Are you tired of not making money in the stock market? Do you want to do something that is going to change the way you look at stocks and your portfolio in general? The first thing you need to realize regarding stock trading is that you have to know more about the company and the way they are headed than the next guy, this is how you will have your leg up on the competition. Something that you must consider with every stock is whether you are going to take a long position on it or a short position.
Prior to me getting into the tips I would like to first ensure that you know what the next greatest short term stock is going to be. The next best short term stock is a stock that is going to increase in share price dramatically over a very short period of time. What you must watch out for are penny stocks that are hit and miss because often times these will get boosted by fraudulent traders and beginning traders.
Tips On Finding The Next Greatest Short Term Stock
Low Price To Book Ratio - If you want the next best stock then you need to get one with a low price to book ratio. What you need to understand is the lower the price to book ratio is the better the share will do in the short term trading market of $10 and under stocks. If the price is over then you will want a higher number, my advice is to get something with a number lower than 1 for stocks under $10.
Look At 5 Year EPS Growth - The reason you want to look at the 5 year EPS growth is because it will give you an idea of where the company has been and what their earnings have been for the last 5 years. If you are looking at a stock that has a negative 5 year EPS then I would recommend looking somewhere else until they can prove their worth to you. Just remember, most shares will not increase 100% like you will want them to, you will most likely find shares that have increase 10% over the 5 years and that is a good sign of slow and steady growth.
The final thing you need to know is that there are many great stocks out there, you just have to find them. Stock prices go up and down on a daily basis so the stock that is the best one today might not be the best one next week.
Prior to me getting into the tips I would like to first ensure that you know what the next greatest short term stock is going to be. The next best short term stock is a stock that is going to increase in share price dramatically over a very short period of time. What you must watch out for are penny stocks that are hit and miss because often times these will get boosted by fraudulent traders and beginning traders.
Tips On Finding The Next Greatest Short Term Stock
Low Price To Book Ratio - If you want the next best stock then you need to get one with a low price to book ratio. What you need to understand is the lower the price to book ratio is the better the share will do in the short term trading market of $10 and under stocks. If the price is over then you will want a higher number, my advice is to get something with a number lower than 1 for stocks under $10.
Look At 5 Year EPS Growth - The reason you want to look at the 5 year EPS growth is because it will give you an idea of where the company has been and what their earnings have been for the last 5 years. If you are looking at a stock that has a negative 5 year EPS then I would recommend looking somewhere else until they can prove their worth to you. Just remember, most shares will not increase 100% like you will want them to, you will most likely find shares that have increase 10% over the 5 years and that is a good sign of slow and steady growth.
The final thing you need to know is that there are many great stocks out there, you just have to find them. Stock prices go up and down on a daily basis so the stock that is the best one today might not be the best one next week.
About the Author:
When it comes to stock trading one of the things you need to understand is the more you know the more money you will make. Most people don't understand all the signs of a successful stock trading but that is ok as long as you know the basis of trading stocks.
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