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Stock Market Investors: How Do You Pick Stocks?

This question is for those of us who currently have some money invested in the stock market:

How do you choose which publicly traded stocks to invest in?

Do you rely on business newspaper reports, analysis of general trends like globalization, hot tips about mergers and acquisitions, analysis of the graph showing the direction in which the stock is moving, or IPO adverts?

In answering this question, can you disclose which stocks markets you participate in and what percentage of your income is now in the stock market?

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19 answers

If its with regards to the Nyjer Stock Mkt and you want to make the short term profit the key for this quick buck strategy is to find out what the house buying or what the big players are buying and then get in with the ride.

Such infomation makes a diffrence cause the market is not as developed and ''information'' is not freely available to all man at the same time unlike developed markets.

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Found this useful: http://invest-faq.com/articles/strat-survey.html

Brother-in-law investor

Your brother-in-law phones, or perhaps your stockbroker or the investment writer for the regional newspaper. He has the scoop on a great stock but you will have to act quickly.

Technical investor

Moving averages, candlestick patterns, Gann charts and resistance levels are the sort of things the technical investor deals with.

Economist investor

This type of investor bases his decisions on forecasts of economic parameters.

Scuttlebutt investor

Consists of piecing together information on companies obtained informally through wide-ranging conversations, interviews, press-reports and, simply, gossip.

Value investor

"attempts to value a stock independently of its current market price"

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The problem with investing in stock )or whatever is that "ther is not only one right way". There is many strategies/approch to investing. It all depend only from investor. First of all you should replay for question about risk and income you expected. Secondly you pick up different tools to evaluate income/difference/risk. Then you invest.

What you should remember is that investing is art of making decisions using the fact and information that you have, The more you know (and before others ones) the better for you,

Some things are perpettual. Some events affect global economy. Example from my floor. In Poland the main deliverer od petrol is PKN Orlen. Look at the chart and you can see how stock dealers react about growing prices of oil,

http://www.parkiet.com/notowania/wykresy.jsp?isin=PLPKN0000018

The children knows that if price of oil ar growing globally that local rafineries just wait to price out their clients,

another one, Mol

http://www.parkiet.com/notowania/wykresy.jsp?isin=HU0000068952

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Of all the things that lure me into buying the stocks of companies, nothing speaks great volumes into my head like branding. 85% of the stocks I have bought are because of the way the companies package theirselves and their products.

My eyes have become so sharp now that Conoil which I bought for 127 naira has become 78 naira. All the same, company branding still has has effect on my picks. This is because I have the notion that if I company can brand itself so well, it means it knows what it's doing and will be profitable at the long run.

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hi everyone, just new to the blogg, i like it.

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Old glory, thanks for your response. I find it useful.

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I do have some stock, and you need to do alot of stock reading and research, is all i will say.

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I simply buy stocks of companies i buy goods and services from. I have GM because i drive a Chevy, I have Rambus because they make chips that i use in my PC/PDA ETC. I have some McDonald shares because my nephew loves the dollar menu, I have Verizon because i pay them a monthly bill. I have Exxon Mobil because i buy gas there. So that is my method and it has worked for me so far. (Knock on Wood)

@ Nwoke

Your question is not clear and most people buy shares based on research and feel and websites like cnbc.com Ameritrade ETC can help.

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Nwoke,

Do not run into conclusions.

I've got some oando shares I got for N95. They are presently at N82 or so. This is actually the right time for me to buy more, bearing in mind that the decline in value can be attributed to the MEND crisis. Oando wouldn't make much gain to buy crude at $74/barrel and sell it to Naija market without a commensurate increase in pump price. If you observe, most oil stocks are down except those in the upstream sector. People are shying away from them and dumping their money in the banking sector, hence the good run with 1st bank and GTB. Most bank stocks are on suspension due to recent IPOs. So, 1st bank and GTB are actually enjoying alone what they should be sharing with Zenith, Union Bank, Diamond bank and IBTC.

Stocks usually appreciate in value just before positive company results are announced. That also explains GTB's present performance. Guiness is competing with NB hence they seem to play a ding-dong game. One often rises when the other is falling.

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guys, I'm just trying to collect real life experiences so I can connect them with the theory.

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A website that will really help you -

www.estockswatch.com

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I buy stocks based on my research and usually when people are running out.

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Recent trades: SNDK, LCAV, OIH, AMD, to mention a few!

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You trade equity options. The "right to buy" shares at a given price for a fee. That means you might bet against stocks as often as you bet that stocks will grow. How do you choose which stocks to bet for or against? can you give us examples of recent trades and reasons behind them?

Give us more insight into how you are able to put food on your table from what looks like a game!

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Newbie

"Are you a professional trader? Can you name some specific stocks you've picked, why you picked them, and whether they have performed to your expectation?"

Yes! I'm a professional trader. I deal in Equity Options, the derivative of Stocks known as Stock Options, not outright Stocks!

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One of the first things to understand about buying stocks is that what you buy is in some ways a function of who you are. If you're an optimist, growth investing might be for you. Long on patience? Value investing may be the better fit.

Individual investors generally fall into one of three categories: growth investors, value investors or dividend investors, A stock's price often reflects how profitable investors think a company will be in the future. So most investors follow a growth strategy, which means that they look for companies with strong prospects for growing their sales and earnings. Definitions vary, but stocks expected to increase their sales (and their net income) from one year to the next by at least 15% generally qualify as growth so you can chose any one you want to buy

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It doesn't matter. if you own stocks, whether in Nigeria or in the US, we want to know what made you pick those particular stocks!

Are you a professional trader? Can you name some specific stocks you've picked, why you picked them, and whether they have performed to your expectation?

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Technical Analysis all the way!

I try to avoid days when earnings are reported!

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on wat market are the stocks u are referring to traded? this might allow us reply u better.

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