Thursday, November 18, 2004

Getting ideas on what stock to trade next ...

I check Investers.com every day. It shows what stocks are going up in price on unusually high volume. (The thinking is that the mutual funds are buying ... if more shares are being bought, it is likely the price will continue to go up. Also since professionals are buying the stock, it is thought that they know the company is good shape.) I click on each one and check out the company's scorecard. I won't buy if the score isn't 80 or higher (or a B or better) in each category.

Although I buy a stock with the sole purpose of making a small profit as quickly as possible, the trade may not go my way. That's why I want to be in a quality stock that I wouldn't mind holding if I have to.

If all this checks out, then I look at that stock's graph on BigCharts.com. If this is the first day the stock has had a big rise on increased volume, I usually go ahead and buy it. I listen to my gut too which probably sounds weird to some people. I'm always nervous but if I feel any calmness at all, I take that as another buy signal. I think gut feelings come from our subconscious pulling together all the data we've assimilated .. but who am I? I'm just a geek programmer - I'm certainly not a psychologist!

I have other watch lists and places to get ideas but this has been one of the most productive.

Oh and I pray over each one asking God for wisdom!

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