Is it better to trade stocks that follow the market or stocks that don't?
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Hello, I'm new to trading stocks, I watch the emini S&P to see how the overall market is doing. Well, In the morning when I see how the emini s&p is doing, the stocks that I watch will gap up or down depending on what the market does. During the day I have noticed that individual stocks will do what they want, but for the most part follow the market. I'm just wondering if it is best to trade stocks that are not influenced by the overall market? If the market is having a bad day, then the stocks that I have been watching do as well. It seems like watching the overall market is the most important thing to consider when trading stocks.
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Answer:
It is not the most important but one of the most important thing you can look at the understand the market condition from the macro-perspective before you trade. When dealing with individual stock, you can either invest based on fundamental or technical analysis or both. Conventionally we all use the fundamental analysis such as EPS analysis below: http://financialindependent.blogspot.com/2011/10/using-earning-per-share-eps-to-analyse.html Hope this helps.
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Other answers
Ehhh... stay out of the stock market right now. There's no rule of law. Just look at the MF Global scandal if you need proof... customers' accounts were stolen and nobody has been arrested. The bond markets are a complete mess, too. Right now we're at a very wild junction in history where 3 main currencies (the pound, the dollar and the euro) are all tanking at once, and there are no safe havens other than metals and trade goods. The last of the safe haven currencies just disappeared... the Swiss decided to debase their currency by pegging it to the euro. Right now... the only thing you really can do is preserve your wealth by purchasing silver and gold and storing them yourself.
revsuzanne
Common Sense
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