Where to find the right trades?

Now this is a very good question when you are considering fundamental analysis. Where do you look for ideas for trades? Well Robbie Burns suggests the following four places in his naked trader book: Newspaper roundups, Investment magazines, And then two places on ADVFN. Their news wire and top lists. The top lists are basically things like % movers, breakouts etc. These can also be found else where such as yahoo finance for example so signing up to ADVFN is not essential. Newspaper round ups, well I don’t know about you but I don’t get a daily news paper these days and I’m sure you can most likely access this sort of thing for free on the internet so when I find a good source I’ll be sure to let you know. Investment magazines such as shares magazine and the investors chronicle. Well again I’m probably not going to pay for a subscription so I’m going to be using spread bet magazine and the blogs at spreadbetmagazine.com. They have some great articles and are certainly worth a look when looking for potential trades.

 

This is by no means an exhaustive list I would say that a potential trade can come from anywhere and everywhere. There are some sources that you do need to be weary of however and indeed, Robbie mentions internet tipsters/tip sheets, bulletin boards and column gurus as places to avoid if you can. That said I don’t see that there is any harm in looking in these places but just be weary of what you are actually reading. I don’t think you should ever trade on the basis of what someone else has told you without being happy in your own mind that the trade is the right thing to do. Not only does it give you an excuse if the trade goes against you “Well it’s not my fault, he said this and that” but it could also mean you becoming dependent on others for your trades. Again this is a bad idea because what happens when that person disappears?

 

So there we have some sources of potential trades. Next up is researching those potential trades to see if they have potential or not. I think that will be a job for tomorrow. If you’re interested in reading The Naked Trader: How Anyone Can Make Money Trading Shares grab a copy.