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Fellow Investors & Traders,
Today we are going to talk about another one of the most important
aspects of buying Stocks or Stock Options.
“Due Diligence
(Research, An investigation or Audit of a potential Investment)”
That is exactly what Due Diligence
is all about when it comes to finding opportunities in the stock
market. “The Research to know when to buy Stocks or Stock
Options”! You either do it yourself – or you pay someone (a
lot of money) to do it for you!
Nevertheless – it is one activity that has to happen if you
plan to make any money at all in the stock market.
There are a lot of different ways
people do their research. The best way is the one that works best for
YOU. The only common factor
is the “information” – however you get it can vary
tremendously, so we won’t spend a lot of time on that. Just try to
keep your approach simple and use good common sense – that’s what
works best for me! You can
find just about everything you need FREE on the Internet.
Looking for an “advantage” to buy at
a low price or on a “dip” (as they say) when the stock market trades
down is how the major investors and institutional buyers make the
majority of their profits. This is what you have to do also. If you
take a little time to learn how to do some research on the companies
you are interested in, you will make some good buying decisions for
sure!
So – Where do you start? Good
question!
If you are just starting out with
your stock investment planning I would recommend going to www.yahoo.com and sign up for a FREE
account which will allow you to setup a Free Stock Portfolio.
Look for the “Finance” link on the
home page – you will be able to access a lot of the “FREE”
information from this finance section to help you with your research
and planning.
Once you access the finance section
you will be able to enter the company stock symbol (Ex. AAPL) in the
Stock Symbol entry field. All
of the informational options will be on the left side of the screen
(Summary, Profile, Historical Prices, Company Events etc...). Use these sections to
help gather as much information as you need.
One of the most important things to
find out in your research is when the company is due to report
earnings. You can find
this information in the “Company Events” section. This is significant
because a lot of the positive “price movement” happens shortly before
the earnings date. After the earnings announcement news is released
to the public, usually another round of price movement will occur
depending on how the analysts and major investors feel about the
earnings news and future guidance.
Don’t get hung up on trying to
understand all financial numbers in the company reports and such.
That’s not the most important factor anyway. Financial numbers just
basically show “history”, what you do after the stock market hears
those numbers is what really matters.
If the earnings news is good (or
good numbers) and the company reports good future guidance, the stock market price generally
moves higher – If it’s bad news (or negative numbers) the stock
market pricing will send the stock price down – and it could continue
to fall or days. That is the
risk in any stock market investment, so just be aware. Try to make your buying decisions
and get into position ahead of the earnings news or special company
events. This will give you a
greater chance for a good profit.
Here’s a great example of one of my
favorite companies for buying opportunities.
Apple Inc. (AAPL) This is
Apple Inc. One of the good
solid technology companies and maker of the IPod and MAC computers.
If you don’t know about this company – you’ve been living under a
rock!!! Nevertheless, the stock shares and stock option prices have
consistent price movement.
Around earnings time we normally see good volume activity and
investors taking positions ahead of earnings to capitalize on the
price movement. An excellent
opportunity and timeframe for you to consider also. Apple Inc. is
another one of my favorite buy opportunities. Click
Here! to see one of my actual stock option
profit buys for AAPL!
You can do the research at yahoo.com
as I suggested earlier and get ready for a potential buy opportunity
before the next earnings date.
This is called “Planning ahead” – if you plan ahead, you will
do very well finding good buy opportunities just as I do!
Take some time to practice this
strategy. Here are a few companies that have good stock option
activity to practice with.
AAPL, AMZN, AZO, BIDU, CF, FFIV, GOOG, GS, IBM, MA, MCD, PCLN,
RL, PII, SINA).
Make sure you check out the FAQ
section link on my home page. You will find a lot of good
reference information to help you with your investment decisions!
Click
Here! to see my
current list of stock option investment companies that I follow. This is a good list to start from
(and what I use every month) – these are Top Quality companies that
offer available stock options every month – and the most important
factor is that they are “price movers”. They consistently move higher in share price ahead of
the earnings date which makes
the stock option prices increase in value also.
Another great article I have written
that you should most definitely review and implement is also located
in this FREE Education section. “One Of The Best Stock Market
Strategies”. If you have
not already read it – You Must Read It As Soon As Possible. “Today”!!!! I wrote this article because this
is the best plan that I have used to get the most profits from my
stock purchases and stock option buys! It works every month!! Once you get started and practice
implementing this plan every month, it will become easier to
understand and find good buy opportunities.
Just like other strategies – “It’s
All About Timing” – and Planning! That’s the key to getting in position to take advantage
of stock price movements whether you are buying the actual stock
shares or the stock options.
You have to look for the
opportunities and using my weekly newsletter information can help you
get started with your Due Diligence and Research.
You need to have a good, simple,
easy to use stock price calculation program that quickly performs all
of your potential price calculation scenarios so you will see first
hand what your projected costs, percentages, gains or potential loss
would be before you place your buy transactions. My Stock Calculation Program is an
excellent tool to handle all of your stock price calculations quickly
and easily.
You can take the 7-day FREE Trial to
play with the calculation tool, then order your full version copy to
have for a complete program of tools for all your future buy
opportunities. Click here! To see all of
the Software Program Advantages!
If you have not taken the 7-Day
Free Trial! Download your free copy today -- play around
with some calculations and see how much simpler the program makes all
of your cost, profit and exit planning calculations.
See the 7-Day Free Trial link on the homepage! www.newstocksoftware.com
If you have any
questions or need some “one-on-one” guidance to help with your
research and planning, let me know – I’ll respond as quickly as I
can!!!!
To your
success!
Jimmie V. Smith
markettrading@juno.com
Copyright 2007
Market Trading Technologies
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