If a little child can do it? Part 3

If a little child can do it? Part 3

Let’s say you are interested in buying some shares of a company, maybe the uncle that knows everything, gave you a hot tip. The first thing I would ask myself is, what does my uncle know about this company? What do I know about this company? What is the real truth about this company? You could google, bing, yahoo it, but what are you searching for? Is the company profitable? What kind of debt does it have? Who is the name behind the company? What are succesful investors saying about the company? With a few clicks of a button all of these questions could be answered.

Next you would want to take a look at the chart, if the stock has been on an upward trend, and it has been around for sometime, you could probably make a quick buck off of it. If the stock has an up and down trend, you could have some fun with this stock. A stock that has many ups and down swings, has been known to bring day traders, a steady income, they step in and out of this type of stock on a daily basis sometimes this type of stock is up and down all day. Stocks to stay away from, are those that have a downward spiral, their chart will show a downward trend, and are not suitable for making a steady quick profit.

                         
This example will illustrate the three types of charts discussed above. ABC indicated in the blue has an upward momentum. XYC indicated in the black has an up and down movement. Both ABC, and XYC are prime to make some loot. However NO WAY indicated in the red should be avoided, maybe it wll turn around, if it is a good stock with a bad reputation, for now it is not suitable for makeing quick profits.

What kind of publicity, is the stock getting? Is the stock in the news daily? If so you may want to watch this stock daily, volatility is good. If the reporters are talking about this stock, there will be movement, and possible, it could be an opportunity to make a quick score. If people are running away from a stock, you might want to run to it, if your research says, that this is a healthy stock having a tough day, then this could be the stock that you have been waiting for. Especially if the chart shows that the stock is down today, and up tomorrow.

We want to be certain that, you understand that we are not talking about a buy and hold stragey. We are talking about stocks that can make you daily and weekly profits, stocks that you can get into and exit quickly, you are not looking to hold these stocks for no more than two weeks.

Disclaimer: I am not a licensed broker, and I do not presume to make you any promises that this strategy will work for you. The information is strictly for conversation, and if you choose to use, in whole or in part any of this information. You do so at your own risk.

My next post we will talk about money, control, strategy, and the use of newsletters.

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