Finding Stocks Before They Breakout.
1. Swings of interest. 2. 1-10day holds (typically) 3. Looking for 5-20% moves. 4. Interested if AND ONLY IF they can get thru yesterday’s high. 5. Buy stop .10cents above yesterday’s high. 6. Breakout day low or 3-day low is your stop.
7. The market will either get you in or keep you out. 8. Once the buy stop is triggered and you own the stock, most things are now out of your control. 9. This is all part of a passive ETF portfolio.
On a daily basis, I go through 500-1000 charts, I run 4 different scans and then look at the top 200-500 stocks with the highest momentum. All this takes me about 30 minutes, I know exactly what I’m looking for.
I narrow down the universe of stocks to a handful of names sometimes a little more, then the market will narrow down the list further by getting me in or keeping me out of the names that make my list. If the stock does not go through the previous day’s high, then I don’t get involved (99% of the time). Yesterday I had 7-names on my list only two when through yesterday’s high. This is what works for me, I look at charts a little different, and I believe certain things that you may not believe or agree with.
“How you trade is shaped by your beliefs. You do not trade the markets. Instead, you trade your beliefs about the market.” Van K. Tharp.
STOCK OF THE WEEK RECAP