Saturday, July 21, 2007

Unlock Stock Market Profits - Key #1

This is the first in an ongoing series of articles where I discuss what I feel are keys to successful investing. It is based on a post that provides a summary of the ten keys that individual investors should use to identify profitable stock trades. (Click here to read the original post)

There are two basic steps to investing. First, you need to find stocks that seem to have some potential. Then you have to determine whether these stocks are actually good investments. There are many stocks that at first glance look interesting, but further research reveals that there are too many negatives to warrant taking a position.

This first post in the series starts at the beginning: getting good investment ideas.

Key #1: If something special is happening to a stock, it will be reflected in some kind of unusual activity in the markets.

As individual investors, we will never be the first to know; however, unusual activity can be an early sign that allows us to follow the Wall Street professionals and other insiders when a stock is just beginning to make a move. If the stock represents a quality company and your research reveals that the stock has the potential for longer term appreciation, you will not be too late to invest and profit.

The lists we will see will have lots of stocks on them. We need some kind of criteria so we can weed through the list. My own typical criteria is for a stock to be coming out of a down-trend and starting to show some upside momentum. In other words, experiencing a reversal. Also, I tend to like stocks that are not too small (ie, no stocks under $1) and whose business I understand at least somewhat.

There are numerous measures of unusual activity and there are web sites that present lists of stocks based on the different measures. Let's take a look at a few.

Volume

First up is the Wall Street Journal Online. If you click on US Stocks and select the Most Actives: NYSE, Nasdaq, Amex link you will get a simple list of stocks that were on the most active list (greatest number of shares traded) for one trading day. I like this list because you can roll over the name of a stock and a box pops up that shows a chart and a few other useful pieces of information. This provides a very quick way to perform a high-level analysis and determine if you would like to investigate this stock further. Going down the list for July 20, 2007 I come across Starbucks (SBUX). This is a good-sized company and I understand their business. What about the chart? The pop-up displays the daily chart so I click on the "1 year" link and take a quick look at the one year chart. It has been in a down-trend, alright, but it appears that it might be undergoing a reversal. Clicking on the "10 days" link shows me that the stock price just recently popped up. This looks good and I'll file it away for further research.

Another good measure of unusual activity is Volume Percentage Gainers. For this exercise, we will limit ourselves to those stocks that showed a gain in price for the day. Staying on the Wall Street Journal site and looking through the list for the day of July 20, 2007 we find one company that looks like it might fit the bill, IDT Corp. (IDT). The stock was up 2% on daily volume that was 300% higher than usual. Something good must be going on here!

Gaps

Gaps represent another kind of unusual activity. Over at the Schaeffer's Research Stock Screen Center, we can look at a list of stocks whose price jumped up. For the day of July 20, 2007 we find a lot of stocks that are already in a good, solid up-trend. The only one that shows a nice gap up from a down-trend is Partners Trust Financial Group Inc. (PRTR). Unfortunately, they gapped up because they are being acquired so they don't make our list.

Volume and Price Combined

Another good unusual activity screen at Schaeffer's is Yesterday's High Volume Gainers. These are stocks that have gained 3% or more in the previous day's trading on at least double the average trading volume of the past quarter. Here we find two potential candidates: Medicines Co. (MDCO) reversing from a down-trend and PRG Schultz Intl. (PRGX) that is breaking out of a trading range and moving to the upside.

Options Activity

Let's try one more at Schaeffer's site, Unusual Daily Option Activity. Explosions in volume may be the result of corporate news or an impending earnings announcement. They can also be spurred by "smart money" who may have an inkling that market-moving news may be on the horizon for the underlying security. Looking at unusual call activity, we find our friend Starbucks listed. So now we know that both stock and options activity have been unusually high for SBUX. This company definitely merits a deeper look.

In Conclusion

I have demonstrated how we can find investing ideas using unusual activity as a criteria. In the examples presented, we looked for stocks that had been in a down-trend and might be undergoing a reversal to the up-side. The technique could also be used to identify stocks that are already in an up-trend. Using this approach we can filter the universe of stocks and find those with potential.

Be sure to check back for the next post in this series where I will discuss stock screeners.



29 comments:

Anonymous said...

Hi everyone,
Your blog is quite nice and informative.
We hope our information will be quite useful for your users also.
As we can see Dollar is becoming weaker day by day as compared to Indian Rupees, which is affecting IT Sector Still IT sector got lot of potential as is due to zoom up once again.

Moreover Recently we have witnessed that Indian stock market has touched new heights surprisingly IT sector was not part of it.

Now NIFTY is already in overbought zone. We can expect NIFTY and SENSEX to fall bit that is correction is due.

