Making a Stock Watch List

I am taking the clip to assist others learn the rudiments in evaluating pillory for investing using both cardinal and technical analysis. Both tools are equally of import in making serious determinations with your hard earned CASH!

If you wish to put in stocks, dainty it like a business, NOT Type A HOBBY. (ex: a retail outfit can't do money if it doesn't have got commodity to sell; the same travels for investors, without cash, you can't invest). You need regulations and you need to follow these regulations or money WILL be LOST. Once proven regulations have got been established, they cannot be bust or you will lose money. Everyone loses money in investment but we must learn to cut losings quick and allow additions to develop. Small losings are acceptable because they learn us lessons that allow us to win big!

Start your search by looking for pillory with superior fundamentals. After basics are established, expression to see if this peculiar stock is in good company, by this Iodine mean value a strong industry grouping - similar stocks, historically travel in the same direction (this is fact not opinion). This is not to state every stock in the industry grouping will travel higher or lower because a sister stock is going in that direction (this is a generalization rule). After the industry grouping have been confirmed strong, determine if overall market is in a specific tendency (up, down or sideways).

If you are long a stock, the market must be in a confirmed up-trend, if you are short a stock, confirm a down trend. Note that 75% of all pillory will follow in the direction of the overall market. Don't struggle the trend, the market is always RIGHT.

Let the market and the stock order how long you will be in a position. Don't worry about clip frames; terms and volume will state you when to go out the place as long as you follow rules.

After cardinal have got been established, you must analyze the technical side of each individual stock, the specific industry grouping and the general market trends. Record if the stock is forming a proper base, if it's about to interrupt out of a base, if it's extended or if it's pulling back to a cardinal support line.

At this point, add any qualifying stock to your ticker listing or purchase the stock according to the technical entry signalings (remember the basics have got been established earlier).

Key numbers to utilize in fundamentals:
Earnings (current, past: quarterly, annual and future estimates)
Sales (current, past: quarterly, annual and future estimates)
Tax Return on Equity (ROE)
Price/Earnings Growth (PEG)
Price/Earnings Ratio (rise over clip of base)
Debt/Equity
Assets, Liabilities
Accumulation/Distribution ratio
Up/Down Volume over past respective calendar months
Number of Institutional Holders (is this increasing or decreasing recently)

Key things to utilize for technical analysis:
Look at the 1 twelvemonth day-to-day chart
The 1 twelvemonth weekly chart
Check volume action when alkalis are formed
Look at Point & Figure charts for support and opposition lines
Look for new 52-week highs