One of the readers has asked me about MTOX and whether it is a buy here. I have a position in it from many weeks ago when it came in 100% plus (Double Trouble) scan, subsequently it was also part of the IBD 200 breakout list. Now this stock has good earnings and was one of the candidate in the scan the reader ran.
The question is whether MTOX is good company to buy for long term. As far as I am concerned a company is good as long as it fits in to any of my methods. But you not only have to find right stock but you should buy at right time. As you can see , there were several better buy opportunities on this stock earlier. Now stock is up 36 % in a month and up 130% in last 65 days. Unless it sets itself up again with at least 20 to 65 days of weakness and breaks out on 4% plus, I would not buy at this level. And if you have position in it , moving the stop up to protect as much of the profit as possible is the key at this stage.
Doing your analysis as quickly as possible and entering a stock when it appears on 4% scan is the key to getting in to good stocks at beginning of the move. If you delay or shop around for second opinion the opportunity is gone or the entry becomes more risky.
That is one of the reason to do all your thinking before starting to trade a method.