Best Stock to Trade
Best stock to trade: Let’s talk about the best stock to buy right now.
In order to find the best stock to trade, I thought it would be funny to actually go to Google, so I searched “what is the best stock to buy.”
Finding the best stock
At first, I saw a spammy ad about a penny stock, so I skipped this, then I saw an article: “10 of the best stocks to buy for 2019.”
It’s an article from U.S. News, Money.usnews.com. I visited the website because I was curious to see what they recommend.
If you know me, then you know where I’m going with this.
Don’t believe any advisory. And let me prove this to you.
So, this article here: “the 10 best stocks to buy” came out on November 14th, 2018. So it’s approximately five months later.
This is where they said, well, one of the great stocks to buy is from the legend, Warren Buffet, right? A
nd Warren Buffett, his company has a stock. It’s called Berkshire Hathaway and there’s two. BRKA, which is the horribly expensive one, and then there’s the BRKB.
Let’s take a look at these stocks and let’s see how they’re doing
BRKA
This company recommended BRKA on November 14th. Let’s look at November 14th.
Berkshire Hathaway. Warren Buffett’s company is down 5% over the past few months.
Now that is surprising, right?
Let’s see. What else did they recommend?
CNC
Now, CNC is another stock that they recommended.
Let’s look at CNC, Centene Corporation. It’s one of just a handful of publicly traded health insurers.
So, what can possibly go wrong?
Well, let’s take a look from November 14th, when they recommended it to right now.
If we look at it, we’ll see it’s down 17%. Well, that’s odd, right? I mean, that’s what they said we all should buy this health insurer.
Let’s keep looking.
Apple
Let’s take a look at Apple and how Apple has behaved since November 14th when they recommended it.
They got this one almost right. Up 2% from when they recommended it.
So, let’s see. What else?
Let’s take a look at another two.
I mean, they have 10 stocks listed here. I just want to go through this list and here’s why.
I want to show that these guys, they don’t know more than you, right?
I mean, this is where the surprising thing is, we just looked at it, and even Warren Buffett didn’t do really well. Right now, since November, the stock of his company is down 5%.
Now, Warren Buffett, again he’s in for the long run. But I’ll show you a better alternative here in just a moment.
So, what’s another one?
Sprouts Farmers Market
That’s where they said it’s one of the awesome stocks to trade right now.
Let’s take a look at this. And again, we’re looking from November 14th when they recommended it.
Sprouts Farmers Market is down 25%… 25%! Do I need to keep going?
DuPont
Dow DuPont. From November 14th, slightly down here, they’re down 5%.
Whether you listen to Motley Fool, which is kind of interesting, I mean, they already have it in the name, right?
Or you listen to CNN Money or you hear U.S. news or what whoever you listen to… they don’t know.
There are two important rules for me.
Rule number one:
No long-term investments.
I stopped doing this many, many years ago. I don’t have any long-term stock because long term for me means buy and hope and I don’t do this. I invest short term.
What does short term mean?
5 to 20 days. Because what do you think is easier? To predict what the market is doing over the next 5 to 20 days? Or to predict what the market is doing over the next 5 months?
Obviously, it’s easier to predict what the market is more likely to do over the next few days.
So, rule number one: no long term. Only invest short term.
Rule number two:
For me, No opinions. I rely on indicators. Trade what you see, not what you think.
Whenever I trade what I think or what these guys think, who obviously have no clue of what’s going on, this is when everything goes wrong.
So, the three indicators that I personally like to use are the RSI, The Stochastics, and MACD.
These are the three indicators, and if you would like to know more of how exactly I use these indicators to find the best stocks to trade, go to mytradingroutine.com.
This is where I’m showing you everything in detail. Indicators, for me, are way easier.
Example
If we, for example, look at CRC, one of the stocks that I personally trade right now.
I want to see that the RSI is above 50. I want to see that the Stochastics is above 50. And I want to see that the MACD itself is above its moving average.
When all these three criteria are given, this is when I want to buy.
And again, I don’t want to turn this blog into a long lecture on how I do this.
You can find a video at mytradingroutine.com. It’s 35-minutes and completely free to you.
So, what is the best stock to trade right now?
Well, the best stock to buy right now is the stock that tells you “buy me.”
And how does it stop telling you buy me?
For me, it is based on indicators.
Indicators are a scientific approach. They are easy to learn and are perfect for beginners, and most of all, they are objective.
So, you don’t trade based on an opinion, you trade based on science. And I like this. Must be the German in me.
For me personally, I like to use three indicators because they help me tremendously to tell whether a stock is more likely to go up, down, or sideways.
And when I say more likely, that’s exactly what it is. I can’t predict the market. Nobody can predict the market but using indicators, you can identify what is stock is more likely to do.
I hope that you enjoyed this blog as much as I enjoyed making it for you. And if you know anybody who might find this helpful, please feel free to share it 🙂
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