
0 like 0 dislike
0 comments 174 views
How To Learn Internet Marketing and Make Money From Home

Are you searching for a way to make money from home? Well, if you are at all computer-literate, you should consider ... have been transformed from a total newbie to an accomplished internet marketer.

by HarshThunder
0 like 0 dislike
0 comments 154 views
How to guide on marketing on the internet

If you are new to the net and interested in making money ethically then this article will educate you in the various ... author may be contacted at anhharrisandsons@primusonline.com.au Happy netting.

by AmazingKitty
0 like 0 dislike
0 comments 135 views
Affiliate Marketing - How to Get Started In 6 Easy Steps

Affiliate marketing is an easy to start online business. It is really easy to start but requires the hard work to become successful ... with a single product, add more products and repeat the process.

by Hawkward
0 like 0 dislike
0 comments 156 views
Against All Odds -Tips On How To Protect Your Assets

With so many bad things happening in our society today, it is important to obtain safety measure needed to protect our lives, our ... asset protections know that they are dealing with a big business.

by PlushSeal
0 like 0 dislike
0 comments 160 views
How To Plant Red Potatoes

Alyeska's season begins in mid November and runs through the heart of April. Anticipate to have lots of daylight skiing here at the ... so, fill with a little extra cigarettes. Close the lid again.

image
by FreemanKinch
0 like 0 dislike
1 Comment 171 views
How To Generate Highly Read Article Ideas?

How To Generate Highly Read Article Ideas?

by GreedyPig
0 like 0 dislike
1 Comment 218 views
0 like 0 dislike
1 Comment 175 views
0 like 0 dislike
1 Comment 191 views
How to convert visitors into subscribers?

How to convert visitors into subscribers?

by PlaySeal
0 like 0 dislike
1 Comment 164 views
How To Increase Your Auction’s Visibility On Ebay?

How To Increase Your Auction’s Visibility On Ebay?

by UncleRhino
0 like 0 dislike
1 Comment 174 views
0 like 0 dislike
1 Comment 194 views
How to find customers for my home based business?

I want to find more customers for my home based business. Any tips?

by Knighthawk
0 like 0 dislike
1 Comment 266 views
How to properly quit my job?

I want to quit my job soon. How to do it properly?

by Knighttime
0 like 0 dislike
1 Comment 147 views
How to hire business analyst?

I want to hire business analyst ? What to ask ?

by Finderpros
0 like 0 dislike
1 Comment 149 views
How to create a site map?

I want to create a sitemap? How can i do that?

by GiftedWrecker
0 like 0 dislike
1 Comment 199 views
How to become awesome seller?

How to become awesome seller?

by Prepatriarch
0 like 0 dislike
1 Comment 207 views
0 like 0 dislike
1 Comment 263 views
How To Make Money Selling Ebooks?

How To Make Money Selling Ebooks?

by HairyFoal
0 like 0 dislike
1 Comment 289 views
How to Choose A Domain Name That Floods Traffic To Your Website?

How to Choose A Domain Name That Floods Traffic To Your Website?

by Madept
0 like 0 dislike
1 Comment 251 views
0 like 0 dislike
1 Comment 237 views
How to automate your business with autoresponders?

How to automate your business with autoresponders?

by PlushSeal
0 like 0 dislike
1 Comment 230 views
How to write effective emails?

How to write effective emails?

by CheeryGrin
Connect with us:
...