To Be Successful You Must Follow the Money
The stock market game is one where you follow the crowd or the heard, the only caveat is dont be last in , sure it may difficult to be first in and more risky, but if you get in reasonably early you will bank profits. You must follow the money.
Yes, you can subscribe to some fancy stock picking newsletter who has an idea on a stock that may or may not explode, but if you dont check the money flow before you buy you maybe the only one following it. Your investment decisions will improve if you are on the right side of the money flow.
Readtheticker.com has three ways to follow the money.
By the group or index or sector: Using our Alpha scanner (relative strength scan) you can see which stocks in the index or sector that are much loved by Mr Market.
For the individual stock you can watch the RTTTrendPower: This is indicator helps you determine if volume supports price action.
Create a chart that shows the stock as a ratio to a index: For example to view AAPL performance to the SP500, you would create a chart that is AAPL divided by SP500 (our symbol AAPL::!SP00).
A well established approach for success in the stock market is to maintain a small but well selected portfolio of market leaders, know the trends and accumulate stock float on dips. The selection of market leaders should be determined by comparing alpha (or relative strength) of the stock to a benchmark index.
The table below shows the hottest alpha stocks versus the SP500 for the last six months.