What makes a stock good to buy or sell?
December 13, 2015
Stock market tips
A classic stock market question.What makes a stock good to buy or sell?Here are a few answers simple yet effective.
1.Earnings and profitability,debt
2. Global and regional sector,state of the economy
4. Insiders trading or shares repurchasing by the company
5.Mention on a high authority network,not to be taken seriously
6. Technical analysis,buy on dips or sell on rallies
7. Volume and momentum
8.Any analysis that shows intrinsic value is higher than current to buy and vice versa to sell.There are programs,software that can do it besides your own analysis but there is always the risk of uncertainty as small,minor assumptions can have a complete new result
9. Timing,in major selloffs even good stocks lose value as panic wins over rationality.
10. Common sense and going against the odds,when everyone is selling maybe buy and vice versa.Recent VW dieselgate scandal put pressure on the stock but it rebounces as not forget it is a very large company with a lot of sales.usually sales lead to profits.