Best strategy now- For investors wait for minor correction and buy IT stocks at dips.

For traders – You can mint money in bearish and bullish market both .

Regards
SHARETIPSINFO team

Anonymous said...

Hi
Your blog is quite nice and informative.
As far as stock market is concerned. Trading in market requires
both time and Knowledge. Without these two factors its impossible to trade .
If you get recommendations from some specialist then also you must keep in mind its your money you
should invest it wisely. Its always advisable to get recommendations from analyst but again before investing you should do your research also.


We suggest you one thing never ever work on any rumour because rumours are spread to meet personal goals.

Regards n love

SHARETIPSINFO Team

Anonymous said...

Dear Visitors,

This blog is really nice and informative. We do think our posting will be highly beneficial for you too. From past few days we have witnessed
major downward rally in Indian stock market along with other major exchanges. It was there due to fear of recession in USA which is major economy.

But if we talk technically then Indian stock market is set to go up but still trend is not clear as few indicators are giving buying signals and few are still giving selling
Indications.

So we suggest everyone to wait till
Nifty touches 5350 before taking any long position.


If you have any query feel free to contact us.


Regards

Sharetipsinfo Team

www.ShareTipsInfo.com Team said...

Hi Everyone,

This Blog is really nice and helpful. We hope our post will be useful for all visitors of this prestigious blog.

On 29th Feb 2008 budget was declared. It was expected to be in favor of middle class people . As in budget all loan of farmers were waived off, its a
Positive news for farmer which can give rise to agro based industries too.

Overall budget was good for everyone.

Now with time USA is coming out of the jinx of sub prime and recession and we have already witnessed some good movement in US market too. Recent fall in Indian stock market was due to Overbought Nifty, USA recession margin pressure and panic.


Now Nifty is in consolidation phase. Once consolidation is over we will see major rally in the stock market.


Few stocks for delivery are:-

1. RCOM

2. GDL INFRA

3. DISH TV ( Only above 66 )

4. RPOWER

5. HFCL


Please note above stocks are for MEDIUM term delivery.



Please feel free to contact us at sharetipsinfo_1@yahoo.com for further details


Thanks

Warm Regards

ShareTipsInfo Team

www.ShareTipsInfo.com Team said...

Dear Visitors,

This Blog is really nice and informative. We are pleased to know this
blog is really helping people. Its our pleasure to post
Informative content on this useful blog created by webmaster.

As we all know major stock market exchanges in India are

BSE
and NSE. Full form of BSE is Bombay stock exchange covering SENSEX
where as

NSE is
National stock exchange covering Nifty and Nifty stocks.

Now a days USA is facing recession which is affecting world market and
recently we have witnessed major fall in Nifty and Sensex.

In this fall many investors were trapped and loosed around 50% to 70%
of their portfolio which is a major issue and need to be taken care
of.

Stock market is risky and will remain risk always still one can
minimize risk factor in it by using proper stoploss. As the name suggest
Stoploss , it stops the losses
which one can incur in the market.

There are few levels which we call support and resistance level which
we suggest one should strictly follow for coming days if they want to
survive in stock market.


Right now Nifty is direction less

Major suport-4660 below it next will be 4400.If breached then 4000.

On upper side Res- 5025 closed above can take Nifty to 5150-5200 . 2-3
closings above 5200 means 5400.

We suggest strictly follow these level and enter in market as per these
levels as these are very crucial levels technically.

Please feel free to contact us for any query.

Have a Nice trading days ahead.

Regards

SHARETIPSINFO TEAM

9891655316, 9899056796 ,9891890425

Anamika said...

Indian Stock Market has shown significant bounce back and hence confirming the long term bullish trend. For more read Free Share Market Forum India

www.ShareTipsInfo.com Team said...

Dear Visitors,

This blog is really nice and informative. We are pleased to know this blog is really helping people. Its our pleasure to post informative content on this useful blog created by webmaster.

Time changes and with every passing day graphs of stock market changes which in turn changes the portfolio of investor. Like recent fall in Indian stock market
has ruined the portfolio of investors
who were invested in Nse and Bse
listed scripts. They have lost around say 60% of there money. But now once again after that correction in stock market Nifty and Sensex has picked up momentum. But
we again warns all investors that don’t be too over tempted by this rise as its just a minor upmove. Until Nifty doesn’t close above 5300 for 3-4 sessions we are not at all bullish in market. So invest in market for short term or prefer day trading commonly known as Intraday trading.

Apart from it rising price of Crude oil, Rising Inflation is a matter of concern. Though dollar is becoming stronger that will boost IT sector and Exporters.

