Monday, November 7, 2016

Stock Selection That Matches Your Trading Style

One of the most important aspects of finding great stocks to buy is to select those that support your stock trading style. Many times, we get caught up when we hear about a great stock that is moving and maybe we even purchase a few shares for our portfolio. The problem is that unless we are careful, we could find ourselves trying to manage a stock that doesn’t agree with our trading plan and our overall investing objectives.

Ignoring the finer aspects of our trading style is something that is easy to overlook in the heat of battle. However, the truth of the matter is that we mustn’t ignore this important point. Understanding the type of traders and investors that we are is critical – it will often determine whether we succeed or fail as stock investors.

List below are some helpful links about care stock selection:

picking stocks3 Mid-Cap Stocks to Buy in November — The Motley Fool – With winter approaching, how about warming up your portfolio with some quality mid-cap stocks that could earn you good returns in the long haul? Mid-cap stocks are typically well-established companies with a market capitalization between $2 billion and $10 billion. While that saves them from the volatility that small-cap stocks suffer from, mid-cap stocks also usually possess greater growth potential than large-cap companies, making them a great investment option.

Todd Campbell (Molina Health): One mid-cap stock I’m watching like a hawk right now is Molina Health, a health insurer with big exposure to Medicaid, Medicare Advantage, and Obamacare that could benefit if Hillary Clinton wins the White House on Nov. 8.

Buy This ETF To Cash In On Holiday Sales – SPDR S&P Retail ETF (NYSEARCA:XRT) | Seeking Alpha  – Political, economic and interest rate uncertainties have caused the longest period of decline in U.S. equities markets since the year 1980. Retail stocks haven’t been exempt from overall trends in the market, leading XRT to be trading at historical lows. Historically, this week has been the best time to buy into retail stocks if you plan on selling before New Year’s Day and XRT is a well-balanced portfolio.

When it comes to retail, business is cyclical. Any retail manager will tell you stores have busy and slow times of the day, busy and slow days of the week, busy and slow weeks of the month, and busy and slow months of the year. When it comes to the retail industry as a whole, the trend is magnified. A seasonal play on the retail sector is easier than ever with the SPDR S&P Retail ETF (NYSEARCA:XRT) and for good reason. Retail stocks often perform best leading up to the Christmas/holiday shopping season. Many retailers report between 20% – 40% of annual sales during the last two months of the year. With retailers gearing up for the holiday season and U.S. stocks on their longest streak since 1980, XRT may be ripe for the picking for a short-term seasonal (30-45 day) play.

5 Stocks to Buy as Election Heads for Close Finish – November 7, 2016 – Zacks.com – Hillary Clinton’s campaign for the White House received a major boost when the FBI said on Sunday that it was standing by its earlier position on her personal emails. The central investigating agency said that it continued to recommend that no criminal charges should be pressed against the Democratic nominee.

Though this development may bring interim relief for stocks, investors are likely to remain largely unmoved. Donald Trump has been gaining steadily in recent polls and these advances may not be completely due to the impact of the FBI’s recent investigation on Clinton’s personal emails.

Trump may yet have a slim chance of entering the White House. Though it is difficult to predict whether this will indeed happen, the best way to prepare for such an outcome would be to add low beta stocks to your portfolio. Beta measures the tendency of a stock’s returns to respond to market swings. And this type of stocks would be the best bets to protect yourself from potential losses.

Obviously, we are expecting some volatility from the election. Stock traders must tread carefully for the next few days until the election jitters work themselves out of the markets.

 

 

 

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from Investing Insight http://investinginsight.org/stock-selection-matches-trading-style/

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