Which Stock To Buy Today

OK. So, it's time to look for which stock to buy today. I thought what I would do is kind of start from scratch here and let you know what I would do if I was starting from scratch looking for a potential stock to buy right now. Let's talk about what not to do. Don't fly buy the seat of you pants. Don't take tips from your neighbors. Don't buy the stocks that Jim Cramer tells you to buy. Don't listen to the media period to tell you the truth. If you haven't figured out that they don't have your best interests at heart, you are either a young child or a naive person. Sorry, it's the truth. If you let others guide your investment strategy from here to there without any direction, then you probably won't have much success in the market. Here's my step by step guide of what I do to find a good opportunity.

1. Pick an investment strategy. In my case, I have chosen CANSLIM. You have to choose a strategy. Choose from the masters and start working to master what they have already mastered.


2. Only invest when the market is in a confirmed uptrend. According to William O'Neil, 3 out of 4 stocks follow the market. If the market is going down, you will probably lose money. Go with the flow and you increase your chance.


3. Screen for stocks to add to your stock watch list on a daily basis. No matter what the market conditions, constantly tend to your watch list of stocks that meet your fundamental criteria.


4. Watch these stocks for breakouts on a daily basis. Review the charts of the companies that are up in price AND up in volume by a big percentage. These are your leaders.


5. Start reviewing stock charts and identifying potential buy points. Practice with a stocks simulator before investing real cash to get your system set up. Once you are comfortable with daily setup, start working with real cash. Real cash teaches real lessons. Move to cash as soon as you can.


6. Set profit targets and set loss limits. Set a profit target of 20% and a loss limit of 7%. Once your stock crosses one of these thresholds, sell it.


7. Focus on a setup. Keep it simple. Look for one specific chart pattern and look to copy it. For example, focus on the cup with handle pattern. Master it. And master it one component at a time.

Follow these tips to get started with your stock market investing program. It will take effort and study. Put in both and you'll find you will be mastering your strategy bit by bit. With mastery will come small victories. With small victories comes confidence. Learn to build yourself up while learning from your mistakes. Go for it.