✅ Scan quickly and effectively to build a Universe List
✅ Narrow it down further to a Weekly Focus List
✅ Find the best stocks possible to trade
It's that simple so let's jump in.
There are thousands upon thousands of stocks that you can trade.
But how do you narrow it down to the best of the best?
In this thread, we'll highlight the 3 most important steps you need to take to create a Focus List (& how you can apply these lessons immediately)
👇🧵
✅ Scan quickly and effectively to build a Universe List
✅ Narrow it down further to a Weekly Focus List
✅ Find the best stocks possible to trade
It's that simple so let's jump in.
🔎 Pullbacks
🔎 Breakouts
🔎 High Volume
🔎 Fundamentals
🔎 Momentum Edges
Here are the criteria you can use in your favorite scanning platform for each:
· Above your favorite Key Moving Average Scan (> 10EMA, 21EMA, 50DMA)
· % Off Highs Scan (< 20%)
· Reverse Pocket Pivot Scan
· Highest Volume in > 1 Year (HV1)
· ShortStroke (>10% move over prior 5 sessions)
· Pocket Pivot Scan
· Accelerating Sales Scan
· Accelerating EPS Scan
· EPS + Sales Combo
· Most Recent Qtr EPS > 40%
· Most Recent Qtr Sales > 40%
· Fund Ownership Increasing QoQ
Take the examples above and implement them into your routines.
Once you have this pool of ideas, the next step is to organize them into your watchlists.
✅ IPO WL
✅ Gappers WL
✅ Hight Tight Flag WL
This is the universe of stocks we have at our disposal - usually totaling no more than 120 names in a good market.
· Proper P/V from IPO (up on volume, down on low volume)
· Highest Volume Since IPO w/ Strong DCR (HVIPO)
· Huge RS from IPO, RS Zones/Periods
· Strong Fundamentals
· Highest Volume Ever (HVE)
· Highest Volume in 1 Year (HV1)
· Strong DCR of over 50% during these sessions
This is a direct example of how our scanning routine above plays right into our watchlist creation.
· % Change 2 Months > 100%
This is another direct example of our momentum edge screen from above that is implemented into our daily processes.
By separating your stocks into 3 separate watch lists, you will be able to track all of the best names in an orderly and organized manner.
Here is the answer 👇
The edges and setups should be clear and there should be a specific pivot point you are watching.
✅ Above KMA’s
✅ Tight Price Action
✅ Low Relative Volume
✅ Showing a Constructive Pattern
This should be part of your daily routine.
Be objective and ruthless in selecting these.
Go through your list and pick out the 5-10 best of the best names.
✅ Built Scans for your Universe
✅ Created Routines to capture these names
✅ Simplified a list of 5-10 names that will be your FOCUS next session!
This is exactly what we are looking for out of a name to make our focus list.
This is why it is incredibly important to always practice proper risk management strategies.
$OXY is a great example of a chart that would have been perfect for a KMA Pullback buy - worthy of making your focus list as it showed everything we look for!
That is very different different action than what we are currently seeing with the oil stocks.
$ENPH shows exactly why having Group Relative Strength isn’t quite enough to move a name on to our FOCUS list - but definitely could be one that is worthy of your universe list..
🔥 We must be sticklers & only accept the best names onto our focus list.
Focus = results.
Don’t ever fall into the trap of not having ‘enough names on your focus list’ and start trading sub-optimal names because you want the action.
There is a time to trade stocks as they meet your criteria and a time to ignore them and be patient until they set up again.
If you enjoyed this thread... 👇
1. Follow @TraderLion_ for more helpful threads on the market!
2. Like & RT the tweet below to share this thread with your audience https://t.co/eAsberggbK
There are thousands upon thousands of stocks that you can trade.
— TraderLion \U0001f981 (@TraderLion_) June 22, 2022
But how do you narrow it down to the best of the best?
In this thread, we'll highlight the 3 most important steps you need to take to create a Focus List (& how you can apply these lessons immediately)
\U0001f447\U0001f9f5
More from TraderLion 🦁
The market’s best investors have made millions from the simple saying:
“Buy right, sit tight”
Sounds simple - but what does “buying right” even mean?
Use TraderLion's 10-Step Ultimate Guide to buying right 👇
By the end of this thread, you'll know how to:
1. Build an objective list of buy criteria
2. Have 10+ real world examples to study
3. Increase your win rate.
4. Increase your profitability
Let's dive in!
Buy Rule #1: The General market must be in an uptrend.
3 out of every 4 stocks follow the market trend both to the upside and to the downside.
