Sign-up for our 21 day free trial!

The contents on this page are a small sample of StockTradersHQ's member resources (FREE Trial!)

1. Our staff of professional technical traders analyze 1,000's of potential stocks every day to provide you with a list of stock picks with the greatest potential for explosive gains.

2. These stockpicks are traded with our real-time portfolio. Email alerts are sent for every entry and exit. Through the member-only website, you will have our support every step of the way.

3. Our subscription service provides all the resources, stock picks and tools an investor needs to make very profitable, consistent trades while maximizing gains and minimizing losses.


The Analysts Analyzed: Part 3

Something else I like to look for is how many analysts are covering a particular stock. Even if there is a lot of coverage and they all have buy ratings on it I would not buy a stock based on that alone. Why Because if there is a consensus that the stock is a good buy then there is a good chance that it is already overbought. In other words the important money managers and institutions who can move the stock price up with the volume used to purchase their positions are already in the stock.  If this is the case there are no big buyers left. 

So if we do not want to buy stocks with buy ratings what do we look for Here is an interesting way to look at things. If you are a longer term investor start by looking for stocks that have neutral ratings by big firms like Merrill Lynch and Goldman Sachs.  If they are still following the stock it means they are still interested in the company's story. If so there is always a chance they will upgrade it later.  They still have hope for the company or else they would drop coverage altogether.  Sooner or later they may put the stock back on the buy list with an upgrade. This of course will drive the price up in the short term. 

And remember this by the time they get around to upgrading a stock you bet they have accumulated all the shares they want before the upgrade.  Chances are the stock you bought while nobody liked it has risen in a steady uptrend for awhile while the slow accumulation occurred.  And when the upgrade comes you should probably sell at least half of your position because you can bet the analysts firm is also selling into the upgrade dumping some of the shares they accumulated on the cheap while they were not recommending the stock.  

Brokerage Rating Systems
You must make sure you understand the rating system used by each brokerage.  For example unless you are familiar with the scale used by Goldman Sachs it may not be obvious that a market outperform is not such a good rating.  It actually ranks third best in their ranking system behind recommend list and trading buy. 

Lastly there are not many sell ratings in the analyst's community but when one finally does come out it has lasting effects on a stock.  The effect of a downgrade to sell will last much longer than the impact of an upgrade to a buy.  In other words you can buy a stock a few days after the upgrade because the effects of it have worn off and the stock has settled back down. But when there is a downgrade to sell you never ever buy that stock. This is the only time I would ever listen to an analyst.  When they say to sell you must sell.  The negative effects of a change in a rating to a sell tend to linger for a long time and the chances are good that the stock will continue to drift lower in an extended downtrend for months or even years. 

The bottom line is when the rating changes for one of the stocks you follow you will be faced with the task of trying to figure out what to do.  Unless you are a premier client chances are a lot of people have heard the news before you and unfortunately the price will have already moved by the time you find out about it.

Copyright 2003-2006 StockTradersHQ.com is owned and operated by The Winners Edge a subsidary of DMC Systems LLC. All rights reserved.   This web site is optimized for Internet Explorer 5.0 or greater!DISCLAIMER  [Articles| Bulletins| Charts]

^GoTo Top^

Buy Outlet Canada Goose Jackets Parka Online Buy Replica Prada Clutch Bags Online Buy Replica Hermes Birkin Bags Online Buy Replica Celine Clutch Bags Online Buy Replica Christian Louboutin Shoes Heels Online prada bags replica celine bags replica christian louboutin shoes replica hermes birkin replica canada goose jackets outlet Replica Canada Goose Jackets Parkas Coats Vests Outlet Sale Replica Hermes Birkin Bags Kelly Handbags Replica Prada Clutch Bags Messenger Handbags Outlet Sale Replica Celine Luggage Tote Bags Replica Christian Louboutin Shoes Heels Sandals Pumps Outlet Sale Canada Goose Jackets Sale Prada Mini Luggage Tote Bags Sale Hermes Birkin & Kelly Bags Sale Celine Mini Luggage Tote Bags Sale Christian Louboutin Shoes Heels Sale Celine Bags Luggage Tote Mini Outlet Sale Prada Bags Clutches Purses Outlet Sale Canada Goose Jackets Outlet Sale Toronto Christian Louboutin Shoes Boots Outlet Sale Hermes Bags Birkin Purses Outlet Sale Canada Goose Jackets Canada Goose Jackets Outlet Authentic Canada Goose Outlet Buy Canada Goose Outlet canada goose outlet cheap canada goose sale Canada Goose Online Jackets Canada Goose Parkas Outlet Buy Canada Goose Parkas Cheap Canada Goose Jackets Canada Goose Outlet online Cheap Canada Goose Men Jackets canada goose cheap canada goose men outlet canada goose outlet canada goose jackets sale Official Canada Goose Jackets Men Online Shop Official Celine Bags Luggage Tote Mini Online Shop Official Prada Bags Luggage Tote Online Shop Official Hermes Bags Birkin 30Cm Online Shop Official Christian Louboutin Heels Shoes Online Shop Designer Christian Louboutin Shoes Heels Sale Outlet Designer Celine Bags Luggage Tote Sale Outlet Designer Hermes Bags Birkin Sale Outlet Designer Prada Bags Messenger Sale Outlet Designer Canada Goose Jackets Men Sale Outlet Cheap Canada Goose Parka Canada Goose Jackets Online Hermes Bags Birkin replica Prada Bags Clutch Sale Replica christian louboutin shoes outlet Canada Goose Men Jackets Outlet celine Luggage Tote bags Canada Goose Outlet Store canada goose outlet Hermes Birkin Handbags Outlet Sale Celine Handbags Trapeze Outlet Christian Louboutin Shoes Outlet Sale Prada Handbags Clutch Outlet Sale Canada Goose Parka Outlet Sale canada goose mens parkas Christian Louboutin Shoes Outlet Celine Micro Luggage Tote Bags Outlet Canada Goose Jackets Men & Women Outlet Prada Clutch Bags Outlet Hermes Birkin Bags 30Cm Outlet replica hermes bags, cheap celine handbags, Designer Replica bags, canada goose outlet toronto, Canada Goose coat clearance sale www.eranimation.com Canada Goose deal louis vuitton wallets Moncler Outlet hermes Sale woolrich moncler male Canada Goose Jacket