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You must be often fantasizing about how some people are able to achieve incredible profits by trading stocks just a few hours on a daily or weekly basis. There are literally thousands of stocks, mutual funds, and exchange traded funds in the modern day stock market. This is the main reason why it is very difficult for the average person sitting at home to discover profitable stocks consistently.

So, moving further than this hype created by the ‘trading gurus’ who invoke the real secrets and tricks of the stock market, we tell you the best picks of 2010. We will reveal – how to choose the stocks, when to buy and also when to sell them, enclosed within the trading set ups and market signals you can rely on to make wise decisions. So the clearer your set ups are, the faster you can spot a potentially profitable trading scenario and act on it reducing your risk.

One of the leading India magazines had recently published a list of 20 stocks to buy. These stocks could prove winner in stock market. With the emerging Indian market it better to invest in Indian stocks for the 2010 investments and avoid the financial crunches. But how do you get the juicy stocks and avoid the dregs? The answer should be based on the last year financial statuses. The global market was badly beaten so, avoid stocks with global linkages, mostly. Go for companies that feed off domestic demand.

You have to filter the stocks to get the cream and we think four themes act as superb filters to get to the cream. Within these four themes, we have picked companies that have high return on capital employed, profit and revenue growth along with a strong connection to the domestic market. Large companies are very poor at new technologies and very slow and often unwilling to do what is required to keep up with the ever changing world. However they are not dumb, they will be buying out lot of small start up companies that look like they have a good business plan and product. Mid-cap stocks tend to be more volatile than large-cap stocks. However, the fickle is more in stock price than in fundamentals. Care must be taken to select the best stocks, with robust fundamentals.
 
Stocks from the foreign shores have been losing after the mid 2009 and hence, you must be smart and picky in 2010. You may be confused and slow during the start because of the complicated technical systems and information; resulting in loss of money instead of making your profits grow. Stock trading doesn't have to be complicated as many people perceive. But you do need to follow a well organized set of rules and tactics, that once you master them, you can aspire to replicate profitable trades with consistency. For investors, 2009 was a year when hopes of economic recovery sent a wide swath of the stock market higher. Even the market's most troubled companies had shares that doubled, tripled, or even quadrupled their prices.

Therefore the essence is - Strong individual results—especially unexpected earnings and sales growth—could help certain stocks stand out from the crowd. You can be sure that the trading method you employ to approach the stock market and pick stocks can make a big difference in your results as a trader. In order to succeed you will need to concentrate on a set of simple trading strategies that you can implement without hesitation.

The best 2010 stock picks cover everything from energy stocks to dividend stocks to technology stocks. And the prospects for automobile companies may look better if they continue to get access to cheap raw material. But that may not be the case for metal and oil suppliers, who still suffer the overhang of poor prices globally. With this your must be on picking great long-term growth and income generating stock investments that we can own for not just the next week or month, but for years to come.

You must always read and be acquainted with the current market conditions. There is simply no other way to prepare yourself for this difficult yet incredibly rewarding activity, but to read and put into practice as many ideas as you can, at least by paper trading first. Eventually, you will understand that both up and down markets speak for themselves.

 

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