| How To Use The Plethora of Market Tools To Find | | | | may have lost price value because of internal reasons |
| Good Stock Investment Opportunities. | | | | or because of external factors. In either case you |
| So you've decided you want to invest in the stock | | | | have a starting point, a list of stocks that are now |
| market but where do you begin? After setting up | | | | low. From this list you have to determine which ones |
| your online trading account you take one look at the | | | | will continue to drop and which ones will turn back up |
| thousands and thousands of possible financial | | | | and regain value. |
| instruments and if you are like most people, shut | | | | Another sorting function is the new 52 highs and |
| down the computer and turn on the Television. The | | | | lows. A number of systems provide regularly updated |
| sheer volume of choices can be intimidating and even | | | | lists of the new stocks on any particular exchange |
| after you finish that 6 week course on "Online | | | | which have reached their highest high or lowest low |
| Trading In The New Age" you feel nearly as lost as | | | | over the past 52 weeks. In other words the new 52 |
| when you began. Except of course, at least after the | | | | low stocks are at their lowest point in the past year. |
| course you do understand the differences between a | | | | That should sound like a bargain to you because it |
| bond, fund and security. The problem is that there | | | | often is. Like any other declining stock you need to |
| are still thousands and thousands of stocks to | | | | research news and other factors to ascertain why |
| choose from. What do you do to find those perfect | | | | the stock is down. In many cases however you will |
| stocks to invest in? | | | | find that market pressures are the biggest single |
| The plethora of choices may seem like an | | | | factor and the stock will often rebound for a rally. |
| insurmountable mountain of choices and you may feel | | | | The list of new 52 highs and lows changes constantly |
| the need to pick up the phone to call your broker or | | | | during each trading day so check the 52 lists often |
| that friend that talks stocks all the time. In fact | | | | for new buying opportunities. |
| narrowing your choices is probably easier today than | | | | News often reveals the future direction of a stock |
| it has ever been. There are virtually an unlimited | | | | as most investor realize however many investors do |
| number of free financial tools on the web to assist in | | | | not assess the ramifications of general market news |
| refining the choices to find investments you are | | | | on a particular stock. Rather than seek out new |
| comfortable with. Once you become familiar with | | | | press releases on companies to evaluate for a buy |
| using these tools you will no doubt be able to select | | | | try monitoring the news of general economic factors |
| your potential investments with confidence. | | | | which have a bearing on particular industries or |
| To begin with you first need to decide what type of | | | | sectors. A number of websites offer free news |
| investment approach you plan on using. Some | | | | feeds as well as searchable news. It is easier to |
| common classifications are High Risk versus Low Risk, | | | | today to obtain specialized news data than it has |
| Long Term versus Short Term or Fundamental | | | | ever been. |
| versus Technical, etc. However, these are guidelines | | | | Do not forget the indices, which not only refer to |
| not rules and ultimately you make the decisions so | | | | the Dow Jones Industrial Index and the S&P |
| use the criterion that suits you best. Regardless of | | | | 500, but to the hundreds of other indexes available. |
| which style or combination of styles you choose | | | | It often amazes me how many indices people do not |
| there are tools that can narrow your search for the | | | | follow. Indices provide a valuable barometer for the |
| right stocks. | | | | overall health of nearly any sector you are interested |
| For the purpose of simplicity in this article we will | | | | in. There are early warning indices like the Baltic Dry |
| focus on traditional stock purchases rather than short | | | | Index which evaluates average shipping costs and |
| selling, options or other investment vehicles. Our | | | | thereby pressures on the cost of Import/Export |
| starting point should be one of the oldest adages in | | | | Goods. You should also monitor foreign indices which |
| the market. You have no doubt heard this phrase | | | | close out before the North American markets do and |
| more times than you care to consider: "Buy Low and | | | | will often foreshadow the general market trends in |
| Sell High!" The funny thing is that the vast majority | | | | North America. If you have a list of stocks you have |
| of people who invest in the market do exactly the | | | | narrowed down then the best day to buy might be |
| opposite, why? The most likely reason is because | | | | when you expect the market to fall. The decision |
| most people make their purchase based on advice in | | | | always seems easier when the whole market seems |
| television programs or on the net or from friends well | | | | like a bargain. |
| after the stock is already oversold or very near its | | | | In the information age it sometimes seems like less is |
| peak. | | | | simpler, but actually it's just a matter of filtering the |
| If you want to buy low then look for stocks trading | | | | information to get the criteria you need to make |
| below their normal price levels. There are a number | | | | decisions you are comfortable with. Use the tools |
| of tools to help you find stocks in this category. An | | | | available, there have never been so many with so |
| obvious one is the most actives category. A number | | | | much capability for free. Once you settle on an |
| of sites offer free stock screening services that will | | | | investment strategy and then narrow your list of |
| filter the stocks that lost the most value usually by | | | | stocks to the ones you feel will perform best the |
| dollar or by percentage for the day. These stocks | | | | last step is to actually invest. |