This means that if you are buying a breakout in a downtrend, it already has a 75% chance of failing!
It doesn't matter if the stock is in a leading group with an impressive RS line and strong fundamental story.
At the end of the day, market direction is the MOST important factor!
Here's an excerpt from How To Make Money In Stocks by stock market legend William O'Neil:
Here's another video by @richardmoglen that will help you determine if the stock market is in a downtrend:
https://t.co/shD5OjkP6s
Let's move on to #2.
“Buy right, sit tight”
Sounds simple - but what does “buying right” even mean?
Use TraderLion's 10-Step Ultimate Guide to buying right 👇
By the end of this thread, you'll know how to:
1. Build an objective list of buy criteria
2. Have 10+ real world examples to study
3. Increase your win rate.
4. Increase your profitability
Let's dive in!
Buy Rule #1: The General market must be in an uptrend.
3 out of every 4 stocks follow the market trend both to the upside and to the downside.
This means that if you are buying a breakout in a downtrend, it already has a 75% chance of failing!
It doesn't matter if the stock is in a leading group with an impressive RS line and strong fundamental story.
At the end of the day, market direction is the MOST important factor!
Here's an excerpt from How To Make Money In Stocks by stock market legend William O'Neil:
Here's another video by @richardmoglen that will help you determine if the stock market is in a downtrend:
https://t.co/shD5OjkP6s
Let's move on to #2.
More from Traderlion
How to time the market (thread)
There is the old saying that “Time in the market beats timing the market” The chart below from Dr. Wish’s @WishingWealth presentation at the @TraderLion_ conference shows that to be false.
Full presentation: https://t.co/o2f21GBXci
The green line is unattainable realistically, however, missing volatile times during corrections yields better performance than buy and hold and we can aim for the green line.
Investors usually only show the gray and red results.
More
There are many strategies for investing/trading in the stock market operating within different timeframes and with different objectives.
That is of course what creates a market and opportunity. Timing the market may not be what works for you or what fits your goals/lifestyle.
However, everyone involved in the market is here to make money over time and corrections can cause huge drawdowns in the high alpha names negating incredible performance during strong market uptrends.
There is the old saying that “Time in the market beats timing the market” The chart below from Dr. Wish’s @WishingWealth presentation at the @TraderLion_ conference shows that to be false.
Full presentation: https://t.co/o2f21GBXci
The green line is unattainable realistically, however, missing volatile times during corrections yields better performance than buy and hold and we can aim for the green line.
Investors usually only show the gray and red results.
More
There are many strategies for investing/trading in the stock market operating within different timeframes and with different objectives.
That is of course what creates a market and opportunity. Timing the market may not be what works for you or what fits your goals/lifestyle.
However, everyone involved in the market is here to make money over time and corrections can cause huge drawdowns in the high alpha names negating incredible performance during strong market uptrends.
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The entire discussion around Facebook’s disclosures of what happened in 2016 is very frustrating. No exec stopped any investigations, but there were a lot of heated discussions about what to publish and when.
In the spring and summer of 2016, as reported by the Times, activity we traced to GRU was reported to the FBI. This was the standard model of interaction companies used for nation-state attacks against likely US targeted.
In the Spring of 2017, after a deep dive into the Fake News phenomena, the security team wanted to publish an update that covered what we had learned. At this point, we didn’t have any advertising content or the big IRA cluster, but we did know about the GRU model.
This report when through dozens of edits as different equities were represented. I did not have any meetings with Sheryl on the paper, but I can’t speak to whether she was in the loop with my higher-ups.
In the end, the difficult question of attribution was settled by us pointing to the DNI report instead of saying Russia or GRU directly. In my pre-briefs with members of Congress, I made it clear that we believed this action was GRU.
The story doesn\u2019t say you were told not to... it says you did so without approval and they tried to obfuscate what you found. Is that true?
— Sarah Frier (@sarahfrier) November 15, 2018
In the spring and summer of 2016, as reported by the Times, activity we traced to GRU was reported to the FBI. This was the standard model of interaction companies used for nation-state attacks against likely US targeted.
In the Spring of 2017, after a deep dive into the Fake News phenomena, the security team wanted to publish an update that covered what we had learned. At this point, we didn’t have any advertising content or the big IRA cluster, but we did know about the GRU model.
This report when through dozens of edits as different equities were represented. I did not have any meetings with Sheryl on the paper, but I can’t speak to whether she was in the loop with my higher-ups.
In the end, the difficult question of attribution was settled by us pointing to the DNI report instead of saying Russia or GRU directly. In my pre-briefs with members of Congress, I made it clear that we believed this action was GRU.
