I am a big fan of the Canslim investment strategy. It’s an investment philosophy developed by William O’Neil of the Investor’s Business Daily. It can help you analyze the overall market to things more specific like how to analyze a utility stock. In analyzing a stock like that what you would do is first look at earnings and sales. You’d like to see those over 25% each in growth. After that, you’ll want to look at the stocks chart. What is the price and volume action of that specific utility stock, or the stock you are looking at? Once you learn how to do it, you can pinpoint specific buying points, or pivot points, that show the exact optimal buying point for that stock. Using a chart is the best way to do that. Spend time studying stock charts like a doctor would an xray. It’s the best diagnostic tool you have.
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