Leading Off…Finding you next winner

June 18, 2014

Screen Shot 2014-05-05 at 9.13.38 PMTim Reazor
Chief Investment Strategist
NorAm Asset Management

I want to talk to you this evening (I write my newsletter in the evenings and it is published the next morning) about your process for finding leading stocks.  I’m often asked what leads me purchase some stocks while passing on others.  It all comes down to my setups and my process.

I have a process and you should too.  My process is a checklist.  Yours doesn’t have to be a checklist, but you should have a written plan of how you will operate in the market.

My process starts with screening.  I screen stocks everyday. You and I may be different traders and investors.  Some of you screen for growth, others for value, while others screen for income.  Whatever you’re looking for, no matter how you define leadership, you need a set process to find you next winner.

For those readers who know me or have heard me speak, you know when I do my heavy lifting.  Sunday Mornings.  I do most of my screening for the next batch of potential winners on Sundays.  I’m relaxed, I’m drinking coffee and I run my customized and standard screens.

Once I have a pool of stocks from my screens to work with I start to skim… just like when you’re skimming an article, I’m skimming for chart patterns.  I am able to skim only charts patterns because my screens are already ferreting out the top fundamental stocks.

Once I winnow down the pool to 10 or 20 patterns that I like, I print them out.  I write notes on my charts.  I write critical information such as buy points, Fibonacci retracements, stop loss points and other notes that I might forget during the upcoming trading week.

Once the grunt work and heavy lifting above is complete, I typically pick what I think are my five best setups.  I now have a trading plan for the upcoming week.  I always like to have five ideas at the ready.  This allows me to direct in my actions with the market instead of reacting to the market and the news of the day.

To recap… These are the steps I take at the start of every week to help ensure my success.

Screening,

Skimming

Charting / Industry Grouping

Trade Plan

This isn’t foolproof.  All the work in the world won’t stop a stock from going down or a market reversing.  The point to the process is put myself in the best position to win.  And when that moment comes when I have to decide whether to sell and take a loss small or sell to maximize a gain I rely on my plan.  The plan and the process take the emotion out of investing.

I can tell you with certainty that when I skip any steps in the process I’m not as sharp, and I’ve either lost money or left money on the table.

I’ve found that I have to plan to be successful in the market.

By defining a process for stocks, bonds and commodities while adding the markets direction I can add a level of predictability and consistency to my portfolio growth.  You can do this too.  If you want to learn how please join me on Thursday June 26th at 7 PM.  I’ll be teaching you two specific strategies that will help you grow your account.

Seating is limited.  If you’d like to attend please click this link to RSVP –  http://noramassetmanagement.com/workshop/

To see my watch-list of stocks for this week please watch this video – http://noramassetmanagement.com/videos/weekend-video-update-9/

I hope this helps you!

Best Regards,

Tim

The information presented is for educational and entertainment purposes only.  Opinions and information expressed are based upon information considered reliable.  However, factors are constantly changing and should not be relied upon. You need to do and verify your own research.  

Moreover, no reader or listener should assume that any information or discussion presented serves as personalized investment advice from NorAm Asset Management, Inc. or from any other investment professional, and is not an offer of solicitation for the sale or purchase of any specific securities, investments, or investment strategies. You need to have your own, individual investment advice suitable for your personal situation.

 

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