Good Stocks

Investors are always asking themselves, where are the good stocks in the market. Uncovering these gems requires a strategy to uncover them. So, just how do you go about finding good stocks to invest in? My first step in the process is to sort through stocks based on earnings. The best way that I've found to do that is by using the IBD Daily Graphs service. It has the stock charts of each company and within those charts you can look at the earnings data along with all of the other things you'll need to whittle down your your stock market investing selections.

Finding a good stock for your portfolio also means you've got to pay attention each day to the stocks that pop up in the Investor's Business Daily. Each day, there are several screens in the paper and on investors.com. When they appear, you've got to put them on your watch list for further review. You are going to find that your stock watch list will grow and you'll need a way to figure out how to remove them by filtering them out by each piece of the CANSLIM puzzle.

Eventually, you'll reduce your watch lists down to a small list of good stocks to buy now. And, for these, you'll need to start plotting buy points for each individual stocks and alerts to keep you informed as they approach your predetermined stock price. The key to implementing the CANSLIM strategy is buying stocks that are fundamentally strong PLUS buying them at the right time. This will take some practice as it's harder to do than it looks.

But getting good stock investments by slowly eliminated the losers in the process is worth the time. The only way to get good at it is by practicing with real money. I know that a lot of people believe in paper trading but it's like scrimmaging basketball against your friends. It's not the same as the real game. You've got to get to the real game as soon as possible. Game time experience is what you need to improve your game. At first, you'll start out as a rookie and then you'll get better if you learn from your mistakes.

Identifying a good stock to invest in is a rewarding experience. And the thing is you'll probably become a better stock picker than you're broker. There's a reason they call them a broker. They never tell you when to sell and you get broker every day you hold a stock that will eventually come down in value.