First you have to find stocks to analyze.
Finding stocks:
Go to http://yahoo.com and open an account if you don’t have one.
Click the Finance Quicklink on the left
Rollover ‘Investing’ tab on the top, click Stocks
Under Research tools, click Stock Screener
Under Launch Screener, click ‘Launch HTML Screener’
Leave all selections at ‘Any’ except for the following:
- Share price: $5 Min, $30 Max
- Profit margin: 0% Min, Any Max (profitable company)
- Price/Earnings Ratio: 10 Min, Any Max (earning company-goes to share price)
- Avg Analyst Rec: Buy/Hold rating (2) or better
- Click Find Stocks
- I’m looking for about 200-300 stocks
- I manually delete any stock with Average Volume less than 300,000 shares. I do this for liquidity, but down to 200,000 is generally OK.
This population is the highest quality stocks as indicated by the Analyst rating of 1.0 – 2.0. Since you will be analyzing them individually, manipulating the Share price, Profit margin and Price/Earnings Ratio will change the returns.
A spreadsheet program is the easiest way to move the stock symbols into a list. I use Excel, but OpenOffice.org has a fine one as well.
This is the tedious part. The list has to be copied and pasted 20 lines at a time. All portions of the group (and nothing else) have to be copied into the spreadsheet. This has to be done 5 times for each 100 selections.
Copy the headings only the first time.
In the spreadsheet, delete all columns except the Stock Symbol column and sort this alphabetically.
We now have our selections. You may leave them in the spreadsheet, but I prefer using Yahoo Portfolios to store them. I can then tell their share price at any time.
Portfolios
Back at Yahoo Finance, Rollover ‘My Portfolios’ at the top.
Click ‘New Portfolio’ and add up to 200 Stock Symbols from the spreadsheet list. Add a new Portfolio if more than 200 stocks. I name mine, “Screener 1″ and “Screener 2.”
Be careful with your mouse in the Spreadsheet. Touching a Symbol name can select it.
Clicking ‘Finish’ for the Portfolio will display ALL the stocks in the Portfolio in your choice of predefined formats or you may design your own format. I like ‘Real Time’ if you want to watch all your stocks at once during the trading day.
I have designed a Yahoo home page that has Market defining stocks (Dow, Nasdaq, S&P100, S&P500, SPY, QQQQ, the CBOE volatility indexes for the Dow and Nasdaq, and the shares traded on the Dow and Nasdaq.
The way these help me understand market conditions, is that markets fall of their own weight. If the market settles lower, it may simply be that fewer people are buying. Selling goes on all the time (people have expenses). The volatility indexes are counter-indexes to the markets. If the Dow is healthy and rising, the volatility indexes go down. We want them at around 30 or lower.
Analyzing stocks.
Start with the stocks in your ‘screened’ portfolios and analyze them one at a time with Yahoo.
Click a stock symbol or ‘Dow’ or ‘Nasdaq’ on your Yahoo home page.
This brings up a page for the stock with a lot of information on it, including “real time” prices. Just below “real time” is “Last Trade” which is 20 minutes ago. Watching these two show if a stock is going up or down. There is also a small daily graph.
Make another duplicate page. On this one, under ‘Charts’ click ‘Basic Tech Analysis.’
Construct this page format – the page will refresh after each indicator is clicked:
- Range: 3m (months)
- Moving Avg: EMA: 5, then 20 (gives you two tracking lines)
- Indicators: MACD, Slow Stoch, W%R
- Size: L (my personal preference)
Now we can get to work.
Top graph is Price (up to yesterday) with two tracking lines of 5 days and 20 days. The price line should be rising and reside above the two tracking lines.
Next graph is MACD. The vertical lines should END ABOVE the Signal line. If the vertical lines are below the zero line, the lower end of the lines should start above the Signal line. If the vertical lines are above the zero line, the higher end of lines should end above the Signal line.
Next graph is Stochastics or ‘Stoch.’ The blue line (%K) should be above the red line (%D).
Next graph is W%R, a single tracker that should be heading up or hanging out in the upper region. It should NOT be heading down.
