ABC in selecting winning stocks

                   

                  Imagine that investing in stocks is like cooking a broth. The most essential ingredients for this special broth is picking up the winning stocks. Choosing the potential stocks is utterly important to gain massive profit in stock trading. Nevertheless, the techniques to choose the winning stocks don't require the knowledge of rocket science. Instead, picking up the winning stocks could be as easy as ABC. 

                    The letter "A" here stands for Analysing the fundamental of the company. Fundamental of the company is the ability of the company to gain profit and maintaining it that way. Fundamental analysing helps to decide which companies or stocks to buy. Another matter which needs attention is the checking the company's liabilities and assets. Keep track of the financial records annually or half-yearly t monitor the company's cash and loans. Take into consideration for the company pay out generous dividend. Companies which are able to give out attractive remuneration show that they are sitting on abundant of cash and are comfortable to give out high dividend consistently. Next, paying dividend also implies that they have a management team who cares about the welfare of the shareholders and their business has stable incomes. 
    
                   Furthermore, the letter "B" represents Beware of the technical signs. Unlike fundamental analysing, technical analysing tells us when and what price to buy and sell. As technical advances by leaps and bounds, technical analysing consist of sophisticated tools and state-of-the-art pricing chart model. However, you only need to master 3 sets of skills. First, use price chart to learn about the resistant and support level. Buy at support level and sell at resistant level. Secondly, use Relative Strength Index of better known as RSI Indicator, which notifies you about when the stock is overbought or oversold. Next, use candlestick for checking the change of trend. There are many other technical indicators out there but mastering these three skills is sufficient in making decision of buying and selling stocks.   

                   The finale is the "C" which is Care about the news. The news here could vary from the news about your selected companies, their competitors, the sector and commodities, the country's fiscal policies or even the news from the Federal Reserves of the United States. Remember the old saying in the stock market which is "buying on rumours and sells on news". Normally, this simple method would do the trick. Remember the mnemonic ABC and good luck.   
                  
                    This sounds like mumbling but he is telling the facts and truths about trading...watch this video and listen to his advice...


if you are trading future...the technical signs are critical...