I was given $100,000 and 3 months. Competing against all the Economics students in the county. My 11th grade Economics teacher, Mr. Leviton told the class,
“The best strategy I’ve found due to our limited amount of time, is to find stocks trading around $5 in an upward momentum trend, and to go all in. Chances are, one of you will pick the golden ticker. Whoever has the biggest portfolio value in 3 months will get an all expense paid trip to New York and visit the New York Stock Exchange.”
I will never forget this experience. After a few hours of looking through pages of penny stocks, I purchased $100,000 worth of $VISN (and a couple other stocks) in September, 2013 for $2 per share. The following week, $VISN went parabolic and shot up to $12 per share! I was ecstatic! Sitting in class, looking at the projector display:
1st: Tony Tran ___ … ___ : $380,000
After sitting in class, and being forced to listen to how I should close all my positions and sit on my winning for the next 10 weeks, I returned the following week with a portfolio value under $100K… Yup, I started gambling around and blew up my portfolio, and my chance to go to New York, all expenses paid.
So how did I end up buying $VISN?
Barchart is a great tool to find top performing stocks based on many factors: momentum, technical, fundamental, volume, weighted alpha, beta, etc.
It’s also a skill that can be practiced on: the skill of picking your own stocks based on your trading goals and strategy.
Too many traders these days follow groups and forums, to find out about what stocks are hot to trade, when in reality, most of these “hot stocks” being mentioned in these groups are already played out, and/or the ones who are promoting these stocks are holding them at a loss and need new buyers in hopes of running the stock price high enough so they can get out.
Be your own manager, stay away from crowded “hype” stocks, and pick your own. Develop a strategy/style that suits you, and over time you can perfect it and make consistent, lasting gains.
Weekly challenge: Surf around Barchart this week, and play around with the search criteria and pick a stock or two and post them up in the Matrix, with a short reasoning why you picked it.
I hope over time, you will begin to see there are these reoccurring patterns, and it’s not as hard as you once might have thought it was. Who knows, maybe you’ll find your golden ticker.
P.s: Finviz is a great tool as well.