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When you are looking at a list of stocks in the morning paper it can be pretty daunting deciding which stock to invest in. The more you follow the markets and invest the more you start to build up knowledge about what are the best signs to look for when selecting stocks.
Incisive, honest and essential, Clem Chambers’ 101 Ways to Pick Stock Market Winners is the Amazon-bestselling investing guide.
One of the best signs is “director buying”.
What is director buying? When a director buys shares in a company they run, they have to tell everyone and that is done via the Stock Markets “regulatory news.”
Regulatory news is the stock market’s equivalent to the BBC. Any news a company has which may affect its share price in any way must be released through this channel. A director buying stock in their company counts as news that must be released immediately.
If any of the companies in your list have directors buying then that’s a very strong indication the share is cheap. A director has a good idea if things are going well and if he is tempted enough to buy it’s a good sign.
Company news is an important resource to read up on when selecting a share.
You can find this kind of company news on sites like ADVFN for free. If you register with ADVFN, you will receive a free guide outlining this point and many more in full detail on ‘How to Invest’.
