How do we consistently pick winning stocks?
Part One, in this series will cover “workflow” and how to become efficient at analyzing candidates for your portfolio. Consistently picking winning stocks is repetitive process.
First, we start the week with a plan or watch list. The stocks that meet our criteria are listed with earnings dates, support and resistance levels, stops and potential targets. Finally, we summarize points that will assist us in making educated decisions during the market session.
Once our homework is complete, we are ready to make additions to our portfolio.
One of the biggest mistakes new traders make during the heat of a market session is to buy on impulse, using their opinion rather than a strategy. What the stock will do next often times can be predicted by using a set of rules that enable a trader to gauge a stocks potential.
Below are the watch list results for this week.
In Part Two of this series, we will examine the trigger events and strategies that tell us when to buy a stock and when to exit.
If you’d like to learn more about consistently picking winning stocks, consider joining us at “TCP” The Closing Print as we trade “LIVE” during market hours. We cover each stock in the watch list, among other things, as we broadcast each day from 9:30 – 4:00PM.
In addition, we are constantly analyzing the markets as the trading day unfolds, looking for potential catalysts that will assist our decision making.
PS. In addition to the things we will cover in this series “Consistently Picking Winning Stocks” its important if you can answer these three questions, each time you decide to buy.
The Warren Buffett approach
1. Trade companies that you know
2. Trade companies that you interact with
3. Trade companies where you understand how they make money
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