RE: Watchlist - Investor method
(2013-05-15, 02:17 AM)goodtyneguy Wrote: Locked in, here's my take on your stocks in alphabetical order by ticker symbol. Feel free to pull it a part..... but gently
Good work on marking up all the charts. One thing I've noticed that I wanted to highlight was that you often say not an investor pick until above the long term resistance, sometimes from many years before. While it's true it might still be in a longer term monthly* Stage 1 basing phase, the ideal investor entry point is the weekly Stage 2A breakout point, which is frequently still within a much longer term base. As remember, Weinstein says in the book that his investing time frame is up to 12 months, but that doesn't mean you can't end up holding a stock for longer than that.
So you don't need to wait until it's past all old resistance, just recent significant resistance should be considered and weighed up, as you'll miss a big part of the early Stage 2 move otherwise. i.e. in the SPWR example from above it's already had an excellent 230% move since it's Stage 2A breakout back in mid to late December. Volume came in during early January and it's been moving strongly higher ever since.
* Weinstein, doesn't talk about using monthly charts in the book, as his investing time frame is only 12 months. So this is something that I've added into my chart sets for longer term investing, as I can see that the Stages work just as well on the monthly charts, and hence is a way to find stocks to hold for a much longer term period i.e. 4 to 5 years - as the chart has 4 to 5 times as much data as the weekly chart.
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.