Day traders' weekend lounge February 19 - 21, page-167

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    How to identify stocks that may have a good run in the near future (my time-frames 1 month upto 4 years depending on the stock) is the question I guess, so let me try & answer that.

    First of all, I come from over 18 years of business consulting experience where I have worked with some of the largest and globally widespread businesses like Coca Cola, BHP, Unilever, CSL, Aramco O&G, Australian Defence, Fonterra & many more...my experience gives me an ultra-edge over others when it comes to identifying & picking businesses especially those that may have a positive future outcome hence its more of my experience & background that helps however if I have to try & break the basics, I look for:

    1. Sectors which are either currently in demand or going to be in demand in the future (ex. O&G, EV, AI/ VR/ AR tech etc.)
    2. Look at the Company's offerings, either products or services (thru ANN's) then work out if those products or offerings are or will be:
    a. required (high demand) in the market now or in the near future (also add future economics & technological perspective like the world may soon need Oil as soon as global travel starts, EV, clean, green, low carbon is the new gold in 2021!)
    b. if yes, what could be their market penetration (the bigger the potential penetration in the global markets the higher the conviction & possibility of bhags or bigger the success!)
    c. how likely are they to succeed in their endeavor (based on how far they have come, business strategy, Mgt delivering etc)
    d. Check their shares on issue (I personally don't invest in anything over 4 or 5 Billion shares on issue), the lower the shares the better the run & bigger the bhags (examples: VUL, EGR, RAN, EMN etc.)
    e. Finally, when all the above ticks & I decide to buy then I look at the charts to identify whether the stock has consolidated, what are its recent volumes, is there an obvious support range etc. (btw I'm not a TA expert) & then buy around the support range BUT very important to incrementally buy. For ex, if your target is 5k then probably start with a 2k parcel and then add-on as it runs over a period of time say 1-2 months based on how good they perform.

    Okay the MOST IMPORTANT aspect of my style of investing is "you have to have the belly to hold your champions through their thick & thin" Market will test you very harshly with red days, stock going red, sold down etc...relax & trust your conviction & research. Best examples: PUR was down to less than 3c few days ago many nervous retail jumped-out! PWN was down to 1.4 just a day go & then the next day!!!

    If your sizing is not HUGE & you have entered at a decent base price then market red days or corrections won't bother or stress you...Infact I'm buying on market red or correction days, contrary to many others as I hold the long-term view that good stocks will eventually go up! ;-)

    I am neither a stock market FA expert nor a TA expert these are just my own views & not an advice, I could be very very wrong like most others here hence please always DYOR b4 investing!
    Last edited by ozziesap: 20/02/21
 
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