[stock pick tips] You have to use more than one stock screener

Dear Readers,

It is time for second tip that shows you how to decide what type
of stock screener you should use.

Yes typical stock trading system has prepared several different
strategies for trading. Why? Well the reason is simple. There is
not only one type of stock market action all the time.

You have already seen many bullish trendy days, many negative
days when stock price decline. But are these day opportunity for
entering new bullish (long type) stock trade or short sell
type of trade (bearish)? It is the question that we have to
answer by analysis of today's stock market situation.

You need such answer because based on it you - a profitable
trader - have to decide what stock screener will be used for
scanning the market for good stock trading and investing
opportunities. It is always better to look for bullish
opportunities in bullish or neutral stock market than in bearish
stock market situation.

How to determine what is actual stock market situation?

There are several ways. I personally like to use simple solutions
and keep my stock trading system simple. The really simple and
easy solution is to use technical analysis and its basic tools
for stock market situation analysis.

One quite easy solution is to check stock index charts. There are
two major stock indexes for US stock markets - SP500 index and
Nasdaq stock market index. Weekly check of charts of these two
main indexes will tell you what stock screener is best for next
few days.

The analysis of such index chart could be very simple. The
solution is to check price position relative to two major moving
averages. Is the price above long term 200 day simple moving
average or is the price below?

For short term trades plays more important role 50 day moving
average. The position of price relative to this moving average
identifies correct stock trading strategy for next days.

More about using stock index charts for trend analysis is on my
website:
https://app.getresponse.com/click.html?x=a62b&lc=BCcDi&mc=BF&s=0NyX5&y=F&

Stay tuned for your next email.


Very Respectfully,

Richard Koza
Private stock trader
https://app.getresponse.com/click.html?x=a62b&lc=BCcDX&mc=BF&s=0NyX5&y=R&

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