Why are people afraid of strong stocks?
One of the most important practices a successful trader does on a daily basis is to keep an updated watch list. If you are a subscriber to our paid service, you are familiar with our personal watch lists that we share with you every trading day before the market opens. A watchlist does not mean you should just jump into it. These are stocks which have different types of opportunities/potential. Some of the symbols are trending on news and are up pre-market, but it doesn’t mean they’ll continue an upward trend. Most are usually just 1-3 day movers at best. Often times 15 minutes. We watch these for reactions and volatility to find good opportunities for ‘in and out’ trades. These are daytrading-focused. There are many ways to weed thru all the different opportunities, as a few of these stocks are then put on our “Emerging, Emerging Strong Stock” category. There are numerous videos about these.
A pure daytrader has to work very hard during the trading day, but less so after the stock market closes. But most of our work and research goes towards trying to find the stocks which are going to go on and potentially become truly strong stocks. And when we believe in these, then we state it early on, as we did with the 3 stocks below. (read more about what we look for in stocks and about 3 other winners we wrote about last week)
The best opportunities longer=term with strong stocks are in the original accumulation area, or when the uptrend is in full force, then entering during the reaccumulation areas.
DVAX – We started talking about this stock back on April 17 when it opened at $5.60 saying we were putting it on our watch list. Since April, this stock has been in numerous videos and discussed at least 6 times as a strong stock. We talked about it again on June 5 saying:
“DVAX, mentioned several weeks ago, and has set up well. Good news today, but you see the big resistance area, again should be volatile.”
In our July 31 pre-market comments we said:
“DVAX has also been talked about as a strengthening stock and it’s really doing that today with FDA news. Should be volatile.”
It reached a high of $19.60 on August 8 and closed on Friday, September 1 at 17.95. This stock has more than tripled in 4.5 months.
VSTM – This is another one we mentioned on April 17 which opened at 1.90. It hit a high that same day of $2.17, which would have been a great day trade in itself. If you are a bigger-picture trader, and have held on through the many times we mentioned this stock, then you were greatly rewarded if you took profits into the minor upthrust on July 12 of $4.66. We have discussed this stock at least 6 times, plus it has been mentioned in several videos as a strong stock. It closed on Friday, September 1 at 3.92.
COOL – Here’s a stock we mentioned on May 23 which opened at $17.25. We discussed it again on May 25 and at least 10 more times as a strong stock. Some of the discussions were centered on a certain member of the Board of Directors. How did we discover this? Hard work.
COOL broke through the resistance area and spiked into the minor upthrust at $30.12 on June 26. It sold off, and by Aug. 3 it opened at $17.61. It then hit a new high of $32.50 on August 31. Buying at support and selling into resistance is the greatest method of all time, and it’s free.
Do you have or can you start a watch list of the long term strong stocks only. I’m having a hard time sorting out which stocks are for day trading and which are for longer term trading which is what I’m interested in. Can you make a list or do I just need to keep trying to sort through the posts. It’s just that it’s not always clear to me from your videos and writing. Thanks
It does get confusing with all the symbols we discuss and we are discussing some ideas as to how we can organize and release our watchlist of strong stocks, I think the best thing for you to do in the meantime is to put the words “strong stocks”, “strong stock” and “emerging” in the search engine. Also, everyday, when you receive the pre-market comments, when we mention an emerging stock or an emerging, emerging stock, write down that symbol on your own watchlist. Also, please understand that just because we have them on our watchlist as strong stocks doesn’t mean it’s wise to take a position just anywhere. Waiting for pullbacks to support levels and beyond(break of support) is what you want to do. Take a look at AVEO. It’s been a real winner, but look at how’s it’s pulled back off the high. Taking a position at 4.22 would NOT have been a wise move for anyone as it’s at 3.31 at the moment. These things don’t go straight up which is why LEARNING how to trade them within the trend is a good idea also for better profits.
Gold. Thanks Scott.