This Trend and Momentum Strategy advances over four sequential Domains
The Magic of Screening
It all starts with guiding you in screening trending sectors and industries for momentum. The premise is that surging stocks are driving these industries to rise. You will then discover the most opportune stocks in these rising sector/industry groups, based on the stocks’ descriptive, fundamental, and technical criteria. This is to avoid any haphazard stock picking.
1. Sectors & Industries
Screening begins with the selection of one to three promising sectors and their industries.
- Sectors and industries categorize the stock market (GICS).
- Winning stocks will likely be found in winning industries.
- Save your screens for future use.
2. Descriptives
We then use Descriptives to filter out currently uninteresting stocks.
- Do not apply any criteria too narrowly.
- Fundamentals will cast a tighter net.
- Use our default recommendations to get started.
- Modify our defaults at your convenience.
3. Fundamentals
Fundamentals then indicate which stocks are suitable for investing and/or trading.
- Buy-and-hold investors may play here, but they may not go so far as to consider technicals.
- Yet, too many novice traders buy without considering Descriptives and Fundamentals.
- It pays to learn the basics.
4. Technicals
Technicals then reveal whether or when it is opportune to buy or sell any of the stocks.
- This is where the game plays out for trend and momentum traders.
- Recognizing setups based on indicators and price action can be learned.
- We recommend keeping things simple and uncomplicated.
After you have acquainted yourself with basic stock screening techniques, you are ready to trade for profit.