| How do I look for under-performing stocks? |
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Carl172
Member
Cash: $ 4.65
Posts: 21
Joined: 30 Dec 2005
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| How do I look for under-performing stocks? |
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Are there ways to search for stocks that are near their 52 week lows, have dropped dramatically due to over-reaction, or other signs of weakness where the company is performing temporarily lower than it should be? I just opened a scottrade account, and am looking to learn how to invest in the stock market.
Thanks
Carl
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Fri Mar 24, 2006 7:19 pm |
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JBendar
Senior Member
Cash: $ 49.60
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Joined: 22 Mar 2004
Location: Woodbridge, New Jersey
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| Re: How do I look for under-performing stocks? |
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quote:
Originally posted by Carl172
Are there ways to search for stocks that are near their 52 week lows, have dropped dramatically due to over-reaction, or other signs of weakness where the company is performing temporarily lower than it should be? I just opened a scottrade account, and am looking to learn how to invest in the stock market.
Thanks
Carl
Carl:
The tools that are most helpful to me are listed below:
www.barchart.com and http://finance.yahoo.com
Barchart is based on technical analysis. It has analyst opinions about buying, selling and holding. The 52 week highs and lows are also listed.
Yahoo Finance will give more information as to the news about a company. There are other resources, but these are the most helpful IMO. Good luck!
JBendar 
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Fri Mar 24, 2006 7:28 pm |
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gkapur
New Member
Cash: $ 1.10
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Joined: 26 Mar 2006
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| I actually |
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posted a how I do that on my blog at http:///www.talkinvestment.net. It's very similiar to how coaster does it, though in greater detail.
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Sun Mar 26, 2006 12:25 am |
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Carl172
Member
Cash: $ 4.65
Posts: 21
Joined: 30 Dec 2005
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Gkapur, funny, I'm also a college student who put 5k in an online brokerage (scottrade) trying to learn by doing it.
I'll have to try what you did and make a sort of journal of my investing activities and thoughts.
Coaster, ya sound like a great contributer to this site, along with a few other fellas I've seen. I might just have to stick around here, I may just learn a thing or two
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Sun Mar 26, 2006 6:07 am |
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TeenInvestor
Full Member
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Joined: 06 Jul 2005
Location: Minnesota
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Coaster is indeed a great contributor, and like always he had some good advice for you..Something to keep in mind, long term investing is how the wealthiest investors have made their fortunes, in fact I read a book by Peter Lynch who advises the investor to evaluate his portfolio every quarter which allows the investor to take some of the emotion and panic from his decisions. Often people see a stock falling sharply and sell immediately, when they should instead look at what made them buy it in the first place and see if that has changed. If it hasnt, instead of panicking you should be cheering wildly and increasing your holdings.
Some good books on stocks:
1.The Intelligent Investor by Ben Graham- Hailed by his protege Warren Buffet as the greatest investment book ever written, and he should know.
2.One up on Wall Street by Peter Lynch who is possibly the best mutual fund manager in mutual fund history.
3. Common Stocks and Uncommon Profits & Other Writings by Phillip Fisher
A lesser known financial wizard who outlines 15 qualities of an excellent business/stock.
Those are my top 3, and dont let the size of the first intimidate you. I'm an avid reader and even I was a little taken aback by the size. But its worth reading, so just read a chapter a day and once your through you will be both relieved and full of knowledge.
If I could give jsut one piece of advice it would be to read, read, and read. Once you have a good foundation, begin picking stocks and sticking to your decisions until every quarter when you will re-evaluate them and see what you should adjust.
I wish you luck
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Sun Mar 26, 2006 6:48 am |
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gkapur
New Member
Cash: $ 1.10
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Joined: 26 Mar 2006
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quote:
Originally posted by TeenInvestor
long term investing is how the wealthiest investors have made their fortunes
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I was under the impression, after having read a good deal of material, that long-term investing, in terms of picking stocks that have solid growth potential for the long-term, is not all that great of a strategy. I may have the wrong idea about you mean by long-term investing or just be plain wrong, though :/
I think The most efficient and successful strategy is to find stocks that are undervalued, in one way or another. To do this one has to compare them to their peers in terms of balance sheets, price earnings, etcetera. I read an article about the returns of value investing vs. long-term growth investing, and it was made rather clear that this is the best way to go.
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Sun Mar 26, 2006 9:12 am |
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