RE: Stage Analysis Beginners Questions
The 4-th chapter contains some useful information that I haven't caught before. Let me quote the book:
"If it's acting fine, great, ride with it. But if it's lagging badly and acting poorly, lighten up on that position even if the sell-stop isn't hit. Move the proceeds into a new Stage 2 stock with greater promise."
It seems that the Stan's strategy is more active that I assumed before. He's not waiting for stop-losses or other clear signals to exit but instead jumping from one stock to another if he senses a stock is a laggard. I'm reviewing his recommendations from Global Trend Alert and most of them are laggards (if not losers). I would never beat the market if I stuck to his recommendations from the document and kept them for weeks or months. So instead there must be another element in the strategy that identifies lagging stocks.
Anybody has any thoughts or suggestions on this?