Research the stocks' financial health. I think that trading a stock without knowing it's financial numbers is as irresponsible as investing in a stock without research, but then again I'm a swing trader and hold my stocks for four to eight weeks. The financial parameters I look for are...
P/E of less than 15
Debt Equity ratio of 0.3 or less
Net Profit margin of 10% or greater
Return on equity of 10% or greater
Earnings/Share of $1 or more
Whether the insiders are buying or selling (very important)
Chart volatility
There are more things I look at, but those factors are most important to me and the first things I look for when considering a stock.
I took at a look at your profile and marvelled at the transparent head gear. Was this taken in Iraq and are you - for I cannot see below your chin - ruminating on past experience or looking forward to the future?
Homeschoolma.. Interesting list. Before I was converted to TA several years ago I also followed a similar game plan. Consider adding a few more, after researching them of course. 1. Sales growth ( Harder for bean counters to fudge) 2. LOw PEG ( Price/ earnings ratio.) 3. Free cash flow growth. 4. SEctors with strong relative strength. If this is the beginning of a sustained bull market I will revert to my old plan plus TA for timing. Good Luck. Luck
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