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Source: FINVIZ.com With stocks down in the past few weeks, it could be reasonable to look for low priced stocks. These would be stocks that have little downside risk since they trade at low prices. These would also be the stocks that statistically have the highest probability of delivering a large gain in the next quarter. One study looked at how low priced, or cheap, stocks performed relative to more expensive stocks. The study found that cheap stocks delivered more than six times the average return of the more expensive stocks in a typical quarter. That’s why we started our search ...
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In general, we like to see stocks going up and dread extended declines. Although individual investors will all have different time frames they consider, they tend to define an up trend as a series of rising prices in their preferred time frame. Likewise, a down trend will consist of a series of lower prices. Technical analysts generally define a down trend as a series of lower highs and lower lows. The chart pattern is generally clear when a down trend develops as the chart below demonstrates. Arrows demonstrate that for the majority of the time period shown, the stock has been making ...
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In the recent market sell off, traders were reminded of a trading strategy that worked for many years. In the long bull market that began in 1982 and ran almost continuously until 2000, buying the dips became a popular strategy. The strategy involves buying stocks after prices dip. In other words, investors are looking at entering stocks that are in long term up trends when they are in short term down trends. Buying dips is a time tested strategy that excels in a bull market. The key is ensuring that the stock is in an up trend. There are a number of ...
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Traders are always looking for an edge. By an edge, we mean some bit of information that helps them make money. Smart traders understand their edge will most likely be found in information that other traders aren’t looking at. This article will provide you information about intermarket analysis of stock. The reason for this is found in the old saying that “to know what everyone knows is to know nothing.” This old saying drives a lot of trading decisions. Take, for example, a moving average crossover. There was a time when this strategy worked well. The idea is to buy when prices ...
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There are a number of ways to find stocks that could deliver potential gains. Many of those strategies include benefiting from the analysis of others. Wall Street is an unusual place in many ways. It is fiercely competitive since the very best fund managers, analysts and deal makers can generate billions of dollars a year in personal compensation. But, it is at the same time a place where sharing your best ideas can also be well rewarded. This is true for analysts, in particular. Wall Street analysts are well paid by the standards of most investors. According to a recent survey, ...
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It’s a natural concern that every successful investor must live with. The concern is whether or not a bear market is near. Or, after a market selloff the investor must decide if a bear market is underway. Some financial advisers like to tell clients not to worry, markets always come back in the long run. But, the truth is that bear markets destroy capital and change lives, sometimes. They should be a concern for every investor, especially if an investor has plans to retire one day or use their savings to send their children to college. In other words, if they will ...
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Technical analysis is the study of prices. Proponents of the discipline argue that history has a tendency to repeat and a study of market action in the past can be a useful tool for forecasting the likely direction of price trends in the future. This article will provide you information about Best technical trading strategies. Technicians use price charts and various indicators to develop their forecasts. Price charts are studied to determine if there are any significant visual cues that can be used to identify potential trends. This is a subjective form of analysis because each analyst will bring unique biases ...
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Insiders are the individuals that know a company better than anyone else. This group can include directors and officers of a company, or large investors owning 10% or more of the outstanding shares. They have a vested interest in the success of the company and, of course, they have a vested interest in the success of their portfolio. This makes it potentially useful to monitor what insiders are buying and selling. Insiders are usually under no obligation to buy shares of the company they know so well. They could invest in any other publicly traded company. That means when they buy shares ...
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