Stocks Trading: Finding Solid Companies to Invest In !!

Before You Start Reading Stock Charts Upside Down -- to determine which are accumulating or distributing, and when to buy or sell them – there is the issue of finding solid companies to invest in.

You may have heart about "Fundamental Analysis", which just like technical analysis could be made so overwhelming that you rather give up than start taking investing seriously…Some investment managers and writers about investing would argue that it is essential to learn to read the balance sheets and income statement of companies; to assess the quality of management; to call or meet with management, to correctly estimate the intrinsic value so as to know when a stock is undervalued…Tons of books on fundamental analysis could put you back into study mode for years.

Fortunately, a lot of that has become unnecessary since the publication of "Investors Business Daily". In the newspaper that William O’Neil pioneered you can find a lot of analytical data (notice I wrote "data", not "intelligence") that narrows down the number of companies you should investigate. In fact, the IBD 100 list, published every Monday in IBD, reduces some 10,000 companies listed on the exchanges down to one hundred worth your time.

How do you then pick out of these 100 a watch list of 10 to 12 stocks from which you select two to four to buy when your Chart Reading tells you it is time to buy them? I’ll spell out my approach, which does not entirely follow what Mr. O’Neil wrote in his books or tells in his workshops, but as any guru in the field he has a tendency to make things more complicated than necessary. Why else would so few women attend his workshops?

Let’s start with Earnings Per Share (EPS). IBD provides a ranking of companies based on EPS. If a company does not rank in the top five or ten percentile (meaning a score or 90 or higher), it should not belong in your watch list. The EPS rankings of all stocks can be found daily in IBD.Next, look at relative strength (RS) and group RS ranking. The RS should be bigger than 80 and increasing and the group RS ranking should be at least 85.

Next look at sales growth and earnings growth per quarter. Without sales it is impossible for a company to make earnings; so both sales and earnings growth better be growing more than 25% quarter to quarter. Earnings growth over time and return on equity should at least be 20% or higher. Management should still have a significant stake in ownership (20% or more), and an increasing number of institutional shareholders is also something to look out for.

Finally, my personal preference goes to companies that produce a product or service you understand. As I am not a chemist, biologist, pharmacist, material specialist....I shy away from companies that produce services or products that I do not understand. This does not mean I stay away from all technology. For example, I understand what a GPS system is, how useful it is for navigation and many other applications, so Garmin (GRMN) is a stock that fits in my criteria.
If you apply these simple criteria to the IBD 100 list you will quickly reduce the list down to a watch list of a dozen or so. Out of these the ones the two or three to buy are the ones that are accumuatling and come within 5% or less of their buy point, which you find through your chart reading, When there is a spike in volume and a significant price increase you buy the stock right at its Buy Point.

In spite of all the efforts by Bill O'Neil and company, not many people following this approach. Lots of investors who are just starting out take the IBD 100 list, pick the Top Ten Stocks and invest in several stocks from that shortlist. This is the worst possible use of IBD 100. Remember, IBD provides "data", that only you can transform into intelligence for your best advantage.



To Your Investments Success,
A Professional Stocks and Forex Market Trader
Dan A.


P.S: I hope that 2009 is a breakthrough year for you in every aspect of your life - including trading! Sign up for your FREE trial to our Stocks Trading Newsletter and see if you aren’t closer to reaching your goals in 2009! Go Here.

Getting Prepared for The Trading Day !!

With the Great Challenge of Facing the Stock Market each Day and the hope of pulling money out of it on a regular basis, a trader can do few things more important than prepare adequately. It should be no secret that many of the brightest minds in the world are at work to make their living in the stock market, and such competition cannot be taken lightly! Furthermore, while traders should not be in the prediction business, we must certainly have a game plan.

As time progresses, a trader will inevitably learn from his mistakes. This experience is the foundation for laying out a game plan in preparation for the Trading Day. Merely being a student of the market and of one’s own results will teach a trader to react certain ways to market conditions or events. It is this foundation which should be built upon in order for the trader to elevate his game to the next level (and it IS a game).

In order to develop a trading plan, a trader must begin with his personal style in mind. Swing trading involves a plan that may evolve over the course of a few days to a few weeks, while day trading can be faster-paced and more spontaneous. Personality, patience, and profit objectives will play a large role in which style of trading one may wish to employ, but the trader should choose his method as he plans for success.

