Forex day trading – Unless I know a company thoroughly and how much of its stock is out and how much overhanging the market in the form of options or founders’ stock, I do not usually invest.
I have found that without securing as much inside information about a company as I can, I run a great risk. Inside information comes directly from the management or one step removed from the management. Hearsay information is of little use, particularly that which comes from brokers, unless the broker knows the management and gets his information directly from it. The exception to the rule concerns cyclical stocks. These are stocks of companies whose well being depends on the ups and downs of business. Cyclicals are well known and are generally the heavy industries, both producers’ goods like machine tools and consumers’ goods like automobiles.
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[tags]Forex Trading Strategy[/tags]