Stage Analysis Video Training Course

Stop Loss Positioning Guide - Page 11

#81

RE: Stop Loss Positioning Guide

(2020-08-13, 06:48 AM)daddybyday Wrote: Hello, Isa,

I'm only up to expample 7, but so far every one has not had the above average, let alone 2 times the average, volume on the weekly chart.  It seems like Weinstein stressed the volume a lot in the book, and you are very quick to point it out in the Udemy course.  Has there been some change in the strategy (simply from the investor side on weekly charts), as to how big a roll volume plays in defining a breakout?  I understand that once you're "in the game" the rules tend to change a bit, so I thought I'd ask about that before I get "in the game." :-)

Thanks!

Tom

There's not been any change in the recommended requirements for buying the best stocks. These examples where taken from his Global Trend Alert newsletter, where the amounts of stocks being highlighted was numerous. So, the bulk of which didn't meet the volume requirements talked about in the book for the A+ candidates. I believe this is because the newsletter would have been fairly sparse if he only highlighted the stocks with A+ potential, and it was aimed at institutional investors / fund managers, and so they have to buy a lot of stocks. So the newsletter focused more on the Forest to the Trees approach i.e looking for the most favourable sectors, and then highlighted stocks in Stage 2 within them that had at least some of the characteristics talked about in the book. So the method hasn't changed for finding the best stocks.

Personally, I found over the years of trading with the method that focusing on only the stocks that meet the methods A+ requirements is a best way to consistently get into leading stocks. But it means a lot more patience is required, as you have to wait for the right moment, which can be hard for most people I've found. But if you have the right mentality, and can be patient in waiting for the right setup. Then you'll do a lot better than most.

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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#82

RE: Stop Loss Positioning Guide

(2020-08-13, 10:11 AM)isatrader Wrote:
(2020-08-13, 06:48 AM)daddybyday Wrote: Hello, Isa,

I'm only up to expample 7, but so far every one has not had the above average, let alone 2 times the average, volume on the weekly chart.  It seems like Weinstein stressed the volume a lot in the book, and you are very quick to point it out in the Udemy course.  Has there been some change in the strategy (simply from the investor side on weekly charts), as to how big a roll volume plays in defining a breakout?  I understand that once you're "in the game" the rules tend to change a bit, so I thought I'd ask about that before I get "in the game." :-)

Thanks!

Tom

There's not been any change in the recommended requirements for buying the best stocks. These examples where taken from his Global Trend Alert newsletter, where the amounts of stocks being highlighted was numerous. So, the bulk of which didn't meet the volume requirements talked about in the book for the A+ candidates. I believe this is because the newsletter would have been fairly sparse if he only highlighted the stocks with A+ potential, and it was aimed at institutional investors / fund managers, and so they have to buy a lot of stocks. So the newsletter focused more on the Forest to the Trees approach i.e looking for the most favourable sectors, and then highlighted stocks in Stage 2 within them that had at least some of the characteristics talked about in the book. So the method hasn't changed for finding the best stocks.

Personally, I found over the years of trading with the method that focusing on only the stocks that meet the methods A+ requirements is a best way to consistently get into leading stocks. But it means a lot more patience is required, as you have to wait for the right moment, which can be hard for most people I've found. But if you have the right mentality, and can be patient in waiting for the right setup. Then you'll do a lot better than most.

Got it. That makes a lot of sense.  Thank you!

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#83

RE: Stop Loss Positioning Guide

Hello, All!

Another noobish question!

As I look at charts, I see myself wanting to make 2 errors in setting the stop loss.  The first is waiting for a MAJOR pullback before trailing the stop, which would cause me to leave a lot on the table.  The second is trailing under every 3 week swing low, and getting stopped out on a pullback, where a looser stop would have kept me in.  I've long thought that the decision of when to sell is much harder than the decision of when to buy!  Can you give me any hints that can help me develop a feel for setting stops between these 2 extremes, and getting out on time, while at the same time not giving back the farm before I exit?  I'll be setting all stops, at least for now, using the investor method.

Again, thank you so much for your assistance!

Tom

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