Once the trading style is known, the trader must take into account current market conditions. Are recent days or weeks characterized by lasting trends, or by narrow ranges and choppy action? Knowing the answer to this question will put you miles ahead of many other traders who walk in each morning without taking current conditions into consideration. The market will catch you off guard as it changes its rhythm or volatility, but recent history serves as a guide until things change. This means choppy, low-volume, range-bound markets should likely be approached with smaller positions and the expectation of taking profit more quickly and in one piece. A trending market with larger range days and greater volume allow the trader to take bigger positions in hopes of scaling out in pieces as the market moves in the trader’s profitable direction.

Whether After the Market Closes or early in the day prior to the market’s open, some time should be spent determining an IF/THEN strategy for the upcoming session. Some traders may subscribe to a swing trading newsletter or converse with other successful traders, while others prefer to do their own research. One excellent way to find the following day’s trading list is to screen for stocks which meet custom criteria for price, volume, volatility, etc. An affordable stock charting software program will quickly narrow a large list of stocks down to a specifically filtered handful of trading candidates. The DoublingStocks Inc. 'MARL' is one such program, and it will scan thousands of stocks in just seconds or sort them by more than 100 included criteria or unlimited custom criteria. By screening for a handful of potential trades, the decision-making process is simplified and a plan is easier to carry out.

Consider finding a list of trade candidates for both the long and short side of the market, setting specific entry and exit prices, and then simply execute that plan. IF the long candidates rise to your entry prices, THEN purchase them. IF the short candidates break the levels of support you see, THEN short-sell them. IF none of your trade candidates trigger their entry prices, THEN do nothing! This kind of game plan will allow you to effectively respond to market conditions without having to predict direction or hope to be bailed out of losing positions. Approaching the market with the IF/THEN mentality also will help the trader to execute a plan, rather than fight the emotional urges to find excitement or force trades. Sometimes things will work exactly as planned and other times the market will whipsaw you right out of positions. Meeting the market with a game plan and sticking with it will undoubtedly allow the trader to work with less stress and emotion, which are two of the worst negative forces that traders face.

Feeling Well Physically is a very important trait which must be present for a trader to profit. Staying healthy and rested allows the trader to work with a clear mind and focus on the task at hand. Additionally, personal relationships can play a large role in a trader’s effectiveness. When life is rocky away from the trading screens, the successful trader must be willing to cut back on trading size or even back away from the market entirely. A prideful ego will not only cause rough waters on the home front with relationships, but it will also damage the trading account! A clear conscience allows quality rest and a fresh start each morning for returning to the market sharp and ready. Make the most of your weekends to catch up on personal to-do’s and relaxation. When Monday arrives, if you aren’t at your best, don’t expect your trading to be!

Finally, as the morning breaks and the market’s opening nears, follow a routine to get into the proper state of mind for following your plan. This may include reading up on current events, reviewing your charts one final time, grabbing your morning caffeine, or listening to your favorite song. Whatever it is, find what works for you when it comes to getting into the best mindset to extract profits from the market. Remember, the competition is serious and fierce, sharp-minded, and most of all, prepared. You should be too!


...I HOPE that 2008 is a breakthrough year for you in every aspect of your life - including Trading! Sign up for your FREE Trial to our Stock Newsletter and see if you aren’t closer to reaching your goals in 2009! Go Here.



To Your Stocks Trading Success,
A Professional Stocks and Forex Market Trader
Dan A.

"DoublingStocks" Review: What Is It and Who's Behind It?

IF YOU ARE a novice in investing in stocks and don’t know where to start then 'DoublingStocks' is just for you. 'DoublingStocks' is a newsletter that is backed by an intelligent software, which was developed by two computer geeks by the name of Michael and Carl. they had designed a stock analysis software program for Goldman Sachs; a program that nets them $4 Billion profits a year!

The software consists of a stock picking robot program called 'Marl'. This robot program analyzes each and every stock in the market using the technical analysis. The analysis is done on the prices of the stock and the pattern in which the stock prices have risen or gone down and then uses the same analysis to predict the movement of stocks in the future. The bot in the software searches on the net for top stocks worth investing for and shows you the results in a table format. It automatically ranks the stocks according to their returns and gives you an instant idea as in which stocks you can invest your hard earned money.

How 'DoublingStocks' Works?

The 'DoublingStocks' recommendations spell out what stocks to buy and why. They also give you the entry point (what price to pay) and a target price (when to sell). I find that these picks are usually a week or more ahead of anyone else picking them up and recommending them. Which puts those of us who have bought, on very solid footing.

