[isatrader]

When looking at the best stocks to buy and where to place a limit order, is the best thing to do look at stocks which fit stan weinsteins criteria. E.g. Stage 1 and 2 sectors, using a scanner to narrow down selection etc. Then if I see a stock which looks like it hits all the criteria should I be looking to see where the entry point would be based on past support/resistance. And then enter if the price surpassed its current resistance?

Hi Christopher,

The best thing to do when first learning to trade with the method is to practice a lot, so you can get experience of how to lose properly. As the key to making gains, is minimising your losses on the trades that go against you. And when you first start out, that will likely be more than you win. So you need to learn how to keep those losses low, while you learn to refine your entry point and get used to managing your active trades.

So I'd recommend getting a demo account of some kind. IG Index has one that gives you a £10,000 practice account.

I would also recommend that you start off by focusing on only one type of entry point, and learning it throughly. As Stage Analysis has two major methods. The Investor method for longer term trades of up to a year or more and the Trader method for shorter term trades up to 3 months or so. So I'd recommend starting with the Trader method in a practice account, and only trading Cup and Handle patterns, or Volatility Contraction Patterns. As both have reduced the volatility before the breakout entry point, and hence let you have a fairly tight stop loss, which minimises the risk. Plus with the Trader method you will only be trading Stage 2 stocks that are already in an uptrend, but that have been consolidating for a month or so above rising moving moving averages.