Personal Investing

Have you ever wanted to own your own company and have people work for you? Now you can. The stock market allows you to purchase a small piece of ownership in America's most profitable companies, and when they perform well, you get paid too. The best part is that you can own a company when it is experiencing great profit, and then sell it once the large gains are slowing down so you can move on to your next company - and next profit.

You can learn how to use stocks as a wealth building tool.

With the strategies of the greatest traders of all time, you can learn how to use the stock market as your online tool for building wealth. You can learn how to spot the best stocks, the best time to buy, the best time to sell, and be sure that you are minimizing losses while locking in profits.

There are thousands and thousands of self-made millionaires who have used the stock market to build their wealth, and they are millionaires because they are doing something right - you can do exactly what they did.

I've been there before: you want to pick a winning stock, but you are presented with thousands and thousands of companies to choose from. So how do you find those stocks that are capable of tripling in price? Are they random? Or is there something that all of the greatest stocks share in common?

A lot of the best performing stocks have something in common before they experience their largest gains. There is more in-depth information and stock picking tools on the website listed below, but for now, here are a few things to get you started:

Look for increasing earnings per share.

Would you be interested in a stock if I told you its earnings have increased each quarter for the past 5 quarters? Probably. Well you need to hear the whole story first. If you want to pick a winning stock you need to find one that not only has a steady increase in earnings each quarter, but the amount of increase is growing as well. What if those earnings per share increases were 40%, 30%, 17%, 9%, and 5%? That tells a different story. Sure, there has been an increase each quarter for 5 quarters straight, but the amounts of those increases are shrinking.

The winning stocks are the ones with earnings increases that are growing each quarter such as 20%, 30%, 45% and so on. To pick a winning stock, look for growing increases in earnings per share instead of stocks with shrinking increases each quarter.

Don't let high sales numbers fool you.

Would you be interested in a stock if I told you that the company sold $1,000,000,000 worth of products last year? Probably. Well what if I told you that the company had to spend $999,999,999? Thats means they made a profit of one dollar! What may seem like fantastic sales numbers can be very misleading, and that is why you should pay extra attention to earnings. You should still look at sales, but if you want to pick winning stocks then don't be tricked by "amazing" sales figures.

Pick the leading stocks from the leading industry groups.

If you pick a stock out of one of the top performing industry groups currently trading on the New York Stock Exchange, then you are already picking stocks out of a winning group. Now improve your chances of picking a big winner by only choosing the top performing stocks within the top performing groups. You can now be confident that you are choosing from the best of the best.

If you buy a stock when it is low then you are buying it when it is weak, so how do you know it is going to recover to what it once was? How do you know the stock isn't just going to keep going lower and cause you to lose a fortune?

It is better to buy a strong stock on the rise than a weak stock on its way down.

There are rarely discounts in the stock market. Remember the internet bubble? Internet stocks were shooting through the roof, then they started coming down. As they came down, people bought them thinking they were getting them at a discount. They kept coming down and people bought more and more thinking they were REALLY getting a discount. Well, they kept coming down and down and down, and then never went back up.

Lesson learned: if you buy a stock on the way down you are buying into weakness! There are only a few exceptions to buying when a stock lowers at that is after a bear market when everything is lower, and the other exception is when a stock naturally corrects during a base building stage (in order to take advantage of this, you MUST know how to recognize proper bases).

Both combined is best.

Use fundamental analysis to find the strongest, healthiest stocks. Then use technical analysis on that strong stock in order to find an entry point and get in at the right time. Buying the right stock, but at the wrong time, can result in a loss. The key is to find the right stock (fundamental analysis) at the right time (technical analysis).

Sadly, TV is used as a money-making tool for big corporations.

With that being said, most TV networks care more about making money than being a reliable source of information. You even see this with the news; the news on TV is supposed to be a source of reliable information, but networks want you to watch their program so they can get more money from advertisers - and to get you to watch their programs they will use scare tactics like "New Health RISK and How it Can Harm Your KIDS!!! Tune in at 7pm!!!" just to get you to watch their program (that of course is exagerrated).

The same goes with stock programs on TV. They need to use headlines that will grab your attention and get you to watch their shows. The job of the people on those TV shows is to say whatever needs to be said in order to get you to watch their program, even if that includes saying "Analysts say this stock will go up 1,000% in the next month!!!" Stock shows on TV can be good to watch just to get an idea of what is going on in the market - just don't listen to the "Hot Stock Pick of the Day" and things like that.