Follow Investment Capital

Follow Investment Capital
By
www.CandlestickForums.com

A useful means of picking stocks for
either long term investing or for day
trading is to follow investment capital.

This is a little like the old adage which
says that if you want to understand a
problem, follow the money.

Two current news items bring this to
mind.

GM has come back from bankruptcy and
is pouring investment capital into plant
improvements across the USA.

Capital investment in China is said to be
moving inland.

Once an investor has picked stocks for
his stock portfolio or the trader has
picked volatile stocks to trade the next

important step is to use technical
analysis tools such as Candlestick stock
charts to gauge market sentiment and

buy stock or sell stock at the optimum
stock prices .

Investors commonly use statistics such
as employment figures or the US
balance of payments as well as specific

company financial reports for
fundamental analysis of stocks .

They also watch insider trading
information as reported to the SEC.

Another useful stock trading and stock
investing strategy is to follow investment
capital.

China continues to grow their economy
at near double digit rates and now, just
months

after its return-from-the-dead IPO, GM
is budgeting $2 Billion in plant upgrades
across the nation.

The point is that investment capital
follows opportunity and can light the
path for other stock investors and
traders .

According to press releases General
Motors is putting $130 Million into
plants in Toledo, Ohio, Bedford, Indiana
and Wyoming, Michigan.

Over the next year and a half the
company plans to upgrade a total of
eighteen plants for a total of $2 Billion.

If the investor decides to follow
investment capital and let GM
investments guide his stock investment ,
where does he invest?

The first thought that comes to mind is
that GM is back and presents an
investment opportunity all by itself.

Then there are GM suppliers who will
profit from a GM recovery.

This sort of investment preserves jobs
and local buying power which will
recirculate through the communities
where GM is investing capital.

The Chevy Cruze was the bestselling car
in the USA last month. J

apanese auto production is hampered
by the fact that the Tokyo Electric
Company power grid that supplies the

bulk of electric power to Japanese
industry is damaged due to the recent
earthquake and tsunami.

GM has had its most profitable quarter
since 2000 and seems to be on the rise.

However, stock traders are always aware
that what goes up can also come down.

With the skillful use of Candlestick
analysis traders and long term investors
can profitably anticipate market trends
and market reversal as relate to GM or
other stocks.

If the investor is going to follow
investment capital as a guide to his own
investment the situation in China could
lead to profits.

The country is looking inward to balance
the effects of the weakening economy in
Europe a possible reduction in global
monetary supply.

China is plowing money into housing and
other infrastructure and continues to
see near double digit growth.

This situation can translate into profits in
banking and construction, as well as
consumer goods, manufacturing, and
consumer goods.

By picking Chinese stocks traded via
American Depository Receipts US
investors and traders could follow
investment capital in China and find
profits.

As with all investing and
trading, fundamental and technical
analysis are important to gain profits
and reduce investment risk .

As always Candlestick charts are a
reliable guide to market sentiment,
potential profits, and potential risk.

Follow Investment Capital

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