My Stock Picking Approach

I am currently refining the way I pick stocks. I hope to use this blog to journal my successes and failures as I look for the best approach for me. So without further addu here is how I pick stocks.

1. I look at the top gainers of the day on the NASDAQ and the NYSE. I do this because I am looking for stocks that have momentum and are on the move.

2. I go down the list looking at each stock, first looking at there latest quarterly earnings, then followed by a look at the past 5 year fundamentals.

3. A look at the charts. I look for a company that has been in an uptrend and most important the 200 day ma and the 50 day ma our both moving up.

4. Once I find a stock that meets this specific criteria, (I will detail more what I look for in further posts) I purchase shares of said stock and immediately place a trailing stop somewhere between 5% and 10% depending on the volatility of the stock.

Thats pretty much the basic philosophy I have. I will detail in further posts the specific things I look for in picking a stock and also my money management rules.