winning stocks as good stocks that are on the rise. What are some theories on picking the right ones. I am currently playing virtual stocks and i want to learn.
Most of the answers here will deal with fundamental analysis, which is fine but I believe technical analysis is a much better way to go. Fundamentals can be interpreted many different ways and you can spend hours researching just one stock. You may also get to the point where your research gets you "married" to a stock and you refuse to take losses.
Once you have developed a method of reading charts, one can look at a stock and form an unbiased judgment on the future direction….in a fraction of the time. Your fundamental analysis may get you into a stock that has a nice run up, but you may have to wait months before it happens. If you follow the technicals you are able to time it amazingly better. This is the best way to catch emerging trends.
Also half of trading stocks is psychological, if you don’t have a plan when to take profits or losses you will find yourself on an emotional roller coaster. Its best to keep it objective as possible.
Whatever your decision on how you picks stocks, technical analysis should be considered when placing the trade.
FYI – if most investors followed some type of momentum indicator they would have gotten out before the 2008 financial crisis and then back in Apr or May 2009
hope this helps