Tag Archives: stock picks

Stock Trading

How to Stock Pick Or Choose the Best Share to Buy And Sell in Malaysian Stock Market?

Leave a comment
Stock Picks
Stock Picks

How to stock pick or choose the best share to buy and sell in Malaysian stock market?

By Martin Wong

Honestly speaking, it is difficult to stock pick the best share to buy in the bull market as most good counters/stocks have raisen a great deal. While in the bear market nobody can guarantee that the current low stock price has reached its bottom already.

For the typical investor, says Mr. Joe Average, he who regularly chooses the best stocks based on hearsay, analysts’ stock reports or economic forecast. He watches local & international business channels or listen to well-dressed people talking on TV who thinks they are very knowledgeable. And finally, he believes them – else they would not be on TV, right???

The average investors/traders pick a stock no one has really heard about and hope it would make them really, really rich! However the chosen stock could go in any direction. This is highly risky not knowing whether the company can produce future earnings and profits. How to choose the best stocks usually involves blue chips stock that are household name companies or fairly well known companies in Malaysia or globally. You can choose the best stock over the markets or the best sector they are in.

Subscriber can email me for stock-pick-the-best list.

————————————————————————-

For most average investors/traders I have interviewed, learning to stock pick the best share to buy or sell can be difficult because they either have little or no plan at all as to why they are buying at the first place. The first question we need to ask ourselves is “why are we buying or do we have investing stock goals or trading strategies” but unfortunately many traders and investors cannot even provide an answer. If you are a long term investor (I do not support buy, hold & pray), you would have a very different buying system criteria to a short term trader who buy and sell within very short period of time. So it is very important that you need to be very clear of your investing goals and trading objectives. Make sure you can differentiate between your long term investment goals and short term trading strategies.

From my own experience having been in this online stock trading business for years that the simpler the system for stocks picking the better, and the good news is you do not need to rely on stock market experts or stock market gurus to tell you what to buy or sell. All you need is some effort, hard work and lots of practice with a few tools available for a very low cost. The process I use to pick the best stock to buy is largely a technical analysis which includes many elements of fundamental analysis at the macro-economic level. The process is fully explained in my investing & trading course, but the principles are as follows.

————————————————————————-

We start to look at the Bursa Malaysia Saham stock market companies as a pool. We begin to make selection on the individual stocks or the best sector and at this stage the very simple and common indicators are used. Using a technical analysis tool, I would identify some possible prospects for the best stock to buy and are placed on a watch list and monitored daily. How long they remain in the watchlist folder depend on the daily stock price chart.

We wait for clues in changes in the technical analysis landscape to trigger our buy signal and buy order. After placing the buy order we always put a stop loss in case the price trend reverses suddenly. The stock market is so uncertain that we have to protect our capital. The only technical analysis tool that I use for the above analysis is a simple end of day charting package called MetaStock software which I have written technical codes (filtering the required best sector or by price movements) to do just the stock picking.  

In short, the process to choose the best stocks to buy starts with the macro level and moves down to combination of using both technical and fundamental data. Although it sound very complicated, it is very easy to use as many of our course graduates have used them for years with great success. For new traders and investors, it is better to start off paper-trading to allow you to overcome the steep learning curve e.g. various trading strategies, unpredictable stock market behaviour and comfortable with placing order online for online trading.
————————————————————————-

To be successful, you have to model after successful investors and traders who been through the blood and sweat who know how to pick the best stock to buy. Success lies on yourself and the effort you put in at the start – I hope the above article would help to put you into the right path. For more information, goto www.traderstruthrevealed.com for the Malaysian stock market.

Stock Trading

Stock Picks And The Stock Trader

Leave a comment

If you take a look at just about any profession, you’ll find that people evolve through three stages: novice, competent and expert. Let’s take a look at how this works in the stock trading profession.

A novice stock trader is a one trick pony. They have one trading style they cling to for dear life. When they perceive that it no longer works, they’ll find a new stock trading system and
believe with all their might that THIS is the way… until it too shows itself to be flawed.

They are also inflexible and easily become confused when the unexpected happens. And, sooner or later, the unexpected will happen. They have lots of misconceptions, such as “shorting is bad.”

After the novice has been bloodied and bruised enough, he has a decision to make. Perhaps “stock trading is not for him.” If he sticks with it long enough, he eventually develops the experience to become competent.

A competent trader has “enough tricks in his bag” that he can adapt to a range of situations. However, he knows he needs to keep learning, and that there is always more to know. The overconfidence of the novice is replaced by the experience to know
that uncertainty is a permanent fixture in his relationship with his chosen market.

As a trader matures, it gradually dawns on him that there is no “Holy Grail” of stock trading. There is no perfect indicator, system or money management approach that will GUARANTEE success. Usually, about the time the thankless search for the Holy Grail ends, a trader is competent enough to find his way without needing such an unrealistic psychological crutch.

