Question

How do I find a good short term stock to invest in?

How do I know if a penny stock will go up?

A good long term stock to invest in?

What do I need to look at?

Answer 1

1. A good short term stock can be found to be invested into, after analysis of various technical trends because in the short term one can be e looking to invest into shares after analysis of short term trends, which can be based primary upon technical analysis, because fundamental analysis is generally meant for medium or long term.

One can look for moving averages like short term moving averages in nature, and if the stock is trading above the moving averages, and if the stock is also trading above various resistances, it will mean that the stock in a bullish territory and there are high probability that in the short term it will continue to go higher.

It can also be found out after quarterly results when the short-term trend have changed bullish due to reporting of a very good quarter which led to increase in the earning of this year.

2. Penny stocks generally go up when there is a news based rally which will be primarily driven by mergers of those shares into another company at a higher price or acquisition of those companies into another companies at a higher price as well.

These Penny stocks can also go up when short term reversal can be seen in the long-term charts and indicators of the long-term reversal and their is strong bounce back in the fundamentals of the company and the company is a strong takeover candidate as well.

3. Good long term stocks can be found out to be invested into after analysis of various fundamental traends which are driven by strong projections for the company in the long run and there is a growth and expansion of the company which is projected by various analyst in the long run, so when there is a leadership of stocks in the long run in particular industry, it will mean that these shares are going to go higher because they will have the premium in their valuation in comparison to their peers.