What stocks to invest in ?
How to invest stock market ?
Here are some hints how to find answers
It is very common question I hear from my readers and also my clients. "What stocks to invest in todays market?" or "what is good stock to invest in".The answer is that there are several best stocks to invest in current state of economy every single day. You can find these stocks if you are looking for short term stock picks or if you are looking for mid-term position trade pick. And buy-and-hold investors could find their picks too.
Short term stock picks
When I look for short term stock picks to trade them in my portfolio I use several tools of
technical analysis.
First I must decide what universe of stocks I will check for possible stock trading setup. It is not really possible to scan several thousands technical stock charts every day. It is much better to have already preselected list of stocks based on some technical parameters. When I look for best stock pick for short term trade I use some good stock screener or my
ETF list
to find idea what sector is presenting best relative strength or relative weakness. The I scan stocks in specific sector to find most interesting stock chart where I can find best stock trading setup using my
stock picking method .
Here is example. If I find that one of the most interesting sectors is Software then I go through charts of software stocks. I can check charts of all software stocks or use some filter to have automatically preselected stocks for review. Like - stocks with price above 12 USD, with very good liquidity - average trading volume is above 500000 shares per day. Good stock screener can help to automate this process. You can use stock screener built in good
stock analysis software
like
Amibroker
or to use some free stock screener available online on Internet.
FinViz
is the best these days and I recommend it.
Mid term stock picks
for position trades
I like to be in the trade for more then few days. I like when trade lasts several weeks and maybe months. Why ? Such trade can make huge profit as it means that my stock pick is in strong trend up or down and I can ride this trend.Basic selection of areas where to look for answer to question "what stocks to invest in?" can be found using Global macro fundamental analysis, like I do. I personally prepare my own
Global macro research notes
for my needs. I use them in my position trades in my stock market portfolio and etf porfolio. These picks are often
best stocks to invest.
And then I use basics of my
stock chart analysis
combined with breakout and pullback technical strategy to define my stock or ETF Trading setup. When trigger price is approached I open my position trade in my stock market portfolio.
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