Stage Analysis Video Training Course

Stage Analysis Beginners Questions - Page 177

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 Smile
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.
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RE: Stage Analysis Beginners Questions

Thanks for the elaborate answer, some good tips in there.
I've been also mostly sidelined for the last half year atleast, but my fingers are itching on those top performing sectors (and feeling some FOMO on some of these runs on solar, oil).

Regarding the market breadth, I see you typically accompany the market breadth posts with a specific strategy you would take, which is very useful. Is there anywhere on the website an aggregation of these strategies for the different breadth conditions (eg below/above 40%, 40-60%, 80+%)? This would be useful to study myself and also see how this fits my own strategy sofar.

One thing I was thinking about to limit my watchlist was to focus only large/midcaps, but I'm not sure if I then exclude to highest potential trade ideas.

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RE: Stage Analysis Beginners Questions

(2022-11-07, 10:34 PM)ferran Wrote: Thanks for the elaborate answer, some good tips in there.
I've been also mostly sidelined for the last half year atleast, but my fingers are itching on those top performing sectors (and feeling some FOMO on some of these runs on solar, oil).

Regarding the market breadth, I see you typically accompany the market breadth posts with a specific strategy you would take, which is very useful. Is there anywhere on the website an aggregation of these strategies for the different breadth conditions (eg below/above 40%, 40-60%, 80+%)? This would be useful to study myself and also see how this fits my own strategy sofar.

One thing I was thinking about to limit my watchlist was to focus only large/midcaps, but I'm not sure if I then exclude to highest potential trade ideas.

I haven't published the strategy as yet, as it's something that I'm still developing, but it is based on the work of Dorsey Wright and the Bullish Percent Index Playbook that they created years ago in their service. Which has different strategies based on the NYSE Bullish Percent Index position and whether it's in Xs (Offense) or Os (Defense). So I use that concept, but applied to the combined Moving Average Breadth charts and with my own Stage Analysis focused strategies at the different levels, and none of the options strategies that the DW Playbook uses.

   

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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