RE: Stan Weinstein's Stage Analysis
(2013-09-10, 01:38 AM)goodtyneguy Wrote: Great examples of the profitability of the method once in the right stocks. So the message seems to me to be don't be too concerned about the lack of volume in the base immediately preceding the break out or on the break out. Rather look for the mansfield RS to cross the zero line, enter on a break out and if big volume does not come in, in say one, two, or three weeks later then exit and look for another opportunity?
I think you want to see the relative performance strongly outperforming the market on and immediately following the breakout, and then if you start to get some heavier volume coming in as well, then you'll have a good idea that you could to be onto a A+ stock and try to hold on through the advance.
I'm not sure if you can put a time limit on it of only a few weeks with investor positions, as as the TSLA example shows, it took a few months until the volume started to build in that stock, and you would have missed a 330% advance if you taken an early profit or breakeven trade as it pulled back to the breakout level for a while. Basically, it's always going to be a judgement call as to whether to cull a stock that doesn't immediately show some life in the right places (relative performance and volume) in favour of finding something else. But I'm sure the traders among the group, can be much more picky and dump stocks easier as they won't have the same transaction cost considerations as the investors buying stocks outright.
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.