Choosing Symbols

Choosing the right symbols is critical. There are terms like "fundamentals" and strategies like "value investing" and "technical trading" that guide investor decision making.

Here's my take on choosing a symbol to trade (or if I put it in my blog terms, how I choose a "boat" to set sail with.)

I use a combination of several criteria when choosing a "boat" (symbol) to sail with. Here are some of the considerations:
  • The "boat" structure and durability. I've set sea with some terrible symbols and each treacherous voyage with a weak "boat" has been stressful and sometimes painful. To determine the "boat's" integrity and reliability I will look at various factors such as:
    • Is the symbol profitable?
    • How much debt does the symbol have?
    • How long has the symbol been in business?
    • Is the symbol growing?
    • What is the symbol's P/E ratio?
    • What industry or sector is the symbol in? What is the outlook for this sector? Do I have an interest in this sector?
Trading Tide Levels:
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This is for informational purposes only and the information provided does not encompass all possible or probable outcomes and nothing posted here is an indication of future results. Nothing in this blog is a guarantee or promise of future investment returns and investing in stocks or bonds carries risks including losing your entire investment. I do not recommend, advocate or endorse any third-party links, resources or advertisements of any kind. Any investment decisions are recommended to be in conjunction with a Certified Financial Planner, a comprehensive and personal financial plan and all other components that make up your own financial situation.

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