Are you tired of not making money in the stock market? Are you ready to change the way you view stocks in general by simply changing the way you trade? The first thing you need to realize regarding stock trading is that you have to know more about the company and the way they are headed than the next guy, this is how you will have your leg up on the competition. One of the things that you have to take into consideration is whether the stock you are planning on buying is a short term position or a long term position.
Prior to me getting into the tips I would like to first ensure that you know what the next greatest short term stock is going to be. In my opinion the next best short term stock will have a very short window where the price increases an incredible amount. Something that I would strongly caution you on is trading penny stocks that look like they are a fly by night company and the reason is because these are the companies that scammers target to try to get you to lose your money while they make even more.
Tips On Locating The Next Greatest Short Term Stock
Low Price To Book Ratio - If you want the next best stock then you need to get one with a low price to book ratio. What you need to understand is the lower the price to book ratio is the better the share will do in the short term trading market of $10 and under stocks. If the price is over then you will want a higher number, my advice is to get something with a number lower than 1 for stocks under $10.
Check 5 Year EPS Growth - The reason you want to look at the 5 year EPS growth is because it will give you an idea of where the company has been and what their earnings have been for the last 5 years. If you are looking at a stock that has a negative 5 year EPS then I would recommend looking somewhere else until they can prove their worth to you. What you need to understand is that most companies will not grow 100% a year and that is why you need to figure out where you want to be and which companies are in the range, a good range would be 10% over a 5 year period.
The final thing you need to know is that there are many great stocks out there, you just have to find them. Always check the market to see what it is doing because the share prices will go up and down on a day to day basis.
Prior to me getting into the tips I would like to first ensure that you know what the next greatest short term stock is going to be. In my opinion the next best short term stock will have a very short window where the price increases an incredible amount. Something that I would strongly caution you on is trading penny stocks that look like they are a fly by night company and the reason is because these are the companies that scammers target to try to get you to lose your money while they make even more.
Tips On Locating The Next Greatest Short Term Stock
Low Price To Book Ratio - If you want the next best stock then you need to get one with a low price to book ratio. What you need to understand is the lower the price to book ratio is the better the share will do in the short term trading market of $10 and under stocks. If the price is over then you will want a higher number, my advice is to get something with a number lower than 1 for stocks under $10.
Check 5 Year EPS Growth - The reason you want to look at the 5 year EPS growth is because it will give you an idea of where the company has been and what their earnings have been for the last 5 years. If you are looking at a stock that has a negative 5 year EPS then I would recommend looking somewhere else until they can prove their worth to you. What you need to understand is that most companies will not grow 100% a year and that is why you need to figure out where you want to be and which companies are in the range, a good range would be 10% over a 5 year period.
The final thing you need to know is that there are many great stocks out there, you just have to find them. Always check the market to see what it is doing because the share prices will go up and down on a day to day basis.
About the Author:
If you want to learn to trade stocks then click here. A lot of people don't know that much about stocks and that is why they need to take a stock trading class .
2 komentar:
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