How to use the IBD newspaper to find good buy ideas | stockbee


How to use the IBD newspaper to find good buy ideas

Investor's Business Daily (IBD) is a good source of information for growth and momentum investors. It is focused at helping individual investors beat the market by focusing on a specific style of investing . On a given day it has lot of content and one needs to have a strategy to focus on right columns and sections to find actionable ideas. 

One of the very useful column published daily is Stock Spotlight. Today it is on Page B9. This section daily highlights the best growth stocks. Unlike many other columns and lists in IBD it has many actionable ideas. It will highlight stocks setting up bases or consolidation or having minor pullback. Many of those ideas will be stocks that have just started to breakout or are lining up for breakout.

The IBD methodology is based on using historical precedent analysis of past big winners to find similar stocks in current markets. It focuses on stocks that have earnings momentum and price momentum and that are being favored by mutual funds and other big buyers. 
The Stock Spotlight column is useful for finding such new ideas.

Obviously if you are seasoned IBD user and expert in using IBD tools like Marketsmith you would find many of these stocks on your own even before they make it to the column because they will show up in many other screens. But for those who are new or with no access to those tools, the list can still help you find some gems every week. Pay attention to new addition to this section and start tracking them. 

There are many other useful ways to profit from IBD daily and in next couple of posts this month I will focus on them. 

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