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I'd choose a tech stock with less than $1b in market capital and little analyst coverage. Anything larger will have been picked apart by the professionals doin
by starpilot 16y ago
I'd choose a tech stock with less than $1b in market capital and little analyst coverage. Anything larger will have been picked apart by the professionals doing this for a living. It'd probably take a few hours of poring through SEC filings and studying the relevant technology to figure out whether it's viable. It probably wouldn't be a name that's mentioned on HN or Slashdot.
- rakkhi 16y agoThats popular opinion but for example I bought apple at 240 at a good rate of leverage and it is sitting pretty behind a trailing stop at the moment.... if you belive in the fundementals, follow the industry (i.e. invest in what you know) no reason why you cannot get good returns with large cap stocks
- chengas123 16y agoWhat do you mean by "good rate of leverage"? You traded on margin at a low interest rate?
- rakkhi 16y agoI meant because it is a CFD I am getting 25 / 1 exposure. IG markets interest is very low also though
- ddoonie 16y agoI must agree with this method. There is no substitute for researching companies. I'd filter a bunch of 10k's and look for abnormalities etc.. You can start with the typical top down approach - decide what your view is on the economy, pick an industry you think is poised to do well or badly in those circumstances, start filtering firms that fit in with your assumptions. Look for the drivers of revenues and costs for these firms and see if you can find anything that is 'abnormal' and make a play based on those...