Best Stock Advice

Best Stock Advice

By
www.CandlestickForums.com

Oftentimes the best stock advice is very
simple.


The best stock advice should lead to the
most stock portfolio profits, the best
stock trading profits, and the best
containment of investment risk .


Best stock advice should not be
confused with stock tips .


The best stock advice has to do with
learning how to trade stocks , how to
pick stocks, and how to manage
investments.


The old saying is that if I give you a fish
you will eat for the day and if I teach you
how to fish you will eat for lifetime.


Therefore the best stock advice is to
learn to search for and analyze stocks for
both long term investing and for day
trading .


It is to learn how to manage investment
capital and it is to learn how to spot
investment opportunity in the continual
fluctuation of stock prices .


Learning the use of Candlestick analysis
gives long term investors and traders an
effective tool for anticipating changes in
market sentiment and subsequent stock
price changes.


Although dividend stocks can provide an
investor with a steady return on
investment it is stock appreciation that
provides the lion•fs share of stock
profits.


The best stock advice is, thus, to learn
how to anticipate stock price
appreciation.


Long term investors look for two
basics, a margin of safety and intrinsic
stock value .


A margin of safety in the form of
unencumbered hard assets and cash in
hand provides a company, and its stock
price, protection in times of economic
difficulty and stock market crashes .


. Intrinsic stock value is the forward
looking income stream of a company
and is the key to expected stock price
appreciation.


The best stock advice for a long term
investor is to pick stocks with both
strong growth prospects and sufficient
cash or hard assets to help them
weather an occasional economic
downturn.


That leaves the issue of when to buy
stock and when to sell stock .


With the use of Candlestick pattern
formations the investor as well as the
trader can pick and choose when to
most profitably enter and exit a stock
position.


The best stock advice for traders is to
learn how to choose promising stocks to
trade and to learn the skillful use of
technical analysis tools such as
Candlestick charts .


While investors seek to profit from
stocks with long term growth potential,


stock traders take advantage of the fact
that stock prices rise and fall.


Traders profit from selling short, trading
options, and buying at the bottom of
price curves as well as selling at the top
during a market reversal .


With the skillful use of technical analysis
with Candlestick patterns traders
commonly profit during periods of
confusion and market volatility .


With Candlestick signals as a
guide, traders avoid the pitfalls caused
by the psychology of trading .


They can trade profitably in up and
down markets and sometimes the best
stock advice is to sit out trades when the
market makes no sense.


It is a little like the movie, •gWar
Games,•h in which the young man
teaches a computer that there are no
long term winners in tic tac toe.


The use of Candlestick signals gives the
trader as well as the long term investor a
rational means of trading the stock
market based


upon market history and the fact that
trading patterns repeat themselves.


Typically the best stock advice is simply
to follow Candlestick signals and trade
accordingly.


Best Stock Advice

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