STRAT
26-04-2008, 12:57 AM
This is obviously the most important decision we all make. The rest of the decisions we make are a matter of managing the information around why we made the first one.
I as some of you know mostly play small time with penny hopefuls.
Im not as slick as a lot of you. I prefer to keep it simple and try not to get out of my depth as much as possible. This is what I do.
I try and keep my finger on the pulse of the global situation. The main driving forces of all markets and individual sectors I like to play in. I look for sectors that are down and may be due for a lift.
I look over countless penny dreadfuls looking for one with fundamental prospects. Once I have found a stock that takes my interest I do the basics. Check their website, read company announcements and look over the charts. Check the Market cap and how much money they have in the bank etc etc. I pay particular attention to whether the money will run out before I plan to get out of the stock and market cap to potential up side ratio.
I look for threads pertaining to the stock on the boards and read through them looking for any additional useful info. In particular whether management has a good reputation and whether previous announcements have been accurate or not.
A company may be due some news that is significant. I do my best to evaluate the chances on that up coming announcement having a positive outcome. If the odds are in favor I trade on the result of that announcement. If the odds are not in the companys favor but the market is still taking interest I trade into the build up over that announcement, getting out before the news comes.
I watch the boards for hot tips ( ST and SC ) and sometimes get tips from some people on these boards. When I do I go through the same process with the stock I have taken heed of the tip on
Once I have found something I like I move to my very limited TA skills to find out what the stock has been and is doing in terms of trading looking for an entry point. If it has or is running I leave it. ( this means of course I miss out on stories like MAK :( ) I try not to chase stocks that have already run.
This is just a skim over how I go about choosing stocks and of course every choice is an individual situation. Sometimes I might buy a stock cause I like the name :D or someone said I should :D:D. There are no hard and fast rules and there are exceptions to all rules but one must have a plan in place.
Im keen to know how the rest of you go about your selections and with some of you I already know or think I do. Below is how I see some of you relating to this important part of investing :D. If nothing else the last paragraph should mean I get a few replies :eek:.
I would particularly like to hear from Steve Fleming, Winner69, Phaedrus, Halebop, Placebo and Lizard. I have a great deal of respect for many people on this site including everyone I have mentioned in this post.
Macdunk
Talking to the tea lady of the company in question and reading the tealeaves
Bermuda and Oiler
Industry Knowledge
Shasta
FA and in depth dissection
The Shrewd One
Industry knowledge and help from dad
I as some of you know mostly play small time with penny hopefuls.
Im not as slick as a lot of you. I prefer to keep it simple and try not to get out of my depth as much as possible. This is what I do.
I try and keep my finger on the pulse of the global situation. The main driving forces of all markets and individual sectors I like to play in. I look for sectors that are down and may be due for a lift.
I look over countless penny dreadfuls looking for one with fundamental prospects. Once I have found a stock that takes my interest I do the basics. Check their website, read company announcements and look over the charts. Check the Market cap and how much money they have in the bank etc etc. I pay particular attention to whether the money will run out before I plan to get out of the stock and market cap to potential up side ratio.
I look for threads pertaining to the stock on the boards and read through them looking for any additional useful info. In particular whether management has a good reputation and whether previous announcements have been accurate or not.
A company may be due some news that is significant. I do my best to evaluate the chances on that up coming announcement having a positive outcome. If the odds are in favor I trade on the result of that announcement. If the odds are not in the companys favor but the market is still taking interest I trade into the build up over that announcement, getting out before the news comes.
I watch the boards for hot tips ( ST and SC ) and sometimes get tips from some people on these boards. When I do I go through the same process with the stock I have taken heed of the tip on
Once I have found something I like I move to my very limited TA skills to find out what the stock has been and is doing in terms of trading looking for an entry point. If it has or is running I leave it. ( this means of course I miss out on stories like MAK :( ) I try not to chase stocks that have already run.
This is just a skim over how I go about choosing stocks and of course every choice is an individual situation. Sometimes I might buy a stock cause I like the name :D or someone said I should :D:D. There are no hard and fast rules and there are exceptions to all rules but one must have a plan in place.
Im keen to know how the rest of you go about your selections and with some of you I already know or think I do. Below is how I see some of you relating to this important part of investing :D. If nothing else the last paragraph should mean I get a few replies :eek:.
I would particularly like to hear from Steve Fleming, Winner69, Phaedrus, Halebop, Placebo and Lizard. I have a great deal of respect for many people on this site including everyone I have mentioned in this post.
Macdunk
Talking to the tea lady of the company in question and reading the tealeaves
Bermuda and Oiler
Industry Knowledge
Shasta
FA and in depth dissection
The Shrewd One
Industry knowledge and help from dad