Today we want to look at ways to search for great stocks. For some investors this can be a daunting task. The three major exchanges, New York Stock Exchange, Nasdaq and Amex list 5,400 stocks. The three major “over the counter” exchanges list another 4,030. These are stocks that do not have a large enough market cap to qualify for listing on the three big exchanges. Add to this another 5,904 stocks that are listed in the “Pink Sheets.” Here we find mostly penny stocks that do not qualify for listings on any exchanges. Notice that this list is even larger than the three major exchanges put together. All toll we have 15,334 stocks to choose from. Now you can see why searching stocks is so difficult. Most brokerage houses have whole departments devoted to finding the best buys. Mutual funds also employ a cadre of stock pickers.
As an investor you have choices of simply relying on the advice of your broker or buying a mutual fund that suits your needs. You may want to go it alone and make your own decisions. Two of the biggest and most reliable services are Moodys and Standard and Poors. Their research includes several bound volumes of stocks including company profile, earnings, rankings, and sectors. You can either subscribe to their services or visit your local library.
Another growing group of searches are offered on the Internet. There is literally thousands of so- called “gurus” peddling their favorite stocks. Some are truly excellent and have a proven track record. Others are just hype. If you subscribe to one of their services be sure to pick one who is wiling to publish their own trades and profit and loss statements and that have a at least five years of trades. Very often a trader or stock picker may have a good one or two years but then their system doesn’t work any longer. We live in most unusual times with very volatile markets. Only those savvy traders who can adjust quickly are able to stay ahead of the curve. These are the gurus you want to search out.
One Internet site that features great traders is The Traders Network at http://yorba.tv/component/k2/item/491-traders-network-2-3pm-mon-apr-08. Michael Yorba, president, interviews via radio broadcast top traders in stocks, commodities and mutual funds. Many of these top traders have subscription services. Most of them publish their own track records. Many will provide specific market trades, when to buy and sell and at what prices.
Another comprehensive free Internet site is http://www.barchart.com/stocks/marketoverview
This site is packed with data. You can scroll down and find the 52- week highs and lows, all time highs and lows. volume leaders, percentage gainers and losers, and gap up and down stocks.
Another section gives you top performers for specific intervals from 5 days to 10 years.
Still another grouping includes indices, signals, hot stocks, news and stock screener.
As you can see, there are many ways to approach your search. The key point to remember is that the time spent searching for your best stocks is one of the best ways to increase your bottom line profit.