"Technically if you scan up a list of stocks, some will be 4 baggers others will go up slightly and some will be pure crap. Does anyone have a technical method of chosing the better (potential) stocks from the list...... or is it just a lucky dip ?"
Why lock into a technical scan followed by another technical filter?
Sure first a technical scan, but then follow up with a fundamental scan.
A mix of methods is often very powerful.
funnymental analysis doesn't guarantee capital growth, nor does ta by themselves.
BUT, if you combine solid fa AND do a cultural analysis as well then combine it all with ta for entries and exits - particularly in small and medium stocks - what you end up with is a very short list of solid undervalued companies - who you can actually speak with over the phone and personally - giving you great insight into the business and it's people.
Wouldn't that be preferable to stumbling around in the technical blackness like most other short term traders who consistently lose money - often their whole stake?
ok, if you think there might be some merit in that - then you could add this in ----------
once you have your very short list of companies picked ------------ STAY IN CASH! Why? Because on average at the moment through disasters, gfc's, flash crashes, bots blowing up - for whatever reason - the world thinks it is going to end on average about 4 times a year.
This is going to continue for quite a while.
Why not wait until then - pick a price that your short list will be bargain basement at and have an order in ALL THE TIME ready to go at silly prices. It can be done - supervisors can overide phone operators who refuse to place the order (because it's too far away from the market). or you can get some brokerages to take orders a long way from the price - Bell direct is pretty good from what I hear.
This method takes some research and then I am sorry, it takes a lot of patience and definitely is NOT fast and pacy like short term trading - in fact is is boring as batpoop -- but it makes serious money ---------- as long as that is your objective - where's the problem.
If you find it too boring and want something more racy - then you should probably seriously think about whether or not you should really be an investor.
