How to Find the Best Stocks to Buy

 

Global Equity Market Overview in 2011 and the Beginning of 2012 markets had a mixed 2011, with the Dow Jones gaining 5.5% and the S&P 500 finishing flat for the year. 2012 started on a positive note for the U.S. equity market, but there remain some uncertainties that can make earning a good return on your investment something of a difficult task.

Utilizing Stock Charts and Technical Analysis

So how do traders find the top stocks to buy amid so much market uncertainty? They use stock charts and technical analysis. These charts and technical analyses help traders in making decisions regarding buying and selling stocks. Professional traders use a number of tools to determine which stocks to buy or sell. But, if you are a beginner, how should you go about selecting the hot stocks to buy? The answer is much the same: Analysis of stock charts.

Leveraging Online Resources for Stock Chart Analysis

Web sites like barchart.com can be of immense help to beginning traders looking for stock charts and the top stocks to buy.

Understanding the Role of Stock Charts in Stock Selection

It is important to understand how stock charts can be used to pick the stocks to buy. When analyzing the charts, traders are attempting to predict future financial price movements by evaluating past price movements. Although analyzing such data does not always result in accurate predictions, it does increase a trader’s chances of making the right call to buy, sell, or hold stock. In other words, traders can anticipate what is likely to happen in the market based on previous stock behavior. Based on this information, traders can pick the top stocks to buy.

Thorough Analysis Process for Stock Selection

Traders considerable time on analysis before deciding which stocks to buy. They review data like the high, the low, and close prices. There are helpful online charts available that aggregate information on the top-performing stocks, stocks making new yearly highs or lows, volume leaders, and more. This is the type of data that can help traders predict the top stocks to buy, if they know what to look for.

conclusion

Diligent research and proper analysis are required, however, since there is no guaranteed way to predict what the best stocks to buy are going to be. Regular review of stock charts to become familiar with the relatively predictable trends in the market is also required.