Key five is to read the company's press releases. Most people use Yahoo Finance, Google Finance, or their broker's news service. Dow Jones Newswire also has a reliable pay service. There are many others out there and some may be worthy of mention, but the ones listed above seem to be the most widely used by the typical trader/investor. Do not trust your researching to just one news source. Sometimes typical sources, for whatever reason, don't hold some company headlines in the history and can be found from other sources. Don't just read the latest headline; older headlines can keep a stock down for large periods of time. Things like share dilution, earnings warnings, discontinuation of dividends, main company officers resigning, loss of large clients or general industry woes can keep potential institution investors (the big money) and day traders away from a stock. On the opposite spectrum good news like share buybacks, increasing number of contracts/customers/sales, and improving earnings guidance can all keep cash flowing into a stock for long periods of time. Also take into account the frequency of the press releases. A company that has a good public relations team and keeps investors interest is more likely to get frequent moves up or down based on news. Analyst comments also tie into this. While largely biased and generally unreliable, Wall Street analysts do have access to the best information out there. Their comments may give you insight into situation not previously discovered in your prior findings and give you a reason to study further to validate or dispel their hypotheses about the company's immediate future.
Key six is to know the companies upcoming events. Find out when the company's next earnings are, if the company is in the retail business; know when same store sales come out. For energy stocks; know when oil and natural gas inventories come out. If it is a biotech or pharmaceutical company, know the stages of their drugs and when FDA results are expected. Find out about trade shows or conferences that a company is attending. Trading has enough potential surprises without being caught off guard by information that is easily accessible.
Mr. Jenkins is a full time daytrader and author at : Article Submission Service
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