Title: My Approach To Picking Stocks
Category: Other
Blog Entry: When it comes to stock investing, I try to avoid acting on a whim. Before I commit my hard earned money to a stock, I like to follow it for a while. Like dating a girl, you only get to know her better by spending more time with her.
Using fundamental analysis, I like to look at their balalnce sheets, return on equity and profitability. I tend to have preference for companies whose executives are boring, stick to the basics and make no huge promises. I find that the media seeking attention types tend to deliver negative shareholder returns. If these CEOs appear too often in the media, I would avoid that company. Everybody knows who Carly Fiorina is but who knows the CEO of Exxon.
Once I decided to buy or sell a stock, I use the charts to determine the ideal entry or exit points. When it comes to technical analysis, I keep it simple. I rely a lot on moving averages, trends, MACD and RSI.
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