Helpful Hints on How to Begin in stockmarket

Finding the Right Stocks Using Basic Criteria.

1. What is the outlook for pricing of the company’s products?

2. Can the company sell more? What is the outlook for unit sales?

3. Can the company increase profits on existing sales?

4. Can the company control expenses?

5. If it does raise sales, how much will fall to the bottom line?

6. Can the company be as profitable as it used to be, or at
least as profitable as its competitors?

7. Does the company have one-time expenses that will have to be paid in the future?

8. Does the company have unprofitable operations it can shed?

9. Is the company comfortable with analysts’ earnings estimates?

10. How much can the company grow over the next five years?

11. What will the company do with any excess cash generated?

12. What does the company expect its competitors to do?

13. How does the company compare financially with other
Companies also in the same business?

14. What would the company be worth if it were sold?

15. Does the company plan to buy back stock?

16. What are the insiders doing?

The Reasons Why to Keep A Profitable Stock

1. Definitely in an upwards trend at the moment.

2. Excellent turnover and good volatility.

3. More buyers than sellers in the market depth.

4. More shares wanted than what is currently available.

5. Is the stock is definitely in the headlines at the moment.

6. Nicely priced low enough for a good profit to be made. (Mercenary Reasons)

In other words the reasons why you bought the stock in the first place haven’t really changed.

A good tip for you here.

If you keep an eye open, you can sometimes snap up some good bargains particularly at quarterly reporting time. Even “blue chips” get slammed if their reports aren’t up to the investor’s unrealistic expectations of what their performance should have been.

One thing is for sure you can never really understand the reasons why some investors sell and some buy.

stockmarket tips

he Whitney Theater (Hamden, CT) marquee advertised movies for children ("Gidget"..."The High and the Mighty"). Every kids matinee, the manager would pick a ticket out of a large popcorn box. He would give the winner candy, free soda and popcorn, or a toy connected to the movie.

One afternoon he read the numbers on my ticket stub. The prize was an air-pumped rocket. My friend Elly and I went to an open field, pumped it as hard as we could, and let it go. It went straight up, stalled, lost momentum, nose-dived and hit the sidewalk.

Stock Markets soar and crash too. Stock Market traders sometimes become kids with a toy. Every day the market pumps itself up. Indices spiral upward making many giddy with kiddish delight; nobody wants this rocket to fall from its lofty heights. With little notice, the market stalls, momentum is lost, and markets crash.

Simple laws of gravity inform us that upward moves of any force require energy and momentum. The stock market is ruled by the same laws. Markets cannot, will not, and have not moved in one direction without correcting. This means that bull markets are not forever, and bear markets are bearable.

"What happened?" My toy rocket did not give me any warning when falling to reality. Stock markets project warning signs when upward momentum stalls. You never want markets to go up forever. It is best when markets move up, pause, contract, and build a base before making their next move.

A base-line provides support for a market index like the Dow or the S&P. Long support lines give investors solace because it takes a lot of sellers to break through it. A support line or base (see image) is a trading pattern of stock buying and selling with little price change.

No support means the market index has potential to keep falling until it finds a support line/base or bottom. Markets stall when reaching a high price on average daily stock trading volume. Bulls (buyers) will strain to push the markets upward, but Bears (sellers) thwart the momentum. An excessive number of sellers (many more than the average) can force an index/stock to new lows.

"Make it go higher!" My toy rocket did not reach heights too fast. Elly and I were ten or eleven years old; we wanted that rocket to disappear in the clouds. Many investors act the same way; they want the markets to go up and up because it means more money. When markets hit successive days of positive returns, investors get starry-eyed. We like it when Neil Cavuto (among others) reports new highs for the Dow (read " The Dow Jones Industrial Average: Failing the Average Investor" by Steven Selengut).

Dizzying heights cause most investors to miss subtle market moves. Stocks/indices must move higher on strong buying volume. When markets reach a bench-marked high level, getting past it will take three times the average number of daily buyers.If the price stalls at the bench-marked high and the buying volume is less than the daily average, index prices decline.

"Don't worry." Elly never worried; I always worried. When that rocket went off, I feared it would break a window or hurt someone. Elly said, "Just pump it Ray and let it go!" Some stock investors never worry. Wise Wall Streeters know that "The market needs to climb a wall of worry." War, high oil prices, poor consumer sentiment, and Federal Reserve rate increases are walls of worry. Euphoric investors topple market