Steps to Picking Top Selling Stocks

Written By Steps To Faculty Published May 20th, 2010

Everyone wants to see more growth from their funds. To do so, you need to find an investment vehicle with high growth potential. Many advisors have found that the best way to grow your money is to invest in stocks. But, it is difficult to invest when you do not anything about investing in stocks and you may be scared of losing your money. In order to answer the question “How to pick top selling stocks”, you can follow the following steps below for picking up the top selling stocks.

Step 1 Read

You should read as much as possible about the traded company, stock markets, accounting etc and try to know more about the stocks that a corporation is offering. How sustainable are there products? Try to locate the company’s official website and read everything, including the prospectus. The more you learn about the company, the better your chances of selecting a good stock to invest in.

Step 2 Study the graphs

Read the local newspaper in the stock section. Track the movement of the stocks. Study the graphs located near the stock to see the trend of the company’s stocks. Is the line in the graph going in an upward direction or downward or zigzag? If the stock is increasing in value steadily, then the line should point upwards. If not, you might want to be wary before investing in a declining or volatile stock. Be cautious if the company is undergoing reorganization or other fiscal problems.

Step 3 Stick with what you know

You should start with the industries that are familiar to you, may be through advertisements or through your friends/relatives. Try to invest in the products that are familiar or popular.

Step 4 Review financial statements

Try to look for the company’s financial statements and reports before investing. Try to analyze the statement. Check for asset liquidity by using the current assets/current liabilities ratio. The greater this ratio, then the more liquid are the company’s assets as for every dollar spent, that much more in revenues are earned.

Step 5 Perform technical analysis and general trending

Learn to identify stocks with their criteria that are indicated with potential future price appreciation. Learn technical analysis tools like candlestick charting, EMA, MACD, etc. to better time your entries and exits. At the same time, look for general trends in the economy with these tools.

Remember, stocks are a high yielding investment.

Roger Due

Investing in Your Destiny® & Coaching Program - Wealth Building Summit Dallas, Texas

My name is Roger Due and I am from Albuquerque, New Mexico and I am the owner of the Monsano software company. This has been an absolutely fantastic conference. This is the best I have ever been to.