Stage Analysis Beginners Questions - Page 114

(This post was last modified: 2020-02-08, 04:03 PM by autoPie.)

RE: Stage Analysis Beginners Questions

Part of what drew me to SA was that it suited my personality rather well. I'm quite stubborn and with a great deal of conviction, would find myself holding on to losing positions believing my original "thesis" or "rational" for buying remained intact... Part of learning to deal with the emotional swings (for me at least) involved having them roiled first. When I came across SA I knew right away it was for me because it had guidelines that removed some of the emotional roadblocks that destroy most retail traders. 

Some who learn to trade with a paper account first might learn some valuable things, but it'll obviously be nothing like trading a real account. Trading for real teaches much more because of that initial stress of inevitable losses. There's much less stress however when using stop losses. (Some traders claim to have no stress but I think it's always there at some level).  

As a newbie trader I didn't have a stop loss and learned the hard way. For me this was the best way to learn first hand how to deal with my emotions. After getting slammed I decided to never ever be so stupidly reckless as to not have a stop loss. I'm still learning how to better incorporate them. I think a lot of newer traders focus too much on the buying. I still often find myself more focused on getting the perfect stage 2/2a breakout entry. The overlooked, more crucial component is the exit and defining the acceptable risk for each trade. I can sell into either strength or weakness. With a stop loss in place, I'll live to fight another day. And the stress is greatly mitigated. The decision of where to sell upon weakness has already been made. And I can still choose to sell into strength should the opportunity come.

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RE: Stage Analysis Beginners Questions

Hello There


Thank you so much to all of you for helping others to really learn this technique. I am very new to all of this so i am still just learning the basics. 

Sorry for asking, i was wondering if i could please ask a question. 

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?

Sorry ive tried to insert an image to explain what i mean better but cant see where to insert, 

Thank you so much for all the help. You guys are the best!

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RE: Stage Analysis Beginners Questions

(2020-03-04, 01:47 PM)Christopher Bleakney Wrote: 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.

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.
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RE: Stage Analysis Beginners Questions

Thank you so much ISAtrader your the man Smile! Hope you have a great day, thank you so so much.

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RE: Stage Analysis Beginners Questions

Hi Isatrader! Hope your video on the YouTube channel does n’t just focus on US stock market and breadth analysis. You should become a standard Stan passer and explain the contents of the Stan book more deeply and increase your understanding so that you can inherit the standard. Good for market followers. Thank you!

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RE: Stage Analysis Beginners Questions

(2020-03-16, 12:57 PM)stanhao Wrote: Hi Isatrader! Hope your video on the YouTube channel does n’t just focus on US stock market and breadth analysis. You should become a standard Stan passer and explain the contents of the Stan book more deeply and increase your understanding so that you can inherit the standard. Good for market followers. Thank you!

Hi stanhao,

The focus solely on the US Market Breadth at the moment is due to the crisis that we are all in. However, I am planning to do some more general educational videos on the method in the coming months. So stay tuned...

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.
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RE: Stage Analysis Beginners Questions

(2020-03-16, 09:24 PM)isatrader Wrote:
(2020-03-16, 12:57 PM)stanhao Wrote: Hi Isatrader! Hope your video on the YouTube channel does n’t just focus on US stock market and breadth analysis. You should become a standard Stan passer and explain the contents of the Stan book more deeply and increase your understanding so that you can inherit the standard. Good for market followers. Thank you!

Hi stanhao,

The focus solely on the US Market Breadth at the moment is due to the crisis that we are all in. However, I am planning to do some more general educational videos on the method in the coming months. So stay tuned...

HI isatrader! I hope you are the communicator of Stan, that is, to explain the knowledge in his book through video, and the lecture can also add your understanding. I think that the majority of learners will benefit. Because some investors now have the ability to technical analysis, but not the computing power programming ability. But you combine the two, this is the one I found in the Internet for a long time before I found you. So you should focus on the explanation of the book of Stan, so that Stan will be comforted under .

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RE: Stage Analysis Beginners Questions

HI isatrader!I found that the 60-week moving average in the stock market is more accurate. Do you agree?

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