Analyze different stocks and markets to understand trends leading to successful trading and possible long term investments
Thursday, April 10, 2008
US Steel- X and AK Steel -AKS
Two of the hottest stocks of 2008- US Steel (X) and AK Steel (AKS). Steel is one of the strongest sectors of 2008 and X and AKS lead the way.
Both of them sport a PE of 19. But AKS has better profitability and cash flow. TA-wise both stocks are at yearly highs. You want to be long this sector and specifically these stocks.
I have been actively trading for the past 3 years. After 2 years of struggling with stocks, I reached an inflection point in October 2006 and have been making good profits since then. I learnt that identifying trends early and focusing on the fundamentally best stocks in that trend is very important. Moreover just fundamentals are not good enough. You need to complement that with good Technical Analysis to pick great entry points and exits. They say a picture speaks a thousand words and I strongly believe in that. I use trendlines, Fibonacci and Elliott Wave theories as part of my TA tool sets. Last but not the least, one needs to keep accurate trading records and have a sound money management system to succeed.
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