PROFIT PICKER -Which Stocks To Pick For Good Profit
Knowing which stocks to pick for good profit becomes easy with my Profit Picker trading strategy. Take a look at the return of these three stocks. A 34.05% average gain made in one day (September 13, 2013). So how did I know which stocks to pick for good profit?
LAKE up 34.94% today!
NURO up .54% today!
I first look at which sectors are hot by going to this page on the Finviz website.
Look at the 1 month and 3 month to see which sector has been hot lately. On November 14, 2017 it looked like this:
Technology was second for 1 month performance and first for 3 month. That is the hot sector right now.
Find A Hot Industry
In Technology you’ll find Internet providers, storage devices, semiconductors, and long distance carriers. Since this is a hot sector, all these industries within that sector are booming, and they all need equipment and supplies. So instead of trying to guess which of the industries will be hot next, go with the industry that will supply the winner no matter which industry it is. Make sense?
So that leaves us with Semiconductor Equipment and Materials.
Next you want to go to the menu on that website and click Screener. On the screener page, input your hot sector, input the industry that supplies all the other industries in that sector, and the website should update with all the stocks in that industry.
Now follow this thinking for a moment. When a sector gets hot, usually the best stocks rise and the rest get left behind. Then after awhile, investors feel the top stocks are too expensive. They’ve gained too much. So they start buying the laggards. Even if the company is bad, they will buy it. They just have to be in that sector. We’ve seen this recently with Real Estate and Financials.
How To Tell Which Stocks To Pick For Good Profit
So what you want to do ideally, is find which of the stocks have done worst in the past 3 to 6 months and invest in those. When the crowd comes, they will push your picks up and you’ll make some good profits.
Click on Perf Quart write down the top 3 stocks. Do the same with Perf Half. Take the stocks that are on both of your lists and remove any that does not average at least 100K shares traded per day.
Any stocks remaining should be the picks you are looking for. A final elimination would be to look at the news for the stocks remaining. If the company is being sold, skip that stock.
Before you run with this, do some of your own testing. Good luck and hopefully you will now understand which stocks to pick for good profit. Don’t expect returns over night, but give a month or two for others to get in and push you up.