Study the Company You Plan to Invest Before You Jump In
Understanding a companies balance sheet is very important. I personally like to see a companies "Total Current Assets" 3 times higher than its "Total Current Liabilities" you can find this info on several websites I use MSN money. Basically when a company has a higher "Current asset" that means they can pay their bills and not worry about going bankrupt anytime soon. It is also important to listen to their "confence call" the purpose of this is so that you understand the direction of the company. Might be positive or negative this is crucial, im sure many of us wouldnt invest in a company that has negative news. Also invest in a company that you are familiar with or its products. Dont invest in companies you dont understand. Every stock goes on sale just like if you were shopping at walmart. You have to know when a stock is at a sale price and not full price. When most people are to affraid to buy a stock thats gone down thats when smart investors come in and buy it cheap and sell you those same shares right back when people decide they want to jump in.Finally when I read a chart to determine when to jump in I use full stochastic ,CCI ,MACD, Williams %R and Pivot Points. Learn how to use these tools. These indicators will help you pick an entry point might not hit it perfect but it will get you close enough.
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