<<I may know the answer to my last reply. You buy cheap valued P/E stocks with charts at breakouts looking for Volume>>
I don't care much about PE but i do like stocks with earnings. A supertraders newsletter pick today, VTAL is expensive, but the chart was a beautiful ascending triangle. Another was LAVA. Not cheap either.
Holding winning stocks is really easy when they act as perfectly as stuff like ERES and others mentioned earlier. ERES hasn't broken the 50dma this year and broke again today. I was trying to figure out where i bought it initially, i think around 7. What more could you ask for. I tend to give more room to stocks with good earnings, especially if i have a big profit already. Crap without eps are cut on breaks of 9dma usually. LEND was one I did cut last week despite great earnings, entry was 10ish. It broke 9dma and started acting wrong in my mind. If it rights itself, I get back in. Going thru 1700 charts and keeping track of earnings news is helpful in finding the winnners. The best winners are the ones with good earnings, and pe isnt very important in that regard. Why do I hang on to a stock so long?? Because i understand the power of momentum, simple as that. Who needs to scalp stocks when life is so much easier when stocks you hold onto keep going higher? Obviously they don't all work out that way, but cutting losers quickly and holding the winners is a good recipe for success.
Im not impressed with channeling stocks.com, no need to post that stuff. If making money in the market was so easy that all you had to do was run a scan and go to the beach, there would be lots of traders sitting at the beach. I go thru 1700 charts a night now, that keeps me in tune with the market way more than I would be by just running my set scans. I can see what stocks act right and wrong, and knowing how the sectors are acting is critical imo. |
