Tuesday, September 16, 2008

What to Choose

If you’re like me sometimes, when confronted with a large selection of buys, I have a hard time choosing which stocks to buy. I have a quick way of filtering down the picks:

Look for the stocks that are the most oversold. There are many free charting sources out there like the ones on Yahoo Finance. I use slow stochastics, not so much for the crossing of %K over %D, but for the overbought-oversold indication. Choose stocks that are below the level of 20 on the %K, as these are the ones most oversold and ready for a bounce.

Also, although A.I. is a wonderful thing, one thing it cannot do is read the news. You must stay on top of the current market events. For example, part of my 9/10 picks included a financial related stock. I immediately disregarded it for obvious reasons in the headlines. Well, that’s a start. I’ll give you some more tips as time goes by.

- Roger

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