Two philosophies with big implications
Some "believe " less number of trades is good. The approach requires very careful stock selection, wider stops, and more concentrated positions and willingness to have drawdowns or willingness to give back lots of open profits.
Some "believe" more and frequent trades with smaller profit potential is good. The approach requires willingness to do hundreds of rades. Requires less risk per trade. Your returns are not dependent on few trades. Drawdowns are small. You can make money irrespective of market conditions as the anomaly you are exploiting is on smaller time frame.
Confusion between the two approach is common for beginner traders.
Extremely bullish breadth indicated likelihood of correction. We saw that today.
However the Indexes are sideshow. We need to focus on underlying setups.
As you will see there were many good bullish setups today.
BJ HRS INSM ACA ADTN SNX
What is Situational Awareness (SA)
The US Air Force coined the term SA during the Vietnam war.
What is situational awareness in stock markey
Write your own ACTIONABLE Situational Awareness Daily
Don't focus on what others think.
What is your SA for today
How to find multi year leaders
Some stocks continue to go up for multi tears. They may not be the fastest growing stocks in the year but they are persistent winners.
If you can identify such stocks , they can be good candidates for buying on pullbacks and offer working people to trade them as many of them are often more stable and less volatile movers.
Multi Year leaders tend to be businesses with stable underlying growth or market position and tend to be in sectors that have stable growth.
In order to do this you can scan for stocks ranked in top 25% by price growth for 5 year , 3 year , 2 year , 1 year and half year.
In Telechart it is easy to do this :
Once you have a list of stocks you can use either Stockbee 4% breakout scan , Stockbee $ breakout scan , Stockbee Low Threshold Breakout scan , or Stockbee Anticipation scan to find opportunities.
If you run this scan today morning 2/6/2019 you will get following candidates:
ISRG TDG BA ANTM ROP DPZ WCG COO UNH ADBE BAP TMO LII FICO NOW INTU PANW MA IHI IAC BRKB IGV WDAY TECH VRTX SBAC WDFC SYK ZBRA CME RHT NEE MCD BURL MSCI VRSN AMT EW AON CRM VMW ADSK DXCM GWPH LULU ADP EPAM V SRPT IT HCA AMED MOH IQV SPLK FIVE MASI VRSK MSI STE BFAM VEEV PRI NICE LHCG WIX XLNX FIS NSP UBNT EGP MSA HRC SNPS MLNX WM RNG YUM COLM ROST GWRE PKI QLYS UAL IRBT HEI EXAS CDW WP FISV WCN NXST FTNT WWE GHDX AJG RSG AVAV ICE A BEAT NOVT HEIA ABT NAVG PGR OMCL DLB EBS SIGI FFIN FOXF HLF MRCY RGEN MMSI SKYY BPOP LYV BAH EXPO AAN CDNS SMTC CWT ALSN IDTI CSCO ERI RAMP ENSG SCI MBUU VCRA MCS AJRD TRNO BSX ROL SNBR XNCR CHGG REXR CWST MSB REGI KDP NYT VNDA LPSN CRCM AMD NMIH CDXS QNST DENN WEN FLWS VCEL NEO ANGI AMRN KTOS AUDC FATE BSBR ABR FBP TPNL SMTX CRNT ATAI
How to find multi year laggards
Same way we can create a scan to find multi year lagging stocks. These neglected stocks often go on to make big moves if they turn around.
If you are a turn around investor or value investor this scan can find you good candidates for further study.
For active traders using Stockbee 4% b/o or Stockbee $ breakout , and Stockbee Trend Intensity Ranking will help you identify stocks with momentum from this scan.
Following stocks meet these scan conditions on 2/6/2019
LCI DBD YRCW GE EGO CMP SAEX ALT SLCA CX INFN NFX BGFV GLT WPP SRCL GLRE VET EQT NWL SLB TTM PRTK OMI RLGY IVZ XES DB OIH SEMG MD PBI ASRT CIR PEI PHIIK OPI CRR SPWR ESTE DGAZ COTY RMTI TV PTEN VGR CLB HAIN NBR WETF CHS OIS VOD ACHC GASL AMID LPI HCLP XON TUP FET ONTX PRGO CRZO BAS DF AR UNFI SPN TK AKRX SUP BRS UEPS SDRL INSY MAXR