how to value consumer stocks
TRANSCRIPT
By www.Prof i tableTrad ingTips .com
How to Value Consumer Stocks
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
Stock traders make money when stocks are volatile.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
The most stable stocks are usually in the consumer goods sector.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
Click the links below to get yourFREE training materials.
Free Weekly Investing WebinarsDon’t miss these free training events!
http://www.profitableinvestingtips.com/free-webinar
Forex Conspiracy ReportRead every word of this report!
http://www.forexconspiracyreport.com
Get 12 Free Japanese Candlestick VideosIncludes training for all 12 major candlestick signals.
http://www.candlestickforums.com
Before We Continue…
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
But that is not always the case. u.s. news writes that consumer companies fall as U.S. hit the skids.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
If you are going to be trading them the question is how to value consumer stocks.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
This applies to medium term for swing traders and short term for day traders.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
u.s. stocks are skidding tuesday and are on track for their biggest drop in more than a month.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
consumer companies are taking big losses as investors worry about the health of the u.s economy.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
machinery companies are also down, while concerns about europe’s banks are hurting financial stocks. the price of oil continues to fall.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
Investors flee to consumer stocks when the market is ready to fall.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
The idea is that these stocks are safe havens.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
The problem is that investors have been pouring money into blue chip safe haven stocks and P/E ratios have been climbing beyond what the market will bear.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
Thus these stocks are correcting. How to value consumer stocks is traditionally with fundamentals.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
What dividends do they pay? How much money do they have in the bank?
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
Do they have any debt? And how strong are their brand names in the niches they sell to?
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
But a problem arises when these stocks become safe havens.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
Overbought and Over Priced
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
investopedia tells what overbought means.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
overbought refers to a situation in which the demand for a certain asset unjustifiably pushes the price of an underlying asset to levels that do not support the fundamentals.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
in technical analysis, this term describes a situation in which the price of a security has risen to such a degree – usually on high volume – that an oscillator has reached its upper bound.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
this is generally interpreted as a sign that the price of the asset is becoming overvalued and may experience a pullback.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
In general a stock that has risen rapidly on high volume in a very short time tends to become overbought.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
From the viewpoint of technical analysis the relative strength index, stochastic oscillator and money flow index are helpful ways to value consumer stocks that have become too pricey.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
It Is All in the Timing
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
Stocks go up and stocks go down. Buying and the bottom and selling at the top are everyone’s goals.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
But sometimes the market seems to be chasing its tail and fundamentals make little sense.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
On such occasions it is best to hold cash and only day trade in the market.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
There are numerous profitable day trading strategies.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
Trend following and taking small profits is one approach.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
Another is to follow the news of the day and trade when the market becomes volatile.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
Traders who want more reliable returns and less risk often do rebate trading as many ECNs pay market makers who place limit orders.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
Trade only stocks at high volume and set your limits to small increments.
http://profitabletradingtips.com/profitable-trading-tips/how-to-value-consumer-stocks
Get in when conditions are optimal and get out when the market is not making sense.