BuyingStocks Print HI - Investor's Business Daily
BUYING STOCKS 3 Things to Check Before You Buy
1: CHECK THE MARKET DIRECTION
Wait for the green light.
CONFIRMED UPTREND
The best time to buy stocks. The optimal strategy is to buy
companies with solid earnings and sales that are clearing a
price consolidation.
UPTREND UNDER PRESSURE
Proceed with caution. Consider buying
top-performing stocks, but know that your risk will be
greater.
MARKET IN CORRECTION
Avoid new buys. Use this time to compile a watchlist of superior stocks.
See The Big Picture at
2: CHECK THE COMPANY
Give the stock a thorough inspection.
Keep in mind, few stocks will meet or exceed every benchmark here... and that's okay! You want to focus on the very best stocks, not settle for lesser ones. In this case, it's good to be picky.
Key Factors to Consider:
IBD? COMPOSITE RATING: 95+ EPS (Earnings Per Share) RATING: 90+ EPS % CHANGE LAST QUARTER: 25%+ LAST 3 QUARTERS AVERAGE EPS GROWTH: 35%+ QUARTERS OF EPS ACCELERATION: 1 or more SALES GROWTH LAST QUARTER: 20%+ RETURN ON EQUITY (ROE): 17%+ SMR RATING? (Sales, Margins, ROE): A or B
NEW PRODUCT, SERVICE OR MANAGEMENT: Yes ONE OF TOP-RATED STOCKS IN GROUP: Yes INDUSTRY GROUP RANK: In the top 40 of total 197 QUARTERS OF INCREASING FUND OWNERSHIP: 1+ ACCUMULATION/DISTRIBUTION RATING: A, B, or C RELATIVE PRICE STRENGTH RATING: 75+ CURRENT SHARE PRICE: $15+ AVERAGE DAILY VOLUME: 400,000+ SHARES
To get an overall rating of your stock, go to stock-checkup
3: CHECK THE CHART
Wait for a Breakout Day.
Now that the market looks good and your stock checks out, there's one last thing to do:
wait for the stock to break out.
1 Be on the lookout for a Base Pattern
2 Wait for the stock to reach a Buy Point
Cup with Handle
Double Bottom
Flat Base
3
Check for a 40% Volume Increase from previous day
4 Look for a Relative Strength Line that is at
or near a new high
DID YOU KNOW?
The best stocks throughout history have followed specific growth patterns just before they broke out and made huge gains.
The key to spotting base patterns is stock chart analysis. Use IBD? Charts to accomplish these steps in just minutes.
BUY SMARTER
Streamline your stock research and buying process with IBD? Digital!
TRY 5 WEEKS FOR $5 TODAY! 5for5
?2017 Investor's Business Daily*, Inc. All rights reserved. *This offer is for qualified customers who have not taken a discounted offer in the last 6 months. After the initial 5-week term, the IBD? Digital subscription will auto-renew at the regular monthly rate of $28.95. You can cancel at any time. Other
condi-tions may apply. See Terms and Conditions at . Offers are available to U.S. Residents only and expire on 2/1/2018 at 11:59PM PT.
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related searches
- investor s business daily
- women s business loans start up
- today s business news headlines
- what is amazon s business strategy
- investor business daily log in
- investors business daily etf
- investor s business daily paper
- investor s business daily subscription
- investor s business daily newspaper locations
- investor s business daily retail locations
- investor business daily discount subscription
- today s business news