RE: Stage Analysis Beginners Questions
(2022-11-06, 09:43 PM)ferran Wrote: Hi David,
I'm currently screening for the market status and updating my watchlist mainly in the weekends and then monitoring the list daily (typically after the close). Due to my job, I dont have a lot more time to do it differently. I think Stan W would label me an investor
One thing I'm struggling with is that even when, say selecting the top performing sectors (eg SCTR score >90) and the best stocks, I still end up with a lot of stocks and have difficulty on further reducing it to a manageable # of stocks. As a result, I'm jumping around quite a bit and this makes it quite difficult to manage my focus. I not seldom feel I (just) missed a good entry, because I was looking somewhere else.
Would you have any advice how I, "an investor", can deal with this practical problem?
Any recommendation on which posts from you I should focus on? Currently the weekend posts are my top interest.
Thanks in advance!
The Market Breadth posts are the key to successfully trading/investing with the Stage Analysis method imo. As the weight of evidence tells you the strategy to use, i.e. whether you should be on offense or defense. Helps you to consider the risk of the market environment, and aids with market timing. i.e. the majority of this year of 2022 the market has been in a Difficult Environment in the Stage 4 for the majority of the time. So if you are an investor, then being mostly in cash, or shorting has been the primary focus. Which is different from if you are a trader, as there's been a number of short-term swing opportunities on the long side as well.
So I recommend focusing on the market breadth posts, as if the environment is poor, then there's not much for an investor to do other than tracking the developing bases structures and setting alerts at significant levels.
However, if you are struggling with building watchlist then I recommend limiting the groups that consider or the markets. i.e. you may only want to focus on certain sectors or groups even. Or just limit your scans to the S&P 1500, or less.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.