How to choose the right stocks
March 17, 2008
Stock trading is all about trying to figure out what the future price of a stock will be in the next hour, day, week, quarter, and even 15 years from now. Since this is not an easy task, how can you choose the right stocks; those with the potential for the highest price increase?
This could be a complicated task. Each investor has his own techniques to search for the winners. Some investors (known as "value investors") consider the general business climate and outlook and the financial conditions and prospects of the individual companies in which they consider investing. They also try to analyze whether stock prices relative to the company’s earnings are already above or below acceptable norms. Other investors use technical methods (analysis) which rely in part on the trends in the shifts of the price, mainly to predict its short-term future behavior.
These are only a few of the many methods used by investors.
Despite these seemingly complicated methods, understanding some fundamental concepts, such as what stocks are, how their price is determined, how to trade stocks and more, can help get you on track.
Read on to improve your stock picking skills…
Yalicoo competitions highlights
The number of Yalicoo traders in the
monthly competition is constantly growing, reaching close to 550 players last week. It is easy to understand why this competition attracts many of you; it is not too short, so you have more time to plan your trading strategy; at the same time it is not to long, so you can benefit from your short term trading skills.
In any case, at this point agent (16.00%) and yhjia (12.84%) are comfortably placed on the top of the scoreboard. Sahil (8.84%) and iverson (6.47%) are ranked third and fourth with a strong potential of closing the gap.
Digging into the leaders portfolios shows that they like the financial and alternative energy companies. Four stocks that are currently held by most of these leaders are CompuCredit Corporation (CCRT), Canadian Solar Inc. (CSIQ), Sonus Networks, Inc. (SONS) and SunPower Corporation (SPWR). It seems that the leaders are betting on the upwind trend of the energy sector and probably predicting that we may be approaching the bottom of the financial sector, while trying to swing these stocks on their way up.
Watching the leaders’ portfolios is one of many great advantages that you gain in Yalicoo. You can learn and practice some of their moves and know almost instantly what your competitors are planning for the near future.
Two more weeks are left before the
quarterly competition ends and it will be difficult to pass the two top players – TheTrader (22.99%) and iverson (18.58%). But, the battle for the third place continues to be interesting and close. Fred (4.97%) opened a small gap ahead of the trader who is right behind him, but it is only a one percent gap that can be closed in a few hours of well-planned trading.
Keep your eyes on the scoreboard to see how this situation will develop (and maybe we will also see some unbelievable moves by one of you who will manage to close the gap behind the two top traders…).
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