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How can i find those good stocks?

Updated: 2/24/2020
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Tommycai

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16y ago

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You find "good stocks" by having trading rules. AND FOLLOWING those rules.=Seems simple enough. However, many traders and investors have very little knowledge about what they should do and how to go about doing it. Threy think merely because a stock is:==A] mentioned on a TV program,==B] on the radio,==C] in the local paper,==D] they get a piece of mail about a stock==and/or==E] a friend, co-worker or relative tells them about it,==that stock HAS TO BE a great stock.==NOTHING COULD BE FURTHER FROM THE TRUTH.==I'm going to share with you some of my trading rules. I can tell you 70+ members of our trading groups can't be wrong. We follow our own sets of trading rules. Whether or not you'll use them is another matter. I'll also include some trading sayings. My family invested A WHOLE LOT of money and time to discover the following:==A] "On Wall Street there aren't any gifts." No one gives anyone else anything - not even stock tips. B] BUlls [BUyers] earn money. BEars [SEllers] earn money. Pigs get fat. Hogs [Greedy Traders] get slaughtered. They lose the money in their trading accounts. C] Here's what no one in our trading groups won't do: 1] We WILL NOT trade "cheap" [inexpensive] stocks. We will not trade .BB [dot BB, .OB [dot OB], which is the Bulletin Board], .PK [dot PK], which is the Pink Sheet] O-T-C [Over-the-Counter]. The above stock categories/classifications are far too risky and volatile. 2] We WILL NOT trade any stock which trades less than $26.51 per share. We do not want to be part of any "pity party". 3] We WILL NOT trade any stock which has less than 400,000 shares/volume per day. Volume less than this makes the stock too risky and volatile for the retail trader. Those traders having more money can trade stocks with less volume. 4] We WILL NOT trade any IPOs [Initial Public Offerings]. These stocks do not have any history to follow. They are far too risky. 5] We WILL NOT trade any stock with less than 18 months of trading history. 6] We WILL NOT trade against the trend. 7a] We WILL NOT trade any stock between the price of $45.01 to $55.51 - up OR down. Stocks in this range are known as "the doldrums" - they have a tendency to get stuck and not move. 7b] We WILL NOT trade any stock from $73.01 to $76.51 another "doldrums range". 7c] We WILL NOT trade any stock from $94.01 to $106.51 - another "doldrums range". D1] When we do our research, we check the following: The Earnings Announcement Date. This happens 4 times each year, about every 3 months. Different stocks have different EADs. D2] We check for stock splits. D3] We check the sector and the industry. We check for the trend in that stock's sector. D4] We ALWAYS check the news for each stock we are interested in making our investment in. F] When ALL the criteria and rules are met, Plan your trade. THEN trade your plan. When you know the proper strategies, know how to use them AND you follow your rules, you can earn money when the stock goes up. You can earn money when the stock goes down, You can earn money when the stock goes sideways.==USUALLY numbers in the Stock Market are expressed in percentages and in dollars and cents. EXAMPLE: ABC is currently at $27.50 per share. You did your investigating and research. This stock passed ALL your rules. You have your entry at $27.78 or 1% to prove the stock's trend. Your target is $30.56 or 10% IF the trade should go against you and you lose money, you will get out of the trade at $25.56 or 8%. This is so you can trade another day. As a foot note: We DO NOT put any more than 15% of our total trading account balance in any one trade. If our balance is $10,000 we do not put any more than $1,500 into any single trade. Our entry is $27.78. We can buy 50 shares of ABC. For some reason or another, brokers and others like rounded off numbers of shares.==As you are doing research about the investments you are interested in, sometimes you'll come across a financial or investment term you never heard before.. You can usually find excellent, easy-to-understand definitions of many financial and investment terms by going to an on-line investment dictionary.==It probably won't be long when you'll feel you're ready to invest your hard-earned money. Before taking that step, you really should do research about what you are investing in. There are sites with free, paper trading platforms. You can set up a virtual account and almost trade as though you were trading with real money.==Thanks for asking your Q! I enjoyed answering it! VTY,==Ron Berue==Yes, that is my real last name!==SOURCES: My wonderful family! My wonderful coaches and mentors! THE TWO [2] ABSOLUTE BEST, MOST wonderful trading groups in the world, which I am most proud to be a member of! Trading stocks and options more than 2 years. "THE University of Hard Knocks".=

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