Friday, October 16, 2009

The Best Stocks To Buy Now

picture of stock chart with buy points and sell points and text best to buy stocks now during breakout



The Stocks To Buy Now are "Breakouts" - indicated by "BUY stock NOW" in above example
Some people wonder what are the Best Stocks To Buy Now - These are the stocks that provide the lowest risk and the highest return, and are ready to buy after breakout as you can see above. You want to buy stocks that have high potential of going up in value, and low risk of going down in value. This is easier said than done, but if you are going to find the best stocks to buy now, this is something that you need to achieve.

The best stocks to buy now or in the future is one that has high amount of safety, good value, and proper timing. There are tons of articles throughout the internet on topics such as fundimental analysis, and technical analysis that you should look through before making your decision. (there are other blogs on this very topic of the best stocks to buy now as well) This may be very well what you need in order to identify stocks. However, you should understand that those who use this form of analysis will be focused on risk and reward. The bottom line is that you are going to want a stock that can make you the most in the shortest amount of time with the least amount of risk. The way you determine this is you take the percentage gained divided by the time it takes to make it. A 100% gain in a year while impressive, is not as good as a 50% in a week. If you could buy a stock that would go up 100% but you would have to hold it for a year, the correct decision to make the most money would be to buy the stock that would go up 50% in a week instead. After realizing the gain, you could then transfer your money into the stock that will gain 100% in a year if no better option is available.

If you are unable to make money through buying stock, then you are probably focused on buying a stock that has already gone up and was the best stock then, but is not right now at this given moment. However, there are also people that buy based on deep value. These are great stocks, but the problem is the timing of them. You need to buy stocks that have only begun to rise quickly in value, but have not fully appreciated just yet. That is how you are able to find the best stocks to buy now, and not the stocks to buy in the past or in the future.

Best Stocks To Buy Now are breakouts like this
When the market is on the upswing like it is now, you want to buy breakouts. Currently these are the best stocks to buy now. If the market is on the way down, like it was in 2008, or early 2009, you want to be selling. But if you are buying, you should be buying contrarian stocks that have already been sold and are now neglected. One trick in purchasing stock with good timing is by understanding technical (stock chart) analysis. That is the art of watching stock patterns to see what the stocks have done in the past, and how much volume the current stock has. By doing this, you can determine whether or not the stock has good timing. There are technical analysts that only use where a stock's been, plus where it is, plus the information of the paast and current volume to notice newly forming trends. The reason that this is successful, is because this way you are able to determine which stocks have activity where a stock has buyers who continue to buy the "dips", and sellers who continue to sell the "rips". A stock that has higher and higher lows on these dips, is signaling that the buyers are impatient and they expect something to happen, or that the sellers are running out of shares to sell to push the stock lower. When a stock continues to rip higher to the same height, and suddenly a bunch of buyers come in, you have what's known as a "short squeeze" this short squeeze is the result of people who are "short" the stock, suddenly have no choice but to cover their previous sells and receive a margin call. Because of this, the good stocks to buy are ones in which have correct technical analysis. You can look at a stock that looks like a margin call may happen, because the volume on the up days is increasing, and this will give you a clue that this may be a very good stock and by comparing the best charts of all the stocks with the best fundimentals, you may be able to find the best stock to buy now.

Fundimental analysis will also help you find the best stocks, but this means you look inside the company for indication that it's cashflow will increase, that it's earnings will gain, that it's sales will increase, and that it's balance sheet will improve. As this trend continues, more and more people will be willing to buy more and more shares of the stock as soon as possible.

Finding the best stocks to buy now is more art than science and cannot be done very easily. However, the best information that you can get is to learn lots of fundimental analysis, and learn lots of technical analysis. Then study some of the great stock pickers of all time and see what they do, and especially focus on those that are currently successful on a consistent basis. If you are able to locate sstocks that have a high price target in a short amount of time based on the technicals and high volume indicating a strong support of recent buyers along with solid improving fundimentals you will have a stock that has high potential for high gains in a short amount of time. If you are able to master the skills of these arts, you will be on your way towards finding the best stocks to buy now.

Update: If you are looking for actual stock picks as an actual starting point on what may be some of the best stocks to buy now, there will be a post titled "best stocks to buy right now" that will be made tommorrow.




See Also:
Best Stocks To Buy Now