The weekly issue of The Investor's Business Daily newspaper must be purchased. It can even be had for free at a local library. The pages of this paper dealing with NYSE and NASDAQ are of supreme help and are very informative.
Stocks that have names with an NH next to them are those that have reached a "New High". Any stock that does not have this symbol next to them are to be ignored.
The Earnings Per Share (EPS) ranking needs to be checked. If the stock has a rating of 80 or more it can be banked upon for this is leading 80% of all stocks in earning. The Relative Price Strength Ranking needs to be checked next. The rating needs to be more than 70 which again means that this is 70% ahead of its market based on its price.
The closing price of the "52 week high" stock must be less than 100% above its 52 week low. If it has doubled, the stock has to be ignored.
Once these have been done, one needs to link to a free interactive based charting service on the net. The freebies like MetaStock, Bigcharts and Prophetfinance are popular. Once logged onto any of these, one needs to type the stock symbol in the charting program and view the monthly data which reveals the highest price that the stock has traded during the last 2 years.
It always helps to trail a protective stop loss below the stop loss below the entry price of the investor and then move it up as the stock advances. Any accumulated profit will be protected in the process and any risk accruing can be guarded against. Capital needs to be protected at all cost.
If the relative strength moves below 70 then one needs to get out of the position soon. And if the stock rises enough to double initial investment, liquidating a few shares can help in recouping original investment.
All these free tips are are about a method of picking stocks that anybody can use to increase wealth. These free bits of information are of paramount importance while venturing out into stock trading business.