After using 'DoublingStocks' many people have experienced a jump of about 84% in their returns. Now isn’t that really a lot of money? Michael knew that investment derivative companies such as Sachs and other large investments firms manage portfolios worth millions of dollars of firms such as Google and Coca Cola. However their scope of investment in stocks is limited to just a few large firms.

'DoublingStocks' is capable of showing stock trading chart patterns as well which becomes easier to comprehend. For example, when the price of the stock is displayed in the form of a chart you can easily spot the pattern of the stock (instead of merely seeing figures and trying to understand). 'DoublingStocks' uses its own database to scan all the stocks that are listed on the OTC and Pink sheet exchanges.

The software will then narrow down on stocks that look bullish in the near future and display signs of rising prices. All these stocks are added to the watch list of the software so that you can follow these stocks in the near future.

The software has the capability to monitor hundreds of stocks at the same time. After watching the current patterns of the stock, the software automatically develops the capability of the most likely direction that the stocks will follow. 'DoublingStocks' also has the capability of analyzing the average price that a particular stock is positioned at. If it finds any difference in the rise or fall of the stock even marginally (like 50 cents) then it start scrutinizing the stock in detail.

Therefore, you will see how 'DoublingStocks' help people make a perfect decision in investing & trading the stocks and reaping rich rewards from it.

Unlike any other professional stock trader which can analyze one stock around eight to ten seconds, 'DoublingStocks' can analyze up to seven charts per second! Hence the software is extremely selective in choosing only the best stocks to recommend to the investors.

Who Should Not Subscribe This Great Newsletter?

As you know that every coin has two sides and so does 'DoublingStocks'. The software is not for you in case you want to learn more about the share market and want to gain a broader view of it. The software only displays the stocks that perform and provides little information about other stocks. Hence 'DoublingStocks' is not recommendable for people who are still struggling to understand what is stock market.

This has got to be the least expensive newsletter out there. And I am guessing that is why some people think it is a scam of some sort. They can't believe this kind of information can be so cheap without some kind of a catch. But I have found 'DoublingStocks' rivals those costing thousands of dollars a year! And most of the people I know, they get the entire cost of the subscription, plus a substantial profit on their very first trade!

Isn't that Sounds Amazing?

If 'DoublingStocks' has any openings left when you read this, give it a try. If it turns out not right for you, they will give you your money back. So you really have nothing to lose; and that is unique in this business. The expensive newsletters won't give you your money back no matter what.




...YOU Can Try The 'DoublingStocks' Newsletter, Absolutely FREE For 8 Weeks! Start By Signup Today !!



To Your Stocks Trading Success,
A Professional Stocks and Forex Market Trader
Dan A.

Stocks Trading: Beating The Stock Market !!

"Many people dream about beating the market through their stock investments. However, is this really worth the effort and is it really possible?"

Many have attempted to beat the stock market and only a few have managed. Some pundits have gone a step further to claim systems that guarantee this. Nevertheless, beating the market may not be the best goal that you can set for your stocks. The reason for this is that there are a number of other considerations that should be made.

People are generally unclear about the meaning behind the word “Market”, which leads to its different definitions. Different indexes are used when referred to the stock market one of them being the S&P 500. However, this index fails to objectively present all of the stock sizes.

Beating The Market requires the undertaking of various Stocks Deals that enjoy short term benefits. Some experts recommend that you purchase companies that have high customer satisfaction attached to them. There is logic behind this argument, because when clients are satisfied with the product or service of a particular company they use it and become loyal to the company. As a result, the returns increase as well as the popularity among investors. The price of the stock of the company will be also influenced in an upward direction. If you have managed to invest in the company while its price was still low, congratulations you have managed to beat the market.

If you fail to walk away of the stock market when the right time has come you may put your money at risk. And what actually happens is that instead you beat the stock market you are beaten by it. Beating the market requires you to know when is the right time to enter it and when to exit it. You should learn its indications and not only notice them, but also understand the signals that they send to you.

No matter how good you may be at such things, you should consider whether it is worth risking your money for such a goal. Beating The Market may reward you very well, but you should never forget that its punishment can be even higher. Winning several hundred dollars from the stock market today may result in their loss tomorrow. Because, even if you have done it once, beating the stock market twice cannot be guaranteed for sure. No matter what formulas the pundits have offered and techniques applied, it is a game in which only a few have succeeded.

...For The Most Recommended and Profitable Automated Penny Stocks Trading System, Please CLICK HERE.



To Your Stocks Trading Success,
A Professional Stocks and Forex Market Trader
Dan A.