All in all we suggest be in Indian stock market and if you are investor invest with the proper strategies like go Long for maximum 1 week that too with proper stoploss and target.
If you are day trader be a strict intraday trader then , clear your goals and trade with strict stoploss and target if you want to earn.



Regards


SHARETIPSINFO TEAM

9891655316
9899056796
9891890425

www.ShareTipsInfo.com Team said...

Dear Visitors,

This blog is really nice and informative. We are pleased to know this blog is really helping people. It’s our pleasure to post informative content on this useful blog created by webmaster.

We require 2-3 days positive closing else nifty can crash. Political issues are also hampering market along with inflation and crude oil price. Major support for Nifty is 3650 and Resistance is 4300. Nifty will remain range bound overall trend will be bit bearish in coming days.

For any query feel free to contact us.

Regards
SHARETIPSINFO TEAM

+91- 9891655316
+91- 9899056796
+91 - 9891890425

KnowYourProfit said...

This blog is quite nice and informative, it is a pleasure to post a comment on this usefull blog created by a webmaster

Today i.e 11th July'08 now as theInflation data (11.89%) has come and consequently we had seen from the last few weeks it is going on increasing week by week so the strategy now to adopt is to avoid long positions and do Intraday Trading that too with the strict stoploss as this data also plays an important part in giving the direction the market as Indian Stock Market depends on various factors one of which is Rate of Inflation.

Also

Important Support Levels for NIFTY are 4130-4080. Consolidation on thses levels will show some bounce in the Market.

Investors had an opportunity during these situations where Investing in undervalued stocks would be beneficial.

Best Buy Sectors

1.Infra
2.Health Care

Feel free to contact us

Team
KnowYourProfit

+91 9871142419

Anonymous said...

Dear Visitors,

This blog is really nice and informative. We are pleased to know this blog is really helping people. It’s our pleasure to post informative content on this useful blog created by webmaster.

We require 2-3 days positive closing else nifty can crash. Political issues are also hampering market along with inflation and crude oil price. Major support for Nifty is 3650 and Resistance is 4300. Nifty will remain range bound overall trend will be bit bearish in coming days.

For any query feel free to contact us.

Regards
SHARETIPSINFO TEAM

+91- 9891655316
+91- 9899056796
+91 -9891890425

Anonymous said...

rishi_sakhuja: Hi,

Your blog is nice and informative. We would like to share few information’s with users. Indian stock market is not a place for speculators anymore. As it has become too volatile. Still day traders are requested to trade with strict discipline and a small suggestion for Long term players is don’t take any long term delivery position as Nifty and Sensex are still in bearish zone. Just wait for right time and opportunity before taking long position.

For any doubt please feel free to ask us.


Thanks

Regards

SHARETIPSINFO TEAM

KnowYourProfit said...

This blog is quite nice and informative , we had a pleasure to post a comment on this usefull blog created by the webmaster

Tomorrow i.e. 31st July'08 the day when the Inflation data will come.Inflation from the past successive weeks is keep on increasing,this has now become a major factor deciding the following days movement of Indian Stock Market.RBI and the government is taking steps to control it.Inflation has to be kept under control for the interest of the economy, Indian Stock Market is governed by lots of factors one including them is Inflation that has also to be kept in mind always

Sectors giving good return over period of time includes:

1.INFRASTRUCTURE
2.PHARMA

Have a Query ?

Feel free to contact us

Happy Trading

Regards

Team
KnowYourProfit
+91-9871142419

KnowYourProfit said...

This blog is quite nice and informative , we had a pleasure to post a comment on this usefull blog created by the webmaster

Tomorrow i.e. 31st July'08 the day when the Inflation data will come.Inflation from the past successive weeks is keep on increasing,this has now become a major factor deciding the following days movement of Indian Stock Market.RBI and the government is taking steps to control it.Inflation has to be kept under control for the interest of the economy, Indian Stock Market is governed by lots of factors one including them is Inflation that has also to be kept in mind always

Sectors giving good return over period of time includes:

1.INFRASTRUCTURE
2.PHARMA

Have a Query ?

Feel free to contact us

Happy Trading

Regards

Team
KnowYourProfit
+91-9871142419

KnowYourProfit said...

This blog is quite nice and informative , we had a pleasure to post a comment on this usefull blog created by the webmaster

Tomorrow i.e. 31st July'08 the day when the Inflation data will come.Inflation from the past successive weeks is keep on increasing,this has now become a major factor deciding the following days movement of Indian Stock Market.RBI and the government is taking steps to control it.Inflation has to be kept under control for the interest of the economy, Indian Stock Market is governed by lots of factors one including them is Inflation that has also to be kept in mind always

Sectors giving good return over period of time includes:

1.INFRASTRUCTURE
2.PHARMA

Have a Query ?

