Posts Tagged ‘Trading strategy’

Exploring Winning Stocks – Things You Must Consider

Saturday, July 10th, 2010
Warren Buffett speaking to a group of students...
Image via Wikipedia

When it comes to picking up winning stocks in the market then it is something which is not easy to perform by any means. There are a few investors that can make this job look relatively easier such as Warren Buffet but those are just a few and you reading this article tell me that you are not one of them. Bad stocks are something that is chosen by all of the investors including the stock market pros as well. However, the point is that the amateurs tend to pick up far a lot of bad stocks compared to the professionals. The stock picking strategies that come in to use every day are nothing less then a puzzle. This puzzle or strategies are just a set of rules every investor has made for himself that he uses when it is time to execute a trade. When it comes to investing in a commodity, currency, or a stock, an investor has to tick mark all the things in the strategy’s check list so the trade can be a sure success.
Professional traders have much more experience and knowledge compared to other individuals and this is why they implement successful trading strategies as compared to ordinary traders. Now when such strategies come in to play and your check list is in an organized manner, you would surely explore winning stocks that is just another name for a good or a successful stock.
Let me give you an example of how a lone trader would be exploring winning stocks. There are pieces of certain information that he would put together in order to find and explore a winning stock such as; he might have read a tip about buying stocks that is fitting in nicely, the company has been making consistent profits over the last 3 to 4 years, the particular stock went down a little in the past 3 days; looking like a cheap stock and etc. Now these readings can also assure whether you are going for a winning stock or not but professionals would add a couple of things more to make things hundred percent sure like the ratio of price earning that should be over 20, yield dividend moving on to 7 percent, and the current ratio is more then 5.
If you simply consider these things carefully then it can get relatively easier for you to explore winning stocks and once you explore such stocks, you would be certain to make profits in the days to come.

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