Steps to Take to Correctly Choose a Winning Stock

[vladtitov151 10]

For trading, there are 4 key traits to look for.

They are:

 

Accelerated earnings.

Explosive price action.

New price highs.

High relative strength.

Every runaway stock that has emerged as a stock leader has displayed these characteristics.

 

I would stress that you want to look for industries and their groups that are neglected by Wall Street that no one is watching.

 

The best moves come out of no where. By the time everyone is talking about it on cable news then the move is likely to be over soon.

 

One tip, stocks that have lower Price/Earning ratios (PE values) have an added advantage when they begin to emerge as leaders. Lower PE values show that the stock is undervalued so once institutions begin picking up the stock then it has the added benefit of expanding to fit the industry average.

For you, this magnifies your overall return.

Again, these are the broad strokes so spend some time studying your approach but this can act as a guide.

 

Finally, there are secrets to the market that neither you and I will ever know about.

That's a fact, because The Gods of Wall Street are not going to reveal their methods.

 

But the one secret that no confronts is that trading/investing is hard work. You have to apply yourself and apply a reliable method to succeed. That is the real Holy Grail so make peace with it and get to it.

 

If you do then you'll have a major edge over other people because other people are not going to do it. They're going to look for short-cuts and an easy way out.

 

Be grateful to them because they are responsible for your profits.

 

You're job is to walk the road less traveled and not become one of them.

[dbelov275 11]

Thanks for such a great article. it was really helpful indeed.

[CrazyCzarina 17]

That article post is good informative but stocks are not my business, so it will be profitable for other work traders.