Feel free to contact us

Happy Trading

Regards

Team
KnowYourProfit
+91-9871142419

KnowYourProfit said...

This blog is novice and informative,it is a pleasure to post a comment on this usefull blog created by a webmaster

Now as such the final stages of the formal completion of nuclear deal has come,so we can expect some positive news effecting the
movement of the INDIAN STOCK MARKET which means stocks coming in power sector will take new direction

Companies which will benefited includes mainly

1.Larsen n Tourbo(LT)
2.Hindustan Construction Co. Ltd(HCC)

and the list had few more names..

Happy Trading

Have Query

Feel free to contact us at


Team
KnowYourProfit

+91-9871142419

KnowYourProfit said...

This blog is novice and informative,visitors will surely be benefitted,Its our pleasure to post
Informative content on this useful blog created by webmaster.


Now as such we have seen in past few trading sessions that Market has become volatile and also there were also most of the stocks are available in discounts which means that the right time has come whne one can invest in this Indian Stock Market with handsome gain in over a period of time along with that one can also opt for doing Intrading Trading now days as stock specific movement is there.

Quieries are welcomed at:

Happy Deepwali and Happy Trading as well

KnowYourProfit
+91-9871142419

sharetips said...

Dear Visitors,
Now we have seen that Nifty has already cracked down alot due to recession fear. Reality sector was the worst affected in this fall. Stocks like WWIL, Unitech etc has fallen quite drastically. Investors are loosing confidence in the market. Maximum stocks are trading atleast 30% down from there 52 week high in Indian stock market .

Now one can think of buying stocks for Long term.

Few best stocks to be picked are:-

1. Reliance
2. Suzlon
3. Sesagoa
4. LT

Just grab these stocks at every dip and stay invested for atleast 3 months and see the appreciation yourself.



For any doubt please feel free to ask us.


Thanks

Regards

www.ShareTipsInfo.com Team

Call at:-

+91-9891655316
+91-9899056796
+91-9891890425

On Yahoo Messenger: ShareTipsInfo@yahoo.com or ShareTipsInfo_1@yahoo.com

On Google Talk: ShareTipsInfo1

Mail at:-
contact@sharetipsinfo.com
sharetipsinfo@yahoo.com
sharetipsinfo_1@yahoo.com
sharetipsinfo@gmail.com

Anonymous said...

Hi,

Your blog is nice and informative. We would like to share few information’s with users. Indian stock market is not a place for speculators anymore. As it has become too volatile. Still day traders are requested to trade with strict discipline and a small suggestion for Long term players is don’t take any long term delivery position as Nifty and Sensex are still in bearish zone. Just wait for right time and opportunity before taking long position.

For any doubt please feel free to ask us.


Thanks

Regards

SHARETIPSINFO TEAM

Anonymous said...

Hi,

Once again after crash Nifty has started going up. Now we suggest all rises should be used as an opportunity to exit old long positions.
This bull run will continue for few more days. Overall market is in bearish mood as in medium term its just a small rally due to short covering
and result season.


Happy Trading,

ShareGyan

KnowYourProfit said...

This blog is nice and informative,good to know that the blog created by the webmaster is very helpfull to the visitors

Now on Saturday i.e 6th Dec'08 RBI has cut Repo rate by 100 BPS to 6.5%, due to this we can see some rebound in the Indian Stock Market,as this is one of the factors which will also decide the movement of Nifty in coming days along with different other factors,our advice for intraday traders is to trade light


Any Query

Call us

+91-9871142419
+91-9212663485


KnowYourProfit

KnowYourProfit said...

This blog is nice and informative,
its our pleasure to post a comment on this blog created by the webmaster

Now in the coming trading sessions i.e. in Feb'09 one can see important factors deciding the movement of the Indian Stock Market,one of the them is the results of the Various companies which had to be announced plays a key role in the movement in the Stocks.So this is suggested to trade with a Perfect Strategy to be followed for trading in the indian stock market


We welcomed your Queries at :

+91-9871142419
+91-9212663485

Mail your Queries at:

knowyourprofit@gmail.com

www.KnowYourProfit.com

sharetipsinfo said...

In the time of recession one job or one work is hardly fulfilling needs of people. So everyone is looking for supplementary source of income.
Now the question is what can be that source of income in such a bad phase of economy??

