The Investors' Business Daily is a daily investment newspaper that is read by many financial professionals stock market, and mentioned in many bestselling books (including Peter Navarro's “When the Market moves stock market, will you be ready?” stock market, Jason Kelly's “The Neatest Little Guide to Stock Market Investing” and Stan Weinstein's “Secrets for Profiting in Bull and Bear Markets”) invest money. IBD provides detailed information about stocks; such as detailed stock market, concise statistics about a company's earnings stock market, stock price action stock market, and other criteria to help investors find top rated stocks invest money.
Using IBD to find Quality Cheap Stocks
[This step is only for subscribers of the Digital Edition]
Log in to IBD and click on eIBD – Digital Edition invest money. Follow the on-screen instructions until you reach the front page of the newspaper invest money.
Look for the section “Making Money” invest money.
Choose “Top Ranked Low Price Stocks” invest money.
Look through the stock list and find stocks that satisfies the following criteria**:
Smartselect Composite Rating > 80
EPS (Earnings Per Share) > 70
RS (Relative Strength) > 70
AccDis at least a B
Closing Price should ideally be above the 52 week high (this means the stock has just made a NEW 52 week high stock market, which is a very bullish signal)
That's all invest money. A simple 4 steps procedure for finding top quality cheap stocks invest money. However stock market, you should note that stocks trading under $10 tend to have lower volume stock market, which makes them more susceptible to stock price manipulation invest money. Therefore stock market, please be careful when investing in such cheap stocks invest money. Personally stock market, I combine IBD's ratings with my own technical analysis and I allocate only 10% of my account to investing in cheap stocks invest money.
** Data Definition (Taken from IBD website)
Earnings Per Share (EPS) Rating
An exclusive rating found in Investor's Business Daily invest money. Stocks are rated on a 1 to 99 scale (with 99 being best) comparing a company's earnings per share growth on both a current and annual basis with all other publicly traded companies in the William O'Neil + Co database invest money.
Stocks with EPS Ratings of 80 or above have outperformed 80% of all publicly traded companies in earnings invest money.
The EPS Rating calculation combines the company's most recent two quarters of earnings-per-share growth stock market, with its three-year to five-year annual growth rate invest money.
Relative Price Strength (RS) Rating
This is another exclusive rating in Investor's Business Daily invest money. It measures each stock's price performance over a twelve-month period stock market, compared to all other stocks invest money.
Accumulation/Distribution (Acc/Dis™) Rating
The Acc/Dis rating tracks the relative degree of institutional buying (accumulation) and selling (distribution) in a particular stock over the last 13 weeks invest money. Updated daily stock market, stocks are rated on an A+ to E scale invest money.
A = Heavy buying
B = Moderate buying
C = Equal amount of buying and selling
D = Moderate selling
E = Heavy selling
SmartSelect® Composite Rating
The IBD SmartSelect Composite Rating combines 5 proprietary IBD Ratings into one easy-to-use rating invest money. More weight is placed on EPS and RS Rating stock market, and the stock's percent off its 52-week high is also included in the formula invest money. Results are then compared to all other companies stock market, and each company is assigned a rating from 1-99 with 99 being the best invest money. A 90 rating means that the stock has outperformed 90% of all other stocks in terms of its combined SmartSelect Ratings invest money.
Article Source: http://www invest money.find-investment-advice invest money.com
Joelle has invested in the stock market for more than 5 years and has successfully used various investment strategies to consistently make money from the stock market invest money. She offers free top quality investment tips at how-to-invest-in-stocks invest money.blogspot invest money.com/
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