SoftwareStocks.com

Stock Market Data Calculations - Choosing Stocks Part 2/2 ? Some Obvious Factors

Let?s say you are looking to make some short-term easy gains in the stock market. Who isn?t? Significant gains happen on a daily basis. The question is how can you find the stocks about to make theses gains without being an insider or receiving a hot tip from your Uncle?

Here is a list of some easy factors I have found which often indicate where the profit can be and you won?t have to rely on your Uncle.

Let me further define exactly what we are looking for: An undervalued stock that has the ability to make significant (>5%) gains in the near future.

Factor #1

Recently Depressed: I don?t mean as in a mental state. Has the stock had a down turn in say the past month? Do not let a sudden plunge detract you from the stock, these are often caused by a misinterpretation of the stocks data and may be an indicator that a correction is upcoming.

Factor #2

Previous days open to close (you can look at a chart): Has the stock started to come back. We are not looking for a large improvement, simply a sign that the slump is over.

Factor #3

Analysts Opinions: I have found it bodes very well for a stock if 1 or more analysts have rated it in the Moderate to Strong Buy range. Opinions, weather you agree with them or not, influence the market and as such make themselves a valid indicator.

Factor #4

No news: No news is good news. If nothing has happened to the stock in the recent past and the market has had time to digest whatever reason (if there is one) the stock is currently deflated the time for a change is often near.

Factor #5

Increased Volume: Like a recent rise in price a recent increase in the volume of trading shows that the stock is starting to draw some people?s interest

Other factors:

Ratings (MSN, Charles Schwab, etc. all have their own rating systems) ? although these can indicate they often include factors better suited for longer term, stay the course, type gains. My suggestion when reviewing any of these ratings is to not give them much weight when contemplating the short term

Earnings Reports ? is one upcoming or just passed? If so you may want to count this as recent news and disregard the stock. However, you may want to do a little more research. A decent earnings report for a deflated stock can often bring some of your biggest gains.

Your own ? I often find that each investor has his or her own special tidbit of data that they have found helpful. Feel free to add yours here.

Do all these factors often occur together ? Not for any one stock, but if you look at a large number of stocks you can usually find one or two on a daily basis. I have found several methods which are a great help in identifying stocks displaying this type of behavior such as comparing stocks to their indexes, watching for volatility, detecting movement, etc. What is most important is that when they do occur - and you find them (baring catastrophic disaster or a monumental over-site) ? you have an almost certain candidate for a decent short-term gain.

Stock Calculations (http://www.StockCalculations.com) is a complete macro research package. We'll do the macro, you do the micro. When it comes to manipulating stock data, it's is a real time saver. Stock Calculations completes a total package for wise investing.

MORE ARTICLES:

ChoiceTrade Adds Option Tools to Their Online Stock Trading System
Leading online broker adds additional option tools to their services to provide complete tools for customers.

Popular Stock Market E-letter Predicts 2008 Will Be Down Year for the Stock Market
Profit Confidential, a division of Lombardi Financial, one of the world's largest newsletter advisory companies today issued its 2008 forecast for the stock market.

Stock Market Horizons: Gold $3,000, Oil $70
In the last two decades, even though gold prices have dwindled from $850 to $350 an ounce, there are still market gurus who predict gold price to hit $3000 an ounce. Hecla seems to be quite bullish about the future.

Stock Trading For Dummies - Your Guide To Understanding Stock Trading Basics
When it comes to trading on the stock market, there are two choices to make, either randomly choosing and hoping for luck or using strategies to determine what stocks to buy, when to sell and how to protect your investment dollars It is much smarter to use strategies, but the investor will have to choose from hundreds of different strategies

Penny Stock Investing
The Nature of Penny StocksFor anyone new to investing in penny stocks, you should first be made aware of the differences between these micro-cap stocks and the more conventional blue-chip and mid-cap investments. Unlike buying shares in a large, stable company like Ford or IBM, you are dealing with speculative investments.

The Basics Of The Stock Market
Stocks are the basic building block of the stock market. A stock represents partial ownership of a company - the smallest share possible. Companys issues stocks to raise capital and investors who buy stock are actually buying a portion of the company. Ownership, even a small share, gives investors rights to a say in how the company is run and a share in the profits (if any). While stocks give owners certain rights, they do not carry obligation in case the company defaults or faces a lawsuit. Worse comes to worse, the stock becomes worth absolutely nothing but thats where the liability ends - investors will never actually owe money if the company goes bankrupt.

Internet Stock Trading Is Best, Quick And Dependable
Because millions of individuals all around the world are involved in internet stock trading, there is reason for them to be fearful whether such a type of stock trading is certainly safe or not, and also question whether claims of the risks of indulging in such kind of stock trading are well founded or not

Fox River Arms Itself with a Texas Memory Systems' Solid State Disk to Win Stock Trading Battles
Texas Memory Systems' RamSan solid state disk is deployed by Fox River Financial Resources to accelerate their Oracle-based system for rapidly gathering and analyzing time-critical market data.

Japanese Stock Market Hours
Do you love the thrill of the global stock exchange? Do you own a business with a lot of clients in Japan or do you do a lot of business in Asia? You probably spend?or at least you should then spend?a lot of time studying the Japanese stock market, a.k.a. the Tokyo Stock Exchange, the second largest stock market in the world behind the New York Stock Exchange!

Stock Trading System
THE 10 - 2 TRADING SYSTEM

Is Stock Trading on Your Horizon?
Like any business, stock trading should rest on a foundation of solid information. For the potential, new stock trader, here is some food for thought in considering your involvement in trading.

Great Stock Trading Tips
Today, stock tips are a dime a dozen. When investing, most don?t know where to go to invest their money and sometimes end up making bad choices, losing their savings instead of increasing it. When looking for stock tips, be sure that your source is a reliable one. When in doubt, do some checking up on the company to see where they stand. If a stock does not seem right, stay away from it. If you can?t tell what is wrong with the stock, you will not know where the stock is going. You do not want to make poor investments, leaving your money vulnerable to the wrong stocks.

A Stock Market Investment Plan that Never Lets You Down
The bulls and bears of the stock market are both tempting and scary to the investors. Speculators are enchanted by the stock market's potential to help them in making quick money with a big M.

Stock Market, Bonds, Deposit Account, Cash, Equities, Unit Trusts - Few, Just Few of the Ways of Sav
Man has been known for continually simplifying things in his own interest. First he devised mortgages then several sub categories under it like buy to let mortgage, council right to buy, reverse mortgage.