Strategy - Finding stocks that are unpopular on Wall Street and likely to outperform in the coming year.
Follow my Personal Portfolio of stocks with a goal of selling within one year.
Week of 30, January 2012 · Issue 881 © 2012 Pat O'Neil
When a stock is attracting HIGH VOLUME, I like to compare it to one person knocking on your door versus 1000 people knocking on your door...Obviously, 1000 people at your door would tell you that something important is going on.
High stock volume can come from good news, bad news or fake news. Usually a quick look at Yahoo/finance will lead you to the answer.
Once seeing what news caused the high volume, an investor must BUY, SELL or DO NOTHING.
..We do this by asking ourselves ONE question: “Is the one GOOD reason of WHY I bought this stock, still intact?”...If it is, do nothing and forget the news. If not, get out.
To get your stock's average trading volume go to: http://finance.yahoo.com/ and type in your stock's symbol. The 3 month average volume is in the right hand column.