RE: Stage Analysis Beginners Questions
(2020-10-30, 06:03 PM)miche Wrote: Just curious what you'd recommend a beginner to focus on. I don't have a lot of time and sometimes feel a wee bit overwhelmed with everything to learn.
How do you use IBD? Is it wrong to pick a stock with good rating and in stage 2? Reviewing fundamentals is overwhelming to say the least. I like to read Seeking Alpha as well.
I'm reading O'Neils book and it's not as easy as Stan's. Thinking switching to Mark's for the time being. O'Neil uses 50MA whereas Stan it's 30MA confused on which and why.
I try to draw support and resistance on my charts and still learning how to read the patterns and practice. Plan on re-viewing class on Udemey and re-reading Stan's book. Thanks!!!
If you are using IBD then a simple rule is to only focus on stocks with a strong composite rating. O'Neil said in one of his interviews that almost every one of the model stocks had a rating of 87 or greater when they broke out of their first base. Which would be the initial Stage 2 continuation breakout in Stage Analysis. Not the Stage 2A breakout, as that's early than O'Neil focuses on.
I'd say take it one at a time, as information overload won't help you. I always suggest for beginners to focus on learning a single entry type first, which is the Stage 2 continuation breakout from either base 1 or base 2 following the Stage 2A breakout. Look for a Volatility Contraction Pattern (VCP) - see Minervini's book for detailed instructions. As this will give you the lowest risk setup if you do it properly. Study it, practice it, manage your risk and learn from your mistakes.
"I don't fear the man who has practiced 10,000 kicks. I fear the man who practiced one kick 10,000 times."
Hope that helps
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.