Continue reading...There are many ways to trade, but I like combining some fundamental, knowledge or perhaps some news, an understanding of technical analysis, a grasp of how markets behave and the ability to read sentiment as demonstrated in price action, buy/sell pressures and the actual trades printing off ? the deals being done.
This may sound a little involved but is actually quite easy with a little knowledge, common sense and reading the market.
On September 1st I made a list of those stocks that were already benefiting from buying interest, (or selling pressure like some insurers), in the wake of the devastating Hurricane Katrina. Building material stocks, alternative energy stocks, insurers, specialist manufacturers of rescue products were of interest, as were oil and refining stocks. You don?t need an encyclopaedic knowledge to do this; you just need a basic news service that tells you such things pre-market.
One such stock was an alternative energy one, FCEL, which had already risen...
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