Day Trading & Forex Forum

jonboy123

hi
im learning to trade at the moment.
Ive read someones advice, which said pick a few hot/big/active industries and choose 5 or 6 companies within that industry, to follow their stock. To learn.

Where should i be looking?

Thanks.

Best to stick to uk companies first?
Or is the main action in american markets?

rups

i personally would stick to the uk for now if thats where your from, and secondly i wouldnt restrict myself to companies who trade purely in the uk...look for global diversification. You might want to look at oils and miner. they are interesting bunch at this level.

look into the size of the business (market cap)...look at profit ranges - and net assests (does this business have strong foundation) and more importantly with the lending crunch on does the business have cash in hand. i think its better if you pick the stocks yourself and make sure you have justification to why. once you have picked a couple back..email me and i will run through them with you. good luck

jonboy123

thankyou. yeah im gonna learn using uk stock market.
i just wondered, i might be missing some obvious info...eg like few years ago the dot com companys and internet craze was happening place at that time....so just wondered what industry etc is like taht now...

ill browsed the ftse and other lists... and have been keeping tabs on about 20 or more random companys, which appeal to me....for one reason or another, either been in news, or ive heard a tip, etc.

rups

keep an eye on oil and miners. but the opportunity at the moment is a rare on. watch the volumes of stocks moving. there are lots of possibilties in this environment.

chump

To trade volatility you can watch "hot sectors/stocks"....to learn to trade you will not touch those until you have mastered whatever system you use on something less volatile.Ignore that advice and the probability is we won't be hearing from you again.

__________________
Distance = Perspective

rups

chump - i have to admit i ate my hate watching financials break through 4000 - bravo

jonboy123

afren ?

bp?

when the volume historgram is going haywire with lots of volume being traded....this mean price may rise ? or does it mean it could go either way?

rups

Hi,

BP - Im not so sure - if im optimist i would say yes this is a long term hold. short term there is alot of movement around here - yes volume is high as it is today with more buys than sells but it depends what type of trader you are....I am a much more fundementals trader - i look at the whole picture of the stock as opposed to only the industry. If you look carefully into the detail of this stock it has lost all its major shareholders. there might be something in that...or maybe not? it also has ongoing conflict with russia where it has a big presence...this may get worse...this is how i work out my risk to reward...other traders will laugh and tell me that the candlesticks and level 2's are this and that....so at the end its your money and you win and lose by your decisions.

AFREN - I think its only right to disclose i am a shareholder here. Why? It is backed by some powerful investors, the growth potential is much bigger...it has recently had quite a large potential discovery, which could completly change the face of the business, last balance sheet showed a substantial cash holdings which could see it through this crunch. Down Side - not making proft, infact worse year on year however this type of indstry needs investment in discovery and machinery before it can turn into profit. Its the right size for a takeover - the spreads are high however so keep an eye on them.

You have to appreciate these are very volatile stocks, and i would not recommend you be looking at them if oil was $125 per barrel but as it stands circa $50 its a interesting put. AFREN CAN CHANGE 20% DAILY SO BE WANRED IF YOU CATCH ON HIGH YOU WILL HAVE TO SIT ON IT AND WAIT...BUT PERSONALLY I BELIEVE ITS WORTH IT.

It doesnt really matter what stock you pick, what matters is you know why you picked it.

Are you going to spread bet or buy holdings?

I hope this helps...

Rup