Novice traders start their analysis with a “hot” stock. They read a headline, they look at the chart and they are “good to go.” A few days later, they wonder what went wrong. If this sounds familiar, stop that routine. Go back to step one and learn how to “read” the market. This section is for those of you who have a firm market opinion! We’ll show you the characteristics that make a stock attractive. Relative strength is a key component because it is a sign of institutional buying and we want to “follow the money.”
We exclusively use technical analysis to evaluate stocks and there are many properties that we search for. They keyword in the last sentence is “search.” Our search engine is like an online dating service for stocks. The more checkboxes we mark, the more likely we are to find the right mate.
In this section we are going to describe the most desirable stock characteristics and how to find them quickly. Once you’ve mastered the first two steps of the process, you don’t need to go any farther – you can just trade stock!