There are many people around the world that are finding it tough financially. With the present state of the economy the stress of finances is enormous. Many people are looking for free financial tips so that they can get back on track financially. You may be interested in this article if you are looking for financial advice.There's no such thing as a free lunch, and that especially applies to supposedly free financial advice. Here's how to spot them so you don't get stung.


Wednesday, 3 July 2013

How To Buy The Perfect Stocks By Choosing The Right Pattern

By Eula Ramos


The perfect stocks to buy at this moment are numerous. It all depends on your own form of investing. If you are a buy and hold investor, then the catalyst is going to establish just what stock you will purchase and just how long you are going to hold it. If you're a active day trader or swing trader, then both the catalyst as well as the technical chart pattern establishes what stock you will purchase.

For short term traders, the very best stocks to purchase are ones that have developed an oversold chart pattern. These are generally stocks that have sold off and also have an RSI score under 30. You can not just purchase any oversold stock. With oversold stocks verify that you are not caught off guard from a stock offering or bankruptcy filing.

You want to make sure that the oversold stock shows a history of rebounding off of the price level its currently at. Stocks which have a history of rebounding off an area of the chart may try it again.

One additional stock tip is for you to go to the NASDAQ short interest web page and look up the short interest in the stock. Virtually any stock having a short interest of more than 3 days to cover is a short squeeze prospect. Short squeeze stocks are ones which have a high short interest. A short seller has to buy the stock back to close out the short position. In the event the short interest becomes too much in a stock, short sellers get nervous. If many of the short sellers sell out of the stock all at once, it may cause a stock to sky rocket.

If you're a someone who holds stocks for long periods, you will want to concentrate your time and energy on determining the catalyst. A catalyst is that which may cause the stock to move higher either from short covering or legitimate buyers going into the stock. You may be the top stock chart reader in the world however, if you do not know how to determine the catalyst, you will lose money investing.

A good way to get better at doing catalyst research is to go to Finviz or any web site that displays the very best performing stocks for the day. Go through the stocks with the biggest gainers for the day and glance at the news. You will quickly determine what are excellent catalysts that can move a stock up.

One of the better free resources for screening stocks is Finviz. It has a superb stock screener. You can filter stocks on a technical level meaning things that influence the stock chart. Also you can filter stocks on fundamentals meaning information released in quarterly financial reports.

In the video clip below, you will see me use Finviz to do a stock screen I got from one of the best traders on Wall Street. I suggest you pause the video while you enter the settings into Finviz yourself.

I really hope the video below lets you make a great deal of money trading stocks. I enjoy receiving positive feedback from people who are really excited because they just used something I taught them to make money. If you have questions please do not hesitate to contact me and I'll try to do my best to help.






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