Stock pick tutorial
Stock Pick is the key of stock investing. With many stocks out there, we need to know which stock should we buy, and which stock we should sell. If you choose well, then you’ve reach glory, if you choose the wrong stock then might just say goodbye to your money. So how do you choose? If you want to go somewhere like your home, there’s maybe many roads you can choose. Different roads have also different characteristic. You’ll most probably choose the road which you like the characteristic. If you like the mountain scenery, you might want to go though the mountains. The same like that example, stock pick is very crucial. It’s actually the key for success, and the guide for glory. Just follow and stick with your pick strategy, and you’ll reach your goal. But remember that there’s no guarantee that your pick strategy will be 100% accurate, because there’s a lot of factor which influence a company performance, and many of it is tangible like brand, employee competence, and human emotional.
Many people use screener as a strategy to pick stock. There are many popular screener, like Graham screener for the value investing method. You can try using
Yahoo screener for free. You can modify the screener to fit your character. If you are risk averse or risk taker, you can change the screener to increase the effectiveness.
Other poeple uses software like
Vector2000 Stock Systems or the winner of "Stocks & Commoditites Magazine Readers Choice Award" 5 years in a row for favorite stock trading system,
pitbull investor which gives advanced technical analysis and market forecasting for short term stock market trends, c/w trade recommendations, timing indicators, enhanced quotes / charts and MarketMeter. These software is made by expert which can make life easier.
The basic strategies are:
There are various stock pick strategy, which are:
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Fundamental analysis , buying stock with good financial fundamental.
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Technical Analysis , buying stock based on previous price data.
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Value Investing , buying stock which is undervalued. Warren buffet the greatest investor uses this strategy.
Other stock pick strategies:
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Growth Investing , buying stock with high growth.
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Income Investing , buying stock which give regular dividend.
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Penny Stock, low price stock.
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Option strategy, stock option trading.
Please remind that it is very crucial for you to choose your own stock pick style, not following other people style. If it’s good for them, it might not good for you. So know your characteristic, and the pick strategy characteristic.
Resources :
Check out other
resources (article, links, stock tutorial, and stock book recommendation) about stock pick strategy. See my
stock pick strategy and my
portfolio. My portfolio is based on value investing. You can also view stock quote from this website.
There has been many discussion about which strategy is better, fundamental analysis
or tehcnical analysis. Technical aproach has been reinforced by trading software
which can be used to predict price based on price simulation. The technical analysis is easier to use than fundamental. But when the market
crash on October 1987, traders started to pay attention on the fundamentals.
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Benjamin Graham is known as the father of value investing. His screener has been used by many investor, mostly with slight modification. His student Warren Buffet even became the second richest man on earth....
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Vector2000 tools are based upon the company's Vulture Market Tracking System, originally designed for a group of private investors searching for greater precision when predicting market movement. The system uses the company's proprietary Adaptive Algorithm Technology (AAT) to dynamically track and filter daily liquidity, trade value and other specific indicators for all actively traded equities and accurately gauge buying and selling pressures for specific markets.
Henry Ford founded three hi-tech corporations and have over 135 inventions and products still in the marketplace which bear the marks of my design. He developed a purely mechanical system which "fast scan" once a week in 20 minutes and come up with three to five excellent choices, that met the majority of the stock selection criteria and would be 70-80% winners.
Long call is the basic of option strategy. For beginner, it is the perfect strategy for their first option. A call is an option to buy stock. When buying call option, you are hoping that the underlying will go up. You might know that securities give a target price higher than its current price. In that case, you might want to buy call option. You can sell your stock option when it reaches its target price.