Well it’s very difficult to start new business at this point of time as it requires lot of cash and efforts. So again question is how to make more money in such conditions when needs are same and income is low?

We strongly suggest that if you like to take bit of risk and don’t want to spend too much money and time on new venture then stock market is the right place for you.
To be very frank this is not the right time for investment that is for long term to medium term investment but every day is a favourable day for day trading. No matter if NSE or BSE
is bullish or bearish as In stock market one can earn in both of these trends.


So just think about it and see if stock market can be the right place to make some extra money.


Please feel free to contact us for any query.


Regards
SHARETIPSINFO TEAM

Anonymous said...

Hi,
It’s a well know fact that stock market is affected by elections and now Election 2009 are about to begin in some time so for sure they will also have some sort of impact on Indian stock market.
One can find complete report on Impact of elections on stock market Apart from Elections another major concern for Indian stock market is Inflation. There was a time when we were concerned about rising inflation but now we are conscious about this falling inflation.

So big question is what should day traders and investors do?

Frankly speaking day traders are least concerned about the market they simply follow trend and make maximum out of it. But yes investors should keep there portfolio light till the elections get over.

Please feel free to contact us for any query.


Regards
SHARETIPSINFO TEAM make some extra money.


Please feel free to contact us for any query.


Regards
SHARETIPSINFO TEAM

sharetipsinfo said...

Hi,
It’s a well know fact that stock market is affected by elections and now Election 2009 are about to begin in some time so for sure they will also have some sort of impact on Indian stock market.
One can find complete report on Impact of elections on stock market Apart from Elections another major concern for Indian stock market is Inflation. There was a time when we were concerned about rising inflation but now we are conscious about this falling inflation.

So big question is what should day traders and investors do?

Frankly speaking day traders are least concerned about the market they simply follow trend and make maximum out of it. But yes investors should keep there portfolio light till the elections get over.

Please feel free to contact us for any query.


Regards
SHARETIPSINFO TEAM

sharetipsinfo said...

Hi,
It’s a well know fact that stock market is affected by elections and now Election 2009 are about to begin in some time so for sure they will also have some sort of impact on Indian stock market.
One can find complete report on Impact of elections on stock market Apart from Elections another major concern for Indian stock market is Inflation. There was a time when we were concerned about rising inflation but now we are conscious about this falling inflation.

So big question is what should day traders and investors do?

Frankly speaking day traders are least concerned about the market they simply follow trend and make maximum out of it. But yes investors should keep there portfolio light till the elections get over.

Please feel free to contact us for any query.


Regards
SHARETIPSINFO TEAM

KnowYourProfit said...

This blog is quite nice and informative, it is our pleasure to post a comment on this usefull blog created by a webmaster

Now as such we all know that in India Elections are just around the corner which would inturn effect the movement of the
Indian Stock Market which means the time has come when a common man should start thinking of investing in the Indian Share Market
which would help him to increase the invested amount because one should not avoid the Opportunities come in Daily Life

We welcome your Quieries at


KnowYourProfit

sharetipsinfo said...

Dear Visitors,

This blog is really nice and informative. We are pleased to know this blog is really helping people. It’s our pleasure to post informative content on this useful blog created by webmaster.

As budget season is approaching so it is wise to think before investing as we can witness very volatile market in coming days. Moreover, we are expecting some stock market correction in post budget session


We advise every investor to book profit before budget and try to grab value stocks at further decline for short to medium term.

For any query feel free to contact us.

Regards
SHARETIPSINFO TEAM

+91- 9891655316
+91- 9899056796
+91- 9891890425

sharetipsinfo said...

Hi,


The market is currently enjoying a good rally which has seen most stocks gain from competitive advantage and it would be advisable for all stock market enthusiasts to seize this opportunity and plan their investments in a safer yet conducive stock market. With NIFTY hovering around 4800-4900 +, it is expected to take hold of this currently rally and be realistically be closest to 5000 more so than before in what should be its new 52 week high.

Lot many untouched stocks are still there which are ready to blast any moment.



Regards
SHARETIPSINFO TEAM

sharetipsinfo said...

Hi,


The market is currently enjoying a good rally which

has seen most stocks gain from competitive

advantage and it would be advisable for all stock

market enthusiasts to seize this opportunity and

plan their investments in a safer yet conducive stock

market. With NIFTY hovering around 4800-4900 +, it

is expected to take hold of this currently rally and be

realistically be closest to 5000 more so than before

in what should be its new 52 week high.

Lot many untouched stocks are still there which are

ready to blast any moment.



Regards
SHARETIPSINFO

TEAM

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Disclaimer: This site may include market analysis. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.




 
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