Be the first to like this
Follow Investment Capital
A useful means of picking stocks for either long term investing or for day trading is to follow investment capital. This is a little like the old adage which says that if you want to understand a problem, follow the money. Two current news items bring this to mind. GM has come back from bankruptcy and is pouring investment capital into plant improvements across the USA. Capital investment in China is said to be moving inland. Once an investor has picked stocks for his stock portfolio or the trader has picked volatile stocks to trade the next important step is to use technical analysis tools such as Candlestick stock charts to gauge market sentiment and buy stock or sell stock at the optimum stock prices .
Investors commonly use statistics such as employment figures or the US balance of payments as well as specific company financial reports for fundamental analysis of stocks . They also watch insider trading information as reported to the SEC. Another useful stock trading and stock investing strategy is to follow investment capital. China continues to grow their economy at near double digit rates and now, just months after its return-from-the-dead IPO, GM is budgeting $2 Billion in plant upgrades across the nation. The point is that investment capital follows opportunity and can light the path for other stock investors and traders .