September 25, 2010

Share picking advice for ASX please.?

By Planet Wealth

I have been paper trading for a couple of months now and I was wondering whether anyone could suggest an simple way to pick shares, either with strength (long) or weakness (small)?

It would be a bonus if the share picking systems suggested considered some basic fundamentals.

I know you need to spend money to make money, but if the system involved the use of free or at least reasonably priced methods – that would be the greatest bonus of all!

For example, just browsing through some Youtube videos I found an example where a guy uses the U.S. version of Etrade’s CLEAR STATION site (which is free to join but which only sorts through U.S. stocks):

He is able to quickly (and for free) pick stocks which:

1. Have just had a record price breakout

2. Have done so on increased volume

3. Have a P/E ratio which is below the average for the industry group.

This system also has the benefit of being able to click a “bulk charts” link which brings up largish thumbnails of charts of the chosen stocks, all on the same page. You can then quickly scan for stocks which suit your personal, technical setup.

Another video has a guy using Google Finance to help pick stocks (again, only U.S. stocks):

Here, stocks are chosen (quickly and for free) which fit the following criteria:

1. Have had at least a 100% 52 week price change

2. Have a minimum last price of at least and a maximum of (less volatility)

3. Have a minimum average volume of 200,000 shares

So, I guess I was wondering whether anyone had a setup like this for the Australian market, which may or may not consider basic fundamentals, but which is free (or at least not prohibitively expensive)?

Thanks a lot.

Peter.

Topics: stock market | 4 Comments »

4 Responses to “Share picking advice for ASX please.?”

  1. F S Says:
    September 25th, 2010 at 3:11 pm

    I suggest you study the investment habits of the world’s top investors such as Warren Buffett, Peter Lynch and John Templeton. All of them had one thing in common: They placed a lot of emphasis on value investing. I know of no one in the Forbes 400 rich list who made their money by using price/volume analysis.

    I personally prefer smaller companies at excellent value and long profitable track records (such as UCW and NBL). It is impossible for large institutions who have billions of dollars to make meaningful investments in these companies. Their directors also usually have a large stake in the company so they have a larger incentive to reward shareholders. That is why many small caps provide superior investment opportunities for individual investors.

  2. Karen Says:
    September 25th, 2010 at 3:11 pm

    There’s no "simple" way to make stock selections unless you have a trading system in place. Why don’t you use the parameters from the YouTube vids and see if they fit your style.

  3. HillClimber Says:
    September 25th, 2010 at 3:11 pm

    Clean the blackboard (your comments) and start over. Start with some new thoughts’ You are not picking anything. You are buying, as in putting your money at risk. Buying is simple. Selling is hard and 99% of the game. Any "system" is BS. If their BS system worked, they would be using it to make a fortune and not wasting their time promoting it.

    Read book by Peter Lynch on how he "picked" stocks.

  4. Don Capone Says:
    September 25th, 2010 at 3:11 pm

    Why not combine the methods suggested here? Continue your research developing your own system while at the same time getting advice from a newsletter.

    You can get daily share tips here http://www.australianstockreport.com.au/share-tips/
    and they offer a free trial of their daily reports. Perhaps combining their advice to your experience could be the go, free trial so can’t hurt.

    Just a thought.

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