When is the best time to buy?
- Price above both tracking lines
- MACD lines rising with signal line following as explained. The best time to buy is when the vertical lines switch from the bottom of the zero line to the top of the zero line.
- Stoch %K (blue) above Stoch %D (red) and rising.
- W%R in upper region or rising to there.
When is the best time to sell?
- Price falling below both tracking lines
- MACD lines peaking or falling with signal line following as explained. The best time to sell is when the vertical lines switch have peaked and are starting down towards the zero line.
- Stoch %K (blue) below Stoch %D (red) and falling.
- W%R falling from the upper region
There you have it. Be patient. You are a hunter. Wait for the best time to pull the trigger. Don’t pull it too early or too late. And always put in a “Stop” order if the stock crashes you won’t lose everything. I set my trailing stops (moves with the rising stock price) for 3%.
Good luck and good hunting.
this is very nice article and gives indepth information. thanks for this nice article
Your work is very inspiring. This article is material that is absorbing and interesting. The points made here are original. I hope you continue this. Your work surpasses my expectations.
I stayed away from these kinds of articles for quite a while, but you have taken me to whole new level of reading enjoyment. I really appreciate your hard work.
This is a great piece of writing. You could likely turn this information into an ebook with little effort. Good job on this great information.
It’s become uncommon to find superior article content online anymore. I was happy to find this well-written article. There are many reasonable points made that caused me to think. I have to agree with many.
Wow! This article is jam-packed full of useful information. The points made here are clear, concise, readable and poignant. I honestly like your writing style.
You have an uncanny ability to take informational content and make it hard to quit reading. This article is nothing short of amazing in many ways. Your points of interest are unique and very original.
You have written an amazing article with many valid, unique points that are interesting and thought-provoking. It excites me to read informative content written by a writer who is so obviously knowledgeable in this area.
Very inspirational information. Keep up the good work, and done forget to keep enthusiasm to the readers.
I’m a little surprised at how interesting your content is. I think you should make an ebook out of this information. Thank you for sharing.
Thank you for this interesting content. Your views have given me cause to reconsider some of my preconceived notions. You have changed my mind. That’s what I call persuasive writing.
This article will appeal to the younger set of ideals throughout the country. Most of the articles I have read on this have little substance. Yours is loaded with substance and interesting information. Thank you.
I love the way you wrote this article. This is wonderful. I do hope you intend to write more of these types of articles. Thank you for this interesting content!
Great post, this is one of my favourite topics and close to my heart.LOL.
If you set out to make me think today; mission accomplished! I really like your writing style and how you express your ideas. Thank you.
I am very pleased with the writer’s expertise on this subject. It’s helped me come to a better understanding of this topic. I truly appreciate this great content. Thank you.
This content is written very well. Your use of formatting when making your points makes your observations very clear and easy to understand. Thank you.
I was having difficulty not thinking of some business opportunities, so I started looking for some unusual blogs. I enjoyed your blog and it helped me relax.
This article is worthy of all the great comments already made. I just want to add my two cents into the mix. This is valuable content with dead-on sensible points.
Many times the articles I find are so difficult to understand, it seems I need a college degree just to understand the writer. Thanks for making the information on your page so easy to understand.
I have honestly enjoyed reading the information you have quite obviously researched or at least know a lot about. I agree with you on a lot of this information. Your content really makes me think.
For what it’s worth, I enjoyed your article very much. You make sound points and this is clear content that’s easy to understand. Thank you.
I have a high standard I abide by for choosing reading material, especially online. Your article met my standards then flew right by them. You’ve written a great article with loads of great informational content.
I think your article has great substance. The content is unique, informative, interesting, plain and well thought out. I think a lot like you do.
I cannot express my thanks enough for your views in this article. I am inspired to find out more and am hoping you plan to continue writing material like this.
Nice to be here. Appreciate your sharing with us this post. I desire to point out to individuals on equipping themselves with the practical knowledge on the way to look for cancer of the breast. Actually, cancer of the breast in males exists as well. Thanks a lot. Mary-Ann.