Dear Readers,
wow, we are already in 6th email I am sending you about stock
picking tips that should find best stock pick for your trading
and investing needs.
BTW. if you have not subscribed to my complimentary stock trading
newsletter yet, it could be good time to do it now. This stock
trading newsletter describes many techniques I use in stock chart
analysis and stock picking and finally also in my personal stock
trading. It also contains selection of best stock and ETF picks I
monitor every week. You can easily subscribe to this
complimentary trading newsletter on my website here:
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And now back to tips for stock picking. Even if you will use all
fundamental and technical stock picking parameters for stock
screening, you often receive many results. It is quite common to
find more then hundred stocks by screener.
So how to make the list shorter? It could be good to have some
rule that will filter stocks and select only most compelling
tickers for manual evaluation.
And here is my next tip: Use moving averages. These averages will
help you to select stocks that are most suitable for bullish or
bearish type of trade.
The stock that is ideal candidate for bullish type of trade or
investment is stock that is above its 200 day moving average and
preferably also above its 50 day moving average.
This price action tells that big money from large funds and other
big investors are coming into this particular stock. It is always
good to enter trade in direction that is preferred by biggest
funds and other institutional investors. Their money flow will
help price to rise without our own effort. And it is good,
isn't it ?
The opposite is true for bearish trade type - for stocks that are
best candidates for short sell trade. The price that is under 200
day moving average or 50 day moving average is clear signal that
there is no buying interest from big investors. They prefer to
sell or stay away. And it is best situation for possible decline
in price that we can use as the opportunity to make money.
Next time I will show you very important idea for stock picking
and show you quite easy way how to have stock screeners that you
can use immediately.
Stay tuned for your next email.
Very Respectfully,
Richard Koza
Private stock trader
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