When sifting through short term stock picks, it is important not to be driven by greed that can manifest itself in many ways. For example, you will wait for the stock value to go up before selling even when your profit goal has been achieved. Conversely, you will wait before selling losing stocks in the hope that their value will increase in the future even when your loss limit has been reached.
Either way, you are more likely to be on the losing end of the proposition since the value of the stocks can easily go down when it is up or go down even further when it is already down. In short, the first rule in picking out stocks for short-term holdings is to set profit goals and limit losses and then strictly follow them.
With that being said, the question of how to choose the right short term stock picks remains. The wide variety of methods to accomplish this purpose can make be a boon and a bane - on one hand, you have many tools, techniques and tips to ensue that the right stocks will be chosen but on the other hand, you can be bewildered about the specific method to choose from among the numerous choices.
So, the first step is to choose the method by which the numerous possible stock picks can be filtered. You can browse through Internet sites, books and newsletters regarding this matter as well as ask a personal mentor about his own method. We recommend combining the two methods as the theory of the online resources will complement the practical knowledge of the mentor, be it an experienced trader or a broker.
Naturally, you should not expect to immediately be provided with insights into the best short term stock picks. Keep in mind that not everything that an Internet site or the mentor says is the best stock picks is true. You have to take into account the changing market conditions, the possibility of insider trading and the suitability of the stocks to your own personal profit goals.
You may also visit a few of the popular stock pick sites. Again, we must caution against investing in the recommended stocks before doing your own research, analysis and evaluation especially as many of these stocks can be high risk.
As for the techniques, we can recommend a combination of fundamental analysis, technical analysis, individual concepts and themes. Your choice in the final combination of these methods will depend on your profit goals, preferred style of investing/trading, acceptable level of risk, and even the level of exposure to the market.
Thus, if you are new to stock picks, we suggest sticking to the tried and tested stocks and to the easier methods for picking them. As you gain more experience, you can then take more risks with the high-risk, high-reward stocks using more sophisticated methods like hedging.
Indeed, choosing the right kind of short term stock picks for yourself demands time to study the stocks and the issuing company, effort to understand the workings behind the stock market, economy and industry and the capital to make more money.
Either way, you are more likely to be on the losing end of the proposition since the value of the stocks can easily go down when it is up or go down even further when it is already down. In short, the first rule in picking out stocks for short-term holdings is to set profit goals and limit losses and then strictly follow them.
With that being said, the question of how to choose the right short term stock picks remains. The wide variety of methods to accomplish this purpose can make be a boon and a bane - on one hand, you have many tools, techniques and tips to ensue that the right stocks will be chosen but on the other hand, you can be bewildered about the specific method to choose from among the numerous choices.
So, the first step is to choose the method by which the numerous possible stock picks can be filtered. You can browse through Internet sites, books and newsletters regarding this matter as well as ask a personal mentor about his own method. We recommend combining the two methods as the theory of the online resources will complement the practical knowledge of the mentor, be it an experienced trader or a broker.
You may also visit a few of the popular stock pick sites. Again, we must caution against investing in the recommended stocks before doing your own research, analysis and evaluation especially as many of these stocks can be high risk.
As for the techniques, we can recommend a combination of fundamental analysis, technical analysis, individual concepts and themes. Your choice in the final combination of these methods will depend on your profit goals, preferred style of investing/trading, acceptable level of risk, and even the level of exposure to the market.
Thus, if you are new to stock picks, we suggest sticking to the tried and tested stocks and to the easier methods for picking them. As you gain more experience, you can then take more risks with the high-risk, high-reward stocks using more sophisticated methods like hedging.
Indeed, choosing the right kind of short term stock picks for yourself demands time to study the stocks and the issuing company, effort to understand the workings behind the stock market, economy and industry and the capital to make more money.
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