[tomyoung]

So this often leads to me passing on stocks until there's a reasonable consolidation, which can then provide a level of support that is close enough to make an entry viable. This is why when using the trader method you'll find cup and handle patterns, or volatility contraction patterns the best imo. As they provide the lower risk entries that you need to increase your chances imo.

Smaller position sizes definitely help, but there's not enough info on the trader method in the book, but other traders like Mark Minervini have expanded on it over the years, and he also wrote a very good book which can help learn the proper entry points, which was called Trade Like a Stock Market Wizard: How to Achieve Super Performance in Stocks in Any Market by Mark Minervini

That's very cool. I've read Mark's book but I never thought to use VCP or cup and handle pattern for stage 2 entry. It does make a lot sense consider the range is tighter with lower risk. I imagine you'll have to manual scan for these pattern? or is there a way to locate these pattern easier?