How I Find Good Stocks For Free to Add to My Buy-Watch List Using NASDAQ.com
You Can Pick Your Own Stocks!
My Free Stock Selection Process Using Tools Available with Just A Click of Your Mouse!
by Bob Diamond R.Ph
NASDAQ.com publishes a “Most Advanced” list every morning. It is a list of stocks that have had the greatest percentage of price increase since yesterday. There are several reasons I like this list at http://www.nasdaq.com/
The stocks that are listed are likely to be in my target price range of $5 to $10. Because of the math; a $1 move in a $5 stock is a 20 percent increase. The same $1 move in a $50 stock would only represent a 2 percent move.
The math also tells us that if we are looking to get more bang for our buck we need to stick with stocks that we can buy more shares of in order to enjoy the rewards of that move.
If I have $50,000 to invest, I can have 5 positions of a stock that cost $5 to purchase and I am much more protected than if I had it all tied up in a $50 stock that risks it all in one place.
If I find a stock that has gone up nicely and it is within my price sweet spot window, I click on the little > sign on the left.
In this example, Info USA is trading at $5.82. I click on the box that says “IUSA” in it.
Info USA is Trading Between $5 and $10 A Share Today
Is It Making Money?
After the new screen loads, I look first to see if the company is making money.
On the “Earnings Per Share” line you will see that it is making $0.77 per share. I usually use $0.18 as a minimum that a company must be making to be included on my watch list.
Next I look at volume to make sure that it is high enough that I can buy and sell any share with ease. This is trading over 240,000 shares at this time. It is over the 100,000 shares that I use as a screening number.
We now know that the company is making money and is trading at high enough volume to keep several other risk factors lower.
This Stock Is Making Money and It Is Trading A Lot of Shares
The next thing to do is to look at a chart of the stock by click on the price chart button near the top. You will see it on the line just under the logo in the middle of that line.
This Stock's Price Is Above the 50-Day Moving Average!
You Can Add It to Your Watch List If:
This stock price is between $5 and $10 a share.
It is making more than $0.18 a share.
It is trading over 100,000 shares a day.
The stock price has passed up through the 50-Day moving average and is holding there.
This stock has fulfilled all of the requirements to be added to my buy-watch list.
I haven’t told you to buy this stock. I am only using it as an example to show you how you can choose stocks to buy without having to subscribe to an expensive service.
You can do it yourself.
How's that for simple, easy and inexpensive?
I hope this helps to take some of the mystery out of stock selection for you.
- An easy way to calculate the "daily" risk in dollars for owning a stock or index
- Learning how to trade stocks for a living
Note * I have been making a nice living swing-trading individual stocks -- even in this up and down market that we have been having for the last couple of years.