Picking stocks to trade

Rev7

Newbie
5 0
Hi,

I'm reading Come Into My Trading Room by Elder and he mentions picking no more than 24 stocks so you are able to track them day in day out. He suggests picking two or three currently hot industries and selecting 6 stocks in each of those industries. 'Thats where you'll find the highest volumes, the steadiest trends, and the crispest reversals.'

I'd be grateful if somebody could point me in the right direction with regards to which industries are hot and somewhere I can compare the volumes. I'm based in the UK if that makes any difference.

Many Thanks
 

dbphoenix

Legendary member
6,952 1,250
Hi,

I'm reading Come Into My Trading Room by Elder and he mentions picking no more than 24 stocks so you are able to track them day in day out. He suggests picking two or three currently hot industries and selecting 6 stocks in each of those industries. 'Thats where you'll find the highest volumes, the steadiest trends, and the crispest reversals.'

I'd be grateful if somebody could point me in the right direction with regards to which industries are hot and somewhere I can compare the volumes. I'm based in the UK if that makes any difference.

Many Thanks
Depends on how much action you want and whether you prefer the "buy new highs" approach or bottom-fishing. Bottom-fishing requires far more patience, but you may not want to monitor your commitments on a continuous basis.

In any case, I suggest you look at the sector comparisons at StockCharts:

265159


As you can see, Energy is and has been bouncing along the bottom. Utilities and Real Estate occupy the top levels. If you particularly want to buy stocks, you can flip through the stocks within each sector. However, this will entail flipping through hundreds - or thousands - of stock charts. You can reduce this number somewhat with filters, but you can also simply buy the sector as an ETF, e.g., XLE for energy. As always, it pays to know exactly what you're looking for in order to increase your chances of finding it.

Db
 

fibo_trader

Legendary member
5,936 90
Hi,

I'm reading Come Into My Trading Room by Elder and he mentions picking no more than 24 stocks so you are able to track them day in day out. He suggests picking two or three currently hot industries and selecting 6 stocks in each of those industries. 'Thats where you'll find the highest volumes, the steadiest trends, and the crispest reversals.'

I'd be grateful if somebody could point me in the right direction with regards to which industries are hot and somewhere I can compare the volumes. I'm based in the UK if that makes any difference.

Many Thanks


Crowd thinking, everyone going after the same stuff. the correct answer is most likely the opposite. go where nobody is looking

If your London FTSE trend is up, track the biggest losers. Why? Because they are only losers in the eyes of the idiots - they are actually generally winners that are just going thru' the normal business of correcting in an uptrend. These are intermediate level corrections you will find in the zone of 50%. These are the ones to buy and ride them over the top to 161.8% of the overall drop from high. Nobody is looking for these.
 

Malordana

Junior member
49 2
In general, such a hike has its advantages because it makes no sense for you to grab every deal and every share, because this way you will only spray your attention. But it will only take you a huge amount of time to analyze. It's not the best approach. That's why to concentrate on the weekend positions, you should analyze those assets that give the most profitable movement potential at the beginning of the new month. For example, the most profitable movement on Tesla is observed in those months when they present a new model of their car or present an unusual project. And such moments can be traced in relation to any asset and any stock, so make sure you analyze and predict your actions before you start trading.
 

Dujin333

Junior member
23 1
Well, that definitely makes sense, because you can only hire all the shares in a row if you work during the quarterly reports. During this period, the market situation is really quite profitable, which means that you can really take any asset, analyze the official figures and earn money. If we talk about an ordinary monthly plan, then you really should choose only those assets that will give you enough opportunity to earn. But I would choose 24 shares only if I work exclusively with shares, but if I only want to include a few of these assets in my investment portfolio, then I would limit myself to up to 5 most profitable positions to test whether it suits you or not, and not to be left completely without profit.
 

Gavin_ron

Junior member
24 0
Whatever stocks you pick, pick the ones you understand properly, don't just follow the herd blindly
 
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