Every trader and investor wants to know the answer to this question: How to look for the best stocks to invest? What are the best stocks to invest in? Well these questions can produce several different answers.
I have used several different ways to identify the best stocks to buy now. I have tested several fundamental strategies and several technically based strategies. Finally I decided to use some of them.
Global macro strategy selection of best stocks to buy now
I did not use a fundamental approach for stock selections. I am personally a much more technically based trader and active investor using position trades. But during my career I found that it is always good to have some basic overview of the current situation in world’s economy.
I noticed that it is good to know something about every part of the world. The world is very interconnected and the current state of US economy is also important for development in Asia. And if something important happens in Asia, it can also have effects to the development in Europe. Therefore I started to create my global macro overview of economic and geopolitical situations in the world.
I decided to read some economic research produced by different analysts. Finally I selected some good research providers that produce reports and materials I like to read. I produce my own global macro research notes for my personal needs. I use these ideas mostly for trades in my position trades portfolio.
There are mostly interesting ideas I have found and it also contains selection of best stocks to invest in now or in the near future. Some ideas are valid for a longer time period as the fundamental idea is developing. So you can use them in the next month or sometimes during the next year.
I then monitor these stock trading ideas and ETF list then I monitor in my trade and analysis software watchlist. I set some alerts to be notified when some technical level is approached – like an important level of support or resistance And then I will use my trading system rules to prepare a very specific trade plan for an individual trade.
What stocks to invest in using technical stock selection
As I mentioned above, I started my career by trading stocks and ETFs with technical analysis only. I use basic technical analysis of chart patterns. I prepared my global ETF list I monitor for possible ETF trade
My technical process to find best stocks to buy now – or sell short of course – is based on ETF list I have defined and on a market screener I use for screening the whole universe of titles available on stock exchanges.
I scan my ETF list every weekend to decide what ETF shares are bullish and which are in bearish situations. I use simple principles of chart analysis. Then I create a short watch list of bullish and bearish ETFs, which I monitor during a week.