Wednesday, July 21, 2010

Green Light To Buy Stocks Today

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Well, since the market is still in a confirmed uptrend, I thought I'd remind everyone that means you have got the green light to buy stocks for your portfolio. While the market has undergone a couple of distribution days, the current outlook hasn't changed. Remember that you've got to keep tabs on the current trend for the market. As the distribution builds up though it's a good idea to be more cautious.

With the time to buy stock upon us, it's probably running through your mind which stocks should I buy? If you are a beginner just starting to learn how to buy stocks, you might want to start with my Ultimate Buying Stocks Guide for some ideas on how to get started.

Stock marketing investing requires constant study to keep on the trends and the leadership in the market. One way to keep up with the leadership in the market is too look in two places. First, check out page one. The IBD Market Pulse usually lists the leaders up and down in volume. You also want to look at the How's The Market page. On that page, you'll find that the top industry groups are listed. This will tell you which groups to do research in. Typically, you want to focus on the top 6 industry groups.

You can find some of the best stocks to buy in the industry groups that are leading the market. Be wary though that the industry group isn't in later stage bases though as these are prone to failure.

Another great place to look is in the Stocks on the Move section. This list contains stocks that are currently trading in high volume -- a sign of institutional buying. Some of the best stocks to buy are the ones with just this kind of sponsorship.

I know that I am just getting started out and at the current time am perfecting my stock watch list selection process. I'm setting up my screens and sorting out those stocks that don't meet the cut. The great thing is that you can always make money in the stock market but the downside is that while it's easy to buy stocks online, it's hard to pick the winners.

Take your lumps and learn from it. Keep your losses under control by selling stocks that drop 8% below your purchase price.

Good luck!

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