Quick Start
Before you invest in any stock here are some Quick Start factors to understand:
1. Why fundamentals are important.
Fundamental Analysis provides a basic understanding of the different financial statement values (metrics) used in characterizing a stocks fundamental performance. A thorough study of a company’s fundamentals reveals facts about its financial health, competitiveness, value, debt, and many other factors. It is highly recommended that users of any stock list study and fully understand the science of fundamental analysis.
2. How technical analysis helps.
Technical Analysis adds an extra level of insight into a company’s present (today’s) stock price movement. Technical indicators are used to provide graphical illustrations which can assist in determining if a stock’s price might change direction or continue on its present course. These indicators are based on statistical modeling and numerical methods applied to a seemingly endless variety of stock metrics. Generally speaking, many indicators available appear to be redundant and can be categorized into several groups. Keeping it simple, Investor’s Yak does not use all available technical analysis indicators and primarily applies a few key effective favorites.
3. Risk and Reward
Risk/Reward Analysis, when combined with fundamental analysis and technical analysis, can improve your success as long as you strictly follow your sell rules rigidly. Before you ever buy a stock, decide ahead of time the percentage loss acceptable to you if the stock price drops. That is, determine a loss percentage (-1%, -2%, etc.) you can live with, and stick to it. Calculate the price you must sell to manage the loss, and sell immediately when the price drops. You must be unemotional and rigid with your thinking. Immediately after you buy a stock, you can even place a “Stop Loss” sell order with your broker. The stop loss will only be executed if the price drops to your predetermined exit price.
4. Stock List Cautiousness
Never buy any stocks without understanding the factors which may affect a stock’s performance. “Quick Start” factors above highlight some of the basics and cautions to consider. Developing your list of candidate stocks requires many hours sorting through hundreds of stocks available while examining the stocks for good fundamentals and near-term chart pattern buy/entry points.
The Investor’s Yak Stock List is a collection of candidate stocks which may provide an interesting read to the seasoned, well-educated investor. It is a condensed list compiled from the hundreds of stocks available and is intended to save you time searching and assembling your list. Using the Investor’s Yak Stock List is a great place to begin your weekly stock review.
Note: Investor’s Yak Stock Lists are not “buy lists” or “pick lists” and do not provide a recommendation to buy or sell. You decide then do it yourself.