Cars

Catching a stock as it becomes more and more popular is similar to catching the right wave when surfing but its equally satisfying The essence in both cases is identifying well in advance which waves are worth riding on

How can you pick potential
Catching a stock as it becomes more and more popular is similar to catching the right wave when surfing but its equally satisfying The essence in both cases is identifying well in advance which waves are worth riding on

How can you pick potential winners from an ocean of mediocre stocks One helpful tool is to watch for upgrades by investment companies like JP Morgan Merrill Lynch etc Theres a reason why these companies are so profitable These companies dont just buy equity They scrutinize stocks companies and sectors all day long They know the ins and outs of the market and are very aware of investor psychology

Another way could be looking at recent upgrades awarded by investment newsletters Thats because the editors of these newsletters have proven to also be incredibly sensitive to subtle shifts in investor psychology about particular market sectors and specific stocks

So its worth paying attention whenever a stock quickly rises in popularity among investment companies and newsletters
If you are uncertain paper trade upgrades for a while to see for yourself But also be aware of which companies are being upgraded Most are only suitable for shortterm investments because of the volatility of certain companies and sectors

For example the automobile sector is extremely sensitive and volatile Take a look at Ford ticker symbol F to name just one of many This chart looks like everything else but definitely not stable This is because automobile companies depend too much on sensitive factors like oil prices the overall economy etc etc

But so do other companies you might argue Yes Correct But my point is when times are bad who do you thing will still profit Ford or Wall Mart We all gotta eat but we dont necessarily need a new car tomorrow A lot of us need or even depend on medicine In good and in bad times So who do you think will be ahead in the game Pfizer or Delta Airlines Now thats another extremely sensitive and volatile sector The aviation industry Not my cup of tea

So if you see and catch a potential upgrade ride the wave for as long as you feel comfortable and as long as the trend is moving in your direction but always be ready to jump off again protecting your investment and profits

Yours in Successful Trading
Ricky Schmidt