How are our identified stocks doing so far!!!
The idea of this section is not to "pick stocks" but rather educate on how to pick Stocks with appropriate risk management, so that we can benefit from gains as well as cut short our losses.
Review of two candidates in our watch list...
The idea of this section is not to "pick stocks" but rather educate on how to pick Stocks with appropriate risk management, so that we can benefit from gains as well as cut short our losses.
Review of two candidates in our watch list...
Both stocks below did perform well after our initial entry but one stock gave up all gains after earnings news. Now you see the power of earnings and why is it important to avoid entering a Stock right before any major news is expected. We recommend to avoid entering a stock if earnings date is within 1 month of entry unless you plan to exit before earnings, WHY? If earnings date is more than a month away then most likely the momentum initiated by the initial move will continue in that direction which in turn will provide you with some cushion (gains). If the earnings news is bad then stock will drop but since you have some cushion you can take the hit and exit the position with less damage to your account.
You can check out the entire watch list here.
Items you should focus on:
Things to remember:
Be disciplined and manage risk appropriately...
Items you should focus on:
- Always check NOTES section for each stock along with STOP Limit - updated every week as per individual stock action
- Find out earnings date for stocks you have in your portfolio, so that you are aware of major events - this is not included in the watch list but links are provided for your own findings/research
- Understand current market direction and decide if you want to remain invested based on market scenario
Things to remember:
- No matter how great the company is and how stellar the earnings are, if market is in correction then the stock performance will be affected
- All boats rise in a rising tide, in short if market moves up then most stocks will also move up and vice-verse. If market is doing well then selectively chosen stocks has higher probability to provide good returns in short duration
- If a stock position does not work in your favor then get out, cutting losses is not easy but necessary, ONLY a disciplined investor/trader will be successful in long term
Be disciplined and manage risk appropriately...