A competent trader focuses on acquiring the right facts and making disciplined decisions based on these facts. He feels “safe” if he believes he “understands” the situation. For example, he may have a number of ways of picking stocks and a number of ways of playing his stock picks.

Eventually, a competent stock trader notices that he understands a situation even if the facts are not all in. This is because he can relate it to similar situations he has experienced in the past. He is then ready to graduate to expert.

An expert stock trader has enough tools, stock trading software and tactics under his belt that he can confidently take advantage of a trading situation without having to rely on detailed

systems. In a sense, this is the opposite of the novice approach, because the expert knows what he is doing on an intuitive level. Getting to this point takes lots of hard work, and, as the saying goes, “many are called but few are chosen.”

However, the financial rewards for being an expert trader are greater than in most professions. Being able to pull money out of the market almost at will means you will make a very nice living. However, there is one last hurdle to overcome. It’s a battle that will last a lifetime: always be humble. No matter how good you are, the market is willing to take it all back if you ever forget that it will always be much bigger than you are.

Trade well, with earned confidence, and you will prosper.

Doug Newberry is the Director and Founder of Investing Systems Network. He builds very reliable stock trading software so tens of thousands of all kinds of investors can trade with confidence. Investors in more than 25 countries enjoy his newsletter and his weekly online radio show.

Stock Trading

Stock Picks – The Development Of A Stock Trader

Leave a comment

If you take a look at just about any profession, you’ll find that people evolve through three stages: novice, competent and expert. Let’s take a look at how this works in the stock trading profession.

A novice stock trader is a one trick pony. They have one trading style they cling to for dear life. When they perceive that it no longer works, they’ll find a new stock trading system and believe with all their might that THIS is the way… until it too shows itself to be flawed. They are also inflexible and easily become confused when the unexpected happens. And, sooner or later, the unexpected will happen. They have lots of misconceptions, such as “shorting is bad.”

After the novice has been bloodied and bruised enough, he has a decision to make. Perhaps “stock trading is not for him.” If he sticks with it long enough, he eventually develops the experience to become competent.

A competent trader has “enough tricks in his bag” that he can adapt to a range of situations. However, he knows he needs to keep learning, and that there is always more to know. The overconfidence of the novice is replaced by the experience to know that uncertainty is a permanent fixture in his relationship with his chosen market.

As a trader matures, it gradually dawns on him that there is no “Holy Grail” of stock trading. There is no perfect indicator, system or money management approach that will GUARANTEE success. Usually, about the time the thankless search for the Holy Grail ends, a trader is competent enough to find his way without needing such an unrealistic psychological crutch.

A competent trader focuses on acquiring the right facts and making disciplined decisions based on these facts. He feels “safe” if he believes he “understands” the situation. For example, he may have a number of ways of picking stocks and a number of ways of playing his stock picks.

Eventually, a competent stock trader notices that he understands a situation even if the facts are not all in. This is because he can relate it to similar situations he has experienced in the past. He is then ready to graduate to expert.

An expert stock trader has enough tools, stock trading software and tactics under his belt that he can confidently take advantage of a trading situation without having to rely on detailed systems. In a sense, this is the opposite of the novice approach, because the expert knows what he is doing on an intuitive level. Getting to this point takes lots of hard work, and, as the saying goes, “many are called but few are chosen.”

However, the financial rewards for being an expert trader are greater than in most professions. Being able to pull money out of the market almost at will means you will make a very nice living. However, there is one last hurdle to overcome. It’s a battle that will last a lifetime: always be humble. No matter how good you are, the market is willing to take it all back if you ever forget that it will always be much bigger than you are.

Trade well, with earned confidence, and you will prosper.

Doug Newberry is the Director and Founder of Investing Systems Network. He builds very reliable stock trading software so tens of thousands of all kinds of investors can trade with confidence. Investors in more than 25 countries enjoy his newsletter and his weekly online radio show.

Stock Trading

Do Penny Stock Alert Services Work?

1 Comment

Do stock picking services really work out like they promise in their sales promotions?

The short answer – Yes and No.

There are a miriad of stock picking services on offer at any point in time. Many are promoted by financial stock broking services looking for your investment business. Others are presented by stock picking services hoping to lock you into a subscription of some kind.

The validity of any of these stock picking services is often only validated after you have committed to the subscription and failures can be talked down by the providers for a few months while you whittle away your investment capital.

So discretion is called for when looking for a stock picking service.

I was surprised by a particular service that was brought to my attention by one of this blogs readers. This particular service promotes a stock investment system for a once off payment – and not expensive either. An ongoing stock picking service is provided to those who buy the information on offer.

What was interesting and different though is stock picks are provided on a test basis before buying – and that demonstrates confidence and positive results. If knowing more about this appeals to you then click on the banner at the top of this post and you will be given a more comprehensive overview of how the stock picking alerts can help you maximise your investment returns.